PRICE TRIBUNAL REFUSES RISE IN GROCERS’ MARGIN

Greymouth Evening Star, 18 August 1948, Page 3

PRICE TRIBUNAL REFUSES RISE IN GROCERS’ MARGIN

(P.A.) WELLINGTON, Aug. 17. A decision that no grounds existed for increasing the grocers’ profit margins, as was sought by the New Zealand Master Grocers’ Federation recently, was announced today by the Price Tribunal. A statement issued by the tribunal said that at the hearing of the grocers’ application, particular emphasis had been placed on the claims of the “service” grocer (as compared with the “cash and carry”'store) for some extra profit margin to reimburse him for expenses involved in providing a delivery service. The tribunal had decided on the evidence submitted which showed that “service” expenses had increased at a lower rate than the turnover with a consequent increase in overall net profits, that no allowance should be granted to retail grocers to compensate them for delivery expenses. The tribunal also decided that it would be competent for any grocer, who was able to substantiate hardship with respect to delivery costs in remote areas, to make individual application for special consideration. Percentage “Mark-Up” The tribunal announced its approval of the Price Control Division’s application for the introduction of an automatic scheme for calculating the percentage “mark up” on certain lines of groceries, the percentage rate having been decided by relation to the previous unit mark up. The statement said this decision was in furtherance of the tribunal’s policy of applying such schemes wherever possible to industry, because they were simpler to operate, and enabled goods to be offered for sale more quickly. No increase in profits, or in prices to the consumers, was involved. The existing profit margins were merely converted to percentages. The tribunal has reserved the right to review percentages in the event of increases in landed or manufactured prices of goods. The decision will operate from August 30.