Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-11
CHAIN STORE SALE
RECORDS IMPROVE
Increased Dollar Volume OF
Business in October Held
Significant.
BY DONALD C. BOLLES,
Associated Press Financial Writer.


NEW YORK. November 1.-THE
chain store industry, facing the most
severe test of its efficiency in its COM
paratively short history, is inclined to
regard the increased dollar volume OF
business in October as significant.
Although 1t is the period of the year
when an expansion normally develops,
the Is per cent rise in dollar volume
reported for October over the previous
month bv Al chains is regarded as en-
couraging in view of the sharply lower
commodity prices which enhanced the
buying power of the dollar over that OF
a yeer ago.
Total Sales.
Total sales of Al companies in Octo-
Der totaled $241, 087, 8I9, against $207,-
SCI. 1877 in September, tabulation by
Merrill, Lynch & Co. shows. The Octo-
Der figure represented a 7.97 per cent
decrease from year ago, when sales
amounted to 1851, 970,695. The COM
pany points out that this is slight when
consideration is given to the shrinkage
in commodity prices which, in many
instances, are today to % per cent
less than year ago.
However in making a comparison OF
business in 1929 and 1880, consideration
also must be given to the increased out
lets for merchandise through chain ex-
pansion, While the number OF new
stores has been somewhat curtailed IN
recent months, expansion was fairly
brisk at the commencement OF the year.
Furthermore, there has been curtall-
ment of the number of competing in
dependent merchants
while the most sanguine are hopeful
that the dollar volume OF business DUR
ing the balance of the year, stimulated
by the holidays, will enable the cna1n
store industry to turn in record COM
naring fayorably with 1929 the pros
meet Is clouded by uncertainty over the
purchasing power of the consumer.
THE sharp drop in farm prices and
the slackeninp of the wheels OF indus
trv undoubtedly has reduced the puylng
newer of those dependent upon them
for their income. Standard STATISTICS
Estimates the purchasing power In In.
dustrial and farm areas is now ABOUT
four-fifths of that year ago. Ii tnat
is true, it would tend not only 70 re-
strict the volume OF noloay puylng
during the Christmas season: put
through limiting most purchases to low
nriced goods. would prevent the total
trade during the period from equaling
that of 1929.
Larger Unit Business.
Although their dollar sales have de-
creased, the chain stores have been
doing a larger unit business, Merril,
Lynch e. Co. reports. =.
The impression has been created In
some quarters that the chains have
made great effort to stimulate sales at
the expense of net profits. Quite to the
contrary. says the company, main chains
have put into effect savings and EN-
ciencies during the current year. with
the result that net profits should be
larger than anticipated. In some in
stances it is expected that 1t viii COM
pensate companies for whatever disap.
pointing results may develop In total
business.
Many of the price reductions that
stimulated sales were merely case OF
the chains passing on to the consumer
the savings on goods purchased at
much lower prices than prevailed year
ago. Where the turnover has been
rapid. goods have been sold to consunn-
ers at prices which allowed about the
same margin of profit as when whole
sale and retail prices were higher.