RETAIL PROFIT REDUCTIONS

Press, Volume LXXXV, Issue 25878, 10 August 1949, Page 6

RETAIL PROFIT REDUCTIONS

DETAILS NOT YET AVAILABLE CEILING PRICE SYSTEM DISCUSSED Details of reported reductions in the margins of retail profit on furniture and clothing were not available in Christchurch yesterday,- and several retailers said they were not prepared to comment until they had further information. Mr L. C. Kernahan (secretary of the Canterbury and Westland Retailers’ Federation) said he had not received any official advice yet of any reduction in retailers’ mark-ups as announced in the report, although negotiations had been proceeding between the New Zealand Retailers’ Federation and the Price Control Division. It seems a little unfair that the retailers’ profit margins should be reduced at the same time as the 10 per cent, increase in wages, 'said Mr W. G. V. Fernie, a past president of the Furniture Retailers’ Federation. Price rises had been granted to the manufacturers to compensate for increases in wages, but no such increase had been granted the retailers.

Commenting on the ceiling price systeni. Mr J. T. McCorkindale said the ceiling prices operating in the retail softgoods trade were really protecting the people with most money. The retailer made more money out of the person who bought medium quality - garments. With the price increases the percentage margins allowed by the Price Tribunal for really quality goods had reached such heights that they had to operate under ceilings. Good quality shirts, pyjamas, suits, overcoats, women’s costumes and coats and hiaher-priced children’s wear were all sold under ceiling prices. The higher the quality of the goods the smaller was the retailers’ profit, said Mr McCorkindale.