PRICE-CUTTING WAR

Sun (Auckland), Volume III, Issue 827, 22 November 1929, Page 10

PRICE-CUTTING WAR

SHOPKEEPERS RESENT PRACTICE MOVE FOR FEDERATION Strongly condemning price-cut-ting tendencies in Auckland, a meeting of retail shopkeepers last evening formed an interim committee to make plans for a mass meeting of business men to form a retailers' federation to combat this practice. A wide ran.se of trade interests w.i.ivpresented at the meeting, convened nml presided over by Air. if. Schmidt. While the criticism of the price-cutting tensity, there was marked unanimity oL opinion that unified action among shopkeepers was necessary to protect their trad--. Outlining; the objects of The meeting, the chairman said that in view of the large sums being; spent by firms in promoting? departmental store business. retailors could no longer afford to bo apathetic to the detriment of their own business. The plan of campaign he suggested was the formation of a federation of shopkeepers, which, lie said, could induce manufacturers to discontinue giving bonuses and allowing discounts on purchases of large quantities and, secondly, the blacklisting of shops cutting rates to an unprofitable degree, or, if this failed, the blacklisting of manufacturers whose goods were being retailed at cut rates. If retailers would not stock goods sold under these circumstances. lie claimed that the manufacturers would be compelled to adopt a defensive policy, lie also suggested that a retailers’ federation could obtain the sympathies of allied workers’ unions in its campaign against price-cutting. The principal object was to form the nucleus of a federation that would carry out a protective policy. -V retail grocer said that a year ago shopkeepers in this trade were making a good profit, but could not do so now because of the operations of certain organisations. "Wo arc being cut to pieces in the seed business,” declared a shopkeeper in this line. "We can't see how we are going to carry on when big firms are selling at less than cost.” Declaring that American cut-throat methods in business would spell ruin for shopkeepers who had built up legitimate business by their industry, a tailor said that the employment of cheap labour was unfair and should be attended to by the Government. The wharf labourers combine to protect their wages,” he asserted, "we should combine to protect our business.” One speaker claimed that girls employed by one big organisation were standing behind counters for 10s a week, but it was emphasised to him that the firm was bound by the shop assistants’ award rates. The opinion that the Auckland public was one of the most discriminating in the world, and would "walk a mile to save a penny,” was expressed by a retail fruiterer. He considered that people were driven to scavenging in purchasing goods, and that the principle of refusing to buy at cut-rate stores would have to be first instilled into people in the home. That it was useless applying to the Government for assistance was the opinion of a retail tobacconist. He considered a strong shopkeepers’ federation was necessary. A prominent representative of the Grocers’ Association pointed out that many merchants were selling goods to retailers at and 5 per cent, on cost, and could not possibly make a profit. Tie considered that by concerted action a retailers’ federation could force the manufacturers to take defensive action. He also urged that measures be taken to stop the granting of quantity discounts which were only used by some firms for price-cutting. The discounts offered were simply absurd, he said. After further discussion, all present formed a committee to arrange for a mass meeting of retail shopkeepers and merchants.