Merchants for the 80s

Press, 21 October 1980, Page 23

Merchants for the 80s

While the public has been concerning itself with the politics of monopoly merchants, a . new power bloc has emerged from a quiet past of steady, efficiency and •. sound economic organisation. - The bloc, a group of independent retailers, may prove to be the most potent force in New Zealand merchandising for the next decade.

Retail Traders Society, Ltd, is an incorporated society started in Dunedin in 1963 by the manager of an electrical and furniture retailing business, Mr Brian Keane, who realised that if the small independent retailer was to survive the price war initiated by the larger chain stores and multiples, he must have access to the same bulk buying privileges. So he formed a group with twelve other retailers and began to buy bulk. “Nothing particularly momentous but if we could see say a 5 per Cent saving in buying 24 food mixers, buy them we did,” Mr Mr Keane said.

From there, the concept flourished and grew. Today, , there are 365 stores in the i co-operative, with a shared ’ annual turnover of S42OM. Following overseas trends, the society has now • turned towards marketing and merchandising as a unit under the store name R.T.S. — pro- ■ raising - the consumer the high standards of service unique to the smaller independent while still competing very favourably with the large monopolies in terms of pricing and value for money. To aid in streamlining the whole operation, R.T.S. negotiates competitive price importing for its retailmembers, handles exporting for manufacturers and even- designs its. own products, ' The present general manager (Mr Warwick Coker) is convinced that the or? ganisation will succeed in dominating the retail trade for the next decade because it , is based on sound economics in terms of 'providing its members with competitive buying power

and, more importantly. because it has adopted the same principles on which the corporate organisations build their strength yet has retained the independence of its ‘ members allowing them total responsibility for their personal organisation and decision making. Retail Traders Society is operated by a staff of 32 and governed by a board of seven directors who are elected from the members. ■.

. Each member has equal voting strength and the right to serve as a director. Directors are discriminating in selecting membership for R.T.S.. with emphasis being placed on healthy established businesses that have a reputation for quality stock and service standards. ' . >