Public CompanyIncorporated: 1898Employees: 1,258Sales: $173.3 million (1997)Stock Exchanges: brand-new YorkSICs: 5399 Miscellaneous basic Merchandise Stores

L. Luria & Son, Inc. Is a century-old, Florida-based retailer the jewelry, gifts, housewares, and also electronics. Jewel sales account because that 44 percent of Luria’s sales; table items, giftware, clocks, and the like account for 38 percent; and consumer electronics, consisting of cameras and also home office equipment, and housewares, consisting of luggage and furnishings, make up the rest. In its at an early stage history, Luria operated as a basic merchandise wholesaler and a magazine showroom chain. After experience a switch from magazine showrooms to client self-serve operations and also closing numerous of its less abundant stores, the Luria’s chain consists of 28 huge superstores transparent Florida. The company’s central distribution facility is located at that is Miami Lakes headquarters. Although Luria is publicly traded, majority interest in the firm is own by s Reef Management, one investment agency controlled by brothers Rachmil and also Ilia Lekach.

You are watching: Luria's jewelry store

In many ways, the history of Luria mirrors the standard story of immigrant success in twenty century America. Agency founder laser Luria started the company humbly in 1898, hawking silver on the roads of the Lower east Side that Manhattan. Ten year later, his son, Philip Luria, opened the company’s very first permanently-situated store, a small wholesale shop ~ above Broadway. After ~ Philip Luria passed away in 1911, his son, Joseph Luria, managed the growing wholesale business over the next couple of decades. In addition to silver, the agency started dealing in radios, toasters, and also other family items. The Luria family company quickly ended up being a significant supplier to sleeve outlets as discount stores and department stores proliferated.

The 1940s-1960s: Southward Expansion

By the 1940s, the agency had increased southward, opening outposts in Atlanta, Georgia, and Miami, Florida. Approximately this time, Leonard Luria, Joseph’s son, began to share responsibility for running the business. Back the South later on proved to be the company’s destiny, the move seemed imprudent initially. Since Luria’s shipping facilities were slow and also out-of-date, the cost advantages of wholesaling were eventually lost to the retailers, who might move an ext quickly. Through profit spare part eroding rapidly, the firm was required to shut under its Atlanta operation in the 1950s.

A lot bigger blow come in 1960, once years of heavy losses forced the closure of Luria’s flagship new York operations. The Miami place had came to be the sole area that operation. By the center of the 1960s, Leonard Luria, currently in fee of the company, experienced that the old-style of wholesaling to be going the way of the dinosaurs. Exhausted of the problems linked with collecting indigenous the shop he supplied, and the stubborn competition from new wholesalers, he decided to refocus the firm on jewel retailing. His decision saved the family members business.

In 1964 Luria converted part of the Miami wholesale outfit right into a sleeve operation, native which he marketed jewelry in addition to the wares the was already peddling. In stimulate to an ext effectively deal in diamonds and also other valuable stones, that bolstered his expertise with courses in gemology. In 1967 Luria prepared and also distributed a modest retail catalog, the company’s first. It was together a brochure showroom that Luria’s make its name over the following decade.

The eight of the 1970s

During the 1970s, in its entirety catalog sales in the United says swelled indigenous $1 billion to $7 billion. At the very same time, growth of the Florida population was exploding. The mix of those 2 factors added to huge growth because that Luria. In 1970, the company’s last year as a wholesaler, Luria’s sales were $2 million. Ten years later, the agency had annual revenue the $76 million. The very nice of directory showrooms come from the convenience of prepared merchandise they offered to customers merged with the short overhead expenses for the firm because lock operated favor a warehouse. At a time when brochure showrooms appeared to be popping up on every square inch of obtainable real estate, Luria regulated to differentiate itself by emphasizing high-priced gold and also diamond jewel and—perhaps through a nod to company founder lazer Luria—silver. The company also brought standard showroom fare such as cameras, housewares, and also electronics, though it had tendency to protect against items like sporting goods and also toys, i beg your pardon yielded lower profit margins.

By 1976 Luria activate eight brochure showrooms across Florida. By this time, jewelry and silver accounting for about 40 percent of the company’s sales. Vain soon became stiff; over the next pair of years two of the bigger catalog showroom outfits, ideal Products and also Service Merchandise, began to hone in ~ above Luria’s Florida territory. To fend off its competitors, Luria required to begin its own expansion. The needed capital came indigenous a public offering of stock in 1978, which increased money however left the Luria family holding the bulk of the stock.

In despite the of fierce compete in the Florida’s brochure showroom business, Luria managed to more than host its very own over the following several years. Between 1978 and 1982 the number of Luria outlets flourished from eight to 21, and firm sales were hovering roughly the $100 million mark. Luria ongoing to differentiate itself native the vain by maintaining its emphasis on higher-end goods like jewelry. The firm also advertised aggressively top top television, radio, and also in print. Another area in i m sorry Luria seek to distance itself native its competitors was in service. If sales personnel at other showrooms were few and far between, Luria seek to do itself an ext like a department store, so the a client needing sales assist could uncover assistance quickly. Through 1983, through sales at its 26 Florida outlets totaling well over $100 million, the company continued to outperform the competition.

Competition indigenous Mass Merchandisers in the 1980s

During the mid-1980s, the directory showroom market hit difficult times, together competition stiffened not simply from within the industry, yet from wild pricing on the part of room stores, fixed merchants, warehouse clubs, and also other retailers. However while the peak three showroom chains—Best Products, consumer Distributing, and Service Merchandise—all showed decreases in revenue in 1985, Luria regulated to rise its profits 24 percent come $6.8 million, on sales the $145 million, a 17 percent increase from the previous year. Component of Luria’s success had actually to execute with the company’s eight percent operating margin, the highest possible in the industry.

By the finish of 1986 Luria operated 37 stores. The agency continued to grow in the confront of difficult times transparent the industry. The an essential lay in Luria’s capacity to maintain focus on jewelry, i m sorry accounted because that over 40 percent that sales. Electronics, in ~ 21 percent, and housewares, at 17 percent, consisted of most of the remainder. After year of steady, if not spectacular expansion, the company began come slow, yet not stop, the rate at i beg your pardon it to be opening brand-new stores throughout the mid-1980s. Luria additionally began to build up its ranks of center managers. It also revamped its save design, making castle a tad more upscale in order come emphasize also further the upper-end items that offered.

Luria started opening a chain of jewelry stores in malls, under the name Luria’s fine Jewelry, in the so late 1980s. By this time sales, still largely generated by its magazine showrooms—which were mainly located in strip malls in major cities—were exceeding $200 million a year. As various other showrooms ongoing to struggle and fail in droves, Luria completed a three-year program, with the aid of an exterior consulting firm, aimed at maintaining the agency on track for further growth. Prices were cut, unprofitable product categories were discontinued, and technology was updated, consisting of the enhancement of point-of-service terminals, a brand-new financial report system, and a new jewelry list system.

Luria unveiled its brand-new showroom prototype in 1988. The new showrooms were designed to generate $6 come $12 million in sales per store, compared to the $4 million level provided in the past. By this time, the company had 43 showrooms, quiet all situated in Florida. Meanwhile the firm shortened that is catalog and also shifted the saved money into promotion, and also its advertising initiatives were veering far from television, much more toward newspapers and direct mail.

New Directions because that the 1990s

Even in 1990 as soon as the agency was a 52-store empire, Luria was really much a family business. Despite traded ~ above the new York share Exchange, the company’s peak executive photo looked an ext like a household photo. Peter Luria, firm president and chief operating officer, represented the fifth Luria generation to run the company. His father, Leonard, remained chairman that the board, chief executive, management officer, and treasurer. Other family members members associated included vice-president of real estate Henry Luria, Peter’s brother; and Peter’s sister, general counsel Nancy Luria Cohen.

As the 1990s began, the re-superstructure of Luria’s revenue produced by jewel sales fell listed below 40 percent for the first time as the company expanded its focus on housewares, such as the 20 different coffee-makers the shop carried. Nevertheless, the company continued come emphasize items because that the middle- to upper-class customer, and also customer business remained a higher priority than it to be for various other companies in the showroom business.

Mother Nature gave Luria an chance to totally shift gears as soon as again in 1992. As soon as Hurricane Andrew demolished 3 Luria stores, the firm decided no to just rebuild them as they were. Instead, the firm used the unanticipated devastation to water level in however another new store prototype. Fairly than veering toward the department save model, as did the previous design, the new store prototype more resembled a mass merchandise superstore. The brand-new design inaugurated the company’s transition from traditional brochure house to what it now dubbed a “specialty discount store.” while Luria formerly had much more sales aid in each save than most of its competitors, the would now be greatly self-serve. In fact, to buy carts were existing for the very first time in agency history. When jewelry and electronics ongoing to be heavily represented ~ above Luria’s shelves, there were now many more less high-quality housewares and even some toys.

Luria added two superstores in 1994, happen the total variety of superstores to nine (out of 50 full outlets). The new concept continued to evolve, featuring “department store merchandise in a specialty environment,” with the focus on worth for surname brand items. Despite the initial promise of the new mass goods format, Luria’s sales dropped flat as the 1990s continued. Through sales slumping bad in 1996, the 73-year-old Leonard Luria decided to retire, and also the Luria family members sold its 25 percent regulating interest in the agency to ocean Reef Management, a firm formed by brother Ilia and also Rachmil Lekach.

The Lekach brothers, Russian immigrant who had actually arrived in the United says in 1970 ~ spending 14 years in southern America, were, together with a brother-in-law Simon Falic, the major stockholders and high-ranking police officers in two perfume enterprises—Perfumania Inc. And Parlux Fragrances. The salvation of Luria gave the Lekachs access to a strong network of brand-new outlets for the perfumes made and also distributed by Parlux, which had such famous brands as Perry Ellis and Fred Hayman Beverly Hills.

Under the Lekach brothers, Luria’s stores underwent yet an additional transformation. Perfume and also cosmetics counters were added, and also the switch of the entire chain right into jewelry, gift, and also houseware superstores to be completed. In January the 1997, the company closed and liquidated 17 that its worst-performing stores, leave a main point of 28 stores in place. Further cost-cutting procedures followed, consisting of staff reductions and also supplier contract renegotiations. Luria also raised cash by marketing its corporate headquarters/warehouse facility. For fiscal 1997, a year of turoulend change, the agency lost virtually $21 million top top sales that $173 million. Luria approached the 100th date of birth in leaner—and, the Lekachs hope, meaner—form. Luria’s performance during the earliest part of its 2nd century of operation will price one attractive question: did the magic that fueled the company’s collection of successful redesigns leave in addition to the Luria family’s jae won interest, or did it Stick approximately with the family’s name?

Further Reading

Byrne, Harlan, “Showroom Operator look at Promise in new Jewelry Chain,” Barron’s, February 20, 1989, p. 36.

Gordon, Mitchell, “Sunny Showrooms,” Barron’s, September 22, 1986, p. 49

Greenwald, Judy, “The an individual Touch,” Barron’s, august 9, 1982, p. 46.

Hisey, Pete, “Luria Make offer for best Products,” Discount save News, September 16, 1996, p. 8.

——, “Rainbow ~ the Storm: Luria Reinvents Itself,” Discount store News, January 4, 1993, p. 7.

Hunter-Gadsen, Leslie, “Luria’s location in the Sun,” HFD, July 23, 1990, p. 57.

“L. Luria & Son: A Cataloger whose Profits enhance Its Classy Image,” business Week, July 11, 1983, p. 98.

“L. Luria & Son: Hitting that Stride Again,” Chain keep Age, January 1988, p. 138.

Matas, Alina and DuPont, David K., “New Owner of L. Luria & Son renders Bid for Jan Bell Marketing,” Miami Herald, October 23, 1996.

Poppe, David, “A scent of Trouble,” Florida Trend, October 1996, p. 68.

See more: A Short Analysis Of Wordsworth’S ‘ She Dwelt Among The Untrodden Ways Meaning

“A move in Time,” gaue won World, may 15, 1981, pp. 65–66.