Retail evolution: Historical facts, theoretical logic and critical thinking

Abstract

Purpose

The purpose of this paper is to enhance students’ ability to use theory to assess facts logically and creatively. To achieve this end, the author explicates the evolution of retailing from its pre-industrial genesis to its Internet descendants in a historically based retail strategy class that investigates the determinants of new retail formats (major retail innovations – MRIs) over a > 200 year span. MRIs entail a major reconfiguration of the retail mix (i.e. price, product, place, promotion and personnel) , take significant business from existing formats that sell the same goods, generate greater benefits to customers than do rival formats and are widely imitated.

Design/methodology/approach

The author chronologically presents how the industrial revolution generated major environmental changes that facilitated a creative and highly effective re-organization of the retail mix.

Findings

Changes in environmental factors (e.g. mass production, transportation, location of population and communication) made possible retail formats that could not have existed earlier.

Research limitations/implications

The course is based on two theories that are linked by the retail mix; one theory relates to consumer store choice, while the other relates to the minimum market size required for a retail format to be viable. To illustrate, more personnel raises service, drawing customers from rivals while raising costs; higher costs raise the needed market size.

Originality/value

All six MRIs are derived from the two aforementioned theories. Experience indicates these theories are valid for assessing retailing at all stages of economic development. The course is based on the authors own material.

Citation

A. Ingene, C. (2014), "Retail evolution: Historical facts, theoretical logic and critical thinking", Journal of Historical Research in Marketing, Vol. 6 No. 2, pp. 279-299. https://doi.org/10.1108/JHRM-12-2013-0067