Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1914-02-20
HOW A CHAIN Of
STORES IS RUN
BUY AND SELL FOR CASH, HAVE
NO IES-BUSINESS OF
MILLIONS YEARLY

| New York Times-"Co-operati in
business means good team work,
good team work means efficiency, and
efficiency means success" said James
c. Penny 10 the Times reporter who
interviewed him yesterday at the Ho-
tel Bresiin. Mr.. Pennys statement
came in answer to the reporters ques-
tion as to how a chain of seventy
retail dry goods stores could be built
up and kept in smooth running order
in section in the United States which
from the viewpoint Of population at
least, is wanting in metropolitan
characteristics.
The seventy stores in question make
up the Golden Rule chain that is scat
tered over the Rocky Mountain district
ana the great Northwest. This chain
is operated by a Utah corporation
whose trade name is the J. c. Penny
| Company. The present organization
took definite shape for the first time
in 1902; it was Incorporated about
year ago. 1t is a close corporation.
and no man is allowed to hold stock in
it unless he is an active member of
the organization. At the present time
there are forty Eight stores in opera
ton. twenty-five new stores are now
being prepared for and will ooen their
doors on April 1. The chain is spread
over thirteen States-Oregon Mon
tana, Washington, Idaho, Wyoming.
Colorado, Utah, Nevada, Arizona, New
Mexico, California, North Dakota and
Nebraska. There are now thirty buy
ers in this city after merchandise for
the seventy stores, and Mr.. Penny
said that a conservative estimate of
the gross value of the purchases which
will be made on this trip will bring the
figure to S1,0OO,OO0. A good part of the
buying has already been done
Next. to the efficiency of our organ
| izat1on," went on Mr. Penny, after he
had given the information outlined
above, the fact that we do business
on strictly cash basis is the most
vital factor of our success. We pay
cash for our merchandise when we buy
it, and we get cash for our merchan-
disc when we sell it. There are no
charge accounts open in any of the
seventy stores. We make absolutely
no deliveries. The stores are all stu
ated in towns and cities ranging in
population from 1900 to 10000, but
this makes no difference in the deliv-
cry question. If a man. comes to one of
our stores TO buy a metal bed. for in
stance, he has either to take it with
him or hire some drayman to cart it
home for him. We give no cash re-
bates or discounts to this end, but we
do put a price on the merchandise that
makes it more worth while for man
to come to us and deliver his own pur-
chases than it does for him to go to
some competitor of ours who will
charge more and deliver the goods for
nothing
I'm 1913 our forty eight stores did d
gross business of about 100000, and
in view of this it seems safe to esti-
mate that the enlarged chain will do
business of 100000 this year. This
can be attributed TO the interest and
to the close attention to business and
detail on the part of the managers of
the various stores. Each store man
ager is more than an employee. He
has a salary for mana ing the store
in his charge, but he is also a stock
holder in this particular store to the
extent of one-third interest. No man
ayers activities are curbed in any
way. Each is permitted to reinvest
his surplus in a new store and in turn
to sell a third interest in it to some
bright assistant who wants to buy in.
If the assistant hasn't the money with
which to buy in, it is advanced to
him on a personal basis. We are care
full to pick men only of sterling char
acter and we have yet to pick man
who has not made good the faith we
have placed in him. The assistant
who buys a third interest in the store
started by his superior, may, when his
finances warrant it, start another
store and sell a third interest in it to
some bright young man wha has as
sisted him. In short. it is sort of
endless chain proposition, and some
Of our men are interested in twelve to
eighteen stores"