The document summarizes the evolution of retail formats over time. It describes how the first department stores emerged in the mid-19th century in Paris and how self-service concepts began in the early 20th century. It then discusses the rise of supermarkets and hypermarkets in the 1930s-1960s, which consolidated products and provided more information to aid consumer decision making. Specialty stores, malls, and e-commerce platforms like Amazon further transformed retail by catering to changing consumer needs and demands. Retail formats have continually adapted to social, economic, and technological landscapes.
2. EVOLUTION :
• THE FIRST DEPARTMENT STORES “BON MARCHE” WAS SET UPIN 1852 IN PARIS.
• BORN MARCHE RVOLUTIONIZED RETAIL AT TIME BY RELYING ON VOLUME RATHER THAN
ON HIGH MARK UP.
• SUCCESS OF BORN MARCHE LET OTHER DEPARTMENT STORES UP IN EUROPE AND
AMERICA
• THE FIRST CHAIN STORE WASA&P (ATLANTIC & PACIFIC)-A GROCERY STORE FOUNDED IN
1859 BY GEORGE F FILMAN
• THE WORLD WITNESSED THE NEW FORM OF RETAIL WHEN MONTGOMERY WARD
LAUNCHED
THE FIRST MAIL ORDER CATALOGUE IN 1870
• ANOTHER IMPORTANT CHAIN STORE WAS FW WOOLWORTH SET UP IN 1879
3. EMERGENCE OF SELF SERVICE :
• RETAIL EVOLVED IN MANY WAYS OVER THE TWENTIETH CENTURY
• SELF SERVICE AS A CONCEPT STARTED IN 1916 WHEN CLARANCE SAUNDERS STARTED THEIR
FIRST SELF SERVICE STORE “PIGGLY WIGGLY” IN MEMPHIS, TENNESSEE
• THE CONCEPT OF SELF SERVICE HELPED THE RETAILER REDUCE COSTS, AS FEWER WORKERS
WERE REQUIRED TO SERVICE THE CUSTOMERS
4. SUPER MARKETS :
• 1930’S SAW THE EMERGENCE OF SUPERMARKETS
• THE FIRST HYPERMARKET THAT AS DEVELOPED WAS IN CARREFOUR FRANCE, IN 1963
• NEW FORMATS GAVE AN OPPORTUNITY TO PICK UP PRODUCTS, COMPARE WITH OTHERS AND
THEN TAKING A DECISION OF BUYING
• PROVIDING ALL INFORMATION REGARDING PRICE, WEIGHT, DATE OF MANUFACTURE AND
EXPIRY ON PACKAGES TO AID DECISION MAKING
5. SUPERMARKETS AND HYPERMARKETS :
The mass merchandisers worked on three principles, which have nowbecome the fundamental principles
of modern selling
• Theyfixed product prices before sale, and customers bought at the set prices
• Prices were determined on the basis of stock turns and the amountof profitthat would be generated from
the product
• They departmentalized the products Accounting systems were devised to determine the contributionof
various departments. This enabled them to dropunprofitable goods
6. SPECIALITY STORES, MALLS AND OTHER
FORMATS :
• THE NEEDS OF THE CUSTOMERS GREW AND CHANGED
• THIS ENSURED THE EMERGENCE OF COMMODITY SPECIALIZED MASS MERCHANDISERS IN 1970S
• SEVENTIES ALSO SAW THE USE OF TECHNOLOGY BY WAY OF INTRODUCTION OF THE “BARCODE”
• SPECIALTY CHAINS DEVELOPED I THE 1980S AS DID THE LARGE SHOPPING MALLS
• SHOPPING MALLS WERE CREATED O PROVIDE FOR ALL OF HE CONSUMER’S NEEDS IN A SINGLE
SELF CONTAINED SHOPPING AREA
7. RISE OF THE WEB :
• THE WORLD OF RETAIL CHANGED YET AGAIN WHEN IN 1995, AMAZON. COM OPENED ITS DOORS
TO A WORLD WIDE MARKET ON THE WEB
• EVOLUTION OF RETAIL FORMATS WORLDWIDE HAS BEEN LARGELY INFLUENCED BY A CONSTANTL
CHANGING SOCIAL AND ECONOMIC LANDSCAPE
• ONE OF THE MAIN REASONS FOR NEW FORMATS EMERGING IS THE CONSUMER HIMSELF
• TODAY'S CONSUMER IS MORE DEMANDING AND IS FOCUSED ON WHAT HE WANTS
• RETAILER ON THE OTHER HAND HAS BEEN INFLUENCED BY AVAILABILITY OF REAL ESTATE AND
ITS INCREASING PRICES HE IS FACING WITH
• HE IS FACED WITH THE CHALLENGE OF ADDING ON NEW SERVICES AND THE NEED FOR
DIFFERENTIATION
8. • THIS HAS LED TO SPECIALIZATION AND THE EMERGENCE OF SPECIALISTS
• SUPPLY CHAIN COMPLEXITIES AND INCREASING PRESSURE ON MARGINS HAS ALSO FORCED
THE RETAILERS TO LOOK AT NEW FORMATS