Hallstead Jewelers Case Study Essay

1388 Words Apr 12th, 2010 6 Pages
Submitted by Yellow Team
Eunice King
Ronda Klassen
Joshua Krupnick
Larry McCraw
Ronald Mills

BUS 5431 Managerial Accounting
Professor Nancy Shoemake
April 18, 2010

1.0 Summary
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’s 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’s 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
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It would probably be a good idea for Hallstead Jewelers to try the increase in advertising. Although the company is currently struggling with a negative operating income, the increase in breakeven dollars is relatively nominal. Competition from much larger companies, such as Tiffany & Company, as well as internet jewelry sales from companies such as Blue Nile has taken some of their business. Perhaps some of this increased advertising budget should be spent on expanding their business to the internet and advertising there; allowing Hallstead to compete more directly with Blue Nile and boost sales. Increased advertising may also help bring in more customers who are not yet aware of the company’s new Washington St. location and larger renovated store.

6.0 Average Sales Tickets The following overview takes a look at how much the average sales ticket would have to increase to breakeven if the fixed cost remained the same in 2007 as it was in 2006. • Average sales ticket for 2006 is $1,553 @ 6,897 tickets for an

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