The Dickinson press., 1916-06-03

OF the managers and their daily re-
ports are watched by the directors.
You can imagine it is a very thor
ough training, too, when every man.
ager is grooming men whom he hopes
to take into partnership with him in
another store. When a clerk is ready
to be advanced, the president stands
ready to lend both clerk and mana
ger the money to buy their stock.
The corporation itself lends no money.
Mr.. Penney referred in his news
paper ad to the long hours the men
are expected to work. It might al
most be said that the work is con-
tinuous, with a slight interruption for
sleep and meals. But the men are
only driving themselves. That refer
ence to long hours was mostly in
tended to drive off the drones.
Since the men in each store are
prospective partners, they are let in
to all of the inside workings of the
organization, and since they are re-
cruited largely from the executive
ranks of other concerns they are cap
able of making the best use of the in
CAlCy 1CCS1VCs GVCIy Udy
might almost be described as a sales
drive and every night a sales conven-
ton, such is their interest and almost
unremitting application.
The store managers figure only in
cidentally in the role of buyers. There
r eight resident buyers who are al
ways in the market, two for mems
furnishings and clothing, two for dry
goods and shoes, and two for notions
and novelties. They are all directors
Of the corporation and all but two of
them are officers.
Company's Buyers Work Without
Salary.
A rather astonishing fact is that
all of these buyers work without sal
airy, give all their time and labor to
the organization gratis. Nor does
Mr.. Penney himself draw any salary.
The remuneration Of all comes from
their profits in the stores. The only
charge made upon the latter is for
the rental of the New York office,
equipment, clerk hire, etc.
The distributing trait Of the Pen
ney buying policy is its conservatism.
It is notorious that the independent
merchant ordinarily buys beyond his
needs and then later tries to work off
the surplus by special sales and mark
downs. This is speculation rather
than straight merchandising. There
is an entire absence Of it in the Pen
ney organization. The company oper-
ates from a season to a season and a
half ahead of the retail demand and
provides amply for most of it's needs.
It scarcely ever buys jobs or takes
chances on special offers. Every new
article offered is sampled to the man.
ayers of the different stores and the
order when given is made up from
their reports and is paid for in cash.
If it is a question of women's gar
ments, for instance, only three or
four of one model to a town will be
ordered; as many, in short, as the
store can be sure Of selling at nee
AS the company is in the market all
the time for style goods, the stores
are kept constantly supplied with up
to-date New York models.
Turn Small Stock Six Times.
The bearing Of this is moro plainly
seen in connection with the size Of the
store stocks. The average retail
clothing store of the section of the
country in which the Penney stores
operate, the communities of from
1000 to 100000 people an average of
of about 100000 to $4,000, and do
we'll if they turn it twice a year. The
Penney stores invest from $4,000 to
$4,000 or en- average of $4,000, carry
a stock of about double that and turn
it on an average nearly six times a
year.
These rapid turns makes it possible
to handle every, new style that comes
in, and on the other hand the fresh
ness of the styles multiply in turns
Style and staple bulletins Ire going
out from the New York office daily
Naturally, with it's large cash buying
power the company is a close and
shrewd bargainer.
When it comes to selling, the stores
number several advantages over the
ordinary independent. To the bene-
fits Of massed buying and frequent
renewal and freshening of the stock
by rapid turns they add the policy Of
CdhlIIS Oll1y q olIldll 1lldI S1IA VI pAoAAs
and selling for cash without delivery
Against this policy what chance has a
system of individual buying and sell
ing on credit, seeking long profits and
making deliveries
The almost universal custom nova
days among independent retailers OF
Stimulating" their business by means
of special sales is not looked upon by
Mr.. Penney as good business. When
goods are heavily cut in price to force
sales, enough profit must necessarily
be put into the makeup to allow fo1
the later cut or. cuts. This penalties
the first customers and discourages
their enterprise in shopping early.
The Penney practice is to put one
price on each article and never mark
it down. The stores hold no special
sales. Their customers, knowing this
can easily make comparisons with the
prices in the other stores. It is said
to be not an uncommon thing fol
people to borrow money on their &C.
counts at the credit stores and &c
down the street to the Golden Rule