RETAILERS AND THEIR RENTS

Sun (Auckland), Volume II, Issue 607, 8 March 1929, Page 8

RETAILERS AND THEIR RENTS

THE correspondent who complains that The Sun has taken an unduly optimistic view of the outlook in regard to the real estate and property market, is no doubt voicing the view of the retailer who finds business conditions a little too competitive, and blames the landlord. It is an old story. We sympathise with the small shopkeeper who has unquestionably found it very hard during the past two years to hold bis own. The sharp contraction in the spending power of the community, due to the depression and the slaughter of stocks imported in excess of requirements, have put many of the weaker retailers out of business and left others in a precarious position. These conditions, although temporarily embarrassing and even distx-essing, are only transient. The recovery is, perhaps, slower than most persons anticipated, but it is sure. The volume of money coming into the Auckland Province at the present time is very great; and must shortly make itself felt in reduced interest rates and freer spending all round. As an instance of how Auckland has felt the pinch it may be mentioned that, with the exception of Marlborough, it shared with Canterbury the lowest increase for 1928 in the purchase of motor-cars. Taranaki headed the list with an increase of 52i per cent, while Auckland and Canterbury were second last with 23| per cent.. Meantime, the moral that we would like the small retailer to draw is this: Excessive imports put their customers out of work, and an unemployed citizen has little or no money to spend on imported goods, no matter how cheap they are. Industrial development is going to be one of the chief factors in the growth and progress of Auckland, and the retailer is in a position to help in the good work by stocking and encouraging the public to buy locally manufactured goods.

With factories working full time, and all the available labour usefully employed, there would be an expansion in the retail turnover that would soon solve the problem of rent and overhead costs.