FOOTWEAR PRICES

Evening Star, Issue 19786, 9 February 1928, Page 6

FOOTWEAR PRICES

PURCHASING BEFORE RISE REASONS FOR INCREASE On well-grounded expectations of heavy rises in the price of footwear, the public of Dunedin are buying freely. la an interview last week a Wellington retailer said he could see no reason for the rise in prices, but a local dealer states that the article in the shoo and leather section of the ‘ Overseas Daily Mail ’ of recent date is a fitting answer to that statement. “During the latter half of this year shoe manufacturers have been faced with a steadily-rising leather market, and at the moment there is no indication that quotations have .yet reached their highest point,” states the article. “Indeed, most tanners of sole leather and producers of upper materials declare that long before the new year gets into its stride further advances will have to be paid. When leather prices first began to harden there were some who regarded the movement as a temporary phase. They have since been compelled to revise their opinions, for it is now evident that the position has been brought about by a real shortage of hides, and by a great increase in the purposes to which leather is applied. With regard to the latter, there is the fact that each year witnesses an insistent call for immense quantities of leather for the motor car.

" Another cause, and perhaps the chief cause of the dearness of hides, is the unusually heavy purchasing at high prices which has been put through during recent months on behalf of Russia. For some considerable time Russia has been one of the largest operators in the Mouth American hide markets, and it is not certain that it has yet obtained all the hides it requires. Another inllnence has been the demand on the part of tho United States and Canada, to which destination very heavy consignments of certain classes of British leather have been shipped since the middle of 1927. In order to meet their needs United States buyers have placed large contracts in England—particularly in Yorkshire—many of which are still in the process of completion.

“The full effect of these operations was not reflected.in tho price of Bri-tish-mado shoes until the opening of December, when manufacturers of several of the most popular branded lines notified their retail customers that their quotations had been advanced. This information will not come as a surprise to my overseas readers, for I stated many months ago that manufacturers would not lie able to maintain the existing standard of quality on the basis of old prices.

“The decision to increase prices has been taken with great reluctance. It is, however, the right policy to adopt, and will/ it is believed, be generally approved, not only by retailers but by the general public. The alternative was to reduce tho quality and sell at former figures. This method may be possible, though certainly not wise, in the case of goods which are sold without a trade mark or brand. In tho case of branded goods, the quality standard of which wearers have learned to appreciate, it would have been disastrous. As most readers are aware, it is possible to reduce tho productive cost of footwear by a few pence, but in actual wear the reduction means vei'v much more. British manufacturers of branded shoes have therefore decided to maintain the well-estab-lished quality, and to ask all concerned to pay tho comparatively small incieaso involved.”