HC Deb 19 March 1964 vol 691 cc1560-1
5. Sir K. Thompson

asked the Secretary of State for Industry, Trade and Regional Development what estimate he has made of the rate of gross profit earned, respectively, on sugar confectionery, tobacco goods and items of stationery by a retail dealer whose turnover averages £250 per week and whose supplies come half from manufacturers and half from wholesalers.

The Minister of State, Board of Trade (Mr. Edward du Cann)

In the censuses of distribution information is supplied about gross margins for different kinds of retail businesses, but not for particular commodities or for goods from particular suppliers. The average gross margins in 1961 of retailers selling the articles named and classified as confectioners, tobacconists and newsagents was 15 per cent. of turnover for businesses with an average weekly turnover between £200 and £400.

Sir K. Thompson

While thanking my hon. Friend for that reply, may I ask him to bear in mind that tens of thousands of shopkeepers of this kind will want to be assured that as we make progress with the Resale Prices Bill their interests are being considered?

Mr. du Cann

I note what my hon. Friend has said. The Government are looking forward to a full discussion of all these matters.

Mr. H. Hynd

Does not the real solution lie in these shopkeepers trying to get a more generous profit margin from the wholesalers?

Mr. du Cann

I do not doubt that that is one point that they have in mind. On the other hand, it is true that in general they probably operate on relatively low margins by comparison with some other types of business, because they need less labour and less stock-keeping, and factors of that kind have to be taken into account.

13. Mr. Wingfield Digby

asked the Secretary of State for Industry, Trade and Regional Development on what classes of goods of the £5,000 million worth of sales subject to resale price maintenance he has information on retailers' margins; and in which cases he considers them excessive.

Mr. du Cann

Statistics about margins are available and are published; but their adequacy or excessiveness cannot be determined simply by looking at the figures. Margins which are no more than adequate for some may be excessive for others. This is usually best left to the market to decide.

Mr. Digby

I thank my hon. Friend for that Answer, but is he aware that in my constituency all retailers' overheads have risen considerably, especially on account of rates?

Mr. du Cann

I note what my hon. Friend has said.

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