BETTER BUSINESS

New Zealand Herald, Volume LXX, Issue 21580, 26 August 1933, Page 12

BETTER BUSINESS

AUCKLAND RETAIL TRADE

STEADY IMPROVEMENT NOTED FURNITURE AND RADIO GOODS A steady improvement in trade is noted in Auckland retail businesses. There have been so many false dawns since the depression set in that no one is sufficiently certain of tho present signs and their persistence to indulge in rash predictions. Nevertheless, the crowing confidence is more than psychological. It is being reflected in increased business turnover. More furniture is being sold. One associated with that trade suggested yesterday that tho growth of business was partly attributable to the signs of activity in the building trado, which was particularly hard hit by the slump. Those with a little surplus cash, feeling that present values in that lino are too good to last long, are apparently making a strenuous effort to furnish how. A somewhat surprising tendency is the report of better trading in radio goods. A retailer in that field said it was a promising sign when purchasers began to be courageous in their inquiries for amenities as distinct from necessities. It indicated that some in the community folt justified in unloosening tho purse-strings. It seemed to show that the storm was passing. Luxury Lines Improve A largo department store, handling a wide range of goods, reported that business in the past two months had shown a distinct advance on the figures for tho corresponding period of last year. The volume of sales in "bread "and butter" lines had shown little variation, although tho easing of prices had reduced the aggregate turnover. However, in some degree, that decline was offset by ■ the increase in customers, a factor attributed to the depression sharpening the bargain instincts of those who had no cause ill good times to worry about prices. It was the socalled luxury lines which wero now meeting with bettor sale. "The trdde wheel is still being slowed by such impediments as the high exchange rate and the sales tax, said an official of the firm. "Quite recently, too, fears of q-iota restrictions on the export of tho Dominion's primary produce caused a slackening in trade. However, that phase appears to have past. It is surprising that business is so good in view of all the artificial barriers raised against it. "Just at the moment there do not appear to bo any new perplexities—although the old ones persist. With Parliament meeting again next month —and a session always gives rise to doubts about disservices to come —there is a danger that the present position will not be held. However, it is not unusual for buying to be restricted for a month or two prior to Christmas. Improvement Since January

The manager of another firm, carrying a wide range of household and .fancy lines, traced the upward trend in business back to January. "With two exceptions, each week from the beginning of the year showed an improvement in turnover, compared with the corresponding periods of 1932, he said. "The Prosperity Week period brought a marked diminution in business, probably due to tlio withdrawal of money from the ordinary spending channels. In these times you cannot take over £IO,OOO out of the ordinary business pool without leaving an effect on trading. Since then, business has risen to the former levels and, particularly during this school holiday period, we have been kept very busy.' Not every retailer paints a rosy picture. Some ty,pes of business naturally respond mucli Quicker than to improved conditions in the community. Some have not yet felt the quickeniijg touch of the modified trade revival, for the movement is not sufficiently wide to have had general effect. Farmers, for instance, are not purchasing wire and heavy machinery in normal volume.

One heartening feature noticed in credit businesses, however, is the reduction in "over accounts." Naturally, a strict watch is being kept on the growth of credit, but, apart from that, there is said to be no doubt that improved conditions are enabling customers to reduce their indebtedness.