Though there's been a slump in sales of luxury good and many jewelry stores are going out of business nationally, local jeweler Austin & Warburton has been experiencing some of its best years ever. Part of that success can be attributed to closing up the business' brick and mortar showroom and going to online sales only.

Craig Warburton, along with wife and partner Brenda, bought Austin Diamond in 1986. The couple renamed the store, expanded the staff and the offerings and moved the business several times over the next 23 years.

"I really liked being in a growing business with a high-paid staff and the coolest storefront in town," Warburton said.

Warburton, however, said he had been watching trends in the industry. "Things didn't stay the same. Before the economy blew apart, the way people were buying products was already changing. We'd been planning to go online well before the economy tanked, but that accelerated the plan."

Warburton said the store had a lease renewal coming up and an opportunity to move online then, but he was worried about the impact on his staff. When one employee decided to become a full-time stay-at-home mother and another moved to Florida, the decision became clearer.

"Circumstance presented us with an opportunity not to decimate other people's lives due to our decision," Warburton said.

In 2008, when the store had its liquidation sale and went to an online model, Warburton said they had the second best year ever. This year has also been a good year for sales.

"Without question, this is the biggest year we've had," Warburton said.

He said he also expects the business' sister site, www.theparentandchild.com, to attract a lot of attention.

"This is our second Christmas with 'The Parent & Child' Web site, and we've put an awful lot of eggs in that basket," Warburton said. "It was a dominant piece of jewelry last Christmas. And sales are up 18 percent this year.

The Parent & Child products are commemorative pieces of jewelry in the shape of a mother and child or a family tree that can be customized with different birthstones, as shown below.

"When Brenda was pregnant with our first child, we looked at every representation of motherhood and thought it was all crap," Warburton said. He and Brenda tried to decide how to represent a mother holding a baby in metal.

"What we designed, for a lot of people, it works," Warburton said.

What also works for a lot of customers is the high-tech design of both the main Austin & Warburton site and The Parent & Child sister site. Customers no longer have to go to a brick and mortar store to see how a diamond glints as it moves through the light or look at a wax casting to decide if they like the design.

The current version of the Web site is very different than the initial, more static design, Warburton said.

"People couldn't picture it," Warburton said. "They'd call and say, 'Can you send me a picture or help me sketch it?'"

On the new Web site, customers can manipulate 3-D models, turning them completed upside down and back to front, adding custom metals and gemstones and getting a good idea of how the finished product will look. They can also email selections they like to Warburton, and he will combine the elements they like into a new, custom design.

While his businesses is thriving, Warburton said he feels bad every time he hears about another independent jeweler going out of business.

"It's horrible out there, and it's never going to be the same again," he said. "Brenda and I, if we have any claim to fame, it's that we anticipated this before the world fell apart. We're excited to see what 2010 will bring."

Sarah Rigg is a freelance writer and a frequent contributor to AnnArbor.com.