CHAIN STOKES

Evening Post, Volume CXVI, Issue 79, 30 September 1933, Page 12

CHAIN STOKES

ARE THEY A MENACE ?

Addressing shareholders at the annual meeting of A.' G. Healing, Ltd., radio and motor, accessory manufacturers, held iv '•Melbourne last week, Mr. A. G. Healing said that the chain store was a menace to the smaller trader, who had a certain status to protect a 9 regards continuity of 'supplies, identification with his goods, varied stocks of slow nature, and the necessity for stocking certain lines. -Such a necessity did not arise with chain stores as they gleaned and gathered where they would, picking out any ' profitable 'lines, and leaving the smaller \man to carry bulky and less profitable-commodities. A manufacturer could not possibly build up any goodwill with these 6tores, as there was no security as regards future orders. The manufacturer was forced to supply at a figure that was just on the breadline, and when seeking further orders he was in the cleft of the stick, inasmuch as there was no necessity for the stores to carry his products, and any further business could only be obtained at the chain store price. This procedure tended to a sweating of labour, and, even if protected by a wages board, the manufacturer himself was sweated and driven out of business.