THE MULTIPLE SHOP.

Dominion, Volume 7, Issue 1953, 9 January 1914, Page 9

THE MULTIPLE SHOP.

AMAZING GROWTH IN BRITAIN. SIXTEEN FIRMS OWN 6100 SHOPS. Tho amazing growth' of the multiple shop is shown by an informativo article by Mr. W. L. Williams in tho interesting "Daily Mail Year Book" for 1914. "Tho multiple shop," ho says, "has como to stay, and nothing can stop its steady advance save an awakening on tho part of the 'single' shopkeeper and an honest endeavour by superior methods and enterprise to-..meet on' equal terms the manager-of a. multiple shop.

"By the 'multiple' shop," he says, "is meant the retail branches of a large 'private concern or limited liability company furnished with all its stock from a contra! source, the local manager being solely concerned only in tho selling, and having'no voico in'the buying of the goods ho handles. These branch establishments have come into being during tho last quarter of a century, and their growth is an amazing one. not only in point of number, but also in the profits made'by this new commercialism. Certain trades have been affected enormously, others have as yet escaped. Trades which aim at supplying tho elementary wants of a community—food, drink, and clothes—have been exploited successfully. Food Shops.. "Here are some figures showing the extent of tho operations of certain big firms owning in the aggregate thousands of tlieso branch establishments—three out of many dealing with food distribution:— No. of Food. Capital. shone. £ Home and Colonial Stores 1,275,000 683 Lipton's 2,250,000 500 Maypole Dairy Com- ■•; pany ' ; 1,000.000 800 "Hero are oloso upon 2000 shops in the hands of three groups of directors! ' "Now look for a moment at the meat trade. Hero are the facts concerning two firms whoso aggregate business in any one year runs into . many millions:— Firm. Capital. No. of shops. Eastman's ... £1,215,000 1300 (slightly under) Nelson's £500,000 1300 '£168,000 (over) 'First debentures. "One turns to a. comparatively small concern dealing in milk. More and more this trade contracts into fewer hands. In London, Messrs. Welford and Sons, Ltd., have 32 branches, and cmploy a. capital of £222,000 in their concern. Boots and Shoes and Clothing.

"Passing from food to clothing, it is not surprising to discover that the multiple shop is slowly absorbing the bulk of the trade in certain directions. Take, for example, boots and slices. The number of firms which make and supply footwear direct is very considerable, and those who, .though not manufacturers, yet conduct largo businesses through, nvultiplo shops is greater still. Ono linn, which refused particulars, is said by one. of its London managers to have 460.shops in tho United Kingdom. Hero are two or thrco well-known firms. Messrs. Lilley and Skinner, Ltd., operate only in London, but they own 7G shops, and employ a capital of £260,000. Tho 'Saxono' firm possess 50 shops, and Messrs. Manfield own G8 branches in the United-Kingdom and on tho Continent. lu'-iLoiidotethoys'rurt'' 14 shops, and in Paris 13. Nothing illustrates tho triumph of British footwear more than that single fact. The factories of : this firm are among tho most up-toJato in the whole world. ■"Clothing, properly so called, docs not seem to be exploited to so great nn extent.. In tho hat trade several firms do big business through the multiple shop—notably Messrs. Dunn, who own fifty branch establishments. Messrs. Jaeger,' makers of the famous woollen garments, have twenty-one branches for tho exclusive sale of their specialities. lyiedlclno Shops. "Then, turning from .food and clothing to medicine, one is amazed to find that in nearly every great centre multiple shops for tho sale, of drugs and proprietary articles abound. I3ut for extent of operations since 1874, when Sir Jesse Boot began his career in mest humble fashion, nothing can equal Boot's Limited. In 1888 the parent company of tho." associated companies was formed. To-day tho total capital of the five companies'' is £2,250,000, and, besides their huge manufacturing .industry, they have no fewer than 550 branchos, and at these places not only drugs are sold, but also fancy articles, and oven lending libraries are maintained. Tobacco Shops, "Pass from necessities to luxuries. One would expect tho tobacco trade to bo included in the list. It permits and invites effective handling through the multiple shop, and few trades have "been more exploited in every big centre. Three or four firms stand out promin- ; ently. Messrs. Salmon and Gluckstein, . Ltd., who claim to be thft pioneers of this trade, possess 140 branches, and havo a capital of £600,000. Associated with them is the firm of A. I. Jones and Co., Ltd. (capital £88,046), who run 33 branches. Messrs.. Baker, Ltd., ; have £200,000 capital, and 54 branches. j : "Here are: seven distinct trades in which 16 firms, with a capital of at | least £11,000,000, own over 6100 shops in tho United Kingdom. Note these are but a small part of tho total mim-j ber existent, increasing _ yearly, not j merely in big towns, but in every coun- j try town which'affords scope. j ' "Naturally, the old tradesman resents ! the advent of the new competitor. He describes it as unfair. Beyond question, the competition is making tho lot •of the small tradesman infinitely harder and less, remunerative.' Old businesses, are either closed.down or bought up, especially'in tho small towns. The new establishments have 'knocked out' .tho old tadesman, who, as a rule,, is conser vativo to a degee in ideas and methods. Arguments For and Against. "What is,to bo snid in favour of the new (1) By bringing, consumers into more, direct fonlnet with the producer it tends to eliminate the unnecessary middleman, and thus cheapen, goods. (2) It tends to create a real for the bogus competition which exists in many places, resulting in real gain in value and variety of goods to (be conuimer. (3) It tends to destroy the credit system —that' banc to tradesman and customer alike. (4) It has improved conditions of labour—e.g., hours and wa<j;es. Many a man has discovered it to" lie more pleasant and profitable to be the manager of a multiple shot) than to be the harassed, embarrassed, small shopkeeper working hard and never progressing. Trusts Versus Tradesmen. "On the other hand, strong criticisms are . directed against the new commercialism. It is poir.tcil out that the possibility of tho small tradesman surviving the keener competition becomes smaller and fewer, because ho buys and cells at a disadvantage owing to his limited capital.

"It is regarded in many quarters ns a calamity that his exit from the community should only he a matter of time, (a) Bocaiiso it removes, lessens, or weakens tho ono class hitherto capable, of rendering and eager to render public service. It is pointed out that in small towns local affairs suffer from the

difficulty of securing fitting persons'.lo servo on public bodies through the decay of the tradesman. The manager of the multiple shop 'cares for none of these, things'—is concerned only u'iih his 'returns.' (b) Because Jio profits of business done in the town do not remain there, but go up to a central office for dividends to. shareholders, few or none of whom live in the place adversely affected, impoverished to that extent.' (c) It is pointed out that the elimination of tho tradesman makes for the formation of 'trusts'—huge combines controlling tihe rntail trade, putting the consumer at tho mercy of bodies or men eager only for dividend. Theoretically, this may be well founded, but in practice tho-objection loses weight, ■'■ in view of the' free imports which makes 'corners' more dangerous to those controlling them than' to those against whom thov are directed." ■■■■ : -:...■■; jv