Hallstead Jewelers Essay

Hallstead Jewelers was one of the largest jewellery and kick in stores in the United States for 83 grades. Customers came from end-to-end the region to buy from extensive collections in each department. Any gift from Hallsteads had an extra cache attached to it as they were known for having the best. Even though the headland retail shopping areas shifted two blocks west, Hallsteads reputation and selection still brought in customers. In 1999 however, sales became stagnate and profit were starting to slip. The owners (two sisters, Gretchen and Michaela) do several changes in an try to revitalize the store pole to its full glory. The largest decision they made was to sham the stores location, expanding it by 50% to a greater extent lieu and selling staff. This 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 make up of minor reductions in margins. During the year it took to eat up the Hallsteads renovation the industry started presentation major changes toward internet based jewellery sales. Tiffany & Company, a contrast with an rakehell much like Hallstead Jewelers, grew into an international powerhouse. At the same time, a start-up internet seller, docile Nile, became the second largest diamond seller in the U.S. While Hallsteads was maturation their situated cost by doubling their take in payments, Tiffany and Blue Nile were increasing their revenue with realistic storefronts allowing them to increase sales with very critical increase in expense. In an effort to explore ideas in strategy that would go the business to profitability, the sisters compiled some questions for their accountant to tumble using some additional in operation(p) statistics.2.0 SIGNIFICANCE OF THE CASEInherited business tradition. changing in management style. trim in sales and profit from year 2003 2004.In 2004, moving stores location, expa nding it by 50% more space and sellingstaff. greater loss in year 2006.Changing in market demand and growing of new competitors.3.0 CASE SOLUTIONS & synopsisQuestion 1 How has the breakeven point in number of sales tickets (number of customer orders written) and breakeven in sales dollars changed from 2003, to 2004, and to 2006? Haw has the margin of rubber changed? What caused the changes? The total variable and fixed costs have been categorised in the pastime income statement of Hallstead Jewelers Hallstead Jewelers