Evening star., 1935-09-29
CHAINS GET SHARE|
OF STEADY UPTURN'
IN RETAIL SALES
Pre-FaII Consumer Buying
Held Most Generous
in Five Years.
DRUG DIVISION MAKES
BEST AUGUST SHOWING
Store Promotions Again Produce
Results as Each Customer
Purchases More.
BY J. G.. DONLEY.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 2S.-Al-
though they have been legislated
against, inveighed against, and in
some instances taxed to the point of
confiscation, the chain stores have
come through the depression with re-
markably few casualties. And now
they are sharing in the increasing
tendency to spend.
What Is helping the chains, along
with other merchandising units, is
the part of the average person to pur-
chase necessities, but the looSening Of
purse strings for the purpose Of buying
extras and small luxuries.
In the dark days Of the depression
it was quite the rule for many Gus
toners to walk into store with mind
set on the purchase of one needed
item. The shopper would go to the
department or counter where that
item was for sale, make the purchase
and walk out of the store, blind to
the Establishments Of counter displays
and point advertising on all
other merchandise.
Promotions Bring Results.
That meant small sales per custo-
mer and many customers were re-
quired to cover overhead. But nova
days store promotions are beginning
to produce sales again, and the Gus
toner who enters to make one pur-
chase is likely to leave the store with
a number Of packages. A woman may
buy gloves, along with the new bag;
hosiery with the new shoes, or the
grocery customer may pick up cake.
And 1t is that sort of cumulative pur-
chasing that builds profits.
All sections of the retail chains en-
joyed in August the most generous
pre-Fall consumer buying in five
years. according to the current review
Of Chain Store Age. The average in
crease in sales for the entire group of
companies covered by tina. publica-
tion's index was better than 5 per
cent. "Sales increases by class groups
ranged from to II per cent over the
corresponding month of 1894" says
the review, with some individual
company gains considerably greater"
AS reflected by the index, the state
Of trade in the field advanced to a
new high level of activity for the
year. The August index was $50
per cent of the l929-1e31 average.
This compares with e64 in the pre-
vious month and $50 for August,
1884.
Drug Group Leads.
The drug group, comprising two
leading chains, showed the greatest
percentage gain over August. 1884, of
any group, with an increase of IL
per cent. The index for August this
year for this group was 1l4.O, against
1888 in July and 1920 in August, last
year. At the close Of last year and in
the early months of this year, the
drug chain index stood close to 120
per cent of the 1929-193l average.
The review points out that, except
for minor interruption, the index of
sales for the grocery chain group has
advanced steadily since October of
last year. The August index was 925,
as compared with 91.0 in July and
87.2 in August, 1884.
The 5-and-10-cent-to-$1 department
chain group showed an index of 1910
in August, against $50 in the same
month last year, after making adjust
ment for the extra Saturday in the
month this year.
The shoe group index was l040 in
August, compared with a revised figure
of 1920 in July. There was no
change in the sales index for the
apparel group Of three chains, but the
indication Is favorable in comparison
with a decline between July and Au-
gust last year.
Copyright. 1889