Technology

Blue Nile to Open A Fifth Store This Year

TechnologyAug 09, 2016

Blue Nile to Open A Fifth Store This Year

The online jewelry retailer continues to sink money into “webrooms” with a fifth planned for later this year, even as sales continue to underwhelm.

2016_Blue-Nile-Westchester-1.jpg
A shot inside one of Blue Nile’s four “webrooms,” this one located in The Westchester mall in White Plains, N.Y. The company said Monday that it now plans to open a fifth physical location by year’s end.

Seattle--Blue Nile continues to sink money into “webrooms” with a fifth planned for later this year, even as sales continue to underwhelm.

During its second quarter earnings call Monday evening, President and CEO Harvey Kanter said Blue Nile has “accelerated” the launch of its fifth physical location, which will “hopefully” open by Thanksgiving.

He did not provide any details on its location.

This fifth physical space joins Blue Nile stores in New York state (White Plains and Garden City, both New York City suburbs), Fairfax County, Va. and a not-yet-open webroom in Portland, Ore.

Blue Nile’s physical locations are 500 to 700 square feet in size, employ five to six salespeople plus a general manager, and provide a place where customers can try on engagement rings and other jewelry. All sales still happen online though; shoppers do not walk out of the webrooms with their purchases.

“It’s becoming clear that a segment of our customers want our easy, educational and pressure-free experience in a physical environment,” Kanter said on Monday’s call. “We are bringing the online and offline worlds together.”

He said the company has seen a “marked lift” in sales in a “pretty contained” area around its webroom in Garden City, N.Y., which is located in the Roosevelt Field mall.

Regarding the physical locations in Virginia and White Plains, N.Y., Kanter said one is performing better than the other but did not specify which one.

Investment in more webrooms is part of an overall effort by Blue Nile to “improve the user experience” and help boost sales, which were essentially flat in the second quarter.

Net sales in the second quarter ended July 3 totaled $113.8 million, compared with $113.7 million in the same period last year. Net income dropped 9 percent to $2.1 million, compared with $2.3 million last year.

U.S. engagement ring net sales decreased 4 percent to $62.6 million, and Blue Nile executives said that the online retailer had a particularly difficult June. Sales of engagement rings priced at $25,000 and above improved as compared with previous quarters but still are lagging overall.

U.S. non-engagement net sales (which encompasses everything else the site sells) were up 6 percent to $30.4 million, led by wedding band sales.
International sales were up 6 percent (9 percent on a constant-exchange-rate basis), from $19.5 million to $20.8 million.

Commenting on the results during Monday’s call, Kanter said, “We had some meaningful wins but I will acknowledge upfront that

these results are short of what we expected.”

In addition to continuing to invest in webrooms, Blue Nile is making enhancements to its website that are designed to emulate the experience customers have in its physical locations.

Executives did not elaborate on these enhancement but said they expect them to be complete by the fourth quarter.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

The Gemological Institute of America’s logo
Lab-GrownJun 04, 2025
GIA Reverting to More General Terminology for Lab-Grown Diamonds

It will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”

Exterior of the Venetian and the Las Vegas Sphere
Events & AwardsJun 04, 2025
As JCK Talks Returns, Don’t Miss These 12 Sessions

From design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.

JCK show
CrimeJun 04, 2025
10 Safety Tips for the Las Vegas Shows

The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.

DCA-student-cert-NJ1872x1052-2.png
Brought to you by
The True Power Behind the Counter: Why Sales Associates Are the Heart of the Jewelry Business

When investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.

Amy Curran
MajorsJun 04, 2025
Amy Curran Promoted at Hill & Co.

Her new role is director of strategic initiatives.

Weekly QuizMay 30, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Daymond John
Events & AwardsJun 04, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

The eight rings in Viviana Langhoff’s AU79 jewelry collection
CollectionsJun 03, 2025
In Her Latest Collection, Viviana Langhoff Is Leaning Into Gold

The designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.

Article Image 1.png
Brought to you by
Clienteling Isn’t a Buzzword. It’s an Essential Business Model.

More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.

Gold and diamond bangles on a pair of jeans
FinancialsJun 03, 2025
Signet Jewelers Sees Turnaround in Q1 With Sales Ticking Up 2%

On an earnings call, CEO J.K. Symancyk discussed what’s working for the company and how it’s preparing for the potential impact of tariffs.

Woman’s hand holding shopping bags
SurveysJun 03, 2025
Consumer Confidence Improves in May

The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.

Dakota Johnson as Roberto Coin Brand Ambassador
CollectionsJun 03, 2025
Dakota Johnson Is Roberto Coin’s New Brand Ambassador

The actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.

Mason Kay Jade necklace
GradingJun 03, 2025
Mason-Kay Jade Adds ‘Fei Cui’ to Jade Reports

The company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."

Gemfields ruby
SourcingJun 02, 2025
Gemfields’ June Auction to Include 36-Carat Ruby

The large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.

Adobe Stock image of skyline of Bangkok, Thailand
GradingJun 02, 2025
GSI Opens New Lab in Thailand

Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.

Seaman Schepps pearl earrings
TrendsJun 02, 2025
Amanda’s Style File: Three Gems for June

Those born in June have a myriad of options for their birthstone jewelry.

David Allouche
SourcingJun 02, 2025
David Allouche Joins Grandview Klein Diamonds

The diamond industry veteran has been named its senior sales executive.

Movado Connect 2.0 watches
FinancialsMay 30, 2025
Movado’s Q1 Sales Slip Amid ‘Challenging’ Retail Environment

The company plans to raise the prices of select watches to offset the impact of tariffs.

Zoë Chicco Bracelets
Policies & IssuesMay 30, 2025
Tariffs & Designers: Navigating Pricing in an Unstable Environment

Between tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.

Renato Cipullo Hematite Blaze Necklace
CollectionsMay 30, 2025
Piece of the Week: Renato Cipullo’s ‘Hematite Blaze’ Necklace

Designed by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.

Stock image of shipping containers
Policies & IssuesMay 30, 2025
Trade Court Declares Trump’s Tariffs Invalid

However, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.

Britney Spears
CollectionsMay 29, 2025
Britney Spears Files Trademark for New Jewelry Line

The pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.

Inoveo Platinum Grain image.jpg
Supplier BulletinMay 29, 2025
Inoveo Platinum Grain, Exclusively Distributed by Stuller

Sponsored by Stuller

Grizzly Mining Pilala emerald
SourcingMay 29, 2025
Grizzly Auctions 6,620-Carat Emerald

It was featured in the miner’s latest sale, which brought in $24.8 million.

Graff Fontainebleau Las Vegas
MajorsMay 28, 2025
Graff Unveils New Las Vegas Flagship

The 3,300-square foot location is the jeweler's largest store in North America.

Kim Kardashian
CrimeMay 28, 2025
8 Convicted in Kim Kardashian Jewelry Heist Trial

Aging and with myriad health issues, none will serve time for their roles in robbing the billionaire celebrity at gunpoint in 2016.

New York Liberty 2024 WNBA Championship Ring
CollectionsMay 28, 2025
NY Liberty’s 2024 Championship Rings Honor Historic Win

The WNBA team received rings imbued with meaning, from leaf motifs and its Liberty torch to the number of diamonds used.

Jewelers Board of Trade logo
MajorsMay 28, 2025
Andrew Rickard Named JBT President

A longtime executive at RDI Diamonds, Rickard has served on the JBT board for the past five years.

×

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