REDUCED LIVING COSTS

Northern Advocate, 23 October 1936, Page 11

REDUCED LIVING COSTS

WHAT CHAIN STORES HAVE ACCOMPLISHED

[Per Press Association.— Covyrlght.l WELLINGTON, This Day.

When the chain store inquiry was resumed yesterday, Mr H. F. O’Leary, K.C., representing the Wellington Chain Grocery Stores Association, while accepting the submission of Mr Watson with regard to Woolworths, Mac Duff’s and McKenzie’s, pointed out differences.

. The stores he represented, he said, were New 'Zealand stores established by New Zealanders with New Zealand capital, and controlled and operated by New Zealanders. ' They were not departmental stores. , They dealt in foodstuffs and lines stocked by grocers and catered fully for the grocery requirements of the community. Mr O’Leary said that his clients’ stores worked on a much smaller margin of profit than the department stores, but at higher expense. They operated the type of business governed by one award, under which rates of pay were higher ,and it was necessary to employ a large percentage of seniors to juniors.

Public Service.

He claimed that they had performed a public service by reducing the cost of living, and submitted that they had so favourably established themselves that their continuance unhampered was demanded t by the people. Mr I. A. Olliver, manager of Marriott’s Store, Ltd., Auckland, and vice-president of the Chain Grocery Stores Association, maintained that, if ■ the chain stores were put out of business-, many of the assistants - would- ..find it ■ difficult to get employment, and, through lack of capital, would not be able to start up in business on their own account. An allegation . that the, quality of the, goods sold by the chain stores was inferior was absolutely contrary tp fact as regards his conapany. . . - A Bogey. ’ It was claimed that the* chain used their buying power to the disadvantage of their source of supply, drove hard bargains ,and that manufacturers derived no profit from their business, witness .continued. This was not so. The accusation of unfair buying was a bogey that was old as the hills. Most of the preferences granted to chain stores were available to all. Mr G. H. Hutchinson, chairman of the Auckland Chain Store Grocers’ Association .opposed the petition on behalf of the association, and the Auckland Master Grocers Assistants’ Union.

Mr J. Hodgens, M.P., who presided, said that the commission was giving consideration to the advisability of establishing a system! of standards to operate throughout the grocery busij ness. He asked witne'ss what his reaction to that would be.

Witness replied that such a system would be welcomed, providing that the standard did not conflict with the lines imported from England. The inquiry was adjourned until next Wednesday.