Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-29
S|MPL|F|ED STOCKS
MAY ASSIST TRADE
Commerce Department to
Advise. Elimination of I'm.
profitable Lines.

Merchants who face the dilema of
supplying their customers with quail
ity merchandise without increase in
price, or even at a lower price, may
find way TO accomplish the near
miracle. and at the same time escape
both nervous prostratiOn and bank
ruptcy by adapting to distribution a
lesson which has been sweeping
through producdsDn industries.
At least there has come to be a
strong belief among groups of bust
ness men that distribution may be
improved vastly by simplification of
stocks, and the effort is about to be
made.
Plans were laid at the Department
of Commerce last week to carry the
story to retail dealers. The depart
ment agents will act as messengers
only; what comes after must be on
the initiative of those who receive the
message. although the Government
will lend it's expert advice if re-
quested.
The consumer stands to be the ben
ef1ciary of all of this, in reduced
prices of what he buys, or In hating
an upward tendency of prices, and in
improved services.
Brands Are Selected.
Concentration on brands which are
found to be in greatest demand is
the germ of this idea. This does not
mean necessarily selection of trade
marked goods: it may mean the elimi-
nation of some trade marked mer-
chandise if experience has proved 1t
moves slowly. although in many lines
identified merchandise moves more
rapidly than unbranded wares.
Simplified practice has been adopted
% ind CT
with the Department of Commerce
since the first of 1922. Eleven others
have approved programs which are
in process of acceptance by individual
members of the industries. More
than $50 other industries have such
programs under consideration.
Industries belonging to 686 trade
associations have accepted simplihed
practices; in addition, 2,775 companies
of similar activities, but whlcn Ior
one reason or another do not have
membership in a trade association.
have adopted the programs in their
respective fields.
Manufacturing industry is saving
more than $500 000, 900 a year because
1t has adopted simplified programs.
In manufacture, simplification has
been defined briefly as concentration
on sizes in greatest demand. IL gen
orally has been found. when survey
was made, that 80 per cent OF the
business is tied in 20 per cent of the
varieties, leaving 90 per cent or the
business to be divided among the re-
manning 80 per cent of the varieties.
Simplification has resulted IN elmlna-
ton of most of this unprohtaple oo
per cent.
For months, the division OF slmpn.
fled practice of the Department OF
;ol, i1fo ir1c q
men trained in helping business sur
yey itself and adopt program OF
elimination of wasteful varieties. has
been giving study to a simpler plan
for the distributors. Ray Nj. Hud'
son. chief of the division, will leave
Monday on q SiX-week trip, in the
course Of which he will make a mum.
her of addresses, telling retailers ana
wholesalers the possibilities OF slmph-
6cation.
Not New Idea.
This is not an entirely. new idea,
this concentration of stocks by re-
tailers, but the surprising thing Is
that 1t has not been more widely 1ol-
lowed. At least one large department
store of national reputation has fol-
lowed this course for some years. A
chain of SHOE stores follows 1t so
openly that its charts of styles ana
sizes are displayed on the walls OF its
showroOmS.
One merchant. some months ago.
decided to survey his hosiery depart
ment. where he was keeping stock
Of $4,000 with sales of $4,000. lie
discovered 26 brands being carried,
with four-f1ft of the sales in five
brands He eliminated all but the
five rapidly selling brands, reduced
his monthly stock investment to less
than 100000 and increased his sales
to slSS.000.
1t is believed that if the merchants
of the country viii take count or
their business closely and concen-
trate on the brands which are moV-
ing rapidly. and eliminate those
where the sale is slow. they can reap
such rewards in increased turnover.
decreased capital requirements, de-
creased overhead and improved serv-
ice rs to effect savings which will
mean money in their own tills and
enable them also to give better prices.
I'm some lines at least, to their Gus
toners.
Downright. 1926