New-York tribune., 1922-04-09


ago. The disappointment comes when
the merchant looks AT his sales totals,
in dollars, and compares them with
his total expense, in dollars, of doing
business.
Inadequate Return
In most cases this comparison looks
decidedly unfavorabe to the merchant.
Again this docs not mean that he is not
making profit. Most of the large
department stores last year showed r
profit, but merchants insist that it
does not represent an adequate return
upon their invested capital.
The trouble appears to DC that the
cost OF doing business has not declined
In proportion TO the prices of mer-
chnndise. Efforts TO reduce store ex
penses have been almost futile. The
only alternative in preserving the ra-
ito between the cost Of doing business
and income is TO increase the income.
or at least try to hold it up to the
nigh figures that prevailed in the last
two or three years. This can only be
done By keeping up large volume OF
sales.
To thi. desire Of the merchant to
keep Up his volume are attributed many
of the queer phases of the retail
business at present. 1t is the firm con-
viction Of many merchants that the
multitude OF special sales that have
been the run in the last few months
IN an effort to stimulate volume have
had an unsettling effect upon the con
eumer. Some of them feel that the
consumers idea of prices has been dis
terted, chiefly because much Of the sale
merchandise has been OF low grade and
accordingly low priced.
This is we'll illustrated in q frequent
experience in rug and furniture de-
partments, managers of such sections
aver. it is not infrequent for the pros
pective purchaser. after ascertaining
the price of a rug or suite of bed
room furniture, for instance. to state
that ne saw similar merchandise adver
tised at another store at a cheaper
price. The salesman is then con
fronted with the problem of proving by
argument that the merchandise in his
store is of better quality than that
of the other store. Frequently he can
not do this to the customers satisfac
ton, with the result that he loses the
sale. at least for the time being.
Visits Other Stores
The customer probably then visits
other stores and tries to carry along in
his mind definite qualities for price
comparisons. at is q fact" said the
manager of one such department, "that
q customers are doing more shopping
around before making an actual pur-
chase than ever before. All this wide
spread advertising has unsettled their
minds and they really do not know
which store is Offering the best values.
so they 60 from one to the other
20 inspect the merchandise and try
TO decide for themselves where they
will get the most in value for what
they spend. On the floor here our
statesmen tell me that the majority Of
customers can tell them what similar
merchandise is selling for in other
stores. This proves that they have
been shopping around considerably"
There is plenty of evidence that
more shopping" that is. comparing
prices and qualities in different stores,
10 being done to-day than at any time
in the recent past. A survey made by
an engineer for large chain of retail
shoe shops recently disclosed that over
70 per cent of the people have no set
place in which to buy their footwear
They are classed as foaters; that is.
they buy their shoes wherever price
or style happens to attract them. I'm
doubtedly this is true OF other lines
Of merchandise as well, especially in
New York, where retail stores are
plentiful.
The big stores, however, seem to be
weaning away much Of the trade that
formerly went to the small neighbor-
hood speciality shops. This is due, in
part. to the fact that the big stores.
by virtue Of the larger buying power
and ability to obtain concessjoua for
cash purchases of large volumes of
merchandise. offer from time to time
bargains that the smaller shops cannot
offer. Then, too, there has been large
number of failures among the smaller
concerns within the last year, which
has cut down their number consider
ably. The trade that formerly went
TO them is gravitating to the big de-
partment stores and the large speciality
shops in the town shopping section.
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