TREND OF RETAIL PRICES.

Manawatu Herald, Volume XLII, Issue 2193, 23 October 1920, Page 2

TREND OF RETAIL PRICES.

Till 1: twelve months tli.it 'followed tin 1 signing of the armistice was a period of great briskness for all manufacturing' ('em res from which drapers, mercers, and soft goods retailers •generally draw their supplies in the Home market. An increasing' wave of demand for goods and yet more goods rose persistently higher. Particularly did the demand for goods to replenish depleted stocks come from New Zealand and Australia (stated Mr H. Uouth, secretary of the New Zealand Federation of Drapers and Clothiers, in (lie course of a statement to a Press representative). The wave 'receded strictly according fo natural law. Immediately rumours began to circulate to the effect that the general public might shortly expect' to buy clothes at much more reasonable rales. Inquiries as to the truth of these reports unfortunately find little or no continuation, added Mr Booth, In certain quarters quotations may have weakened, for in difficult times there are always a fewweak holders, but for x high-class goods—and (he New Zealand woman wisely demands the' best in quality —it is certain that prices will continue firm unless millions of operatives engaged in the various processes of manufacture are going to he suddenly persuaded to return to a knver standard of living; machinery manufacturers to accept prices that bring them no profit ; iron, coal, and steel producers to cut down their steadily-rising cost of production. True, the cables tell of a decline in the post-war trade boom. The tide has ebbed, but it will How again; in fact, is-already Hewing. The same cable brings a message from one of Manchester’s best known manufacturers —best known, that is, to the woman purchaser at the draper’s counter —that the mill price of their widely-advertised product has now risen To the figure at which it is being retailed in "New Zealand. This means a 30 per cent, increase in 1921. In Bradford it is not possible to get a firm price nor promise of delivery for fine woollens. An.advance of from 30 percent. to 45 per cent, for goods for 1921 delivery is reported from Ha-

wick, the- Scottish centre. In carpels and floor coverings there is a universal shortage, ;uul those prospective huycis who have put off purchasing now find prices higher than ever.' The mix of the matter is wages. The retailer h nut making a higher rate of profit than, lie has done before the war. The law of .competition is still operative, and goodfveau be bought in one shop at the price it ispo-day costing another .shop to Jam! them. The Manchester fabric aready referred to is still retailing at the old price throughout New Zealand, although the draper knows he is selling it for less than he will have to pay for his shipment. An analysis of drapery imports for the tirst eight months of the year shows that the increase in the last month’s figures is nearly equal To the increase for the whole of the seven preceding months. These heavy importations are needed to satisfy long-denied requirements, as it: is not to he supposed (he trade is over-buying on a still rising market. "The figures,’’ concluded Mr doulli, “do not afford much evidence of an immediate slump in the prices of drapery goods in New Zealand, but, bespeak, rather, confidence on the part.of wholesaler and retailer in the natural buoyancy of the financial state of the buying public. And as eacli successive rise in price did not affect the cost of living here- until several months later, so ’must a similar period elapse before a general effect can l>e fell from a decline in original cost prices. We already'know that May, 1921, will see an advance in cotton textiles.”