Evening star., 1928-12-11
CHAIN STORE IDEA
DEVELOPS RAPIDLY
Latest Nationwide 0rgani-
zation Joins in Bid for
Retail Trade.
Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, December 11.-An-
nouncement today of the formation of
a nationwide chain of department
stores was greeted here as a distinct
development in the new merchanriz-
ing methods which have caused a
bitter controversy among business men.
The preliminary moves toward for
nation Of this chain were taken some
months ago, but the formal declara-
ton of the scope and intentions of
the chain was made today.
The prize for which the various
disputants are competing is a larger
part of the retail trade of the country,
which in 1928 is expected to reach
$45, 200, 100000. It is indisputable that
the chains have captured no small
part Of this business in recent sea-
sons, and the development of chain
systems is proceeding at an. astonish-
ing rate.
Example Cited.
In Detroit there are now 9,181 chain
stores, representing 36 different lines
Of business. This is gain from 4,903
stores. representing 80 lines, last May.
Similar developments have taken place
in other sections.
as menace and some as blessing.
The latter point out that chain stores
sales have gained from 90 to IS per cent
so far this year, as compared with the
corresponding period of 1927. The for
mer. among whom are influential men,
bers of the United States Chamber
of Commerce, express fear as to what
the effect on the communities will be
If more trade drifts through the chain
stores DOORS
The complaint Is that the chain
stores get most of the cash business,
leaving the less desirable credit busi-
ness to the independent merchant. and
that the chains have little or no in
terest in the communities as such and
are not prone to join in civic better
ments.
The chain store adherents declare
that the chain Is not danger to trade
Z and that it Is the answer to modern
needs, which involve doing large
amount Of business on a narrow mar
gin of profit.
Chain Store Records.
successful this year, although six
grocery chains are reported to have
done 81 $1,200,000,000 worth of business
or nearly so per cent of the total. Ap-
parel and drug chains made gains, but
the betterment in candy was small and
in tobacco there was falling off In
most months. This was true also of the
restaurant chains.
The new chain. comprising % depart
ment stores under the name of the
Hahn Department Stores, Inc, will give
opportunity for a thorough tryout of
chain methods from one side of the
country to the other, since the units
extend from Boston to Seattle. In their
last fiscal year these % stores recorded
sales of $108,000,000 The concern
contemplates acquisition of further
units
Nathan Eckstein of Seattle, whole
sale grocer and a civic leader, recently
said: First we had the department
store, which was going to take all the
business away from the independent
retailers. Then the mail order house
Then the chain stores. Then the mail
there is q place for the Independent
merchant. The independent store is
bound to grow and prosper If there is
personal initiative and merchandising
ability behind it. The big stores started
small and the little store will grow
if it gives the people what they want
in quality of merchandise, price and
service"
Independent Merchants.
J. w. Spangler, Seattle banker, said:
II am not one of those who believe the
! independent merchant will disappear.
To meet the competition Of the chains
and the mail order branches, there
must be higher order of organizing
ability If the independent merchant
has merchandising ability, capital suf-
| ficient for his needs, and industry, ne
can hold his own: but he needs all
three of those things now''