Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-11
MARGIN OF PROFIT
EXPECTED TO GROW
Earnings in Retail Field Held
Likely to Be Propor-
tionately Higher.
BY ]. C. ROYLE.

Profits of individual retailers seem
likely to increase in larger proportion
than their volume of sales, according to
the belief expressed here in oficial cir
cles. Federal executives in close touch
with the business situation declare the
last three months have taught the re-
tailerS of the country much that they
knew before only in fragmentary way
and that they are taking full advantage
of their lessons.
Department and speciality store man.
ayers have been making close study
of their holiday trade, and some of the
results have surprised them. They have
found that one of the largest factors in
losing sales has been the woeful igno-
rance of their statesmen and saleswomen
about the goods they were selling.
"a Lost Sales.
A huge proportion Of lost sales has
been due to the store personnel rather
than to the stores goods, individual
merchants report to the Department OF
Commerce. One big establishment in
the Midwest made a close analysis OF
200 lost sales" OF this number III
were attributable to the salespeople. In
only % cases was the blame laid on
failure OF the store to keep goods in
stock, on the condition. of the merchan-
disc or on the quality of the merchan-
disc.
With such records before them, the
retailers naturally are wedding out their
sales forces with no gentle hand. This
does not imply lack of jobs, but rather
lack OF properly trained workers to fill
them.
Government officials also have noted
a decided tendency on the part of re-
tailers to take advantage of discounts
and thereby increase profits and cut
expenses. There is no apparent lack of
cash available and the merchants are
taking full advantage of the saving
which prompt payment of their bills
assures.
A survey of the retail outlook
throughout the country is singularly
encouraging. The prospects, as in
Dictated by demand for railroad cars, by
orders to manufacturers and by reports
from merchandising centers, are that
the Western half of the country Is likely
to have an excellent sales volume in
the next month. OF course, some of the
grain and fruit centers have been ad-
versely affected, but the purchasing
power of the territory west Of the Mis-
sissippi River seems undiminished.
UnIavOraDie SITUATIONS.
There are unfavorable situations in
some centers in the Midwest and North
Central sections, but the most unfavor-
able situation seems to be in the South
east. This is attributed here to the
fact that the returns from the cotton
crop were disappointing to many farm
ers. The farm situation in general is
fully as good as, II not better than, it was
a year ago and the retailers with rural
customers are showing few signs of
anxiety. This is especially true in the
potato-growing districts.
The New England territory is being
affected to a certain degree by curtail-
ment in the textile plants, but the con-
dition OF other industries indicates an
excellent volume Of sales this month.
especially in the non-textile centers.
The Atlantic section is in fine shape,
although volume of business Is not like
~ to equal that of January, 1929. In
the South Central section, conditions
are: reported prosperous, except In the
cotton growing districts.
An increased movement of products Is
expected by the Midwest shippers adj
visory board, which anticipates needs
for 1,213,000 cars in the first quarter.
(Copyright, 1902