DRAPERY PRICES

Hokitika Guardian, 17 May 1921, Page 4

DRAPERY PRICES

SUBSTANTIAL DROP IN AUCKLAND. AUCKLAND, May 13. Although it was known months ago that prices were hound to fall heavily, it is only within the past few weeks that any substantial drop has taken place in retail prices. Some interesting figures were supplied to-day by lead ing Auckland drapers in reply to enquiries as to actual reductions that have taken place since the beginning of the year. Taking tilings all round, it can safely be asid that there has been a drop of about 20 per cent.—more in some lilies, less in others, io put it plainly, a woman with £8 to spend or household goods and clothes for hei

family, can now purchase as much as £lO would have given her six months I ago. These reductions are spread over practically every line of goods, save colonial woollens, blankets, tweeds, etc., which show no lowering in price as yet. The reductions vary somewhat according to the market in which they \tere bought, and replacement value, one firm being able to sell a line of goods purchased under exceptionally favourable conditions lower than another. One firm quotes a drop of about 30 per cent, in white cotton fabrics, and from 10 to 35 per cent, in flannelettes, while furnishing drapery has fallen from 121 tc 25 per cent. One of the most substantial reductions is in English blankets

which sold six months ago at five guineas a pair, and are now ,iust half that price. English rugs, again have fallen from 42s to 32s (id. Other lines in which heavy reductions have been i made are ladies’ hosiery and gloves—some makes of the latter from 7s lid to 5s ]ld a pair—and in stockings there is a drop from 7s Gd to 4s lid. . In dress materials the reduction is estimated to he about 30 percent., although several ii.rms are. stilling certain lines of high quality goods at half their original price. One special instance mentioned was that of a line of cloth which had cost 17s Gd a yard, now being sold at 10s Gd. The. reduction in men’s clothing, will, without doubt, be hailed with a sigh of relief by man, to whom, in the last few years, drapery bills have been something in, the nature of a nightmare. Practically every article ho requires is now cheaper. Ready-made suits which cost £7 10s can now be had for about £G; overcdats selling at £8 last winter, are now a couple of guineas less, while instead of paying 30s for a felt hat he can buy one for £1 or thereabouts. One business man, discussing future possibilites, said: “Prices will never go back to pro-war level, but it is expected that they will remain at somewhere about 100 per cent, above, although the high prices of tho war years are not at all likely to return.” Another merchant, referring to the present position ian Auckland, said: — “Many English stocks are to-day being offered much below the present cost of replacement, so that at. the first signs of renewed buying, prices will probably harden again. Many of the sweeping reductions, some as high ns 50 per cent, which are now taking place in the drapery trade in Auckland, are not a true indication of the position, being special lines purchased under special conditions, such as over importation and financial stress. This must be borne in mind when instances of these heavy reductions are cited.. The prices do not represent replacement value, and when goods are being sold nt under the cost of production, it is impossible to sav that such prices will last.” “Although satisfactory to the public, the present position is a serious one for the trade.” remarked another representative of the trade in summing up the situation. “There will be no profits this year for most of the wholesale and retail concerns, and they will be fortunate if they get off without serious loss of capital. Many people think that large concerns can well afford to meet their losses, as they have made so much profit during the war period. This is not strictly correct, as taxation has taken practically 10s in every £ of net profit. The breaking point is quickly approaching,, and unless there is some relief from high taxation and reduction in overhead charges, T am afraid there will be a. great deal of unemployment ahead.”