Alma record. (Alma, Mich.) 1878-1928, 1922-07-06
ADVISES SELF
HELP STORES
BABSON, STATISTlCIAN, AID
NISES MERCHANTS TO ADOPT
NEW BUSINESS METHODS.

In an interview Roger w. Babson
appealed to merchants to study the
self help" stores. He believes that
the small merchant has great oppor-
tunity if he will only adopt modern
methods and advertise more. He in
sists that the public does not demand
the Chain Stores but rather demands
economical and convenient service
People buy from the chain stores be-
cause that is the only place in their
community that they can get such
service, he continued.
Chain stores are having a ire
mendous run today They are spring
ing up like weeds in every commun-
ity Local merchants are beginning
to become panic stricken. They fear
that the chain store is to swallow up
everything. Grocers, druggists, and
clothing dealers are especially trou-
bled. Considering the tremendous
number of small merchants this is a
problem in which every one should
be interested There are for instance
over 100000 independent grocers in
this country. To have their business
wiped out would result in a trcmcnd-
Gus economic appeal All together
there are over 100000 small mer-
chants in America who are vitality in
terested in this problem, as they viii
be wiped out if the chain store proves
to be the legitimate method Of mer-
chandising.
PERSONALLY | feel that this change
is due TO the fact that chain stores
come nearer to giving the public
what it wants and prospers for that
reason. If the local merchants will
adopt the same up-to-date methods Of
economical merchandising they need
have nothing to fear from chain store
competition These newer and cs-
pecially these self help establish
ments are doing splendid business
because their plan is practical and
because they are being operated by
young men with initiative and en-
thusiasm. The railroads did a fine
business when they were so operated,
20 or 30 years ago. Chain stores,
however, will have their troubles just
as the railroads have had theirs.
Clerks, truck drivers, and buyers will
some day be organized and as saucy
and independent as the typical plumb
er is today. Then the chain store
sales will drop off and operating eX-
penses will increase and they will
have TO adopt a more modern form of
merchandising or give way to a new
order. The self help" system elimi-
mates labor difficulty to a considera-
BILE extent and presents a most inter
esting study both as TO service and
to cost.
Il appeal particularly to merchants
of the older school and urge them to
study very carefully these self help
stores, with their self help" service.
1t is true that the average merchant
cannot get the advantage Of collec-
tive buying unless he himself joins a
chain. Any merchant, however, can
install a self help system Of sell
ing independently. OF course, this
means more than rcorganizing the
fixtures Of his store. He must change
his entire attitude. The self help
stores for instance are very depend
ent upon advertising, much more so
than are the chain stores and local
merchants. The latter must advertise
more than ever if he is to adopt the
self help" system. am not mer-
chant, merely statistician. Stats
tics, however, clearly indicate that if
the local merchant continues as at
present he will be eliminated from
American industry to make way for
more modern machinery Of distribu-
ton.
"In regard to chain store securities.
Most of these merchandising COM
panies should do well for the next
few years. Mail Order concerns will
also prosper, but ! predict that even
stores like the A & = will some day
change over to self help system.
They will be forced TO i'm order TO sur
vive. When the change is made
their securities will become "sef
help" securities. II is not my pur-
pose" concluded Mr.. Babson, "to rec
ommend them as securities but rather
to try to awake the local merchants
before it is too late, and to get them
to adopt the methods Of more eco
nomical distribution which are win
ming out today"
General business according to the
index figure of the Babsonchart stands
at 17ft below normal. This is en-
couraging indeed when you realize
that it is holding up in the face Of
the threatened rail strike on top Of
the usual summer dullncss.