Essay About Birth Of Small Retail Stores And History Of Retail Organisation

History of Retail Organisation
[pic 1][pic 2][pic 3]1.History of Organized Retail:                                                                                     Retailing is a commercial transaction in which a buyer intends to consume the good or service through personal, family or household use. Generally, in the past, basic retailing underwent 3 phases of evolution.They arePhase 1: Barter system- It is  a system of transactions where  people used to exchange, the valuables they used  to possess and has some value in the eyes  of  other  persons.Phase 2: Adoption of common means of currency – This made the transactions more convenient. During this phase people only used their money to buy their basic needs like (rice etc.). The adoption of a common means of currency also triggered the birth of small retail stores selling day to day commodities.Phase 3: Transformation of small stores to Big stores (organized retailing)-the phase where small stores began to transform into bigger storesThe modern era of Retailing begins in early 1900’s where the united states underwent an economic transformation marked by maturing of industrial economy, the rapid expansion of big business and the rise of national labor unionsIn 1912- Great Atlantic and pacific tea company introduces “economy” grocery store format.Organized retail evolution underwent four major milestones. They are Milestone 1: Chain store revolution which was led by A&PMilestone 2: Introduction of supermarket format.Milestone 3: The rise of computerization and the complementary explosion in product                                               that occurred in the 1980’s and 1990’s.Milestone 4: Rise of first nation chains- Walmart 2. Key advances in the Early 1900s – U.S. Market:        YearProductPrice PromotionPlace1800’s-Mass Retailing in the US Began-MONTGOMERY WARDVariety stores, apparels and most stores were independentLow price, economies of scale due to the economic environmentgeneral merchandise catalogues.Rural areas where largely reached.1900’s- 1940’s-Start of organized retailingOpening of shopping centers by JC and sears expansion where apparels and variety stores are organized.Use of credit cards begins as major retail chain began.Newspaper advertisement, Radio and Tv advertisements.Mostly urban areas and few parts of Rural too since economic activities shifted from agricultural to industrial manufacturing.1950’s – 1960’s-Beginning era of Franchising in organized retail business in the U.SFirst planned mall and franchise food restaurants in the US. Discount stores were born“cheapies” began to disappear as firm moved closer to suburbs and “traded up” for less price Word of mouth, radio, in store lunch counters to attract hard up shoppersLargely suburban areas where malls were created and anchored by traditional downtown dept. Stores. 3. Retail advances in the 1970s/80s – U.S. Market