Largest Online Diamond Retailer Lays Off Employees
Seattle Based Jewelry Company laid off at least 15 employees today. The company started by Mark Vadon, offers diamonds, fine jewelry, rings, earrings, necklaces, & bracelets. Watch brands range from Citizen, Kenneth Cole, Michele, Seiko, Skagen.
"Founded in 1999, Blue Nile has grown to become the largest online retailer of certified diamonds and fine jewelry. Internet Retailer Magazine reports Blue Nile is bigger than the next three largest online jewelers combined."
In the last 5 years the company reached $154 million in sales. The company also sells many engagement rings just like Tiffany's, but Blue Nile offers no-frills and usually for 40% less carat for carat. Blue Nile and Tiffany's offers the same clarity and quality since the diamonds are purchased from many of the same wholesalers. The average price of an engagement ring at Blue Nile is offered at $5,200 and the same stone is offered for $9,500 at Tiffany.
Vadon's success irritates many in the diamond trade. There are even some wholesalers that refuse to work with him; some retailers refuse to order from those who do. One trade group recently suggested jewelers to sell their engagement rings at a loss to blunt Blue Nile's inroads. "Blue Nile is creating a race to the bottom," complains Alan Rehs, a wholesaler and cutter in New York. "This is bad for the industry." He says customers walk into stores brandishing Blue Nile printouts as bargaining chips. Horrors. "We try not to sell diamonds as commodities," adds Jonathan Bridge of the 74-store Ben Bridge jewelry chain in Seattle, which has been peddling stones for 92 years. "Every diamond is different. There's a certain amount of romance in that."
Our economy needs help, the lay offs are not stopping!
