DALLAS -- Zale Corp., America's leading jewelry chain, is sparkling again.
Since the dark days of bankruptcy, the jewelry chain has posted five consecutive years of 20 percent annual growth primarily by keeping up with minimalist fashion trends and selling precious, although sometimes small, jewelry pieces to middle America."People say, 'Let's get the real thing rather than a piece of costume jewelry that you throw in a drawer,' " Lynn Ramsey, president of the Jewelry Information Center, said of a renaissance in national jewelry sales. "Zale has really benefited from that mindset."
Of course, Zale, based in Irving, Texas, isn't the only retailer cashing in on people's growing preference for real gold, pearls and precious gems.
In 1997, sales volume for jewelry and watches was $1.67 billion at Wal-Mart; No. 2 Zale rang up $1.25 billion that year.
Still, Zale has the most stores in the United States -- 1,140 operating in this country and Puerto Rico under the names of Zales Jewelers, Zales Outlet, Zales Direct, Gordon's Jewelers and Bailey Banks & Biddle Fine Jewelers.
There are three Zales stores in the Salt Lake area, at Fashion Place in Murray, South Towne in Sandy and Valley Fair Mall in West Valley City.
The company has led the industry in an effort to cater to consumers who are becoming more value-conscious about their bracelets, necklaces and rings.
"It's all part of people wanting to put their money into things that are lasting and that reflect quality," Ramsey said.
Analysts say independents, who control about 67 percent of the industry, have benefited least by Americans' interest in fine jewelry. Instead, shoppers have headed to discounters and malls, where Zale stores are located.
Zale is celebrating its 75th anniversary this year, but its history hasn't been all rosy.
The company grew to 1,800 stores in the 1980s. Heavy debt pushed it into bankruptcy in 1992 and forced the closure of 700 stores. The company emerged 18 months later lacking focus.
"The issues were that Zale had no direction. There was no business plan. Things were pretty broken at the time," said Robert J. DiNicola, Zale's chairman and chief executive.
DiNicola came to the company in 1994 after spending 27 years in retail with Federated Department Stores and R.H. Macy & Co.
"Prior to my arrival there had been seven CEOs in six years," DiNicola said. "The folks here at the corporation were somewhat skeptical and one could even say cynical. My objective was to keep it simple and go back to the fundamentals and sell the best jewelry possible."
In the old days, Zale concentrated on diamond solitaires. The bridal business was 65 percent of all sales. DiNicola saw missed opportunities to lure in the customers who weren't planning a trip down the aisle.
The company now has 30 percent bridal sales, 30 percent fashion jewelry sales, 30 percent gifts and 10 percent watches and other.