The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1930-03-26
]. C. PENNEY co. PRESIDENT
TALKS ON RETAILING

chants Division of the Chamber of
Commerce at Providence, r. l., on
March 18th, Earl C. Sans, president
of the j. C. Penney Co. said:
"The impression frequently is set
up that chain stores and independent
retailers are antagonistic in their pur-
poses and methods and radically OPP
posed in their aims. We hear, from
time to time, that the chains are 60
ing to drive the independents out OF
business or that the independents are
going to be equally destructive of the
chains. Neither idea is based on fact
nor supported by sound economic or
social reasoning.
There is valid place in distribu-
ton for the mass economies OF the
chain store. The wide acceptance OF
the chains by the buying public is
evidence of their underlying sound
ness.
There is and will continue to be
place for the efficient alert indepen-
dent merchant. If he uses good judg-
ment, he can do many things that
are highly organized which an extern
sive organization cannot do.
"The retailer has nothing to fear
from anybody but himself. The chain
has nothing to fear from the
retailer, if both conduct a clean, eff
ficient business; if they are honest in
their intentions, interested in the
town that supports them, and are
members in good standing of the
commercial family of the town.
"Both the chain store and the in
dependent have legitimate place in
distribution and both will continue.
Their aims are identical-to operate
a profitable store and to serve the
community.
First in a retailers responsible
ties is a mans responsibility to him
self. All self-respecting men are in
terested in making success of life.
Whether a man is a merchant or is
engaged in another profession, he ex-
poets that his efforts will win sue
cess.
"Yet individuals often drift into re-
failing with no clear conception of
the requirements of the job.
"Dr. Julius Klein has said-It
seems, in considering the retail store
failures, that the original setting up
of some retail businesses was decid
eddy ill advised. They represent
hope, ambition, and poor Judgment
"Every retailer has definite re-
sponsibility to all who are financial
ly interested with him. These in
clude the banks with which he does
bushes, the manufacturer or whole
saler from whom he buys, the land
lord and others who depend on him
for the payment of their accounts.
"The banker has always been an
interested party in both production
and distribution. He has financed the
local merchant and In recent years
has found an increasing business
with the chain stores.
"Chains are sometimes criticized
for leaving inadequate balances In
local banks. No doubt there are
and chain store operator should sit
down together for mutual under
standing and adjustment. Chains
certainly do promptly send a portion
of their money out of town. So like
wise do the railroads, the utility COM
papies, and every retail establish
ment. Where do the chains senC
their money? Not to Wall Street
but to factories, mills and whole
salers. Their purpose is to keep the
stream of merchandise in constan
circulation. Chains should constant
ly make effort to perfect system o.
quick transfer of credit SO as t
shorten the period that the consum
ing public pays interest on the cos
of merchandise, between date of pro
to the ultimate consumer.
"The Harvard Bureau of Research
has found that the individual dry
goods store requires 2S1 days on tn
average to bring merchandise from
the factory via the wholesalers an,
the SlOGe 10 lfe CuSlOiIleT. 1HleTeS
to cover this time is tremendous. Tn
chain store system takes only So day
on the average to bring the sam
character of merchandise from tn
factory direct to the consumer. Gu
system year ago, had an averag
inventory through the year of $50
042,S40. Interest at 6 per cent O
that amount for 50 days is $2S,04;
Based upon the same inventory i
the average individual stores examin
ed by the Harvard Bureau of Re
search, interest must be charged thei
consumers for 2S1 days, or total in
terest charge of S925,796 for tn
same inventory.
"The independent merchant, trans
fers his funds out of town to re
plenish his merchandise stocks.
addition he requires more funds to
sent out of town because of the low
er rate at which his merchandis
moves from producer to consumer.
1T is obvious that the local banke
and the chain store have much
common-more money is in the ban
because of the chain-more prosper