A Chamilia in the rough

A Chamilia in the rough

The jewelry business had lost its sparkle of late, so Bergstrom Jewelers did something that doesn't come naturally to jewelry stores: It went cheap.Bergstrom, which has sold high-end diamond rings and gold watches in the Twin Cities since 1923, decided to add two full cases (a sizable chunk of real estate in retail jewelry) of bright-colored beads and charm bracelets at $30 to $70 a pop."We knew we needed to do new things," said CEO Bob Zagaros of the St. Louis Park jeweler. "The [weak] economy has been difficult for the jewelry business, no doubt. This is new and you gotta go for it."

That an esteemed 87-year-old luxury jewelry store is now selling fashion jewelry for less than $100 speaks volumes to the struggles of the jewelry industry, hit hard by the global recession and sky-high prices of gold and silver. It also explains the fast growth of Minneapolis-based Chamilia.Founded in 2002 by former Polo Ralph Lauren and Tommy Hilfiger designer Killian Rieder and her husband, Jeff Julkowski, Chamilia makes the accessorized jewelry now embraced by traditional retailers like Bergstrom.

Chamilia's annual sales exceed $100 million, thanks to 70 percent year-over-year growth. Swarovski, an esteemed European crystal/luxury goods retailer, recently bought a stake in Chamilia and is rolling out Chamilia merchandise throughout its stores. Chamilia also is expanding into rings and possibly clothing accessories."We're taking the line into a whole new direction," said Michael Flaherty, Chamilia's executive vice president and chief business development officer.