• Abstract and Figures
• Public Full-text

AN APPRAISAL OF DEPARTMENT STORE EXPENSE MANAGEMENT PROBLEMS, CONCEPTS, AND PRACTICES DISSERTATION Presented in Partla 1 Fulfillment of the Requirements for the Degree Doctor of Philosophy In the Graduate School of the Ohio State University by CHARLr-S WILLIA rt EMORY, P.S. in E.A., M.P.A 4 » The 0nio State University 1951 Approved by: TAbLE Cl CONTENTS Chapter Pa^e I INTRODUCTION ................................ 1 II STATIC VARIATIONS IN DEPARTS NT STORE EXPENSE ..................................... 11 III DYNAMIC VARIATIONS IN DEPARTMENT STORE EXPENSE ..................................... Ub IV EXPANSE MANAGEMENT PRACTICES IN DEPARTMENT STORES ......................... 79 V POSTWAR INNOVATIONS IN EXPEwSE MANAGEMENT ................................. 13 5 VI AN APPROACH TO EPVECTIVE EXPENSE MANAGEMENT ................................. U| 0 VII APPROACHES TO PhObLEMS OI1 EXPENSE REDUCTION .................................. ltl VIII MEASUREMENT TECHNIQUES IN THE MANAOEMHNT OF DEPARTMENT STORE EXPENSES ............. P07 IX DEVELOPMENT OF A FLEXIPLE EXPENSE-VOLUME RELATIONSHIP ............................... P37 X SUMMARY AND CONCLUSIONS ................... 309 BIBLIOGRAPHY ............................... 333 APPENDIX A ................................. 33^ APPENDIX E ................................. 336 APPENDIX C ................................. 339 11 8 9 2 5 0 1 LIST OK TABLES Table No* Pa^e 1 Expense as a Per Cent cf Net Sales for 21+ Department Stores With Sales of $20 to $50 Millions in 191+9* by Natural and Functional Classifications, United States, 191+9 .............................. 15 2 Expense Hatio To Net Seles for Depart­ ment Stores of Different Sales Volume, in 6 Selected Years, 1936 to 1 Ql_«9 ....... 17 3 Relative Size of Expense Ratio Com­ parisons between Adjacent Store Sales Volume Groups Within Given City Size Groups, and between Ad acent City Size Groups within Give Sales Volume Groups, United States, 191+0, 191+3, 191+6 an<3 191+9 ................................. 20 1+ Computation of Estate Costs Per Square Foot of Space for Stores in Different City Size Groups Within. Selected Sales Volume Groups, 191+7...... 2i+ B Per Cent of Main Store Soles and Selected Sales and Expense Data for Different Merchandise Lines, for Stores with Various Sales Volumes, United States, 19i+b ..................... ?9 6 Expense Ratios to Sales for Total Expense and for Five Functional Classifications for Department Stores of Various Sales Volume Groups, United States, 191+6-191+9................. 32 7 Expense Ratios and Differences etween Expense Ratios of Adjacent Volume Groups, for Selected Expense Items, for Stores with Sales from $1 Million to ever Millions, United States, 19l+b to l^Q... 37 ill Table No. Pape 8 Average Annual c>ales pen Employee, per Salesclerk, per Square Foot of Space, and per Square B'oot of SelHnp Space, for Department Stores of Different Size, United States, 191+0, 19L|5, l?Jjb, and 13[)9 ................................... i; 0 9 Total Expense Ratios, Cyclical Adjust­ ment, and Adjusted Total Expense and Functional Expenses for Selected Volume Groups of Department Stores, United States, 1929 to 191+9...................... 51 10 Compensation of Personnel, and the Use and Efficiency of Utilization of Person­ nel and Space, in Selected Groups of Department Stores, United States, 1929 to I9I+.9..................................... 50 11 Factors and Considerations in Determin­ ing the Amount to be budgeted for Selected Payroll and Nonpayroll Expenses, 50 U, S, Department Stores with estimated Annual Sales of More than $.10 Will ion, 1 9 5 1 ........................................ 89 12 Method by Which Selected Payroll and Ncnpsyroll Expenses are Controlled in 93 U.S. Department Stores with Estimated Annual Sales of More than 4>10 Millions, 19 SI........................................ 90 13 Work Areas Where Four Selected Efficiency Improvement Techniques Have Been Used in 55 U.S. Department Stores with Esti­ mated Annual Sales of More than b'10 Millions, 1951.................... °7 ll+ Existence of Specific "Progress I veH Expense Management Characteristics in Two Selected Groups of Department Stores with Estimated Annual Sales Over .^10 Million, 1951.............................. 113 15 Areas Where Three Selected Research Techniques Have been Used in 13 U.S. Depart­ ment Stores with Estimated Annual Sales of More Than .$10 Million, 1951.......... 130 1 v LIST OF ILLUSTRATIONS Figure No. P r ’B 1 Total Operating Expense RatJ os, and Cyclically Adjusted Total expense Ratios with Computed Secular Trend, for Selected Volume Groups of Depart­ ment Stores, United States, 1929 to I9J49....................................... s2 2 Cyclically Adjusted Functional expense Ratios with Computed Secular Trends, for Selected Volume Groups of Depart­ ment Stores, United States, 1929 to 191*9....................................... 3 Cyclically Adjusted b.ypense Ratios with Computed Secular Trends, for Selected Volume Groups of Department Stores, United States, 1929 to 19ip9............. 97 I4. Nonsecular Patterns of the Major Natural Expenses in Selected Volume Groups of Department Stores, United States, 1929 to 1949.................................... 6d 9 "Present" Method of Securing Information from the Bride's File In a Silver Depart­ ment.......................................... I?! 6 "Proposed" Method of Securing Information from the Bride’s File in a Silver Depart­ ment ......................................... 173 7 "Present" Method of Recording and Filing a Carpet and Rug Service Claim............ 1 7 !-j H "Proposed" Method of Recording and Filing a Carpet and Rug Service Claim............ 17^ 9 Activity Analysis of Wrapping Goods After Sale in a Department Store......... 17*) 10 Daily Production Record of an Accounts Receivable Biller................ 22^ v Figure No. P^ge 11 Time Study Sheet Showing Timings of Transcription of Information to a Sales Check............................... 22^ 12 A Standard Practices bulletin for Writing a Green Sales Check in the P.S.S. Housewares Phone Room............ 22b 13 Productivity Charts as Used in One Department Store ........................ 237 1/4. Quality Control Chart Showing the Number of Errors Per 100 Orders........ 2J+2 13 Indexes of Total Expense and Net S;les for All Department Stores with Sales of at Least $1 Million, Reporting to the Harvard Graduate School of business dur­ ing years 1939“19U9 ...................... 26^ 16 A Breakeven Chart for a Leading U.S. Department Store, 19lj.b................... 2t>3 17 Adjustment Department Payroll ana Total Claims Processed with a Line of Relationship Fitted by Inspection, for a Leading U.S. Department Store........ 27I4. 18 Excerpts from Detail Expense budget Sheet for an Adjustment Department 27 b 19 Excerpts From An Expense Control Schedule of Monthly Expense Allowance at Varying Workloads, for the Adjust­ ment Department........................... 277 20 Budget Forecast and Analysis Report.... 279 21 Variable Budget, Production, and Help Report............................... 2ol 22 Bi-Weekly Payroll and Net Sales of a Women's Apparel and Accessories Division of a Leading U.S. Department Store 2o5 vi Figure No. Pa ge 23 Exo erpts From Expense Pudget Data Sheet for the Women's Shoe Salon. 2H5 2U Wee kly Output in Work Units, and Do lars of Payroll in a Sales Aud itlng Department of a Leading U. Department Store, 1930*.... P9b 23 Results of a 29 Month Industrial Engineering Program in the Clerical Service Department of the Credit Division of a Department Store..... 3 2d vii CHAPTER I INTRODUCTION The problems of marketing costs have generally re­ ceived less attention from students than have many other aspects of distribution. In retailing, in particular, tnere has been a singular neglect of expense problems. This study represents an effort to add to the fund of knowledge concerning the problems of expense and its management as found in department stores. Encouragement from store executives and scholars alike, together with a firm con­ viction that a study of the problems of high costs must come at a specific institution level, have stimulated the investigation. Importance of Expense Management- Expense management is an important and challenging problem in marketing. It is not, however, the sole consideration in a study of dis­ tribution costs. Basic to an overall analysis of marketing costs are such Important aspects as the selection of dis­ tribution channels, determination of functions to be per­ formed and by whom they can be performed most economically, general problems of marketing methods, and others, but among distribution coat problems, that of the analysis and Improvement of marketing efficiency from an operational 1 2 point of view is one of the most pressing. It is important that the screen of inefficient internal operation be pierced in order to make the evaluation of other less obvious pro­ blems more approachable* To a significant degree, the Im­ provement in expense management concept and technique is a prerequisite to a more scientific attack on the other prou- lems in overall distribution efficiency* High Coats in Marketing- High costs in marketing have received much attention in recent years, both in the form of attacks on the efficiency of the distributive system and defenses of this system. The attacks generally have follow­ ed the claim that an inordinate share of the consumer's dollar goes to middlemen. In one famous study of distri­ bution costs It was concluded that, in 1929*

Load more

  390

Copy Link