14 



STATION BULLETIN 347 



chains and super-markets sold Mcintosh at prices averaging" lower 

 than other types of stores. (See Table 8.) 



Table 8. Prices at Which McIntosh Apples were Sold in Different 



Types of Stores, 1940-41 



Gross retail margins on Mcintosh apples appear to be high 

 considering the fact that losses, can be held to negligible amounts if 

 sound stock is carefully handled, but perhaps they are really not so 

 high if profit per unit of display space is considered, since apples are 

 not a fast moving item in most stores. Many grocers consider a 25- 

 33 Vi per cent gross margin necessary on perishables. But when an 

 average margin above 33 1 /} per cent (50 per cent mark-up) is taken on 

 apples, one may well ask whether there is not something" seriously 

 wrong with our efficiency in selling" apples. The average gross store 

 margin based on some 200 records was approximately 38 per cent of 

 the selling price. (Fig. 11 and Appendix Table XI.) This seems to 

 be in line with data gathered in other studies. Chain stores bought 

 and sold apples for less than independent fruit and grocery stores, 

 but gross margins were almost as large as for independent stores. 



Margins vary some in different cities; in several cities an appre- 

 ciable percentage of the stores were doubling the purchase price. The 

 following" table also gives these data : 



Table 9. Average Margins on McIntosh Apples in Seven New Hampshire 

 Cities November 15 to December 31, 1940 



* Weighted averages. 



