Independents

About Retail: Keeping It All in the Family

IndependentsApr 21, 2017

About Retail: Keeping It All in the Family

R.F. Moeller Jeweler is transitioning to the next generation of leadership. Here’s how the family made the deal come together with minimal angst.

20170420_Moellers.jpg
Many Moellers, from left to right: Mark; Abby and her husband, James; Linda, who is married to Bob; Bryan; Nancy, who is Mark and Bob’s sister; Carol, who is married to Mark; and Bob. Not pictured is Kelly Moeller, Bryan’s wife.
Saint Paul, Minn.--Many jewelry store owners are reaching retirement age and are faced with the same question that Mark Moeller, who has been running his family’s Minnesota jewelry stores for more than 40 years, recently had to answer.

Do I want my business to continue to exist? Or do I want to sell it and not worry about it?

Mark Moeller opted for the former, and now is passing R.F. Moeller Jeweler, which has stores in Minnesota, Saint Paul and Edina, down to his sons, Brian and James, and his brother, Bob.

Here’s how the family made the deal come together while preserving their personal relationships.

From Fun to the Family Business
Mark Moeller, by his own admission, didn’t really have much direction after high school. He was attending college, pursuing a liberal arts degree and, he says, “having fun.”

But Mark’s course changed when his cousin who was working at the family store got drafted for Vietnam and Mark was asked to fill in.

Mark took an interest in jewelry design and gemology, and he never left. “At that time, my fate was fixed,” he says.

Bob, who is younger than his brother by 16 years, followed Mark into the family business about two decades later after the unexpected death of their father on Dec. 23, 1990, at the age of 67.

He was 23 years old at the time. Mark asked him to come into the business and try it for a year and, just like his brother before him, it was a quick, temporary change that became permanent.

“This business gets in our blood, so I stayed,” Bob says. “It’s great.”

Fast-forward a little and you’ll find both Mark and Bob still running the family jewelry store but beginning to formulate a plan for the elder brother’s eventual exit.

Everything Is Not Fine
Mark had been adamant about the importance of having a solid succession plan well before it was his time to think about retiring.

He says that in 1988, he told his parents that they had to put a plan in place for their exit from the business. Their response to this was, “Why?”

“They didn’t want a plan in place. They thought everything was fine,” he says. 

Bill Boyajian, a former GIA president who now acts an industry consultant whose specialties include family transition and succession planning, says this kind of reaction is not uncommon among people  of that generation, the parents of the baby boomers who are in their 80s and 90s today.  

“It’s what I would call the generation of traditionalists. The baby boomers’ parents never let of the business. (Their attitude was), ‘What do we need a succession plan for because he’s going to get the business?’” he says. “That’s not a succession plan.” 

Bill Boyajian worked as a consultant on the Moeller family transition, traveling from California to Minnesota to meet all the members of the family.
Bill Boyajian worked as a consultant on the Moeller family transition, traveling from California to Minnesota to meet all the members of the family.

Mark says in his case, he believes it was a control issue, meaning his parents did not want to cede any by elevating him from a salesperson to an officer of the company. The issue got so contentious that he nearly left the family business.

Though his father eventually sat him down and they hammered out an agreement before his untimely passing in 1990, Mark wanted the process surrounding his own exit from the family business to be less fraught.

He knew what else he wanted too: to see the family store stay open; to get enough money out of the business so he and his wife, Carol, could live comfortably without leaving his brother and sons in a precarious financial position; to still be involved in the aspects of the business that he genuinely enjoys; and to have an agreement hammered out that would kick in around the time he turned 65.

But he, too, would have to learn a lesson in letting go for it to happen.

The Plan
The Moeller succession plan started out with a present.

Mark and Carol gifted 49 percent of the business to their sons and Bob, a gift that came with an enormous tax break for them.

After breaking up the business via this gift, the Moellers had their three-store operation evaluated again and reached an agreement that Bob, Brian and James would buy out Mark’s remaining share in the company over a period of 10 years, beginning Dec. 1, 2016.

During that decade, he remains under contract to the store. He can come and go as he pleases--and, these days, his pleasure is to spend the winter months far away from Minnesota--but still handles certain tasks. These include negotiating with the bank and insurance company and being involved in the purchase of larger diamonds and in the store’s antique and estate jewelry business.

The R.F. Moeller Jeweler store in Saint Paul, Minnesota
The R.F. Moeller Jeweler store in Saint Paul, Minnesota

Carol, who has been part of the family since 1974 and worked at the store since 1983, still does the company’s human resources but also has more freedom in her role. She does it remotely from Florida in the winter, and while she still comes into work every day when she’s in Minnesota, she’s working shorter hours.

Bob, Brian and James have ownership but they don’t have complete control until the buyout is complete in 2026, with Mark retaining controlling interest in the voting stock of the business until he’s fully paid off. In addition, ownership of the business cannot pass beyond Bob, Brian and James during the next decade.

Reflecting on the process via telephone from his winter home in Florida, Mark says, “I don’t think it was contentious at all,” which is, ostensibly, just what he was looking for after what we went through with his own parents.

Egos Aside
The Moellers, who were interviewed together for this story, and Boyajian all agree on the factors that made the process go smoothly. 

The parties involved were able to, number one, put self-interest and ego aside and do what was best for the business overall. 

Boyajian says Mark learned to trust him, trust the process and let go. The family patriarch had to get comfortable with the idea that he was no longer the kingpin, and he did. 

Brian, who at 39 is the older of Mark’s sons, also mentioned his father’s focus on longevity of the business, not how much money he could get out of it. Bob echoed that idea, noting that Mark and Carol “did not get greedy.” 

From Mark’s perspective, “I wanted to make sure the balance sheet wasn’t affected so that their ability to borrow money wasn’t affected by their buying out Carol and me.” 

“These decisions, if you take time and think about them, are pretty simple,” he says. “That is the key--not being greedy.” 

And both Brian and his younger brother, 36-year-old James, credit their Uncle Bob, 49, with treating them as equals even though he’s been in the business a lot longer than they have. 

Bob says he’d rather work with this two nephews--who bring fresh ideas and a younger person’s perspective--than try to do everything himself. 

“Marriages just don’t break up. They erode slowly over time … The same thing is true in partnerships, and the same thing is true in family businesses.”--Bill Boyajian
 
Another factor that helped the Moellers move the business to the next generation was their willingness to ask for help.

Mark says they worked with a few very good consultants along the way--chief among them Boyajian, who was a “tremendous help” and a “team builder.” Bob stressed the importance of having a great accountant involved. In their case, it was their in-house chief financial officer. 

For his part, Boyajian says he approaches the family transitions he’s hired to consult on like a counselor. He likes to get to know each member of the family personally and understand what motivates them. 

He also encourages the family members to get to know each other better.

With the Moellers, he had Bob start going out to breakfast with Brian and James once a week. 

These weekly meetings get them out of the store and give them the chance to talk offline and develop a relationship. Even if one of them is out of town, the other two still get together. 

Boyajian says he looks at the relationships within family businesses through the same lens he views marriage, and if there’s one thing he knows after 37 years of marriage, it’s that two people can always get closer.

“Marriages just don’t break up. They erode slowly over time. Then, suddenly, one thing happens and that’s the straw that breaks the camel’s back,” he says. “The same thing is true in partnerships, and the same thing is true in family businesses.”

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Cast Issa Rae
MajorsJul 01, 2025
Cast Closes Business, Plans for Relaunch

The jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.

Eve Goldberg, Matthew Denatale, Willie Lopez, Benjamin Goldberg
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship Program

The company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.

Claire’s store
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report Says

The jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Mindi Mond Spike Earrings
TrendsJul 01, 2025
Amanda’s Style File: Red Hot Rubies

Welcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.

Weekly QuizJun 26, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
The Story of Everything Campaign, Toadstool Mushroom and Cosmic Egg
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’

Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.

Smart Age Solutions CEO Emmanuel Raheb
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry Sales

The best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Morgan Keefe
Events & AwardsJun 30, 2025
AGA Names Recipient of 2025 Gemological Education Scholarship

This year’s winner is Morgan Keefe, who is currently studying at GIA to be a gemologist.

Gemist
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech Platform

The company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.

Jeff Preolo, David Stout, Levi Higgs, David Benavides
IndependentsJun 27, 2025
David Webb Announces New Hires, Promotions

Following its recent acquisition, the storied brand has updated its leadership team and regional managers.

Blake Graham and Jessica Kohoutek
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner

AGS also named the recipient of its “Women in Leadership” scholarship.

Buddha Mama Monstera Ring
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap Ring

The 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.

Cashier handing Rocksbox bag to customer
MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers Downsizes

Rocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.

Penny Ruston
IndependentsJun 26, 2025
Penny Ruston Dies at 80

The creator of the WJA Chicago chapter is remembered as a champion for women in the jewelry industry and a loving grandmother.

Stock image of woman shopping
SurveysJun 26, 2025
After Recovering in May, Consumer Confidence Dips in June

The decline was consistent across age groups and almost all income groups, with tariffs and inflation still top of mind.

Sorellina Playlist: Electric Dreams Campaign
CollectionsJun 26, 2025
Jam Out With Sorellina’s Jimi Hendrix-Inspired Jewels

The “Playlist: Electric Dreams” collection brings lyrics from the musician’s song, “Little Wing,” to life through fine jewelry.

The Jewelry Symposium event
Events & AwardsJun 26, 2025
The Jewelry Symposium Is Looking for Speakers for 2026 Event

The event is set for May 16-19 in Detroit, Michigan.

Exterior of Marissa Collections’ new store in Nantucket, Massachusetts
IndependentsJun 25, 2025
Marissa Collections Opens in Nantucket as Legal Fight Continues

The Vault’s Katherine Jetter is accusing the retailer of using info she shared for a potential partnership to move into Nantucket.

Counterfeit Cartier “Juste Un Clou” bracelet
CrimeJun 25, 2025
Customs Nabs Another Big Shipment of Fake Cartier, Van Cleef Jewelry

Agents seized 2,193 pieces, a mix of counterfeit Cartier “Love” and “Juste Un Clou” bracelets, and Van Cleef & Arpels’ “Alhambra” design.

Karine Choudhrie Big Splash Circus Starfish and Lantern Fish
CollectionsJun 25, 2025
Splash into Karina Choudhrie’s Collection of Underwater Circus Performers

The designer brought her children’s book, “The Big Splash Circus,” to life through a collection of playful fine jewelry characters.

Jewelers of America
Events & AwardsJun 25, 2025
JA Announces Impact Initiative Fund Recipients

The trade association has chosen the recipients of the funding initiative it formed to foster the growth and sustainability of the industry.

John Dyer Montana Sun Sapphire
SourcingJun 25, 2025
2025 AGTA Spectrum Awards Open for Entries

The organization has also announced this year’s slate of judges.

Khepri Jewels Luna collection fancy color fringe multi-shape drop diamond earrings
EditorsJun 24, 2025
The Best New Jewelry from Couture 2025, Part 2

Associate Editor Natalie Francisco shares 20 additional pieces that stood out to her at the Couture show.

Lori Tucker
IndependentsJun 24, 2025
Colorado Bench Jeweler Celebrates 50 Years With Local Retailer

Lori Tucker started at Williams Jewelers when she was 18 years old.

“Marvel | Citizen Zenshin” watch for the new The Fantastic Four movie
WatchesJun 24, 2025
Citizen’s New ‘Fantastic Four’ Watch Is Literally Super

The “Marvel | Citizen Zenshin” watch is crafted in Super Titanium and has subtle nods to all four “Fantastic Four” superheroes on the dial.

XO Tacori diamond ring
MajorsJun 24, 2025
Tacori, QVC to Launch Exclusive Lab-Grown Diamond Jewelry Collection

The “XO Tacori” collection was designed to blend luxury and accessible pricing.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy