Monday, Dec. 29, 1924

Christmas Business

Post-mortems upon the Christmas trade this year are dangerous to make before all the figures are in. Yet evidence indicates this Christmas season saw all retail records smashed, for recent years at least.

Merchandising companies themselves are generally prosperous, with a stronger cash position and more working capital than ever before, and inventories of conservative size. The experiment of boosting prices was not overdone this year, while the weather has favored shopping. One noted feature of this year's Christmas trade was its early start--in the last week in November.

The year has been unusually favorable to mail-order houses. Sales of Montgomery Ward & Co. to Nov. 30 were $142,570,298--over 19% above sales for the same eleven months of 1923. Sears, Roebuck & Co. showed distinct though less sensational improvement; its sales for eleven months ending Nov. 30 were only $1,260,078 over the same period in 1923--less than 1%. Yet its sales for November this year exceeded those of last year by $2,071,441, or over 10%.

Christmas is primarily a boon for independent retailers and department stores, although chain-stores and mail-order firms benefit by it somewhat. The latter organizations are less subject to seasonal influences than department stores, particularly, who must "clean up" during the Christmas and spring seasons to carry large stocks over the long summer months.