PRICE FITTING

Hokitika Guardian, 12 July 1921, Page 3

PRICE FITTING

DRAPERY TRADE ALARMED. WELLINGTON, July 7 During the last lew weeks Wellington people have had. a surfeit of real bargains in drapery. Half-price bargain sales have turned out to be no advertising catch, hut genuine realisations at a loss. One fairly large trader made such big cuts that in a few days he cleared the bulk of his stock, though judging by the general prices, -lie realised no profit. The culmination in competition came when *>iu important wholesale drapery firm threw open 'lts warehouse to retail customers declaring that it would provide half-price bargains u]X)ti even wholesale figures. Tin* result was a rush of buyers which the police bad to control. Retail drapers, mercers and clothiers held a meeting this week to consider the unusual situation, and attempt to find a solution of the difficult problems confronting trading during the spring and summer seasons. The attendance at tlie meeting numbered forty. It wps agreed that something in tthe nature of it co-ordinated effort should he undertaken on the part of the trade to re-establish in the minds of the public an assurance that confidence has returned to the manufacturing world, and that the unprecedentedly low bases of values that had obtained during the last six or eight months, culminating in the present disposal ol* gckxls at a sheer loss to the trader, who in the majority of eases was offering them at less than landed cost, were drawing to a close.

Evidence in support of the view that the bottom of the decline had been definitely reached at the source of supplies was adduced in the form of cabled information supplied hy those present. One advice from a large British manufacturer read: “Definitely decided no reductions in prices before January. 19J2. Market stabilised. No further issue of pattern books until September. 1923.” In another branch of the textile trade, as an indication that prices are hardening a cable quoted lead. “Advise 12) per cent increase, following ranges (list given). Prices firm for immediate requirements.”

!t was unanimously decided to discourage the continuous steam of appeals to shopkeepers for goods and donations to a wide variety of objects.