Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-15
BIG ADVANCE SEEN
IN RETAIL SALES
Business Volume in Most
Lines Growing Steadily.
Chain Stores Spreading.
By J. G. ROYLE.



NEW YORK, February 15.--A care
full survey OF retail sales from January
l to date indicates that the volume OF
business in most lines for the first
quarter will be fully 10 per cent in en-
cess Of that for the first quarter o.
1927.
There is every indication that there
will be an improvement IN the fetail
situation following the increase IN IN
dustrial activity which now is making
itself apparent. and the latter will be
augmented by the resumption OF sea
sonal employment This is especially
to be expected in the agricultural dls-
,ricts. since the present Winter mas
been such that preparations Tor SptihA
work are much further advanced IMAM
usual. ,,
Despite these facts. however, many
retailers throughout the Middle West
and in other sections are anything ruV
ioyful over the outlook. These inol-
vid,,al merchants feel that they nave
done exceedingly we'll in meeting siren
uous competition from chaln s,oi.s'
but now they are threatened WIN ie
newed opposition from the mali orues
houses anu tillS ID hNN'S W.
right up to their doorsteps.
Plans for 100 Additional Stores.
Montgomery Ward &, CO. is estanllsh-
ING at least 100 additional retain STORES
this wear The company already mas
80 retail stores in operation ana plans
eventually TO operate 1000 retaii utii's
in the larger centers of population;
Retailers now are exceedingly anxious
to know whether Sears. Roeouck q ~
have been expanding their store faclh-
ties and this program was by no means
concluded at the end OF 1927. Inere
has been. however. up to TINS tlme
an indicated policy that Sears, Roenuch
wouli not expand these retaA
stores outside of the cities WheIe
branches are located. 1t is uncertain.
however. whether this indicated poHcI
will be followed in view OF the ex.en-
sion of the Montgomery Ward chain
George B. Everitt, president OF Mont
pomery Ward. explains that there Is no
intent to injure the small store owners
and be believes that the plan o. ms
company eventually will aid them oy
attracting a wider area OF buyers 10
their cities
"Our experience has been" he con-
tin1ed. that wherever We have located
local merchants have benefited. Every
town has been stimulated as trade
center and the regular trading raolus
has been increased to 80 and 80 miles.
whereas formerly it was only 10 TO 10
miles"
Scoffed by Merchants.
The retailers, however, scott at this
reason. They say the retail stores are
already too numerous In some localities.
Many see merely another attempt ny
outsiders TO cut further into their local
fields.
Franklin Hobbs, widely known econo-
mist connected with one Of the larger
Chicago banks. has recently analysed
the census returns on II leading cities.
In his survey he found that the weak
spot in the present merchandising syS-
tenn was the excess OF retail stores Chi
cago has one retail store for every "a
of her population. The other 10 cities
average one retail store for every II
persons.
III any other business were In SINH
liar position" MIR Hobbs declared. "it
would be blown up long ago. That Is
the answer to the retail business failure
record We have had and are having
too many retail failures"
The factor which is perhaps counted
on TO carry retail trade along until II
least the first OF July Is that the agri-
cultural sections are in splendid posi-
ton Farmers made money In 1927 and
It Is characteristic that this money
should be spread out In purchases over
the first part of 1928.