How Department Stores Are Carried on

Part 1

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How Department Stores Are Carried On

W. B. PHILLIPS

NEW YORK DODD, MEAD & COMPANY 1901

Contents.

Introduction, 5

General Principles, 7

The Management, 10

The System, 12

Advertising, 15

The Buying Organization, 25

Receiving Goods, 32

Taking Care of Stock, 34

Serving Customers, 35

Exchanging Goods, 38

Floor Managers and Ushers, 40

Making out Checks, 43

Inspecting, Checking and Parcelling Goods, 46

Collecting Goods for Delivery, 48

Delivering Goods, 51

Stables, 54

Cash Office, 57

Check Office, or Auditing Department, 58

C. O. D. Business, 60

The Mail-Order Business, 62

Catalogues, 73

Receiving and Opening Mail, 95

Book-keeping, Buying, Checking, etc., 100

Part 2

Assembling and Packing Mail-Order Goods, 106

Goods sent by Mail, Correspondence, Paying for Goods, etc., 110

Filing Correspondence, 117

Special Orders, 119

Returned Goods, Exchanges and Complaints, 121

Samples, 123

Keeping Employees' Time, 125

Employing Help, 128

Paying Wages, 130

Watchmen, 131

General Rules for Employees, 133

Mechanical Section, 139

INTRODUCTION.

No other branch of business can bear comparison with the wonderful results achieved by Department Stores, such a success as has made them the wonder of modern merchandising. These stores, that have grown to greatness from small beginnings, have a force and power behind them that commands general interest. Their store-keeping rests upon certain well-defined principles, and not upon chance, sensations or experiments.

It is not the intention in this volume to prejudice public opinion against Department Stores. No attempt has been made to enumerate any reasons why they exist and flourish, nor any effort made to prove that they are a necessity, or otherwise.

Whether they promote and build up the best interests of the people and country at large, or are detrimental to them, is a question on which intelligent opinion is largely divided.

The fact remains--a plain indisputable fact--that they do exist; that they have had a tremendous growth in recent years, both in Europe and America; that organizations of this character beginning a few years ago have developed into the largest and most successful mercantile institutions in the world.

The author, from several years' practical experience, having been closely identified with the policy adopted, and with all the detail of system employed, in running one of the largest Department Stores on this continent, having visited at different times the trade centers of America, and examined carefully into the systems employed in other stores of a similar character, and made careful comparisons, is satisfied that the enquiring public will appreciate the endeavor to give them an intelligent idea of "How Department Stores are carried on."

General Principles.

One of the great underlying principles of Modern Department Stores is cash. Buying and selling for cash. Cash and one price. Some deviations are made from this rule, according to existing conditions in different business centers; but this is exceptional, the larger percentage of trade being strictly cash, and this fact has contributed largely to the general success.

A few years ago nobody sold for cash. Nobody in those days marked the price on goods in plain figures and stuck to it. To-day this is done, and is acknowledged to be highly satisfactory.

The first aim is to get the best and choicest goods direct from the makers; and, second, to have the lowest prices, thus enlarging the purchasing power of every dollar. A Department Store is different from the ordinary store, by being big enough to deal in almost everything that people need; handling merchandise of every class that goes well together for all sorts of people; providing the means of doing everything quickly, easily, cheaply.

A store large enough to accommodate thousands of shoppers arranged to serve a purpose. Floor upon floor filled with merchandise, broad aisles, easy stairways, elevators to do the stair climbing, cash system for quick and easy change-making, with all the newest ideas in store mechanism; places to sit, wait, meet, lunch, talk and rest; in short, an ideal place to shop in. Everything done that can be done to study the convenience of customers and look after their interests. This constitutes one of the greatest factors in the success of modern retailing.

Looking after the customer. Looking after them in such a manner that the service is an attraction in itself, that shopping is made easy and comfortable. Service is what these stores are for. Complete service in every detail, beginning with the purchase of the goods, and ending with delivery to customers, guaranteeing every article sold to be exactly as represented, or cheerfully refunding the money.

The development of these great businesses is largely the product of better service, and this service has been effective in winning the favor of shoppers.

The strength of these organizations, while centered in well-known principles strictly adhered to, is backed up by a well-defined system of government, including all departments, and the development of this system has had a great deal to do with the success of present-day business. The principles referred to build up and support the business, but it is the careful management and perfect system which controls.

The Management.

The central point around which the whole organization of Department Stores gather is the man, or men, who put up the capital; who own, control and manage the business; and who insist that the profits shall be consistent with their expectations. They not only put up the cash, but define the policy of the business, and organize and develop the system under which it operates. The organizing and executive ability, as well as the faculty of knowing men, must be largely displayed; knowing men, and how to combine them; knowing how to use their capabilities and energies, how to bring out all their qualifications and all their ambitions.

Part 3

The management must be of large perspective and broad experience, make a close study of store-keeping ways and methods, be quick to take advantage of every new idea in service and appointments, and enterprising in everything that goes to make a business strong and successful. Associated with the head of the business, usually selected from active workers who live with the business every day, are a few who are taken into intimate relations with the business policy, and who very materially assist in its development, and in the working out and building up of the system by which the business is carried on. Capable, intelligent, energetic, lieutenants, who are intensely interested, and who exhibit no lack of earnestness or energy; who are imbued with implicit faith and confidence in whatever may be advocated and decided upon, and who direct their best efforts to its accomplishment.

The System.

The system that dresses the windows with attractive goods, that provides the special bargains, that furnishes such a variety of goods comprising nearly everything that people wear or use, that gives a courteous and agreeable service under all conditions, that provides a place to rest when fatigued, that enables shopping to be done under such favorable circumstances, that delivers all purchases promptly, and if a mistake has been made in the selection, or for any reason goods bought are not satisfactory, presents no difficulty in their being exchanged or the money refunded; the system which does all this and more is not the result of accident or chance, but there is a vast machinery behind it all which directs and controls.

But the system must do much more than this. It must provide for getting at results, and it is in this respect that the perfection of the system is reached. While the store space is divided up into little stores or departments, under different heads, who are given every possible leeway in the buying of goods and management of stocks, yet each head is made directly responsible for everything in connection with this part of the business. Each department is charged with the goods bought and with the expense of selling, and credited with the sales made. Each section pays its proper share of all general expenses, such as delivering goods, lighting, heating, elevator service, fixtures, rent, etc. The system employed enables the head of the business to always know the true condition of each section. It enables him to know, if desired, what each individual salesperson does; how much the total business is of any department on any day; what the expenses are for any given time; and these facts are not obtained spasmodically, but are regularly recorded and made use of. Lack of knowledge of the condition of any department does not exist. Success, or the lack of it, is apparent at once. The truth of Eternal Vigilance being the Price of Success is here acknowledged, and in no other business organization is more special care and attention paid to knowing constantly just what the actual results are.

Advertising.

Someone has said, "The time to advertise is all the time," and among modern business organizations none more thoroughly recognize and strictly adhere to this statement than Department Stores. Nowhere else is the science, the art, of advertising more intelligently understood, appreciated and applied. Advertising is recognized as the pulse of the business, the great vitalizing force. The importance of the relation of advertising to business cannot possibly be exaggerated, and for this reason it is considered most seriously. A recognized authority has said, "Advertising taken seriously in the retail business makes the policy of the business. It is the fundamental thing, the corner stone. Therefore, it demands the attention of the head of the business. I cannot think of any concern so large in its affairs, so extended in its ramifications, with so many responsibilities resting upon the head of the business, as to make the advertising subservient to the general management of the business, to make the head of the business ignore the advertising. The manager of a department, and the salespeople who are to sell the goods, should be told the policy of the head of the business so far as advertising is concerned, and the way the matter is to be presented to the public, so as to arouse the interest of all. It is important that the man at the head should vitalize the business by making everybody feel and know that the advertising, the address to the public, is made in conformity with his wishes, under his supervision, and is absolutely part of his plans for disposing of his merchandise. This being so, the proposition that the advertising of a well-ordered establishment makes the policy of the business is really correct."

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