Customers who shop at high-end jewelry and gift retailer Gearys aren’t prone to scrutinizing price tags and that’s a good thing, given that the declining dollar has caused prices at its stores to rise in the face of increased costs from overseas vendors.

It’s really been a double-edged sword for the venerable merchant, which has a 15,000-square-foot store on Beverly Drive in Beverly Hills and a 1,500-square-foot store on Rodeo Drive.

“In one way it’s helped our business on Rodeo because so many European tourists are here because it’s much more advantageous for them to travel and shop here,” said President and Chief Executive Tom Blumenthal. “On the other hand it has hurt us, because so many of our products are brought from Europe and we’re getting price increases from all our European vendors that are much higher than before.”

Gearys, which sells jewelry, flatware, stemware, dinnerware and picture frames, now pays 7 percent to 12 percent more for merchandise from Europe than this time last year, and those costs are being passed on to customers. Seventy-five percent of its merchandise comes from Europe, while the remainder comes from the U.S. and Asia.

The cost rises, however, have been met by double-digit increases in revenues.

The 75-year-old retailer is trying to negotiate harder with European vendors to keep costs down. “They definitely need the business and they don’t want to lose the American dollar,” said Blumenthal. “Many companies that work with us are willing to sacrifice a little of their margin to compensate for the weak dollar.”

Outside of negotiating and raising prices, there’s little Gearys can do, said Blumenthal, noting that the retailer is continuing to advertise in local and tourist publications, including the Japanese Tourist Guide, Front Desk, the Los Angeles Times and Angeleno and Los Angeles magazines.

“We’ve been down this road before,” said Blumenthal, referring to exchange rate issues it has faced with the franc and the pound. “It’s nothing new. Everything goes in waves.”