The Evolution of Retail Business in North America

To trace the origins of business, we must journey back in time to when woolly mammoths roamed the Earth. Since 9000 BC, people have traded cows and sheep. The earliest true currency dates back to 3000 BC in Mesopotamia.

The first retail stores take up the role later on. By 800 BC, inhabitants in ancient Greece had constructed markets, with merchants selling their items in the city's Agora

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The remnants come from an ancient Greek agora. People would come not merely to shop, but also to socialize and participate in politics.

Fast forward a few thousand years, and we have modern mammoths like Walmart, Costco, and Target.

But what occurred in the meantime?

In this deep dive, we'll look at the evolution of retail and retail shopping in America. We'll concentrate mostly on the post-Industrial Revolution period, when retail truly took off, all the way up to the Digital Revolution and the game changer that is ecommerce.

What is retail?

First things first. What exactly do we mean when we say retail?

At its most basic, retail is the sale of various items and services to customers in order to generate a profit.

Retail encompasses selling through several channels, therefore things purchased in-store and online are both applicable.

Retail is defined broadly enough to include wandering merchants from antiquity to enormous shopping malls, big-box stores, and online platforms.

Let's look at how different times in the retail timeline influenced what retail has become, how people purchase, and what customers demand now.

History and Evolution of Retail Stores.

We've previously looked at some of the oldest history of retail, spanning hundreds of years of bargaining and peddling in one bound.

However, let us now look at some (relatively) recent retail history, how it influences what we buy and sell, and how we behave today

1. Mom and Pops: 1700s to 1800s.

https://bcwpmktg.wpengine.com/wp-content/uploads/2019/10/a9f41d45fb64ae9fbb845e0a702c50cf.jpg A "mom and pop" store refers to a modest, family-owned, independent business.

These stores were widespread in the United States during the 18th and 19th centuries, notably by the 1880s. Many of these establishments were drugstores or general stores that sold everything from groceries and fabrics to toys and tools. People at this period were also expanding their settlements across the country and establishing new towns. It was not uncommon for each village to have a mom and pop business selling general products for daily use.

While community-anchored, catch-all stores are becoming less popular, family-owned enterprises continue to exist. Of the almost 30 million small enterprises in America, 19% are family-owned, with 1.2 million run by a married couple.

These retailers can capitalize on customers' nostalgia and desire to support small, family-owned enterprises. They can also appeal to clients' desire for personalization and a pleasant boutique experience with human interaction.

Today, there is a generational difference in terms of shopping preferences. Seventy-two percent of Baby Boomers who grew up with brick-and-mortar stores prefer to shop there. This contrasts with Millennials, 67% of whom shop online.

2. Department stores appear between the mid-nineteenth and early twentieth centuries.

The pioneering spirit of people traveling west, opening and purchasing at local general stores, evolved as the United States entered the twentieth century.

The late nineteenth and early twentieth centuries saw tremendous changes in America's business and economic sectors. Manufacturing and industry took over as the primary business, replacing agriculture. Factory-based production of oil, steel, textiles, and food created new jobs and raised living standards.

With more successful and affluent Americans developing broader preferences, department stores such as Macy's (1858), Bloomingdales (1861), and Sears (1886) began to emerge in locations such as New York City and Chicago.

These institutions influenced the following aspects of American life:

What individuals purchased

How they furnished their houses, and

What luxury they thought they needed.

The stores did more than merely sell products. They also offered demonstrations, seminars, and entertainment events that drew increasingly wealthy consumers looking for ways to maximize their disposable income.

Today, customers are still looking for content and experiences to impact their purchasing decisions. In 2019, brands are achieving success by creating powerful content- and experience-driven commerce experiences.

3. Cha-ching: 1883.

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The original cash register.

James Ritty invented the first cash register in 1883. Ritty, an Ohio tavern operator, gave the innovation the term "incorruptible cashier." The system recorded sales with metal taps and rudimentary mechanics. When a sale was finished, a bell rang, giving rise to the expression "ringing up" — which we still use today.

This idea revolutionized customer checkout for more than a century, and it was soon adopted for retail transactions

Prior to this, many firms struggled to keep track of their accounting and were often unsure if they were profitable or losing money. Cash registers have become increasingly resistant to theft as technology has advanced throughout time.

Later POS (point of sale) systems improved the cash register industry even further by giving computerized cash registers that can track inventory, handle credit cards, and provide several connected touch-screen terminals, all while helping to manage profit margins.

Customers are purchasing more omnichannel than ever before, including from the same merchants both online and in-store. Businesses are also looking for solutions to connect POS systems and payment gateways so they can track inventory across channels.

4. Credit is placed on hold: 1920s.

It's difficult to envision a store without a cash register, and it's even more difficult for many people to imagine a period when cash was still king.

Credit cards, often known as "charge cards," first gained popularity among American shoppers in the 1920s. However, these early cards were typically provided by hotels or particular enterprises and could only be used within their respective organizations. In 1950, Diners Club issued the first universal credit card that could be used at numerous establishments.

Bank of America introduced the first bank-run credit card in 1958. Unlike today, the primary purpose of a credit card was to eliminate the need for customers to visit a bank and withdraw money in order to shop. Today, it is primarily used for bookkeeping and convenience.

Credit cards are also considerably more likely to carry debt, since customers utilize them to cover budget gaps. According to the Federal Reserve, Americans now owe a record $1.09 trillion in credit card debt.