Graff to open Chicago branch

Diamond-hunter extraordinaire Laurence Graff—renowned for selling some of the world’s biggest and rarest gems to royalty and celebrities, from boxer Mike Tyson to Princess Michael of Kent—has inked a deal to bring his couture House of Graff to Chicago.

The shop, set to open in fall 2004, marks the London-based jeweler’s first Midwest outpost and signals another step in the revitalization of the exclusive street, which had been losing big-name luxury retailers to higher-profile Michigan Avenue.

Namesake owner Mr. Graff—dubbed “Lord of the Rings” by the British press—opened his first U.S. store on Madison Avenue in New York in 2001. And he plans to open another store this fall in Palm Beach, Fla., where his multimillion-dollar jewels have already dazzled the well-heeled at the annual Palm Beach International Art and Antique Fair, a chic charity event where patrons cough up $1,000 just to look at the items on display.

Mr. Graff, 63, built his reputation in London during the past 40 years acquiring and cutting rare gems. He is well-known among Arab sultans and European royals. But he has yet to become a household name in the U.S, where half of the world’s diamonds are sold.

“Since we opened our first store in New York, we noticed we have a strong consumer base from Chicago that encouraged us to explore the market,” says Henri Barguirdjian, the New York-based president and CEO of Graff’s U.S. operations. “We think we can bring to Chicago a new level of jewelry retailing.”

Mr. Barguirdjian declined to disclose Graff’s annual sales, but analysts estimate the wholesale and retail businesses generate about $200 million a year each.

Graff plans to spend close to $10 million to tear down the building now at 103 E. Oak St. and build a four-story limestone flat with winding staircases, marble floors, Greek columns and grand chandeliers, according to Mr. Barguirdjian, former CEO of French jeweler Van Cleef & Arpels’ U.S. operations.

The building’s current tenant, women’s apparel retailer BCBG Max Azria, is slated to move to 55 E. Oak St., the former home of Dunhill men’s luxury clothing store.

Mr. Graff is viewed among diamond lovers as the heir to the late Harry Winston, the “king of diamonds,” who scoured the world for rare jewels and rubbed elbows with Marilyn Monroe and Elizabeth Taylor. There are six Harry Winston stores worldwide, including two in the U.S.: New York and Beverly Hills, Calif.

Graff operates nine stores: New York; Monte Carlo, Monaco; Moscow; Dubai; Antwerp, Belgium; Johannesburg, South Africa; two in London, and a store aboard the World of ResidenSea cruise ship, a floating apartment hotel. With Chicago and Palm Beach increasing the chain to 11 stores, Mr. Barguirdjian says plans are in the works to add salons in Las Vegas, and eventually Boston and Beverly Hills.

Complete coverage of this story appears in the Sept. 22 issue of Crain’s.