45 
significant importance to note that in both carry and delivery stores 
a slight increase in gross margin percentage and a greater increase 
in total expense percentage were observed. In neither group of 
stores was the gross margin increase equal to the indicated increase 
in total expense. This resulted in lower profits in both classes of 
stores in 1923, when corrections had been made in the figures for 
variations in price levels and in the purchasing power of the dollar. 
The fact that the changes found in gross margin and in total 
expense in carry and delivery stores were relatively small, and ap- 
peared as slight increases only in both of the store groups, would 
seem to point definitely to the conclusion that only slight increases 
in retailing costs had taken place between 1919 and 1923, when gross 
margin and total expense were measured by a common unit. 
The cost of retailing as brought out by the comparisons remained 
practically constant, with the exception of possible slight increase 
between 1919 and 1923. The increased percentage relation of gross 
margin, expenses and profits to sales arose, then, very largely from 
declines in the retail price level of meats, while the actual cost of 
maintaining retail meat establishments remained at least constant. 
With the decrease in retail prices on meat and meat products, which 
took place between 1919 and 1923, the relative proportion of the 
consumer dollar taken by the retailer of meats increased, because 
there was no reduction in his actual operating expenses. 
The comparison between 1923 and 1919 was made on the basis 
of 1923 data. The results of the comparison between the 1923 and 
1924 data of the present survey shown in Table 14 led to the 
further conclusion that the actual cost of retailing meat had not 
materially changed between 1919 and 1924, since the present survey 
indicated that there were no differences of importance between 1923 
and 1924. 
STOCK TURN 
The annual rate of turnover of the stock of merchandise in some 
retail businesses other than the retail meat business is important 
because of the capital invested in inventory. As the amount invested 
in merchandise inventory increases and the annual rate of turnover 
decreases, the interest expense for the capital invested in inventory 
may become of importance as an expense factor. 
In the retailing of meat this does not hold true. In- 1923, the 
investment in merchandise inventory for individual retail meat 
markets amounted to about 1 per cent of the net sales and the usual 
rate of turnover was between 80 and 90 times per year. It is readily 
seen that in a store in which the annual volume of net sales was 
$40,000, the investment in merchandise inventory approximated $400. 
Increasing or decreasing the rate of turnover of this small amount 
of capital will not affect the interest charge for capital invested in 
inventory to any material extent. Any interest saving obtained 
through the reduction of inventory or through a more rapid turnover 
of the capital invested in inventory would not affect total expense 
appreciably, if interest were included as an expense. 
It is obvious that in the retail meat trade rapid turnover in perish- 
ables is especially desirable and to this extent rapid turnover is of 
