Tiffany & Co. Aggressive U.S. Expansion

Tiffany & Co. said Wednesday that it plans a "significant increase" in the number of TIFFANY & CO. stores it plans to open in the U.S. To make this happen, the luxury jeweler developed a new, smaller-format store that will occupy approximately 2,000 square feet and offer jewelry designs with the exception of engagement jewelry. It has the working name TIFFANY & CO. COLLECTIONS and the first store is expected to open in 2008.

"The addition of this new format affords us with the opportunity to ultimately operate as many as 170 stores in the U.S.," said Michael J. Kowalski, Tiffany chairman and chief executive officer. "This new format has the potential to significantly accelerate U.S. sales growth over the medium- to long-term and enhance profitability due to a merchandise mix weighted with higher-margin products."

Kowalski said the company still plans to open five to seven traditional TIFFANY & CO. stores per year, averaging about 5,000 square feet. Tiffany currently operates 68 TIFFANY & CO. stores in the U.S.

Beth O. Canavan, Tiffany executive vice president, said the new stores will cater to the self-purchase customer theroughout the U.S.

"The location opportunities in existing and new markets are vast and geographically broad-based and add enormous sales potential and longevity to our store expansion strategy," Canavan said.

After opening the first store in 2008, Canavan said the company plans to open eight to 12 stores per year.

Tiffany Diamond Shines at Smithsonian

Light flashes across the 82 facets of the Tiffany Diamond, highlighting the brilliance of the giant gem at the Smithsonian's National Museum of Natural History.

One of the world's largest yellow diamonds, the stone is on loan from Tiffany & Co., from Wednesday through Sept. 23. It joins such famed jewels as the Hope Diamond, Hooker Emerald and Oppenheimer Diamond.

The Tiffany Diamond weighs 128.54 carats and is in a cushion cut. Perched on it is a gem-encrusted bird known as the 'Bird on a Rock,' designed in the early 1960's by Jean Schlumberger. The bird is gold and platinum with white and yellow diamonds accented by a ruby eye.