RETAIL SHOPS.

Manawatu Standard, Volume LVII, Issue 197, 21 July 1937, Page 10

RETAIL SHOPS.

RECENT OVERSTOCKING. MANUFACTURERS’ FEARS. Per Press Association. AUCKLAND, July 20. Statements that retail shops in Auckland and in other parts of New Zealand bad been overstocking during recent months were made to-day by leading Auckland business men. It was revealed in well-informed quarters that buying of goods from manufacturers, particularly overseas, had far outstripped the current demand and that, in consequence. slackness was expected to develop in some local factories. The position has been causing concern to manufacturers in recent weeks, and its latest phase, a decline in orders tor delivery from factories next year, is likely to figure prominently in the dis missions of the New Zealand Manufacturers’ Federation which meets m Wellington to-morrow. This develop, ment, it is considered, is so important from the point of view of the Dominion’s secondary industries and the future employment of skilled operatives that it is suggested that representations may be made to the Government. “Importations have been exceptionally heavy over the past six months, said Mr F. N. Ambler, president of the Auckland Manufacturers’ Association, this morning “and probably stocks held by retailers to-day are as large as they have been for many years. They have been buying in advance of requirements to anticipate rising prices and it appears that the saturation point of their demand lias been reached, if not passed. Although they are busy with their winter sales, their forward orders for next autumn and winter are smaller than a year ago.” Mr Ambler mentioned that importations would probably continue to be heavy over the next few months as it was known that orders formerly obtained by local manufacturers were now going overseas. “We are now beginning to feel the effect of diversion of orders, particularly to Australia,” lie said. “In the boot industry the peak of activity has passed and there may be other industries in a similar position. That is a disturbing outlook. The flood of importations is a serious matter. All main lines of goods bought from Australia are directly competitive with New Zealand industries. They can all be manufactured here and we consider that if New Zealand factories do not get orders, Britain should have first preference. Australians are keenly competing with our producers on the British market, and there should be protection against their inroads in our local market as well.”