COOPERATIVE SOCIETY SHOWS SALES INCREASE

During the past six months the sales of the Cooperative Society have been at the rate of over a million dollars a year, according to the semi-annual report presented to the Board of Directors yesterday by Professor W. B. Munro '99, President of the Society. From July 1, 1920, to December 31, 1920, the business at the Main Store amounted to $400,144.77, an increase of $39,650.44 over the total sales of the corresponding period in 1919. Sales at the Technology Branch (including the business of the Tech Barber Shop), amounted to $115,567.79, which is an increase of $13,606.73. Total sales for the six-months period thus amounted to $515,712.56, from which it can be seen that the Cooperative Society will probably reach the million-dollar mark in point of volume before the College year comes to a close.

Net profits at the Main Store for the half-year amounted to $49,472.70 and at the Technology Branch $17,607.81, making a total gain of $67,080.51. This is an increase of $3947.93 over the net profits of the corresponding period a year ago. These figures do not, however, include any allowance for depreciation or reserves, as such allowances are not computed by the Board of Directors until the end of the year. It is apparent, therefore, that the Cooperative Society will more than earn its regular dividend this year unless there should be a marked falling-off in business during the next few months. Last year the total dividend payment amounted to about $40,000.

Inventory Shows Increase

The inventory taken during the last week of December showed stock on hand at the two stores amounting to $179,816.59, as compared with an inventory of $138,561.08 a year ago. This increase is due in part to higher costs of merchandise and in part to the earlier buying of text-books for use in the second half-year.

The Society's membership is now at the highest point in its history. On December 31 there were 7026 members, of whom 3955 were alumni, officers or students of Harvard and 3071 were officers or students at Technology. A year ago the total membership was 5963.

The gross profit on sales, taking all departments of business together, was 23.4 percent of the volume of business. The ration of expenses to sales was 12.28 percent. In other words, it cost the Cooperative Society about twelve and a quarter cents, on the average, to sell each dollar's worth of goods. Compared with retail stores in the million dollars year class, this expense ratio is believed to be very favorable. It is the aim of the Cooperative Society to sell goods at the market price the same as other stores, no more and no less. The main difference is that the Cooperative turns back its profits to its customers in the form of dividends