RETAIL TRADE

Gisborne Herald, Volume LXVI, Issue 20097, 17 November 1939, Page 2

RETAIL TRADE

A SERIOUS OUTLOOK DECREASING STOCKS MAINTAINING STAFFS PROBLEM AFTER XMAS Now that business men have had an opportunity of going thoroughly into the import license? granted for the third period, the position in the retail trade, as in others, in the early months of next year is causing serious concern.

The view was expressed in Auckland that it was obvious that the cumulative effect of the severe import cuts and the total prohibition on many lines, the fact that the licenses had been issued so late, the difficulties over exchange, and the lack of a pro : nouncement with regard to sterling allocations, made the question of keeping staffs fully employed after Christmas a serious problem. Present Buying Good

There had been very few dismissals in the retail trade recently, it was stated, and they were not likely until after Christmas. Trade in almost all lines was good at present, the volume of buying being increased by purchases in anticipation of shortages. The high wages earned by men engaged on military construction and similar work had resulted in plenty of money being available and a good Christmas season was anticipated. However, the further import cuts, on top of the other factors, would have far-reaching effects by next year.

A principal of one Auckland firm said the general feeling in the trade was that there would be widespread unemployment directly after Christmas. It .seemed as if some departments would have to be closed completely, they depended on imports which had been suspended.

Actually the smaller concerns were likely to suffer more than the larger ones. To a large business the closing of a department might not be vital, but shops that dealt in Snly that commodity would have no alternative but to close. Further, when importers succeeded in securing a quantity of goods they were most likely to dispose of it to the larger firms. Using Reserves

Another business man said his firm had secured for the third period less than half the value of licenses granted for the preceding six months. The increase in costs and transit charges reduced still further the quantity that could be obtained.

The Dominion so far had been largely using reserve wholesale stocks to make up for the deficiency in imports, but in his opinion these woulc be mbstly exhausted by about Christmas, and after that more and more lines would become short. However, the using of retail stocks would probably stave off definite shortage of many commodities until March. After that the position was obscure, but he was by no means convinced that it was hopeless. He felt that this problem, like others, 'could be solved.