From dollars to diamonds: Former mint director to head Zale's e-business

Zale Corp. has turned over its online business to the man who's credited with turning the U.S. Mint from a mere stamper of coins into a real moneymaking machine.<br><br>Philip N. Diehl, a Dallas native

Friday, March 24th 2000, 12:00 am

By: News On 6

Zale Corp. has turned over its online business to the man who's credited with turning the U.S. Mint from a mere stamper of coins into a real moneymaking machine.

Philip N. Diehl, a Dallas native and director of the U.S. Mint since 1994, becomes president of Zale.com and senior vice president of Irving-based Zale.

Mr. Diehl said Zale, which is the nation's largest jewelry retailer, has what it takes to dominate the jewelry business online.

"Zale is uniquely positioned in the industry to rapidly build its online business," Mr. Diehl said. "Zale has a great brand, and brand - on the Web and especially with high-priced products - is very important to people who don't know who to trust."

"It's a coup for us to get someone of his stature and profile," said Mary FortÃ©, Zale's executive vice president and chief administrative officer. "Our Web business needs its own focus and direction. We want to expand the Web-based business to include Gordon's, Bailey Banks and Biddle, and Peoples."

To be successful on the Web, sites can't just be "electronic catalogs," Mr. Diehl said. Web sites have to be "visually entertaining or rich in content."

The back end of the business is also crucial, and Zale already has strengths in both fulfillment and customer support, he said. "So many companies have struggled, and some have stumbled because of order fulfillment problems."

Under Mr. Diehl's watch, the U.S. Mint's revenue quadrupled to $4.3 billion and profits increased to $2.7 billion from less than $500,000. Mr. Diehl made the agency a force in the bullion and collectibles business.

He persuaded Congress to authorize the popular 50-state quarters program and the new golden dollar coin.

The Sacagawea coin is being promoted with an offbeat advertising campaign.

In the commercial, George Washington's head is on a modern-day man who talks about how it's OK that he's not on the new dollar: "That's cool with me. I've got places to go and people to see."

As he drives through a tollbooth, he adds, "I use it everywhere."

Already, 200 million of the 2-month-old $1 coins are in circulation, according to the U.S. Mint.

In the fourth quarter, the U.S. Mint's Web site had sales of $26 million, making it one of the most successful online retailers so far.
It started operating almost a year ago and has doubled revenue every quarter.

Beryl Raff, president and chief executive officer of Zale Corp., said Mr. Diehl's experience fits Zale's overall e-commerce strategy. "His background in e-tailing, order fulfillment and customer care, coupled with his marketing expertise and success in new product development, will enable Zale Corp. to enhance the company's online business."

Before joining the U.S. Mint, Mr. Diehl held several jobs associated with U.S. Treasury Secretary and Sen. Lloyd Bentsen. He was chief of staff at the Treasury and Mr. Bentsen's legislative director and staff director of the Senate Finance Committee.

In Texas, Mr. Diehl was a director of telephone regulation for the Public Utility Commission and a vice president at International Telecharge Inc. of Dallas before moving to Washington.