Turnovers

Ever since the disastrous period of 1920-21, merchants and manufacturers alike have endeavored to secure the highest possible profits with the smallest possible inventories. Such a policy, to be profitable, requires very rapid "turnover of stock", and just this phrase has become a fetish throughout U. S. business.

Statistics recently compiled illustrate how successfully this "quick turnover" policy is being followed in respect to the commodities most greatly in demand:

Class Producer Wholesaler Retailer Combined

Clothing ... 2.8 .... 4.5 1.7 Drugs 2.3 3.6 2.3 0.9 Groceries 4.6 5.6 8.3 1.9 Hardware 2.8 3.6 2.1 0.9 Shoes 3.2 3.7 1.9 0.9 Average 3.1 4.1 3.8 1.3

Although the retail grocer has the highest turnover, yet wholesalers as a class outrank retailers in this respect. The fact that all stocks of clothing and groceries turn over twice as rapidly as drugs, hardware and shoes throws considerable light on the greater success of chain store organizations of late years in just these two fields.