Imperial Valley press., 1923-04-20
RETAIL TRADE
BACK TO NORMAL
BABSON SAYS
Some Sections Behind
But Others Ahead of
I9l9-20
General Business 3 Per
Cent Above Normal
Says Advertise


figures on the retail trade of the
country has today issued preli
minarv statement. According t.
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 q slack bust
ness hits a section the financial in
terests feel it second; the jobbers
and Wholesalers feel it third; and
finally the retailers hear 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.
n few exceptions to this general
rule. The profits of firms, like
Tiffany, jeweler, who sells largely
to the very wealthy, follow close
to stock market movements; hut
90 per cent of the retail firms lac
q year CIR more behind.
Best in East
"The best retail trade today is
in the industrial cities of the east.
Where two years ago, mills and
factories were shut down, they are
now working overtime. Cities like
Pittsburg, which n year ago were
working only so per cent Of Their
capacity, are now back to nearly
100 per cent. Akron, which three
years ago had the highest percent
age of unemployment in the coun-
try, 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 rs large. The public is
showing more discrimination in
its purchases and is shopping about
more. The volume of retail husi-
ness, however, is back to normal in
these cities.
"Anv concern in an industrial
city which is not doing q normal
business today should clean house
and ascertain wherein the diff
Guilty lies. Cities which are about
TO enjoy wage advances are i'll an
especially favorable position. The
retailers of these cities should do
the best business during 1923 thew
ever have done. The mill cities of
New England are in this class.
1.-THE farming communities may
not be back to normal althO stats
ticians differ greatly as to what i
normal. If we call normal the few
boom years of the war, then thu
farming sections are still below
and may be for many years to come.
If, however, we consider normal as
the average for the past twenty
wears and in addition allow Il pro-
per amount for growth, we will
find that the retail trade of most
farm sections is now back to nor
nal or will be shortly. Therefore,
I say that something is the matter
with the retailer who is not now
doing a normal business. He eth,
er is Il poor buyer or n poor sales,
man. Either he is mixed up in
some outside enterprise and is not
attending to business-or else is
not posted as to fundamental CON
ditions. There is a hole in his
economies, some where and it is up
to him to find it.
Urges Advertising
During the next few months
local merchants should advertise.
National manufacturers are utiliz-
ing the great power of advertising
in the distribution Of their pro
duets. The successful department
stores are also using large space in
newspapers; but the smaller retail
er has yet failed to advertise as he
should. Perhaps this is why he is
small-one cannot tell. There
surely is some reason why the peo-
pie flock to one merchant and pass
by another. Statistics certainly
indicate that the reason is closely
connected with the advertising. Let
me also take this occasion to urge
retailers to use the newspapers in
a dignified way rather than at
tempting to use bill boards and
novelty contrivances. During the
past two months l have motored
considerably throughout different
sections Of the country. At almost
every cross road is some sort of a
sign, n windmill or something else
sold to SOME bank or merchant who
thought he had discovered cheap-
er or more effective method of ad-
vertising than his newspaper offer
ed. As a matter of fact, he un
consciously disfigures the highway
endangers life and makes enemies
instead of friends. Merchandising
is profession and should be treat
ed in a dignified way. Moreover,
how banks can adopt such cheap
appearing methods of publicity is
beyond the comprehension Of most
business men. Yet / understand
the temptation, having once fallen
for outdoor advertising myself
much against the advice of the
Gundlach Advertising Agency
which handles our copy
On Chain Stores
Mr.. Babson added a word Of
cheer to those retailers who fear
the chain store. Ht
"Instead of worrying about
chain stores" says he, "the indie
pendent retailer should copy their
good features and avoid their pit
q