A History of the Ministry of Information, 1939-46

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18 19

APPENDIX 2. SHOPKEEPERS AND CREDIT BUYING

The sample is very small; only two hundred and fourteen shopkeepers were interviewed. It is, therefore, not possible to analyse the results for each type of shop separately. In the following, the different types are grouped in two classes.

  1. (1) General Drapers, clothes, shoe shops.

  2. (2) Furniture, bicycles, perambulators, etc.

At the beginning of each interview, the shopkeepers were asked what percentage of their turnover is due to credit trade, and which credit system they use.

The results are presented in the following tables. Unfortunately, we have no means of judging whether the distribution of credit systems used or the grouping of shops in accordance with the amount of their credit trade is representative.

Turnover on credit trade as percentage of whole trade

Turnover on credit trade as percentage of whole trade General Drapers Furniture Bicycles, etc. Total
Clothes Shoes
No. % No. % No. %
Up to 10% 45 34.0 23 27.7 68 31.6
Up to 25% 31 23.6 9 10.8 40 18.7
Up to 50% 35 27.1 14 16.9 49 23.1
More than 50% 12 9.2 21 25.3 33 15.4
Not since the war 8 6.1 16 19.3 24 11.2
Total 131 100 83 100 214 100

A higher percentage of the “furniture” group belongs to the class in which more than 50% of the trade is credit trade, it is also in this group that more shops have given up credit trading since the war. Nearly half of the “General Drapers” belong to the two middle groups in which credit trade amounts to between and 10% and 50% of the turnover.

Credit systems used

Credit system used General Drapers Furniture Bicycles, etc. Total
Clothes Shoes
No. % No. % No. %
Providence cheques 31 23.2 2 2.4 32 15.1
Clubs 35 26.6 - - 35 16.3
Purchase Scheme 15 11.8 2 1.6 17 7.8
Straight Credit 43 33.1 10 12.4 53 25.1
Hire Purchase 7 5.3 69 83.6 77 35.7
Total 131 100 83 100 214 100

Hire purchase is the main credit form used by the “furniture” group. Providence cheques and clubs are used by half of the shops in the “clothing” group. In this group straight credit is of greater importance than in the other. About 12% of the “clothing” shops use purchase schemes.

20 21

Credit Trade now, compared with credit trade before the war.

The shop-keepers were asked “How does your credit trade now compare with your credit trade before the war?”

Comparison with before the war General Drapers, Clothes Shoes Furniture Bicycles, etc. Total
No. % No. % No. %
Increased 8 6.1 6 7.2 14 6.5
Decreased 90 68.7 62 74.7 152 71.0
Same 24 18.3 5 6.0 29 13.6
Not answered 9 6.9 10 12.1 19 8.9
Total 131 100 83 100 214 100

In both groups credit trade has considerably decreased; in the “furniture” group more so than in the “clothing” group. Though a small percentage in both groups has an increase in credit trade.

Reasons for decrease

Reasons General Drapers, Clothes, Shoes etc. Furniture Bicycles, etc.
No. % No. %
People earn more - can pay cash 29 32.2 11 17.7
Decrease in local population (Forces evacuation) 22 24.4 - -
Shortage of supplies 19 21.1 24 28.7
Staff shortage - none to collect money and keep books, transport difficulties 15 16.7 6 9.7
Higher prices - people can’t buy so much and taxation 11 12.2 7 11.3
Terms higher - - 8 12.9
Coupons - people can’t buy so much 11 12.2 - -
Can’t risk credit 10 11.1 20 32.3
Manufactures don’t give credit, so we can’t 4 4.4 1 1.6
Less commission 2 2.2 - -
Unspecified 1 1.1 4 6.4
TOTAL 124 81

Shop-keepers think that the main reason why their credit trade has declined is that people earn more and pay cash, a reason which is also valid for the decline of buying furniture on credit. Though the main reason for the decrease in the furniture trade is, that the shop-keepers themselves cannot give credit as it would involve too many risks, and the same is true to a certain extent for the other shop groups. Decline in credit buying is also due to the shortage in supplies and higher prices which people cannot afford, even if they can pay by instalments. Clothes rationing is also responsible for a decrease in the credit business.

The credit trade of only a few shop-keepers has increased. The reasons given for this are not numerous, they are represented in the next table in absolute figures.

Reason for increase in Credit Buying

Reason General Drapers etc. No. Furniture bicycle etc. No.
Increase in local population (deception area) 1 -
People need more clothes owing to heavier work and being bombed out 2 -
Fewer shops open in locality, owing to blitzing 2 -
Higher prices - people can't afford so much at once 2 -
Unspecified 4 -
More people buying because of marriage - 5
More work and better wages - 2
TOTAL 11 7

The people who cannot get credit

The shop-keepers were asked whether there are any people to whom they would never allow credit?

Are there any groups of people to whom you would not give credit General Drapers Shoes, Clothing Furniture and Radio, bicycle Total
No. % No. % No. %
Yes 49 37.4 30 36.2 79 36.9
No 68 51.9 36 43.3 104 48.6
Not answered 14 10.7 17 20.5 31 14.5
SAMPLE 131 100.0 83 100.0 214 100.0

About a third of the shops do not give credit to certain groups of people. These groups are as follows:-

Groups who don’t get credit No. %
Forces - relations or those likely to be called up 24 24.2
Strangers - evacuees outside 15 mile radius 27 27.3
Unemployed - lower working classes 6 6.1
Bad Payers 11 11.1
People without references 18 18.2
Others 13 13.1
SAMPLE 99 100.0

The main groups are wives of servicemen, evacuees and war-workers, also strangers in a town.

Possible changes in credit buying caused by the controlled prices of utility goods

Shop-keepers were asked whether they think that they will have to make changes in their credit buying arrangements for the sale of price controlled utility goods.

Do you think you will have to make changes in credit buying for utility goods? General Draper Clothes, Shoes Furniture bicycle etc. Total
No. % No. % No. %
Yes 39 29.8 10 12.1 49 22.9
No 67 51.1 27 32.5 94 43.9
Not answered 25 19.1 46 55.4 71 33.2
TOTAL 131 100.0 83 100.0 214 100.0

It seems interesting that nearly half of the shop-keepers in the “clothing” group and a third in the “furniture” do not expect that changes would be necessary. It is difficult to say whether this attitude is due to the fact that few people can imagine future situations, and these shop-keepers did not realize what these future changes would imply; or it might mean that the shop-keepers have prepared certain measures already, which would help them to avoid the consequences of the reduced margin of profit in utility goods, and its effect on credit buying.

Those who expect changes, say either that they will have less profit, or that they will have to stop selling on credit, or that the cheap controlled price will increase their turnover and profit, and therefore, will not necessitate any change in the credit buying system.

Expected changes, through controlled prices of utility goods General Draper Clothes, Shoes Furniture and Radio, bicycles etc. Total
No. % No. % No. %
Not enough profit 27 69.2 3 30.0 30 61.2
Less likely to give credit 2 5.1 1 10.0 3 6.1
Strictly cash basis and fixed prices 4 10.3 1 10.0 5 10.2
People will buy more 1 2.6 2 20.0 3 6.1
Unspecified 5 12.8 3 30.0 8 16.4
SAMPLE 39 100.0 10 100.0 49 100.0
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