Show BUSINESS RIVALRY ALRY MORE l FRIENDLY SAYS E C SAM In an address delivered before fore the conference on retail distribution in president Boston Sept Earl Enl Sams dent of or the J C Penney Company Compan operating nearl nearly 1400 1 retail dry goods g stor stores s said The objective of the chain store mann manager l is and should be in the average en case iden iden- iden- iden identically identically the same cs s that of the in- in in depe dependent independent dent store mana manager er If he is is in the right ri ht job he looks upon his work as a service serice to which his com com- community community I i is entitled And he has a ari aright aright ri right ht to expect e reward only in pro pro- proportion proportion pro proportion portion to the service rendered Rivalry has alwa always s 's existed some some- sometimes sometimes times friendly sometimes not so frien friendly dependent inde-dependent lr between and among inde- inde m dc- dc dependent merchants just as it does between chain stores and independents independents This condition will always ob- ob obtain obtain ob obtain tain I feel that the unfriendly atti- atti attitude attitude atti attitude tude in business is becoming becoming- less marked Men have accepted a broad broad- broader broader broader er vie view of what the their business rela-J rela rela- rela should be On the whole they are arc somewhat less selfish Store keeping can be made to serve sere men and women to the mutual a advantage e of the store-keeper store and hl his customers The customer con con- contributes con contributes trIbu tributes es the money the store keeper store cOI contributes s l knowledge l c- c skill and th the buying ability of an or- or organization or organization g so that the customers customer's money IS is invested in the most econ econ- econ econ- economical economical manner It would seem that a merchant in any any com community regardless reg-ardless of pre pre- prevailing pre prevailing requirements requirements- should be the servant nt of his public And this de- de deduction deduction de deduction applies with equal force to both the chain cham store and the eat ent retailer Viewed in this light liht the relation relation- relationShIP relationship relationship ship that properly should exist exist be- be between between be between tween twe-en the chain store and the independent in- in inde in independent de dependent store is that relationship whIch should exist between two men who happen to be en engaged a ed in the same kind of business Alread Already a large lare percenta percentage e of the independent merchants are proving to themselves that their earl early fears of chain stores were groundless Any lAny corporation which mi might ht have as its ats supreme objective the deliberate deliberate deliberate ate annihilation of some sonic other ser ser- ser ser- vice rendering business project de- de deserves deserves de deserves serves to fail and because of its in- in inability inability in inability ability to apply right principles in its operations little hope for its ils per per- permanent permanent per permanent manent success need be entertained The extent to which chain stores store will continue to increase throughout hout the country is not governed solely by bythe bythe bythe the sum total of financial resources these merchandising groups g can commend com com- commend commend mend It is a matter of deepest con con- conviction conviction with me that neither the chain store nor the independent merchant can afford atford to depend upon what he now has in order to get g-et more Money of itself does not make more money the The successful merchant of chain store stores future whether with a independent independent independent s system stem or 01 operating as an that ent merchant will necessarily be individual who brings to his community com com- community com community merchandise that it needs and under the most favorable condi- condi conditions conditions condi conditions His conduct both as asa asa possible of merchandise and as asa asa distributor a citizen in the com community must a command that community's community s confidence and justify its continued patronage store system The average chain independent independent is but the elongation of an n being stores of ent store store-a methods which have been by operated successful in- in independent independent proved profitable in in a sm stores store's subsequent subsequent L dependent store A growth into a chain store system system system quent merchants merchant's reinvesting reinvest reinvesting through the tem in ing the earnings of his sin single le store additional stores is the only nat nat- natural natural nat natural ural in outlet of such a merchants merchant's in- in initiative initiative in initiative the Reduced to its simplest form merely indicates growth chain idea seems never to have been There entertained by independent independent ent any merchants objection concerning concerning- the ho growth independent re- re retailer of 01 the UlC business lb va of an of supply and de- de demand demand de demand taller The law considered sufficient to gov so- soI gov- gov govern govern mand is investments investments- If he finds It I his ern his fronta frontage e and extend profitable profitable to increase to his h floor ability space he IS is man man- manager manager con con- congratulated I d upon upon his s ability as asman- asman a the other hand he pre- pre ager If on I I Continued on Page 5 I BUSINESS RIVALRY MORE FRIENDLY DL y SA SAYS YS E B C SAILS SAMS Co Continued from Page 1 fers fors to establish his floor sp space cc 1 in another neighborhood community dupon wh why should he b be 1 looked k or d upon with suspicion his hisem em motives questioned or 01 he e himself be bc looked look upon uon as asa a Possible menace to the theco co community's s prosperity My T l My attention was recently called t to a s summary mmary issued 5 R B Bs by bv the Bureau 00 of Business and Research T Government Re- Re ReI Re-le Re search of I o the thc University of Colorado In in which tIle the following were listed as es to other chants merchants mar because mer- mer e of the presence of chain cham stores In in the comm community 1 1 i Well known kno chain stores help to o bring in in trade from the surround surround- I ing m ing surrounding trade rade territory in which local merchants share 2 The scientific mer merchandising policies followed by chain units give I the alert and progressive merchants something something- to aim at They can study the he policies of the chains emulating their good points and dig dis- discarding dis discarding carding cardIng- those not applicable to in- in in individually owned owne-d store storey storeys i 3 The better merchants prefer I that their competitors have the stability which comes from front sC scientific policies policies polkie and amI a knowledge e of mer- mer mer r are ars r cd ai as is I i c C ce or of a handi hand handicap handicap cap to m m-ch m nl than sn ar are arwell well managed manag-ed manage and soundly financed finance chain stores Not long long- ago o m my attention was called to an instance in which a achain achain achain chain store was located opposite a ao o vacant lot In minimum time thereafter there there- thereafter I after stores were built on the JotI lot Jot I and occupied by independent mer- mer merI merchants merchants mer-i mer I chants who desired to be located ciS is near the chain lra as lS possible In- In Incidentally In Incidentally both of them are arc today en enjoying en- en enjoying jong- jong a thriving business It is jn y common for foi chain store f representatives to be re- re reminded reminded re reminded minded b by independent merchants that the they consider the influence of e e a chain store a deciding factor in inI increasing increasing- the trading r radius r dius of a community It has been proved pro in inmany inmany a I many instances that cust customers tr travel a great reat man many miles furth further r to trad trade in communities wh where re nationally advertised ad- ad advertised ad advertised Ii chain stores stor's nu may be found However a careful check up re r re- re reveals that it it is not the chain store alone which profits from thes these out out- out out-i They inclined inclined i town of-town customers are ed to look around to com compare re e styles 1 I values value and pres pr pl es Moreover rc ver the purchases purchases pur- pur I Ivalue chases for the entire fal family lily include of not car car- carried types many ried in s stock ok at the th a average d leps ment a t de I hard harn- hardware hardware meat ment store Specialty shops ware stores store and other merchants get I th their full fuli share of this town out-of-town business business S I j The e merchant merchant i is in tn the toe strictest l t s t community sense accountable to tJ IllS his com as a 1 merchandising servant No 1 corn com community manity should be expected to o sup sup- support support sup Sort his merchandise un- un unless un-Fess un n- n him to buy port his operating tin plan is i e e o ll lland less pera and his buying policies in in accord with th his community's needs Certainly C whether chain cham store to merchant operator every or an jn epen More distributor di must consider himself a individual I lie is an of merchandise e rewards accord according according community re whom the services ren- ren rendered character of ing ing to the dered I 1 |