Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-04
Continued From Page A-3s

COntlnue0 FROM rage A-As
tained," Mr.. Talbot continued
This opinion Is based on q
continuing high level Of ma
tional employment and con-
sumner income. Astounding
population growth also is a
powerful factor and Arm COM
mitments for new plant and
equipment will contribute sub
stantially.
Although activity will con-
tinue in 1856. 1t probably will be
at q slower rate. Gains in the
first half Of the year will be
about 3 per cent above 1855, but
for the entire year I believe
the increase will be between
rs and 3 per cent" he said.
Competition Curbs Prices
II do not believe there will be
any significant price increases
this year. Additional expense
resulting from the new mini
mum wage must be met by fur
Their economies. Healthy COM
petition will be . powerful force
checking price increases.
Inventories are generally
satisfactory. thus permitting
aggressive merchandising plans
to be developed early.
AN important factor will be
the renaissance Of downtown Is
= dominating factor on Ameri-
cas- merchandising scene. Lead
ing businessmen and citizens in
community after community
are devoting themselves to de-
velopment Of programs aiming
10 make downtown the focal
point Of our economic life.
This year, merchants should
devote more time, study and
action to improvement of SELL
ing techniques and public rela-
TONS" he declared.
Auto Firms Have Big Year
The automobile industry had
the best year IN its history and
1t win be difficult to top this
achievement. said Edwin l..
Stolhman. president Of the Auto
motive Trade Association Of the
National Capitol Area.
However. things look bright
to start with" he said. Steel
mills are booked to capacity well
into the first quarter. Building
holds at an all-time high. Farm
income has just turned upward.
Retail sales are at a new peak
and prosperity abroad provides a
strong business support. Pro-
jected automobile production for
the first quarter is above a year
ago.
Most automotive officials have
predicted 1856 viii be another
8-million-car year, yet when you
total up their individual fore
casts, they add up to better than
10 million cars. Obviously there
is q discrepancy somewhere.
"Retlizing it is hard to foretell
the future with certainty, I think
that even though business should
slacken of some as the year
progresses, 1856 should still be
another good year for the auto
mobile industry"
Food Companies in Race
Construction of new SUPER
markets, modernization of exist
ing stores and intensified COM
petition in an already highly
competitive field were highlights
of the retail food industry in this
area during 1855, reported Edgar
BalShaw, Washington division
manager for Safeway Stores, Inc.
The program Of expansion
and modern;zation win continue
and win be accelerated in 1856.
Mr.. Balshaw predicted. Most
new food stores in this area
were large scale establishments
offering customers greater Sc
lection Of items and many new
shopping conveniences," he
added.
Mr.. Balshaw reported 1855
volume was higher. but did not
estimate BY what margin. Ex-
pansion Of operations by many
firms caused keener competition
and this highly competitive sit
uation is expected to continue In
1856, with the homemaker bene-
f1ting from efforts to win her
patronage, he said.
More mixes and prepared
foods Of all types appeared on
food store shelves and the num-
Der Of non-food items increased
Some stores branched out into
durable goods-electrical appn-
ances and other items not relat-
ed to food. Others chose tc
concentrate on doing q more
complete job on food and relat-
ed items.
Further development Of the
trend toward more frozen pre-
packaged meats was noted In
this area. Many industry lead
srs predict frozen steaks, chops
and even roasts will be stocked
by food stores on an increasing
scale in the coming year"
Mr.. Balshaw reported thai
Safeway completed four large
new stores In this area in 1876.
and five more are under con-
struction. Nine stores were com.
pletely remodeled last year
The expansion program will bt
accelerated in 1856, he said.
Expansion Boosts Sales
Drug business in this area ros'
around 5 per cent in 1855, will
a large part Of the increase com
ing from new locations and en-
larged stores. reported George B
Burrus, president Of Peoples Drui
Stores, Inc.
Inventories reached a new
high due to the expansion II
outlets rs well as the introduc'
ton Of new products and tn,
duplication Of existing items b,
manufacturers, especially phar