The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1925-11-13
The Origin and OPer-
alton of Skaggs
Stores

Business policies are the charts
by means OF witch successful I'M
aertakings are steered through tho
seas OF commerce ~ road-maps,
pointing the way 10 the desired
, destination. II they arc right they
Aead 20 success through service. II
vhey are wrong-well. the coasts OF
commerce are strewn with the
wrecks OF businesses that tried 20
operate under mistaken or delio-
srately deceptive policies. We who
come into daily contact with eAtah-
lshed policies OF large institutions
are prone 10 take them as matters
OF course. and either approve or dis
approve OF them according TO our
various lights Rarely does II occur
10 us 20 consider the manner OF their
making or tho amount Of time and
;hOuEht-snmetime days and weeks
Of concentrated study-that has led
TO their formulation and promulsa-
ton.
The first skaggs store differed
from other stores chiefly In the i'm
portant particular OF It's almost an.
bellsvably low operating costs. De-
spite the fact that Il was founded
with the avuwed determination OF
eliminating waste from the disiribu'
ton costs OF foodStuffs. Il was dr..
flcult 20 realize at first how much
had really been accomplished and the
extent 10 which the methods en-
ployed were destined 10 influence re-
tail practices. Neither could II reas-
opab}v be expected that the founder
could foresee and lay down rules and
policies 10 govern the thousands Of
contingencies and problems that
arose as the business grew and
spread. These had TO be mot and
solved as they presented themselves
| and out OF their solution and the
koundnezs Of the Judgment with
(which the solution was applied has
grown this vast organization and tho
policies and personnel that have
made It's outstanding success pos
sible.
For instance. II was discovered
that the savings in operating costs
AS compared to tho operating costs
Of the average retail grocery--in
themselves constituted liberal prof.
Il. The Federal Government. In Us
investigations OF profiteering. had de-
termined that from IS to is per cent
WIS a fair operating cost for the
average grocery-to which must be
added a fair net profit. Operating
costs in the SkaEgs store were less
than half the amount allowed by the
Governmental condition due entire.
~ 10 the spirit in which it was
founded and the operating economies
effected and one which permitted the
new store to do business and make
liberal profit on a margin less than
the actunl costs OF the average store.
This fact, plus the disposition 10
share the savings affected with the
consumer. enabled the first Skaags
store 10 do a constantly increasing
volume Of business and eventually
accumulate a surplus sufficient to
warrant the opening Of a second
store.
The second skasgs store was
opened in October. 1916. and sub
sequent like ventures followed in due
course and order. but Il Is worthy
Of note that in the working out OF a
plan OF operation for the second store
good business practices and tho
\ principle OF the Golden Rule were
observed
This plan was based upon profit
sharing ideal Of equity to the custom.
er, the manager and tho originator.
Its fruition Is evidenced by prac.
teal, tangible, FUNCTIONING real.
itY and It's application has served 10
weave a closely knit organization
alike In ambition, desires and prac.
tees.
II has given n present and future
10 clear-headed young men. who In
their ambition 10 achieve are thrice
willing TO serve. II has put respon-
sibility In the hands OF those most
affected and has never overridden
their rights nor ignored their IDEAS
privileges and suggestions. II has at
tfacted loyal hearted men--men not
susceptible 10 petty bribery nor
shortslghted promises. il has given
US more than three hundred busy
stores and upwards Of fifteen hun.
bred energetic young people with
trained minds, open hearts and eager
hands. Thousands upon thousands Of
patrons, and II has elevated the
standards OF food distribution
throughout the entire West.
Merit Dcek--"WhD Our Men
Work Overtime"