PRICE-CUTTING CAMPAIGN.

New Zealand Herald, Volume LIX, Issue 18116, 14 June 1922, Page 8

PRICE-CUTTING CAMPAIGN.

CHRISTCHURCH GROCERS. SOME LINES DOWN TO COST. [BY TELEGRAPH.-—OWN OOBB3SBONDBKT.] CHRISTCHURCH. Tuesday. For s/veral weeks past price-cutting tactics on the part of grocers have been of such a pronounced nature as to amount practically to a trade war. As a consequence the grocers are selling a number of their lines either at cost or just a fraction above cost price, and the public has reaped the benefit. The article on which the greatest amount of cutting has taken place is sugar.. A 70lb. bag of sugar costs the grocers 22s 6d, which is a fraction under 4d a lb., yet the retail price to-day is as low as 61b. for Is lid in certain shops'. A city grocer, when asked 3 he could state the reaaon for the price-cutting campaign, said it was due to there being too many grocers' shop in the centre of the city. "It is a fight to the finish this time," "he remarked. "Each man is fighting his opponents to the death, but he does not know what he is fighting for. The whole trouble seems to be due to the grocers not being able to agree among themselves as to a fair profit. There may .be an understanding that sugar should be sold at 4Jd a lb. for instance, and then someone will come along and sell at 4d. That leads to a general scramble and tbe other grocers reduce their prices. Not satisfied with this, the first man will then get in with a further reduction. Again all follow suit." Going into the question a little deeper a reporter found a number of instances in which price cutting is indulged in to such an extent as to leave practically no working profit. Salt, which costs the grocer 8s 6d a cwt. is sold at Id a lb. or 9s a cwt. A tobacco costing the grocer Is 2d a plug when bought in large quantities' Is sold at Is 3d. Certain brands of cigarettes which actually cost 7£d a packet are being sold at that price retail. A well-known brand of cocoa which by the pound costs the grocer 3s lid is retailed in Jib. tins at Is Id. With flour the reductions are also very heavy. A 251b. bag, costing ss, is retailed at 5s 4d, a 501b. bag coßting 9s 9d at 10s 3d,. and a ton costing £18 at £18 10s. A well-known brand of soap which costs 3d a bar in large quantities is retailed at Bid. Numerous other instances were also quoted by the grocer showing there were very few lines on which what can he regarded as an average profit is made. "If the present price-outting war lasts much longer, some firms will have to get out," was how one man summed up the position.