Show REI Lt RETA All r E HOlD THE KEY TO THE SITUATION 5 ra raa r a 6 Y f s k s hr s so o- o oJ J C PENNEY rounder Founder and Chairman of the Board oard J C Penney lenne Company A 41 tal talk by J C PE NEY founder and head of the J C Purvey Co Stores I Retail merchants hold the ke key ker r to t o the economic situation and it will III be good bu business mess judgment so to organ organ- organIze organize organize ize the of retailing that they onay anay keep the reins rems in 10 then their own ow n hands The retail structure of the country will 1 be the force fOlCe which will glean the ben benefits fits or suffer the con con- conSequences consequences con consequences sequences of oui out present c t it fJ f i- t J C Penney Penne founder f under and chair chall- the chan the board of the J C Penney Co expressed e th these the e views wS Thursday m in a talk to business men on the Sub sub subject elect Our Ch Economic Structure Structure Structure ture at Salt Le L ke e City before the Kiwanis club J He predicted that the end of the th e year will III reveal a money volume o of f Sales not far below last year vear ear and and 1 that in m some instances the figure will lC exceed those of last yearn year Continuing ing ng Mr lr Penney Penne said Twenty en ty eTS ago th this LS Ws was w s a country of somewhat hat isolated locale I localities 1 ties Except for foi the distribution lon of such uch crops as cotton small grams grains wand and beef we had few large hons organizations doing a national and 2nd international business Mass l production as we we now view W it tt was not yet started start start- started ed Today so far as our economic rife Ife is 15 s concerned d we e alea aie ale a compact unit This has been brought about by b many conditions among the more Im- Im Important important important of which are improved sell sell- selling selling mg ing methods large laige national advertising advertis- advertis advertising mg ing enlarged and accelerated ted facilities for shipping and the changes in 10 5 social I 1 intercourse which have been brought about by the auto auto- auto faster and more plentiful trains the radio and the widening of the national n vision as it relate a to general interest in m national affairs My own contact with the economic structure of the country has been en- en entirely entirely en entirely along the line rues of retail mer- mer mer-chand mer chand hand in m T ran J h h I hive have br be n active gar pd ga pd f fi i the tIe p po st at t tHen Nen y eight v ais as In thIs perm in 10 wh eh ch chI I the mo t s swe- swe p c p n ng changes s 3 ha have hale e oc occurred cum cum-cd n our economic structure I have ave been confronted with the same problems which arc are confronting samel all of us and which we e have base ha e faced m in increasing measure during the past several years Only a few months past I tra trawled tra through the South and the publishers merchants newspaper pub pub- pub pub- publishers lishers and others in m any m-any cities and towns ranging in size from to Ivas I was surprised d and pleased ith the spirit of business optimism 1 I found jn m nearly e every ery place I visited I have come from New York City the continual talk was that business had gone to the bottom md and seemed likely to stay there Yet I found stores here wherever er I went going ahead at oat a good rat rate r t making mone money turning their stock maintaining th their lr lra a building for fur an increasingly popular future The g general social avi therefore the general economic t s-t- af a 2 of the country has found a vv n I v Y ra- ra 11 and ani that base is LS a sound soud en n T i g p Q- Q vides o-vides ules vines for national ure pena ares n c a 1 arate arate rate equivalent alent to th tb t which 2 a for tor a long period prior to the dells dells- deflation deflatIOn tion dion of the market alues values of securities securities ties tiCS The drop in commodity prices each euch as fods foils cloth ig and similar Items Items reveals reseals the interesting fact that sales volume by items of mer mer- mer- mer merchandise merchandise chandise is increasing rather than diminishing In our own business sales Mica volume in dollars and cents for the first eight of the year vear ear is ahead of last year ear despite the fact that in m many of our volume m moving items there have been r du tion in us price a ing to as high as ae 80 SO per cent in some ses se An apparent nt duty which the re- re rc en of the e country must perform I that ih t of or r public confidence no I V rand land nd insisting that the story of bus bus- bus jias n S as i ii h really e exists be told To To continue to I print depressIOn I In n held beld face type and to sell 01 oa prosperity in type will type twill serve only to retard business des de I But the retail structure of the thc countr country faces intricate problems Distribution Dis- Dis Dis Distribution is LS and has hns been a source of haste wiste has snot not been eked As a nation nahon we e are educated to quick chan changes es in m styles and in de- de desires de desires sires The style life of many Items of merchandise is 15 short The quick quick- selling quick selling item of today todar is LS de dead stock a few afew weeks from toda today If the re- re retailer retailer rc were ere to continue the older forms Corms of buying where here months some some- sometimes sometimes sometimes times elapsed bet between beten en the placing of lof the order and the of the he would be constantly laced aced with the problem of moving h heavy v stocks of gods at not profit or at a loss in ord r to clear his Shelves The leThe retail organization org built on a national scale are overcoming this condition by so ISO developing dev their or- or or ordering dering facilities their relationship with and their methods of shipment that a minimum of time elapses between the order and the the receipt of t We We aie ale 1 a nation of great gleat dis stances in 10 which the actual cost of shipping merchandise in 10 limited quantities qu- qu qu quantities entails e expense expense p nse which must pissed passed d on in 10 the retail pricing i organized retail structures 33 es 23 hive have worked out this item of cost through mass shipping Prior to the start shit start of the present situation in m October October 1922 prices paces m 10 many commodities hid had been artificial Jy y maintained it i l point inconsistent 1 with lowering prices of production Those retail or organizations which Iere first to their disc dig on the basis basl of replacement costs mere ere the first to clean dean up their high priced I inventory and to place them themselves selves on mr a basis where here they could satisfy a bu buying mg public 3 aware are Of the drop in costs at the manufacturers manu manu- manufacturers manufacturers There never was a time in m the thebus bus business mess history of the country when unified action on the part of retailers has been more necessary Such well ell established organizations organizations of merchants merch as have been accepted ac- ac accepted ac accepted as helpful in the group handl hand handing handling ing mg of retail problems face a time shen hen they should devote every ener- ener energy ener ener- energy energy gy to telling the real rod truth of the present situation to the public After ell the public is satisfied when hen it Jets bets a square deal The leThe retail merchant in m many says tas is 13 very clo close e c to the life of his If he is working along along he the he right lines Jmes he is ss working to m- m Improve im improve prove that life in 10 every way ay he can Present day business conditIOns Intake make this i 1 i matter of 1 wise Ise business bus mess policy Our national methods of dis the widespread attention paid to customer satisfaction have lone done a away ay y with t the e old days when en he was I of his community and nd the customer was for for- forced forced for forced ced to buy v hat the merchant had to sell ell Today the merchant is the ser ser- servant servant ser servant vant of his community and as such must assume the tho direct ducet obligations wh vh ch this position imposes upon him hun I have referred to the fact that cooperation between een merchants was Ineser er n e n II e y than rat lat the present time In connection with Ith thIs statement and the facts regarding community cooperation ase as we e have learned them through 28 years of continued service to the public I 1 like for fo fo r just a moment to dwell on a situation which has arl an ansen eon in m greater re-ater re or less degree degre during hp h h- h p ve se er r n The beginning of the present conom f r situation brought with it m in scattered catt red sections of the country c 1 on the principles of operation of ce certain tain organized retail groups It was stated stated that nationally t organized retail organizations were losing then forces to dwarf rf local merchants and f that these organizations or organizations bons were ere dra draining communities of wealth In the light of good busm business Judg jud the ess falseness of these claims LS is apparent The stoe tc-e tc whether Jt at is a purely local unit or a oa local unit operating as a pert pirt of a group organization depends for its success upon the succors success of the community and nd nd upon its standing in m that th community i i j That part pirt o of oi the movement which appealed to I passions end and prejudices an and which war Va was sponsored for the most part by professional agitators vitha v-ith v a view lew 19 tt increasing the tho size si if f the the the- own wn pocketbooks through fleas S for support has for the most tart art art died out There has been an aftermath how however ever aver vcr which off offers rs a distinct menace to all r retail tall business if it is allow allon- allon allowed ed Jd d to gun gain momentum This Tills relates dp o the many plan plans which are being levi levi- levid d in m an attempt to develop ales tax b x measures At first these measures were ere dis- dis dis discriminatory in m nature and failed J Revisions were made unade and in 10 one or t two 0 Instances have b ben en passed are now nowr subjected ted to questIOn as to their constitutionality these revised d sales sale sal tlC tee bills bins have worked e a hardship on independent local re- re retailers readers aders which they have quickly com com- com com- complained complained of and in m no uncertain terms It should houI be of interest to every local independent t merchant to know that the th activities of the group re- re re-Cail re I tall o 0 h 1 to t such unwise measures me ure are Ju just t as force foree forceful forceful ful fill e iJ t th in 1 1 sc c g gt n l ial taxes as Continued on pa page 6 RETAIL MERCHANTS TS HOLD TIlE THE KEY TO THE t tI I SITUA l fIO-l I Continued from page 1 they thc have been against di dl ci Cl mina mina- minatory minatory tory tion hon tion I Any legislative e methods which In Inthe inthe inthe the end end must result in 10 keeping re- re ret re t prices it a level higher than that is justified by the lays laws of sup sup- supply supply sup supply ply and must musk in m some way result in 10 a repetition of what we c ha have ve already gone through It should be the first obligation of 01 11 business clubs and other organ organ- orgin to guard against any move- move movements ments with imposts on retail sales s sas lS as their object In this thAIS y u ii will find as you ou will willin willin in ill o other oher er hc ac c bearing on better bet bet- betI better bet better I ter b bInes Ines in m every locality that I Ithe the group organizations of retaIl stores ire re working in full fult cooperation cooperation cooperation tion with Ith whit will be best for the business J life Je e of the community |