Retailing Under the N.R.A. I

Abstract

THERE are at least two major retail problems arising from N.R.A. codes. These are: (i) the problem of individual store operation and management resulting from retail codes, and (2) the influence of manufacturer and wholesaler codes on retailing. In a discussion of individual store operation under the codes, it is necessary to consider sales volume, operating costs and mark-up, store policies and practices as conditioned by wage and hour provisions, merchandising and sales promotion, and consumer demand. The second problem calls for a review of the effects of manufacturer and wholesaler codes upon store operation. Sales volume.-Sales-volume figures are important because of their relation to the increased cost of doing business under the codes and to the ability of retail codes to effectuate re-employment. It is not assumed that sales gains are due to N.R.A.; more generally, they are due to economic conditions under the New Deal. Sales in dollar volume for I934 represented a gain of I4 per cent over I933. All lines of retail trade and all sizes of retail stores showed improvement. Mail-order sales made the best showing, with a gain of 25 per cent; the automotive and hardware showed a gain of 22 per cent each; and gains of 18 per cent each were shown by restaurants, apparel stores, farmers supply and country general stores, and furniture and household lines. The smallest advance, 7 per cent, was reported by the food group. Trade associations in the retail hardware field and individual mail-order house concerns report the greatest gains in agricultural communities. Prices have gone up and an increase in dollar volume may not