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r-n-r.T w Retail Sales Good Says Babson Advises Newspaper Advertising . By ROGER W. BABSON ' Roger W. Babson, who has - recently been checking figures on the retail trade of the country has today issued a preliminary state ment. According to his analysis, retail trade averaging all sections of the country is again back to normal. “Some sections are still behind the good years of 1919 and 1920,” says Mr. Babson, “but many other sections are ahead. Retail trade was the last to feel the effects of the depression. When a slack business hits a section the finan cial interests feel it first; the manufacturing and .farming in terests feel it second; the jobbers • and wholesalers feel it third; and finally the retailers hear it. Hence, although retail trade con tinues good long after Wall Street is blue, it does not come back again until some time after Wall Street comes back. There are, of course, a few exceptions to this general rule. The profits of firms, like Tiffany, the jeweler, who sell largely to the very wealthy, follow close to stock market movements; but 95% of the retail firms lag a year or more behind. “The best retail trade today is in the industrial cities of the east. Where two years ago, mills and factories were shut down, they are now working overtime. Cities like Pittsburgh, which a year ago were working only 60% of their capacity, are now back to nearly 100%. Akron, which three years ago had the highest percentage Jit unemployment in the country, is now advertising for men. De troit is again back tp normal and the volume of retail trade in most of these cities is equal to or greater than it has ever been. Of course, this does not mean that profits are as'large. The public is showing more discrimination ■ in its purchases and is shopping about more. The volume of re . tail' business, however, is back to normal in these cities. . — “Any concern in an industrial city which is not doing, a normal business today should clean house and ascertain wherein the diffi culty lies. Cities which are about to enjoy wage advances are in an especially favorable position. The retailers of these cities should do the best business during 1923 they ever have done. The mill cities of New England are in this class. " rue iarming communities may not be back to normal although statisticians differ greatly as to what is normal. If we call nor mal the few boom'years of the war, then the farming sections are still below and may be for many years to come. If, however, we consider normal as the average for the past twenty years and in addition allow a proper amount for growth, we will find that the retail trade of most farm sections is now back to normal or will be shortly. Therefore, I say that something is the matter with the retailer who is not now doing a normal business. He either is a poor buyer or a poor salesman. Either he is mixed up in some • outside enterprise and is not at - tending to business, or else is not posted as to fundamental condi tions. There is a ‘hole in his economics’ somewhere and it is up to him to find it. “During the next fe\y months local merchants should advertise. Rational manufacturers are util izing the great power of advertis ing in the distribution of their products. The successful depart ment stores are also using large space in the newspapers; but the smaller retailer has yet failed to advertise as he should. Perhaps this is why he is small—one can ERNEST BEYE'R PRINTER u4 STATIONER Offic* Outfitter Pacific and Kentucky Arenue* "€ T*L— Marin* 639 ■ | g , not tell. There surely is some reason why the people flock to one merchant and pass by another. Statistics certainly indicate that the reason is closely connected with the advertising. Let me also take this occasion to urge retailers to use the newspapers in a dignified way rather than at tempting to use bill boards and novelty contrivances. During the past two months I have motored considerably throughout different sections of the country. At al most every cross road is some sort of a sign, a windmill or something else sold to some bank or merchant who thought he had discovered a cheaper or more effective method of advertising than his newspaper offered. As a matter of fact, he unconsciously disfigures the high ways, endangers life and makes enemies instead of friends. Merchandising is a profession and should be treated in a dignified way. Moreover, how banks can adopt such cheap appearing methods of publicity is beyond the comprehension of most busi ness men. Yet I understand the temptation, having once fallen for outdoor advertising myself much against the advice of the Gund lach Advertising Agency which handles our copy.” TVIr. Babson added a word of cheer to those retailers who fear the chain store. “Instead of worrying about A. E. Matlack Grocery Fruit and Vegetables 5019 WINCHESTER „ AVENUE s Neptune 1488-W UPTON’S GOOD COFFEE Special in Tins, 48c RED SKIN POTATOES 55c Basket Poultry Dressed to Order t. ::=i i ■■..i... ■. 1, . as chain stores,” says he, “the in-1 dependent retailer should copy their good features and avoid their pitfalls. The chain stores are revolutionizing retailing. They are introducing many good features from which every re tailer should profit. But chain stores have many troubles ahead. When their employes organize into a labor union—as is inevit able with such big units—then the independent merchant will again have a great opportunity. I, how ever, do believe that it would be wise for independent merchants to get together more among them selves and form small chains which they themselves can con trol. Personally I should not want to struggle with one lone grocery store; but had just as soon have a group of a dozen grocery stores.” “General business,” concluded Mr. Babson, “is good. The Bab sonchart stands today at 3% above normal compared with 16% below normal a year ago.” Circular , Letter Service 4. " A Multigraphiag l Mimeographing * T Addressing 4. Mailing WALLACE D. ANDREWS 218*219 Guarantee Trust Building Phone—Marine 267-J Oculists* Prescriptions ■ Specialty Developing and Printing Sfamtii Urna. Established 1898 OPTICIANS The .Only Practical and Fully- Equipped O p t i c a 1 Workshop in Atlantic City We Invite You to Inspect Our Manufacturing Department At 1006 Pacific At*. (Next to Postoffice) >'n. Also st Maryland Ave. and Bdwk. KODAKS - SUPPLIES jBmCimmmmm SECURITY . 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