New-York tribune., 1922-05-21

anu doilarS and cents, compares IA
In fact, in dollars and cents value,
retail sales during the month of March
averaged throughout the country about
~ per cent less than q year ago, while
prices are estimated to have declined
in the same period at least 20 per cent.
This leads to the conclusion that the
stores actually are selling more goods
than they did last year
Retailers admit that these statistics
do prove the point that greater
volume Of merchandise is moving into
consumption, but there is a story back
OF these figures that leads to fer diff
ferent conclusion than might be ad-
duced from a casual glance at the
statistics.
What the retailer meant when he ds-
clared that the war was over in every
thing but expenses WAS that it was
costing him more to do a given volume
Of business than it did before the war
OF during the war. Despite earnest
efforts in every possible direction re-
tailers nave not been able to cut down
their cost of doing business to any
thing like normal ratio to the size of
income. 1t is this fact that makes the
lot of the retailer anything but happy,
although figures seem to prove that
his industry is one of the most active
in the country. In plain facts, most
retailers are now conducting business
without making their usual profit.
There are exceptions, Of course, but
in a broad sense most of the big re-
tailers declare that their profits so far
this year have been exceedingly small,
although they have worked harder than
ever to make money
Rent a Big Problem
Expense Of doing business" said a
Fifth Avenue retailer, Undoubtedly is
the big problem that the successful
merchant will have to solve this year.
In our store we know that our expense
is all out Of proportion to our income,
but we are unable to make much prog
ress in reducing it. We have cut down
salaries to some extent and have sue
ceeded in making our store operation
more eiticient, but there are some big
items that simply can't be reduced, it
seems. Chief among these are the items
Of rent and advertising. Advertising
rates are still at the peak, and so are
rents. l pity the retailers who have
signed a lease during the last two or
three years.
UNLESS there is decided upturn in
trade that will give such retailers an
opportunity to almost double their vol
ume of business they will have a hard
time making ends meet. Some of the
big stores own their own buildings. To
such the item of rent is not such a big
problem, but the upkeep Of building
undoubtedly has caused these stores to
advance their rental charges to them
selves and in most cases think it will
be found that the proportion of rental
charges is now too high, compared to
the gross income.
advertising is another item that
has grown out of proportion. Rates
are extremely high, and to get the vol
ume of business necessary to cover
expenses more advertising is required
In our store, and think this will hold
true for others as we'll, we find that
advertising does not have its old pull.
In other words, we must spend more in
advertising to produce certain volume
of income -.
Another retailer, discussing this
point, said that his advertising proper
tion had risen to close to 10 per cent of
his gross sales, when it should be
around q per cent.
Despite indication that here and
there the public is beginning to
loosen its purse strings, people appear
to be practicing fairly rigid economy
in their general expenditures, accord
ing to several retailers.
"Sales in our jewelry, art and other
departments where merchandise Of a
luxury or semi-luxury type is carried"
said one retailer, "are still decidedly
below normal compared to sales in
other departments. There has been
some hriqhteninp of business in these