US-based online diamond jeweler Blue Nile is opening more brick-and-mortar stores in 2016, after tasting success with its first store, which the company opened in New York in June.
The latest development from the Seattle-based retailer was announced by Blue Nile CEO Harvey Kanter during the company's quarterly earnings announcement.
Harvey Kanter was quoted by mining.com as saying: "For the first time in our history, we opened a freestanding physical location where shoppers can try a jewelry in person, browse our entire selection using an in-store iPad and speak to one of our non-commission diamond jeweler consultants face-to-face."
"What we are not going to do is open stores, Web Rooms for the sake of opening. We are very exacting in what we believe are the critical requirements and we want to see if we can replicate the success of the first Web Room concept materially, it's in the same regard of the financials."
The first store in New York allows shoppers to try on jewelry and look through its selection range on an in-store iPad with the help of consultants. The CEO said that this model carries advantages such as low overheads, no pressure as it would be customer-first experience, and so far it has gone beyond management's expectations, Diamonds.net reported.
The expansion plans come amidst the company's third quarter results wherein the retailer reported 4% increase in net sales to $109.9m compared to $105.8m for the third quarter last year.
The company's operating income for the quarter was $3m, representing an operating margin of 2.8% of net sales, compared to $2.6m in operating income and 2.4% operating margin for the third quarter 2014.
Its net income was $2m, or $0.17 per diluted share as compared to $1.7m, or $0.14 per diluted share for the third quarter 2014.
