Evening star., 1931-05-07
c. OF C. TALK LAUDS
NEWSPAPER ADS.
President Kelly of National
Retail Dry Goods Body
Speaker.

medium for the retail store by ID. r.
Kelly. president OF the National Retail
Dry Goods Association. In an address
today before q plenary session OF the
International Chamber OF Commerce.
Mr.. Kelly, who Is president also OF
the Fair. a Chicago department store,
came before the gathering Of business
men OF twoscore countries as the
spokesman of more than 3.700 depart
n1ent. speciality and dry goods stores
of the United States which do an an
nual business of approximately four
and-a -half-b billion dollars. and which
employ upward Of a half-million peo-
pie.
Next in order to neswpaper advertis-
mail advertising Radio came third,
then followed street car and billboard
advertising and window and interior
store displays.
Almost every progressive store con-
ducts at regular intervals special sell
ing events" Mr.. Kelly said. These
special selling events afford us an ex-
cellent opportunity to observe the pull
ing power of our advertising media.
There are instances on record wnere
stores have spent $4,000 for one days
advertising. and as a result have sold
as high as 81 100000 worth OF mer-
chandise in one day"
Aid in Hard Times.
Kelly said that department stores
ARE generally large, consistent users
of advertising, not only in normal times,
but during periods of business depres-
sion. BY advertising unusual values at
price appeal when there has been
hesitancy of consumer purchasing, mer-
chants have been able to stimulate
business. with the result that industry
has likewise shared the benefits"
Mr. Kelly painted general picture
of the retail trade in this country. de-
failing its various phases of operation,
and outlining some of its problems.
All retail sales in this country, he
said, amount to SIS ,00O, 900 or more
annually. OF this, he said, department
stores, including general merchandise
stores, do approximately Is per cent.
Chain stores get 18 per cent OF the
business; mail order houses doing a
mail-catalog business, 3.6; company
store, operated by industrial concerns
for their employees, 3; house-to-houSe
canvassing, 2.3; consumers cooperative
stores, four-tenths of l per cent and
independent store, not included in any
of these classifcations, 56.7. Under this
latter classification, the speaker ampli-
fed, would be grouped the great number
of speciality stores dealing in one or
more related lines OF goods.
In this connection, Mr.. Kelly said that
surveys since 1920 show that department
stores are confronted with steadily
rising expenses, and equally steady de-
crease of profits. This. Of course, does
not apply to all. he said, but called It
the common experience OF our cralt.
Customers are Pleased.
This increasing cost Of doing business
In department stores" he continued,
has been due in q large degree to the
willingness of retailers to meet the
varied demands for service, made by
their customers. Today, the modern
department store Is expected TO carry
thousands of items Of merchandise TO
supply the necessities and luxuries which
our mode of living requires"
Special services and conveniences Of
fered by the stores which serve TO in
crease their operating expenses. Mr..
Kelly said, include personal shopping
bureaus, style and fashion information.
interior decorating service, emergency
hospitals, and In some cases post OF
fees, branch of1ces for the payment OF
gas, electric and tax bills; travel in
formation bureaus and theater ticket
bureaus.
These services now actually are fac
tors Of competition, the speaker en-
phasized.
Delivery service was another large
item of cost pointed out, Mr.. Kelly say
ing that It ran from 10 to 80 cents to
deliver each purchase to a consumer,
and that for bulk merchandise even
more.
Another serious problem which the
retailers are attempting to cope with
is that Of returned goods.
Starting out as a privilege. he said,
"ft has surrounded itself with abuses
mating that customers returns in de-
partment stores amount to a half bill
lion dollars Q year, Kelly told his audit
ors that this adds millions of dollars
annually to the cost Of operating
stores"
His association, he said, now Is con-
ductinR a vigorous campaign to wipe
out the evil, and is seeking the aid of
newspapers, women's magazines, worn-
ems clubs and otIaer consumer organiza-
tons to educate the buying public as
to the waste and expense involved.
FiRht for q. s. Valuations.
In the field Of legislation, Mr.. Kelly
said that, realizing that there are many
lines Of goods produced in factories
abroad, merchants have always fought
suDcIiCuIion Aoh AOeAeN Va
imports.
He also told of the l5-year struggle
aRainst LEGISLATION which would make
it necessary for the retailer to sell ma
tionally advertised and trade marked
goods at the manufacturers fixed
prices.
Price fixing only increases cost to the
consumer, he declared.
In conclusion, Mr. Kelly pledged the
aid of his association toward main
tenance Of friendly relations between
the merchants of this and other coun-
tries, and I'm promoting the develop