Bucking the Trend: Stephen Henderson the Jeweller

03 Mar 2021

Probe the JBN’s membership and quite a few jewellery retailers are successfully weathering the Covid storm. Stephen Henderson is one and we want to know more.

Stephen Henderson the Jeweller was established by Stephen’s grandfather in Dundee in 1938 and at that time it was only a small unit at the top of the city’s Union Street.

Stephen explains,

“Then in 1970 my father, who succeeded him, bought an adjoining shop, then another in 1975, so effectively the current premises are three into one.

“My grandfather was one of seven siblings who were already in the jewellery business, but due to a falling out, he decided to branch out on his own.”

With a useful accounting degree under his belt, Stephen joined the business in 1989.

“I soon realised that I wasn’t cut out for accounting but I’d worked in the shop in the school holidays and always enjoyed retail. After a spell working in finance and sale with some blue-chip companies, I realised that I wanted to work in my own business.”

The store has naturally developed some in the 32 years that Stephen has been there.

And, as Stephen explains, timepieces were at the centre of change.

“Initially, back in the late 1980s, we were like so many High Street jewellers, offering a smattering of watch and jewellery brands. We probably were selling about 13 watch brands… Then, in the late 1990s, I decided to dispense with nearly all our brands, as I didn’t really feel we were
making much money from them.

“I speculatively bought a second hand Rolex Datejust and sold it within three days. I then bought another and sold that. Believing I was ‘on to something’ I started advertising buying ‘off the street’ and also bought from some London dealers. This was a fortuitous move and soon blossomed into a big part of our business.

“Latterly we were buying watches from Europe that were not so readily available in the domestic market and found that if customers were prepared to buy preowned with all the paperwork, then we had discovered a new opportunity. At our peak about seven years ago we were selling in excess of 100 Rolex a year, plus other brands including Omega, Cartier and Panerai. Now unfortunately there is a multitude of retailers and dealers doing the same and the stock is much harder to come by. Rolex sports models are now also very sought after.”

Undaunted by that competition, the store has been buying gold for many years.

During the challenging financial crash of 2008, Stephen soon realised that people were also selling “nice jewellery, which was too good to scrap”. On a business trip to the US, he noticed that a jeweller in Ohio was describing pre-owned watches as ‘previously enjoyed’. “I liked that term and started selling second hand jewellery as such; it continues to be a big part of our business. We also have a large repair business – mainly in jewellery but also watches, and are fortunate to work with some excellent workshops.”

The store has been a member of the NAJ “for decades” and Stephen admits that one of the best aspects of the NAJ for him was the opportunity to join the JET Business Network (JBN).

“I’ve been a member for about four years and I’ve found it a fantastic resource for sharing ideas and/or problems with like-minded independent jewellers across the UK,” he explains.

“During Lockdown we have weekly Zoom meetings and this has been a great help. Suddenly you don’t feel so alone and often there’s a member who can assist you with everything from supplier to staff issues. Our facilitator Michael Donaldson is also great at hosting meetings up and down the country where you get the chance to visit other members’ stores and ask virtually any business questions.” In ‘normal’ times of course…

And here’s an interesting fact that underscores Stephen’s commitment to, and appreciation of, the JBN. Back when we could travel, mingle and even shake hands, he was scheduled to attend a meeting of the Northern Group, in York. A clash of dates meant he was unable to be there and was so frustrated by having to miss out, that Michael suggested he could join the London Group meeting a month earlier. Which he duly did. So, that’s an impressive 968 miles – give or take.

“Yes, it was a long trip, however I feel that the interaction with other Group members is invaluable, and once again the meeting did not disappoint.” Not surprisingly Stephen is a true advocate for the network.

If you're an independent jeweller I have to ask why you're not a member of the JBN? If your response starts with either 'time' or 'money', then you are just the type of person that will immediately benefit from the network.

Back to the present day and in spite of the “parlous state of retail”, Stephen doesn’t believe it’s dead.

“The challenge for the retail jeweller has to be to make their store somewhere customers have to go to… rather than just ‘go online’. I firmly believe that people’s retail fulfilment will not be satisfied by looking at their phone.” ‘Regular’ sales aside, service is clearly a major factor in the store’s success.

In the store the team has built a ‘Cleaning Station’ on the shop floor by converting one of the windows and will clean and polish customers’ jewellery while they wait. Also installed is rhodium plating equipment, allowing that to also be done efficiently.

“Nobody else in our market does this and by selling Cleaning Plans we ensure that there’s a steady flow of people wanting rings cleaned and plated,” he explains.

“In times where footfall’s dwindling, this has been really good for us and has augmented our repair business. We are also watch and diamond brokers – if we don’t want an expensive watch or diamond [that has been brought in] we’ll offer a broking service to find a home for it. We’ll also take any diamond jewellery as a trade-in against a watch or diamond.”

It’s not all sales and service; charity involvement is an increasingly worthwhile endeavour for many retailers, and Stephen Henderson is no exception… and for particularly poignant reasons. “Since 2007 I have run my own charity called Supercar Kidz. Having survived cancer 28 years ago, I wanted to give something back – particularly to youngsters. So every September we invite children and their parents from Ninewells Hospital and Rachel House Hospice to a private airfield in Fife for Supercharged Charity Fun Day – a day out in a variety of Supercars.” A massive win-win for kids, petrol heads… and Stephen.

Find out more about JET Business Network (JBN)

Stephen Henderson

Source: The National Association of Jewellers