For decades, Bijoux Terner sold mostly to small retailers through merchandise marts, operating only a few retail locations, including a small kiosk in Miami International Airport. In 1997, serendipity created a new business plan. With sales lagging at the kiosk, company lore has it that Rosa Terner, Salomon's daughter, priced all its merchandise at $10 in a last-ditch effort to clear inventory. Everything sold within a matter of hours — and the company realized that the single price point was perfect for travelers in a hurry.
Bijoux Terner began focusing on the travel retail industry, opening stores in airports, cruise ships, resorts and casinos. Today, there are more than 650 locations in 60 countries — most owned by licensees or franchisees. The stores carry trendy accessories, jewelry and travel goods. At any given time, Bijoux Terner offers its operators around 30,000 items. Everything is priced at $10.
The Medley-based company's business plan is built single-mindedly around impulse purchases. Stores turn over merchandise frequently and feature inviting, colorful displays that are calculated to turn lookers into purchasers. In some locations, 90% of people who walk in buy something. Watches, shawls and costume jewelry make up the majority of sales. "We probably sell more watches than many big brands that you know, combined," says Gabriel Bottazzi, appointed CEO by private equity fund Arcapita after it bought a majority share from the Terners for $90 million in 2006.
Bucking trends in the retail world during the recession, Bijoux Terner has been on something of an expansion tear. "At first, we focused on making sure that the base was solid," Bottazzi says. But with revenue growth during the past two years in "higher double digits," the firm has added nearly 250 locations and invested close to $2 million into upgrading its Medley distribution center and its inventory, production and planning infrastructure.
The company will now see whether its one-price accessories concept will work at other fixed price points.