Ratners are not interested in special offers or gimmicks. We don’t feel it is
the correct way forward for jewellers.We don’t feel it does them any credit
and it does not improve credibility as far as the general public is concerned.
I think they expect more than that from jewellers. We will operate under
more than one name, but as a force we will be unbeatable.The first significant acquisition, in December 1984, was Terry ́s, a chain of
26 stores selling fashion jewellery in the South East, with a reputation for
being highly competitive. The Terry’s format was adopted by the Ratners
Group, surviving until almost 1989, when Terry Jordon, the previous
owner, retired. Using the Terry’s formula the company started to address
the problems they perceived in the industry. Outlets were made more invit-
ing to make the customer feel more comfortable and the product was
offered cheaply with no frills. The Ratners Group started to move down-
market; the range was made more fashionable and keener priced to attract
the younger generation. The range still consisted solely of real jewellery
but it was recognized that this section of the population would increas-
ingly have the highest spending power as the decade progressed.
Correspondingly, the average age of staff was reduced, particularly in
Ratners and Terry’s branches, and a fashionable image was considered
very important. Incentive payments became the norm: bonuses and merit
payments were made every eight weeks to top branch managers, who
were encouraged to spend more time selling rather than administering.
Ratners solved the problem of store branding by giving the impression
of a permanent sale. Shop fronts were continuously covered with posters,
emphasizing price, money-back guarantees, price matching and credit
terms:^4 ‘Price is crucial. Image isn’t. You can’t sell a new logo or colour
scheme.’ New store designs were, however, taken very seriously. Detailed
full-size mock-ups were made in a warehouse, approved, photographed
and passed to every store manager for implementation.
Costume jewellery increased in importance throughout the decade,
with increasing awareness of dress coordination down the age range.
Initially the effect came in the lower price ranges but later higher
prices were also being realized. The tastes of the Princess of Wales and
Joan Collins helped to create an additional upmarket fashion jewellery
sector in which, by 1988, prices of £300 were not uncommon. This
new sector attracted department stores and successful new players such
as Next, Miss Selfridge and Top Shop, together with specialist
accessory stores such as Salisbury’s, Torq and Cio, who recognized brand
opportunities.
A new segment of the market was being created and at the lower end of
the range impulse purchasing became a reality, with the product being pro-
moted as an everyday, disposable fashion accessory. The ‘flash for cash’
image was born, as cheap imports were used to keep prices down, partic-
256 Relationship Marketing