MERGER OF RETAIL INTERESTS

Dominion, Volume 30, Issue 42, 13 November 1936, Page 10

MERGER OF RETAIL INTERESTS

Comprehensive Plan

SCHEME OUTLINED BY FORMULATOR All Tracies Included A proposed merger of retail interests in New Zealand formulated by Mr. 11. O. Pittendrigh, director and joint general manager of Messrs. R. Hannah and Co.. Ltd., was submitted to the recent annual meeting of the Wellington Retailers’ Association. His scheme provides for the inclusion of all retail trades. Mr. Pittendrigh proposes, however, that each distinct retail association retain its own identify, but that collective and fully representative meetings be held whenever the occasion arises. “The object of this proposal is to eliminate as far ns practicable the present unnecessary overlapping iu trade organisations, to introduce modern methods and to reduce the present working expenses which, to a degree, handicap existing retail associations.” stated Mr. Pittendrigh. "The legislation enacted during the past 12 months has not only aimed to better the conditions of the employees but has and will continue to curtail the activities of all traders. The manufacturers are faced with legislation the avowed object of which is to authorise the Minister to exercise complete control. "He will have power io veto or reconstruct any industrial plan and appoint an industrial committee which he may abolish at will. Further, his wide powers may be extended by Order-in-Uouneil. The Government may fix the price of all commodities, regulate production and supply of goods and control the sale thereof. This will increase coSit st retard development and definitely hinder private enterprise. The distributor, whether ho bo a direct or indirect supplier to the public, is slowly but surely being walled round with restrictive conditions.

"While it is recognised that the whole responsibility of this change is not entirely due to legislation but is partly due to changing business conditions and the reconstruction of commercial practices, it must be admitted that Government interference has a serious bearing on the changing trend of business. As an instance, the proposed housing scheme will not only have a serious effect on building and allied trades but will corer a much wider field than is apparent on the surface. Need for Co-operation. "Recently,” continued Mr. Pittendrigh, “the suggested competition of the Railway Department in the radio field indicated the absolute necessity for the complete co-operation of all the interested parties, but it is feared that lacking this complete co-operation only a temporary stoppage of the Government’s plans has resulted. There is an almost complete lack of co-opera-tion, not only between members of established associations, but also between th© related organisations. This fact i s well known, and to cite an instance, without prejudice, the allied building trades is an example of the ineffectiveness of trade organisation through lack of co-operation. This reference. of course, is directed at the recent decision of the Government to establish joinery factories in connection with its housing scheme. Unfortunately there is little or no cohesion, no cooperation and an almost entire lack of clear-cut objective among the organisations which operate for the sole purpose of protecting the separate units of the building trade. "The question arises,” added Mr. Pittendrigh, "what is amiss with these associations?—and on the surface it appears that they have no clear-cut objective; they are organised more on a competitive and not on a co-operative basis: they are controlled in many instances by an inoperative management. In short, it is maintained that their principles of organisation are wrong. Their objective should bo definite—a clear-cut statement of policy adopted, and a management installed designed to achieve this objective and faithfully carry out the policy.” Suggested Groups. In his proposal, Mr. Pittendrigh suggests that to obtain this united objective, the retailers as a. whole should organise in the following groups:—. Foodstuffs: Bakers, butchers ana small goods, grocers, general storekeepers. fish merchants, fruiterers, confectioners. Clothing, shoes, etc.: Drapers: Milliners, hosiery and gloves, silk goods specialists, furriers, boots and shoes. Mercers: Men’s outfitters, tailors, fancy goods. Hardware and household appliances: Household hardware, furnishers, furnishings, electrical appliances, china and glassware, w’allpaper and paints, picture-frame makers, art dealers. Stationers: Stationery and supplies, booksellers.

Tobacconists: Tobacco and sundries, hair specialists, toilet specialists. Music: Music specialists, radio deal-

sporting requisites: Sports goods specialists, leather goods. . Chemists, etc.: Chemists general, photographic supplies, opticians. Jewellery, watches, etc.: Jewellers, watchmakers, surgical specialists. Wood, coal and produce: Seed merchants, produce merchants, coal and wood merchants.

'With this view, a plan has been prepared to cover the Dominion,” continued Mr. Pittendrigh, “providing for all trade organisations. In the meantime, it is suggested that the retail groups proceed to organise on the following lines:—(l) Complete co-operation between all sections of the retail groups in all matters pertaining to legislation, trade, and industry; (2) each district or territory to have unrestricted local control over all matters not covered by the policy definitely laid down by tlie proposed New Zealand council of the combined retailers.”

Appealing to members to act quickly ,Mr. I’itlendrigh staled that; the need was urgent, and Ihe motto to be followed should be. “In unity is strength.” When dealing with this comprehensive proposal al the annual meeting of the Wellington Retailers’ Association, Mr. Pittendrigh outlined in extensive detail the conformation of the main organisation, which, he suggested, be called “The United Retailers’ Federation of New Zealand.” He also dealt With internal workings of this proposed federation and the manner of representation on its national council.

Federation’s Approval. In conversation with "The Dominion” last night, Mr. Pittendrigh said that the proposal was sponsored by the Wellington Association of Retail Drapers, Clothiers, Mercers, and Bootmakers. and approved by the New Zealand

federation of those trades in an effort to establish closer unity among all sections of retailers throughout the Dominion. At present thre were 25 associations of retailers in Wellington alone, each with its own office and staff. Under the new proposal provision is made for the simplification of all this organisation by having one united association of readers throughout New’ Zealand. Mr. Pittendrigh said that endeavours are being made to convene a meeting toward the end of this month of presidents and secretaries of retail trades’ associations with a view to getting the proposal under way immediately. “This uni tot retailers’ association is by no moans anything new. really.” added Mr. Pitlendrigh, “for in 1830 a very powerful united Retail Trades’ Association operated in Calcutta and has continued ever since. New South Walefl also has a united association, as has South Africa. Canada is another country with such an organisation, and in that country it is probably the strongest and most perfect system of uniting retail trades in the world.”