Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-23
NEW RETAIL SALES
METHODS ARE USED
Chain Stores Adopt Plans to
Increase Volume of
Trading.
BY ]. c. ROYLE.

1
/ There is no closed season on the re-
tail sales dollar. That was the way one
of the leading merchants of the coun-
try outlined the merchandising situa-
ton today. He declared that while the
game was scarce, as compared with
! some previous years, those hunters who
used skill and proper equipment were
bringing in plenty of game. New STRAIT
| egg and new weapons, he added, were
being constantly developed, both by the
chains and by independent merchan-
dising units. Neither one, he declared,
was likely to put the other out of bust
ness, and added that merchandising
| success now was dependent on up-to-
date policies and efficiency of personnel
and management.
In most instances the chain stores
have reached the point where their
profits no longer can come from the
mere addition of new units. The chains
are therefore turning their tention to
bringing greater volume of possible Gus
toners to those units now owned. This
is exactly the problem which the inde-
pendents must face. Four out of each
ten chain stores are grocery stores, yet
the national and sectional chain stores
in Chicago do only about per cent
more of the total business of the coun-
try than the Independents. In the
drug stores the independents there do
about "a per cent more business than
/ the chains, while in all Chicago retail
stores the independents do 50.56 per
cent of the business, as against 1876
per cent of the chain stores.
Naturally one of the first weapons
employed by the merchants has been
the reduction of prices. Purchasers in
general hardly realize how extensively
these reductions have been in the last
year. Retail prices of 800 different
articles of dry goods have shown drop
of over 20 per cent, as compared with
this time last year, according to figures
Of the Commerce Department.
Another comparatively new method,
which is being employed especially by
the department stores and mail order
houses, is the budget account service.
Stores employing this service sell coupon
books calling for total purchases as high
as 81 500 on the installment plan with
20 per cent down and carrying charge
of approximately per cent month
until the coupon book is paid for. This
is operated entirely separately from the
regular charge account and the deferred
payment account departments. Stores
which have used the method declare
that bad debt losses amount to less than
one-fourth Of per cent.
The bargain sale has always been a
favorite weapon of the independent re-
tail merchants. Now, however, the mail
order houses are adopting this method
of attracting customers. One of the
large mail order houses in its latest
catalogue covering period of "a weeks
provides for weekly specials. one good
for each week of the "a. This plan is
designed to induce customers to refer
to the catalogues more frequently.
Some of the chain grocery stores are
adventuring into the delivery field
That is they are delivering orders to
customers direct from their local ware
houses instead of restocking the stores
and forcing the customers to carry home
their own groceries.
The chain stores have been taking
drastic measures to rid themselves of
Improbable units or to turn weak
units into stronger ones. Some chains
have closed as high as 400 stores in the
last year. Others have made many
changes in location when they found that
the units were not well placed from
retail distribution standpoint This ten
dency Is especially marked in the grocery,
meat, drug and cigar store chains.