PRICES OF SOFT GOODS.

Manawatu Herald, Volume XLIII, Issue 2234, 3 February 1921, Page 3

PRICES OF SOFT GOODS.

REDUCTIONS REPORTED

REALISING UPON STOCKS

It has been reported that extensive reductions in the wholesale prices of many soft goods have been made in some parts of the Dominion. Inquiries made in Auckland by a N.Z. Herald reporter showed that a similar tendency has been noticeable in the wholesale market in Auckland recently. Some lines have been reduced as much as 25 per cent., while there have been reductions to lesser extents in other directions. Various reasons were assigned for this. . The restrictions off credits and the tightness of the money market generally, it was stated, had caused numbers of wholesale sellers to cut their profits in order to realise upon stocks, and to turn them over as rapidly as possible. It was contended that this had had a great deal more to do with the movement than the reported falling prices in the English markets, the effect of which had not had time to reach the Dominion yet. One business man explained that there had been a reduction in ,tlie wholesale prices of sewing cotton to correspond with a reduction by the manufacturers, which had been expected for some time before it actually occurred. In Auckland the. wholesale price for some time r had been 5s 5d a dozen. It was now 4s 7:|d. While paying the former price his firm had been selling retail at fid a reel, or less than wholesale rate. They had in stock a certain amount bought at the higher rate, and consequently the reduction would be contemplated for a little time to come.

With regard to the prospect of this alteration reaching the public, the manager of the Manchester department pf a large business slated that the prices which were being reduced by the wholesale houses were those ruling at the very peak of the market. In very many cases the retailer- had not bought until the reduction had been affected. They hud carried on with stocks which they held, and those who were in a position to import direct have done so without reference to the wholesale importing firms. In spile ol this, the public were receiving the benefit of lower prices in many linos. Goods were coming forward very ITeelv, and it was necessary for the retailer to turn bis stock over, often at cut prices to clear to make room for fresh consignments. This naturally affected stock line- first. The opinion was definitely given that the public could buy at the present time at lower prices than they would be able to in six month-. Mills uorc closing down, or working hall-lime m Britain. When the stocks at present held were cleared, there would he an added keenness among buyers, and this would naturally tend to raise the prices.