The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1923-04-26
RETAIL SALES GOOD SAYS
BABSON

/
BABSON
! Advises Newspaper Advertising
Wellesley Hills, Mass, April 20,
1928: Roger w. Babson, who has
recently been checking figures on the
retail trade of the country has today
issued a preliminary statement. Ac-
cording to his analysis, retail trade
averaging all sections Of the country
| is again back to normal.
"Some sections are still behind the
good years Of 1919 and 1920" says
Mr.. Babson, "but many other sections
are ahead. Retail trade was the last
to feel the effects Of the depression.
When slack business hits a section
the financial interests feel it first;
the manufacturing and farming inter-
ests feel it second; the jobbers and
wholesalers feel it third; and finally
the retailers feel it. Hence, altho
retail trade continues good long after
Wall Street is blue it does not come
back again until sometime after
Wall Street comes back. There are,
Of course, few exceptions to this
general rule. The profits of firms,
like Tiffany, the jeweler, who sells
largely to the very wealthy, follow
close to stock market movements; but
$3.50 of the retail firms lag year or
more behind. sA
The best retail trade today is in
three industrial cities of the East.
Where two years ago, mills and fac
tories were shut down, they are now
working overtime. Cities like Pitts
burg, which . year ago working only
500 Of their capacity, are now back
to nearly 1000. Akron, which three
years ago had the highest percentage
Of unemployment in the country, is
now advertising for men. Detroit is
again back to normal and the volume
Of retail trade in most Of these cities
is equal to or greater than it has ever
been. OF course, this does not mean
that profits are as large. The public
is showing more discrimination in its
purchases and is shopping about more.
The volume Of retail business, how
ever is back to normal in these cities.
ANY concern in an industrial city
which is not doing normal business
today chould clean house and ascer-
tain wherein the difficulty lies.
Cities which are about to enjoy wage
advances are in an especially favor
able position. The retailers of these
cities should do the best business
during 1928 they have ever done.
The mill cities Of New England are
of this class.
''The farming communities may
not be back to normal altho statis-
ticians differ greatly as to what is
normal, If we call normal the few
boom years of the war, then the farm
ing sections are still below and may
be many years to come. If, however,
we consider normal as the average
for the, past twenty years and in
addition allow proper amount for
growth, we will find that the retail
trade of most farm sections is now
back to normal or will be shortly.
Therefore, say that something is
the matter with the retailer who is
not now doing normal business. He
either is q poor buyer or poor sales
man. Either he is mixed up in some
outside enterprise and is not attend
ing to business else is not posted
as to fundamental conditions. There
is a hole in his economies somewhere
and it is up to him to find it.
During the next few months local
merchants should advertise. Nation
al manufacturers are utilizing the
great power Of advertising in the
distribution of their products. The
successful department stores are also
using large space in the newspapers;
but the smaller retailer has yet fail
ed to advertise as he should. Per-
haps this is why he is small-one cam
not tell. There surely is some rea-
son why the people flock to one mer-
chant and pass by another. Statis-
tics certainly indicate that the rea-
son is closely connected with advertis-
ing. Let me also take this occasion
to urge retailers TO use the newspa-