Evening star., 1933-07-02
STORE SALES GAIN
! AS TRADE CENTERS
| RESUME ACTIVITIES
Increase in Pay Rolls Has
Resulted in Better Show.
ing for Merchants.
SOUTH PROVES LEADER
IN BUSINESS RECOVERY
June Reports Are Expected to
Prove Much Better Than
Those Of Year Ago.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, July 1.-The new eco
nomic deal, which is designed to build
up the purchasing power Of the masses
clerks, farmers and laborers,- already
is increasing retail store sales through
out the country, preliminary reports on
June and second-quarter business reveal
today.
Rising commodity prices. increasing
employment, the result of expanding
production, and a growing belief by con-
Sumers that the deflationary phase Of
the economic cycle has been completed,
explain the larger dollar and unit vol
ume of business. Depression low oper-
ating expenses and appreciation from
inventories account for the better show
ing in income statements.
The largest increases in sales are In
the South and Southwest, where the
rapid recovery Of purchasing power re-
suited from the advance in raw cotton
and the increased activity In mill CEN
tiers. Only portions Of the grain belt
and of the Midwest generally have felt
.. the effects Of higher commodity quo
tations, though Chicago buEress is
better because Of the Century Of Prog
ress Exposition. which has proved a
magnet for shoppers as well as sight
seers.
The average business man and IN
vestor will be able to compare June
sales reports quite readily with those
of the same month . year ago, for both
periods contain the same number Of
business days and the same number Of
Saturdays.
Actual betterment in consumer
buying power has been slight as yet"
comments Standard Statistics in a spe-
cial study Of retail trade as it affects
department stores, mail order and
variety chains Nevertheless. all types
of retailers have participated In the
current movement.
"Of more lasting import, moreover,
is the basis now being formed in the
general economic background for fur
ther material gains In retailers unit
sales and gross revenues. The higher
levels of activity and prices, both actual
and prospective, In many lines Of tn
dustry and Of prices for farm products
point quite definitely toward steadily
increasing consumer income and there
fore an expanding level Of actual con-
sumner purchasing.
Indications now are that primary
consumption during the final half OF
1888 will record somewhat better than
seasonal advances. and should run from
to 10 per cent ahead of a year earlier.
Furthermore. such gains in buying ap-
parently will be made on advancing
retail prices. Thus gains in gross reve-
nues should prove materially sharper.
especially in the Fall and Christmas
seasonal buying peaks"
Naturally, 1888 profits will be re-
stricted somewhat by the poor showing
in the first three months Of the year,
though low retail operating expenses.
the elimination Of abnormal inventory
mark-downs and appreciation Of In
ventories will prove beneficial.
The survey. however, points out that
more than go per cent Of the annual
retail business is done In the last half
Of the year, and adds that 1T op-
pears probable that full year 1888
profits in the store division will show
gains ranging up to 40 per cent over
1892"
Copyright, 1933)