Mardi 18 septembre
Submitted by Yellow Team
BUS 5431 Managerial Accounting
Professor Nancy Shoemake
April 18, 2010
Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from throughout the region to buy from extensive collections in each
department. Any gift from Hallstead had an extra cache attached to it as they were known for having the best.
Even though the principal retail shopping areas shifted two blocks west, Hallstead reputation and selection still brought in customers. In 1999 however, sales became stagnate and profits
were starting to slip. The owners (two sisters, Gretchen and Michaela) made several changes in an effort to revitalize the store back to its full glory. The largest decision they made
was to move the stores location, expanding it by 50% more space and selling staff. This
Is this essay helpful? Join OPPapers to read more and access more than 700,000 just like it!
get better grades move resulted in a five-year lease as well as extensive and expensive renovations. They
also made some changes in product offerings and offered more sales potential at the cost of minor reductions in margins.
During the year it took to complete the Hallstead renovation the industry started showing major changes toward internet based jewelry sales. Tiffany & Company, a business with an origin
much like Hallstead Jewelers, grew into an international powerhouse. At the same time, a start-up internet seller, Blue Nile, became the second largest diamond seller in the U.S.
While Hallstead was growing their fixed costs by doubling their A Lange & Sohne Watches
rent payments, Tiffany and Blue Nile
were increasing their revenue with irtual?storefronts allowing them to increase sales with very little increase in expense.
In an effort to explore ideas in strategy that would return the business to profitability, the sisters compiled some questions for their accountant to analyze using some additional operating
statistics. The following...