CHAIN STORES.

Auckland Star, Volume LXVII, Issue 252, 23 October 1936, Page 8

CHAIN STORES.

CASE FOR GROCERS. "COST OF LIVING LOWERED." EVIDENCE AT INQUIRY. (By Telegraph.—Press Association.) | WELLINGTON", Thursday. When the chain store i!iquirv was resumed to-day. Mr. H. F. O'Leary, . K.C., representing the Wellington Chain Grocery Stores Association, while accepting the submissions of Mr. Watson with regard to Woolworths, McDuffs and McKenzies, pointed out certain differences. The stores he represented, he said, were New Zealand stores established by New Zealanders with New Zealand capital and controlled and operated by New Zealanders. They were not departmental stores. They dealt in foodstuffs and lines ordinarily stocked by grocers, and catered fully for the grocery requirements of the community. Mr. O'Leary said that his clients' stores worked on a much smaller margin of profit than the departmental sto.res, but at higher expense. They operated the type of business governed by one award, under which rates of pay were higher and it was necessary to employ a larger percentage of seniors to juniors. He also claimed that they had performed a public service by reducing the cost of living, and submitted that they had so favourably established themselves that their continuance unhampered was demanded by the people of New Zealand. Aucklander's Evidence. Mr. I. A. Oliver, manager of Marriott's Stores, Ltd., Auckland, and vicepresident of the Chain Grocery Stores Association, maintained that if the chain grocery stores were put out of business many of the assistants would find it difficult to secure employment, and through lack of capital would not be able to start up in business on their | own account. An allegation that the quality of the goods sold by the chain stores was inferior was absolutely contrary to fact as regards his "company. It was claimed that the chain used its buying power to the disadvantage of their source of supply, and they drove such hard bargains that manufacturers derived no profit from their business, witness continued. This was not so. The accusation of unfair buying advantages was a bogy that was as old as the hills. Most of the preferences granted to chain stores were available ,to the individual trader. Mr. G. E. Hutchinson, chairman of the Auckland Chain Store Grocers' Association, opposed the petitions on behalf of the association and the Auckland Master Grocers' Assistants' Union. Mr. J. Hodgens, M.P., who presided, said that the committee was giving consideration to the advisability of establishing a system of standards to operate' throughout the grocery business. He asked witness what his reaction to that would be. Witness replied that such a system would be welcomed, providing that the standards did not conflict with the lines imported from England. The hearing was adjourned until next Wednesday.