History of Retail in 100 Objects
History of Retail in 100 Objects
History of Retail in 100 Objects
David Roth
CEO The Store WPP, EMEA and Asia
Plus, a glimpse of the retail future through objects not yet invented.
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A glimpse of the
retail future
through objects
not yet invented/
commercialised
MODERN SHOPPING
SHOPPER AS
HUNTER GATHERER
Firstly, during the long and steady
evolution of mankind, we humans have
been genetically engineered, hard
wired to find and acquire, beginning
with us foraging and scavenging as
hunter/gatherer societies for the very
means of existence; then evolving
from the hunting and gathering of
simple needs to more complicated
gathering strategies for wants. This
anthropological model has been
carried down through the ages and
remains the template for men and
women shopping today ignored at
the sellers risk!
NEOLITHIC SHOPPER
money
mass production
The inventions, innovations and entrepreneurship
of the Industrial Revolution in the two centuries
between 1700 and 1900 had a profound effect on the
social and retail landscape, transforming it forever.
Industrialisation brought into existence inexpensive,
mass-produced commodities and products,
previously unavailable to a majority. The distribution
of these new products required a new retail
approach, which brought into existence speciality
shops, urban galleria and department stores.
As the new specialised , better-organised retail
formats emerged, steadily replacing the informal
market trader, these new shopkeepers as they
became known, employed shop fronts with their
proprietors name above the door trust and brand
identity had been born.
conclusion
Constant change is the very nature
of retailing, made manifest by the
objects invented or embraced by
retailing to facilitate, improve and
deliver an appropriate shopping
experience to society, which is itself
the magna of this change. Lock up
a department store today, reopen it
in 100 years time and you will have
a ready- made museum! claimed
Andy Warhol 50 years ago. That is
as true today as when he said it
the question is, will there even be
department stores in 50 years time?
Maybe not, but shopping and retail
objects always!!
Pre-history
8,000 to 2,000 bc
2,000 bc to 1600
1700 to 1900
1901 to NOW
2013-2023
Cave Man
Neolithic Period
Early Trading
The Future
Cave Man
SHOPPER
AS HUNTER
GATHERER
Animal
Skin
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Neolithic Period
Traders have always needed counting boards of some kind. The
earliest versions, which predated the abacus, would have been
used by traders at markets. Traders drew lines in the sand
with their fingers or a stylus of some kind. They would then
place pebbles between those lines to represent numbers.
Abacus
Contribution to
Retail History
As the first known
calculating mechanism, the
abacus enabled merchants
and traders to add, subtract,
multiply and divide without
the use of pebbles, twigs
or other representations.
Being liberated to work
on larger, more complex
calculations was a significant
advancement in the earliest
days of retail management.
8,000 to 2,000 BC
Neolithic
shopper
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Neolithic Period
Balance
Scales
Neolithic Period
Cuneiform
Tablet
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of Retail in
100 Objects
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Neolithic Period
Market
The principle of the market is as old as civilisation itself. Romes
Trajan Market is said to be the oldest example in the world,
dating back to the Neolithic period 6,000 to 8,000 years ago.
The market was probably built in 100-110. it opened in 113 AD and is still there
today. The shops in the Trajan Market would have been built in a multi-level
structure not dissimilar to todays department store.
Markets and market places are still to be
found everywhere and each country has
its own traditions and customs. In China
every neighbourhood has its own little
vegetable and meat market, selling local
produce. These Chinese markets are a focus
of activity and noise and modern Chinese
supermarkets still reflect the look and feel of
these original markets with stores housing
mini markets and stalls within them.
In Moscow, 21% of all retail trade takes place
in markets and indeed markets continue
to occupy a special place in the hearts and
minds of Russian shoppers. About half of
all clothes and shoes sold in Russia are
bought at markets the prices are cheaper
and sometimes the goods are newer and
more plentiful than in retail outlets. Although
perishable goods are also offered, grocery
retailing has expanded significantly to the
extent that now only about 11% of all food is
sold at markets.
For centuries, across every part of India,
weekly Haats or gatherings would see
vendors gathering in market places. As
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Neolithic Period
Shelf
Shelves were created in ancient times out of a desire to elevate and protect valuable objects, which at the time
tended to be scrolls or other types of written documents.
Advancements in printing which made the publication
of books possible meant libraries needed extensive
shelving for storage.
The application of shelves was readily apparent to
retailers who equipped stores with horizontal surfaces
to store products in back rooms and display products to
customers so they could easily be retrieved by clerks.
The boom years for shelves arrived with the birth of
self-service shopping in department stores in the 1800s
and later in supermarkets. The new approach to retail
meant shoppers needed to be able to see and touch
products and shelves were the solution.
2,000 BC to 1600
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Early
trading
and money
Contribution to Retail History
Early shelving options allowed retailers to increase
the inventory capacity of their stores and the
productivity of selling space. Chain stores who made
use of consistent shelving configurations were able
to optimise product assortments and increase sales.
The extensive range of shelving materials, finishes and
configurations also advanced the practice of visual
merchandising which greatly affected store experience.
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Cowrie
Shell
In the 13th Century, when Ghengis Khan conquered China, he quickly grasped the potential of its paper money
and began using it as a currency throughout his empire. He seized peoples existing supplies of gold and silver
and gave them paper currency in exchange, leaving the population no option but to trade with paper money.
Europe came far behind Asia and the Arab world in its
adoption of paper money, primarily because Europe
didnt have paper until around 1100 AD. The alleged first
instance of use of paper money in Europe was in Spain
in 1438 during a Moorish invasion (a Spanish military
leader paid his soldiers with paper).
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Paper
Money
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Coin
In China, from around 1200 BC, the cowrIE shell was used
as an item of exchange shell money. archaeologists
finds suggest that from 1000 BC the Chinese began to
produce mock cowrIE shells made of metal.
However, evidence indicates that metal coins also appeared independently of each other
and these Chinese versions, at two other locations on the Eurasian continent Lydia
(now Turkey) and India between 700-600 BC. It is thought that increased trade between
these locations was a trigger for the creation of coins to replace the barter system.
Bartering had two distinct
disadvantages the person wishing
to buy may not have anything the
seller wished to acquire, and even
if they could agree on a trade, the
haggling process was time consuming.
Coins offered a solution in that they
represented fixed values and could be
exchanged not for their intrinsic value,
but in order to change hands again in
payment for some other goods.
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Greek
Agora
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Early Trading 77 ad
Mirror
Contribution to
Retail History
Mirrors are key to encouraging purchase
of garments as the ability to see how they
look on the wearer plays a major role in the
decision-making process. The fitting room is
a key part of the shopper experience. Mirrors
give consumers the ultimate reassurance of
the validity of their purchase decision and as
such help generate millions in retail sale.
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Foire
St Germain
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The Rialto
Bridge
Venice flourished as a centre of trade throughout
the 13th and 14th centuries and its dominance of the
maritime industry and trade made it one of Europes
most prosperous cities. The Rialto Bridge was at the
centre of it all and for centuries served as the only
dry land connection across the Grand Canal. As
such, the bridge helped facilitate commerce in one
of the worlds most vibrant trading hubs.
An early version of the bridge established in 1181
was made of floating pontoons.
However, the establishment of
RecogniSed worldwide as an
the Rialto Market and its growing
architectural icon, the Rialto
popularity prompted construction of
a higher capacity wooden structure.
Bridge in Venice is the oldest
The original wooden bridge was built
of four structures spanning
with inclined ramps on either side and
a centre section which could move to
the ancient citys Grand Canal.
accommodate the passage of larger
Construction of the bridge was
vessels on the canal. Although an
necessitated by the popularity
improvement from earlier versions,
the wood structure required frequent
of the Rialto Market on the
maintenance, occasionally caught fire
canals eastern bank.
and collapsed on several occasions.
To remedy the situation, a stone structure was
considered and in 1551 proposals were requested
from architects. A design for a stone structure similar
to the wooden bridge to be replace was accepted
from Antonio da Ponte. The design was regarded
as bold, if not foolhardly, and skeptics feared the
centre span would collapse due to the weight of the
stone. Construction proceeded and the bridge was
completed in 1591. The concerns of skeptics proved
unfounded as the Rialto Bridge has withstood the
test of time and more than four centuries after its
completion remains serviceable.
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Signage
Ledger
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Royal
Exchange
In-Store
Graphic
The Royal Exchange was a forerunner to the modern shopping mall as Gresham had the vision to dedicate
several floors of the structure to retail uses and collect rent from tenants who occupied the space.
Thomas Gresham was a wealthy
businessman who set out to change
the crude financial trading practices
that were common in London
during the 16th century. Gresham
had served as a royal agent for
both King Edward VI and Queen
Mary and spent time at the bourse
in the Belgian city of Antwerp and
wanted to bring a similar concept to
London. He invested a large portion
of his personal wealth to construct
a bourse on land provided by the
city of London between Cornhill
and Threadneedle Street. Queen
Elizabeth I officially opened the
Royal Exchange in 1571 and the
timing could not have been better
for several reasons. Londons
population was expanding rapidly
and the nations ascension as a
global power had created newfound
wealth among residents who were
eager to purchase merchandise from
retailers who occupied the upper
floors of the Royal Exchange.
In addition, the Royal Exchange
brought Londons financial trading
activities up to the standards of
continental Europe at a pivotal
moment. The completion of the
facility five years prior to the Spanish
sacking of Antwerp set London on
a course to become the financial
capital of Europe.
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Contribution to
Retail History
The Royal Exchange is considered by
many to be the worlds first shopping mall.
Founder Thomas Gresham established
the principle of combining multiple
shopkeepers under a single roof to offer a
broad range of merchandise categories to
create a compelling retail destination.
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1700 to 1900
mass
production
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Mass Production
1734
Department
Store
The earliest department stores
appealed to affluent shoppers
or those who aspired to own
high-quality merchandise and
began to surface on multiple
continents in the early to
mid-1800s. The department
store concept remains
highly relevant to shoppers,
but modern operators are
less discriminating and
offer formats and product
assortments that appeal to a
broad range of income levels.
As with many retail innovations,
the origins of the department store
are difficult to isolate to a particular
individual or retailer and the earliest
versions of department stores bore
little resemblance to their modern
counterparts. However, what is clear
is that the concept of a retail store
offering multiple classifications of
merchandise gained momentum in
the early to mid-1800s.
Charles Henry Harrod established
his first retail business in London
1824. Austins was established as a
department store in Northern Ireland
in 1830 and David Jones opened a
department store in Australia in 1838.
Emerson Muschamp Bainbridge
and William Alder Dunn opened
a department store in England in
1849 and in 1851, the Buckley &
Department stores, as
the name suggests, offer
shoppers a broad assortment
of merchandise arranged in
departments to satisfy a wide
range of wants and needs.
Nunn department store opened in
Melbourne, Australia. In 1852, Aristide
Boucicaut opened the Le Bon
March in Paris and six years later in
1958 the first R.H. Macy & Co. store
opened in New York.
These retailers brought a different
perspective to the concept of
department store, but each sought to
benefit from the escalating standard
of living that had resulted from the
Industrial Revolution. As disposable
incomes for Europeans and Americans
increased, department store operators
were there to provide a new type of
shopping experience and to satisfy
shoppers desire for consumer goods.
The golden age of the traditional
department store and its role in society
began to fade in the 1960s with the
advent of suburban shopping malls
and discount department stores. The
latter introduced a new type of value
proposition to price sensitive mass
market shoppers who were willing
to accept reduced service levels and
a more austere store experience in
exchange for lower prices.
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Mass Production
1770
Pocket
Balance
Mass Production
1786
Galaries
de Bois
Contribution to
Retail History
The portable spring scale was the first major
development in weighing scales that didnt
rely on the use of counterweights. Their
portability enabled goods to be weighed
anywhere, not only in shops or other fixed
locations. Spring scales are still in use today
because they are cheap to make and easy to
use, although in the retail environment, more
accurate digital scales have replaced them.
Contribution to
Retail History
The passages were built in the style of a souk a covered area in which to shop,
browse and meet friends. The Galeries du Bois du Palais Royal was built in 1786
and housed 120 luxury boutiques; after shopping there you could pop in to the
central gardens that housed the Palais Royal. The Galeries du Bois became the
prototype for the other passages of Paris that followed.
The upper classes loved these malls. They could shop and meet, away from noise,
smells, weather and unsightly riff-raff. Famous writers and other notables visited
them. Balzac and Zola wrote about them in their books.
By 1850 Paris had 150 passages, but today just 30 remain. Department stores such
as Bon March, which opened in 1852, began to replace them.
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The malls have long iron structured glass roofs, and original features
such as marble and black and white tiled floors. They house restaurants,
shops and boutiques.
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Chain
Store
Mass Production
1801
The use of the chalkboard (also
known as blackboard) initially
found favour as a teaching aid.
Chalkboard
Its first use in school is attributed
to James Pillans, Headmaster of
the Old High School in Edinburgh,
who is said to have introduced
the use of coloured chalks
on blackboards to teach his
geography lessons.
In 1801, George Baron, an English
mathematician who was teaching at West
Point Military Academy, became the
first instructor in America to deploy the
chalkboard in class.
Chain stores emerged in North America in the 1700 s when the Hudsons Bay
Company created a network of branded trading posts.
However, it wasnt until the end of the 19th century that the chain store approach to retail
gained momentum in Europe and the United States. The era of chain store expansion began
in earnest in the early 20th century as retailers recognised the profit potential associated with
leveraging a variety of fixed and variable costs across an expanding base of stores whereby
the sales volume generated by each additional location produced incremental profits.
The superiority of the chain store business model truly became evident following World
War II when global consumption surged for all manner of consumer goods. This set off an
unprecedented wave of chain store expansion across all types of merchandise classifications.
Definitions on the number of units that constitute a chain may vary, but there is no disputing
the chain stores impact on retailing. Chain stores led a dramatic restructuring of the retail
industry during the past 100 years and today many of the worlds largest corporations are
chain store operations.
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Contribution to
Retail History
The chain store method
of retailing brought about
arguably the greatest
structural change the
industry has seen during the
past 100 years. The retail
industry today is dominated
by those who operate chain
stores to effectively serve
consumers wants and needs
in a profitable manner.
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Mass Production
c. 1820s
Gas Light
The notion of burning various fuels to produce
artificial light is as old as fire itself. However,
open flames were impractical and the light they
generated was dim at best. Lanterns that burned
liquid fuels were an upgrade in terms of safety and
light quality, but it wasnt until gas was harnessed
as a power source that lighting made its most
meaningful advance.
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Mass Production
c. 1820s
Price
Tag
Mass Production
1831
Doorbell
Contribution to
Retail History
The price tag represented a major advancement
in price transparency. Shoppers were able to
instantly understand the cost of an item and
make a purchase decision without the aid of
a retail employee. Knowledge of a products
price encouraged sales and offered a myriad of
business benefits to retailers, the most significant
of which was the ability to manage profitability
by understanding the margin contribution of
different products and categories. Price tags were
a key enabler of self-service shopping and led to
the introduction of mark downs, both as a means
to clear slow-moving goods and as a mechanism
to showcase savings from the anchoring price.
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Mass Production
1840
Display
Window
When in the 1840s advances in glass
production enabled large panes of glass
to be used in shop fronts, the department
stores began to take the concept of
window displays to a new Level.
Retailers quickly recognised that their windows
were a leveragable resource and the growth of
the department store in the early 20th century
saw window dressing become a serious business.
Rival stores used their
windows as threeDisplay windows have always been
dimensional advertising
hoardings, producing
used to tempt customers into
incredibly theatrical
stores. The first shopkeepers used
and flamboyant
displays to outplay their
ostentatious signs with their
competitors
names over their doors, and placed
in luring customers
their products proudly in the
across their threshold.
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Mass Production
1850
Sewing
Machine
Mass Production
1851
Contribution to
Retail History
The sewing machine saw the birth of the clothing
manufacturing and retail industry as we know it
today, creating a supply and demand for readymade garments. In response, retailers specialising
in garment sales sprang up in towns and cities all
over the world. The move away from bespoke,
handmade items to mass production was one of
the major characteristics of the industrialised era.
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Refrigeration
In early 18th Century, ice houses began to be created; these were stores for large blocks of ice
(harvested from frozen lakes), which were then packed together with sawdust or flannel and salt.
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Mass Production
1857
Elevator
Mass Production
1872
Lift and pulley systems were in use from ancient times but
it took a Royal Commission from Louise XV of France (in the
17th Century) who wanted a counterweight lift for his wife,
before passenger elevators (lifts) began to take shape.
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Catalogue
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Mass Production
1873
Denim
Mass Production
1875
The name Denim is a short form of serge de Nmes
BECAUSE THIS FORM twilled cotton originated from
Nmes in France. Denim was used in Europe from at
least the end of the 17th Century, but its popularity
escalated rapidly in the USA during the 1870s Gold Rush.
American gold miners needed durable clothing. To meet this demand, a man called Leob (later
Levi) Strauss created a strong style of workers trousers and overalls, incorporating copper
rivets on the main stress points.
These items were quickly adopted by
Californian miners and became their
wardrobe staple. Originally made from
uncomfortable hemp, Strauss switched to
using denim, and jeans were born.
These tubes became popular with retailers in the late 19th and early 20th Century, who used them to send
messages or money over short distances within their stores, or in rare instances, across the City.
In July 1875 D. Brown patented a pneumatic tube system called the Cash Carrier.
Designed for in-store use, the cash carrier transported cash and coins through large
department stores and was used to great effect for many decades. One of the earliest
retail adopters of the PTT system was Wanamakers department store in Philadelphia,
which installed the system in 1880, just a year after installing electric lighting.
Its use as a mail and message carrier was also effective. For nearly sixty years (1897
to 1953), the New York City Post Office used PTT (operated by the Tubular Dispatch
Company) to distribute mail. In 1914 almost a third of New York Citys first class mail
was distributed via this method.
While email has superseded the use of pneumatic tubes for delivering messages,
they are still widely used by banks, hospitals, factories and larger department stores
for transporting small items and money. For retailers, the tubes offer a way to move
cash from the checkout to the back office, and send change back to the cashiers.
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Pneumatic Tube
Transport System
Early pneumatic post or mail systems were invented by the Scottish engineer William
Murdoch, in the 19th century. The London Pneumatic Despatch Companies postal
systems were said to be powerful enough to transport humans during trial runs (but
they never actually put a person inside).
Transporting cash and till receipts via the PTT had a big impact on the safety and
efficiency of money handling within the retail environment. Cashiers finishing a
shift could send their takings and corresponding till roll direct to the accounting
office, enabling the office to differentiate and account for takings across cashiers
and shifts. A much safer way of transporting cash, it reduced theft and store
shrinkage by removing the risk of takings being intercepted on the journey from
till to accounts and ensured the tills never held too much money at any one
time. As a genius invention that customers could see being put to work, the PTT
system also created a bit of theatre in the store.
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Soda
Fountain
Between 1810 and 1903, a series of US patents were issued for the production and distribution of imitation
mineral and soda fountains. These developments led, in the early 20th Century, to pharmacies and other shops
selling soda drinks, adding the syrup by hand to create flavoured carbonated water. At first, the flavouring
was added to mask the taste of the medicinal mineral water, but it quickly became an end product in itself.
By 1875, there was a soda fountain in
almost every city across America and
they were entrenched in American
culture. Over the ensuing decades,
the soda fountain became an ever
more popular gathering place (the
name became extended to mean
both the dispensing equipment and
the outlet in which sodas were sold).
During Prohibition in the 1920s (when
the sale of alcohol was banned), the
soda fountain offered an alternative
to the speakeasy. Later, as American
consumers struggled through the Great
Depression of the 1930s, the soda
fountains provided an affordable luxury.
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Galleria Vittorio
Emanuele II
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Retail
Advertising
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Mass Production
1879
Telephone
Two inventors, Elisha Gray and Alexander Graham
Bell, came up with an electrical device that could
transmit speech down wires. They apparently got
to the patent office within hours of each other, but
Bell pipped Gray to the post. Bell was awarded his
patent in March 1876.
Elsewhere, also in 1876, a Hungarian engineer, Tivadar Puskas,
was inventing the telephone switchboard which ultimately led
to the creation of telephone exchanges and then networks.
Western Union, who already had telegraph exchanges, began to
use them for its telephones in New York City and San Francisco.
The benefits of the telephone were quickly seized upon. In
1884, the UK had around 13,000 telephones in use and the
Postmaster-General decided to extend their reach. As a result,
call offices were installed in shops and other public places.
Towards the end of the 1880s, the growing numbers of
installations led to the issuing of telephone numbers. The
telephone became indispensable to retailers for communicating
with both suppliers and customers, for placing and taking
orders. By the middle of the 20th century, the ability for
prospective customers to make enquires and order goods
led retailers to establish customer service and telesales
departments, and to actively promote customer order
telephone numbers on their literature and advertising materials.
The early days of the internet relied on dial-up modems using
the telephone cabling network, allowing us to take the first steps
to e-commerce (online shopping). Wireless and mobile phone
technology has taken this retail revolution further. Retailers have
been quick to develop mobile apps that can, amongst many
other things, incorporate a product catalogue and shopping
cart, enabling customers to shop in their store virtually, day
or night. Prospective customers browsing in store can use
their mobiles to take photos of merchandise for reference and
share the images with friends via social networks, to seek their
opinion prior to making a purchasing decision.
In 1879, Wanamakers
(in Philadelphia)
became the first
department store to
install the telephone.
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Mass Production
c.1880s
Mannequin
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Vending
Machine
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Contribution to
Retail History
Mannequins were, and remain,
central to the art of visual
merchandising. Used effectively, their
presence improves the overall image
of a store (outside and in). They
continue to be used in ever more
impactful ways by the worlds most
sophisticated retailers, attracting the
eye of the passerby and helping to
prompt impulse purchasing.
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Mass Production
1883
Cash
Register
Mass Production
Post 1883
The cash register was not invented for the convenience of
the customer. It was originally designed to stop employees
embezzling money from their employers by alerting them
to the fact that a sale was being processed. Two american
inventors, James Ritty and John Birch patented it in 1883.
The first register model was like a mechanical adding up machine, as every transaction was entered the drawer
opened and a bell rang, telling the manager a sale had taken place. The machine used metal taps marked with
denominations to indicate the amount of the sale and had a total adder that summed up all the cash values of
the key pressed during the day. Advertisements claimed that the register had The Bell Heard Round The World.
Ritty sold his invention to Jacob H Eckert
of Cincinnati, who formed the National
Manufacturing Company. Eckert then sold to John
H Patterson, who renamed the company the
National Cash Register Company. It was Patterson
who adapted the design to add a paper roll to
record sales transactions, thus creating a receipt.
However, the mechanised generation of retail receipts did not occur until the late 19th Century. In 1883, two
american inventors, James Ritty and John Birch, patented the cash register, enabling sales to be monitored
and deterring sales staff from pilfering profits. Subsequently, the National Cash Register Company
improved the design of the machine by adding a paper roll to record sales transactions. This evolved into
the receipt as we know it today.
Small and unassuming, the receipt is, in fact, a legal document.
It gives consumers a record and proof of their purchase and
is the evidence retailers require to return or exchange goods.
These days, many receipts include barcodes that allow the
transaction to be quickly recognised and validated by the
retailers computer system.
Contribution to
Retail History
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Receipt
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Visual
Merchandising
Retailers rely on visual merchandising to generate shopper traffic
and create interesting and enjoyable store environments to promote
purchase behaviour. Presenting merchandise in a compelling manner
through a wide range of visual merchandising techniques allows
retailers to achieve a wide range of benefits such as establishing
perceptions relating to price and merchandise quality, generating trial
usage and encouraging shoppers to extend their time in the store.
Visual merchandising has existed since early shopkeepers moved beyond displaying
products in a strictly utilitarian fashion on shelves and tables to add a bit of flair to
the presentation to heighten the appeal of merchandise. The exact moment in time
when this concept emerged is impossible to pinpoint, but generally speaking visual
merchandising as it is practiced today gained traction at the dawn of the department
store era in the early to mid-1800s.
That is when department store operators recognised that one of
their key operational challenges was getting shoppers to come
in off the busy streets in downtown areas where their stores
were typically located. The solution for many was to creating
interesting window displays that showcased products in such
a way as to inspire and delight passersby to encourage them to
come inside the store.
The concept of attractively presenting merchandise extended
to inside the store as well. Soon, retailers were relying on visual
merchandising to promote sales of new fashions, establish
seasonal selling periods, showcase values on key items and help
identify key departments.
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Mass Production
1888
Coupon
Mass Production
1888
Coupons emerged as an innovative marketing tactic in the late
1800s and quickly demonstrated an ability to generate sales.
Thanks to their effectiveness, coupons became an indispensable component of
marketing strategies for consumer packaged goods companies, as well as, retailers.
Contribution to
Retail History
From their beginning in the
late 1800s, coupons proved
to be a highly effective tactic
to help generate sales. Their
usage has become highly
refined over the years, but
no brand manager would
consider launching a new
item or promoting an
existing product without
the humble coupon playing
a print or digital role in the
promotional mix.
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Sears
Catalogue
Struck by this success, he ordered more goods from the jeweller for resale and began advertising his jewellery
and watches using a printed mailer. Thus began his business to sell watches through mail order catalogues.
Sears moved to Chicago, Illinois where he met Alvah C Roebuck
who joined him in the business. In 1893 the name of the company
was Sears, Roebuck & Co. Julius Rosenwald, a Chicago clothing
manufacturer, became a partner in 1895.
The expansion of the US railway system and free postage (in 1896
delivery to US rural areas was free) made the distribution of the
Sears Catalogues economical. Sears himself wrote the catalogue;
by 1894, it had 322 pages and contained other news items. By 1896,
there were Spring and Autumn versions; it became bigger and the
company began charging recipients a 25-cent fee. In 1897, colour
sections were introduced.
Richard Sears was a good marketer and had an instinct for compelling
slogans. For instance: Book of Bargains: A Money Saver for
Everyone and the Cheapest Supply House on Earth. The Sears
Catalogue also claimed that: Our trade reaches around the world.
Sears also used testimonials from customers, to reassure and confirm
that his prices were the lowest and best value.
The list of goods on offer through the catalogue expanded to
include sewing machines, sporting goods, musical instruments,
saddles, firearms, buggies, bikes, baby carriages, and mens and
childrens clothing. The club order program encouraged customers
to combine their orders with friends or neighbours to share in
discounts. By 1898, there were more speciality catalogues the
merchandise reflecting the changes of the time, photo machines,
talking machines, and mixed paints.
Ever the entrepreneur, in 1903 Sears was offering your money back if
you are not satisfied and, to encourage customer profit sharing, he
gave customers a one-dollar certificate for every dollar spent.
In 1906, Sears opened its catalogue plant and the Sears Merchandise
Building Tower, but it was not until 1925 that it began opening physical
stores the first in the Merchandise Building itself. Printed and
distributed for 97 years, (the last catalogue was produced in 1993) the
Sears Catalogue became widely known as the Consumers Bible.
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Mass Production
1894
Bottle
At the end of the 19th Century, mass production allowed for greater quantities to be sold but these
bottles were still expensive so were returnable in exchange for a deposit. They had a logo imprinted into
them so that companies could ensure they got their bottles back.
Here we follow the history of just one
famous branded bottle Coca-Cola one
of the most iconic marketing symbols in
retail advertising today. Since 1889, the
distinct shape and branding of these bottles
has made them collectors items.
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Campbells
Soup
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Modern Shopping
1900s
Supermarket
Food shopping and the retail
industry changed forever
with the advent of the modern
supermarket in the early 1900s.
1901 to now
modern
shopping
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Modern Shopping
1901
Escalator
It began as a novelty ride at the Old Iron Pier at Coney Island, New York, when in 1896 Jesse Reno put
passengers on a moving stairway that took them up on a conveyor belt at a 25-degree angle. He had
patented his moving stairs or inclined elevator in 1892. A previous patent had been granted in 1859 (to
Nathan Ames of Massachusetts) for a steam driven unit called revolving stairs, but this was never built.
Being able to move a large volume of people around a store and up and down shopping mall level, with ease and in
comfort, helps encourage sales. But its not just about mobility. Escalators are invariably located in the centre of the store
or mall and provide customers with a birds eye view of merchandise, optimising the retailers opportunity to promote
goods and offers. Today, stores are installing escalators designed to take a shopping trolley so that customers can keep
their purchase with them as they journey through the store.
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Air
Conditioning
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Modern Shopping
1906
Clothes
Hanger
Contribution to
Retail History
Use of hangers enabled
retailers to easily move and
display rails of clothing at
any given location on the
shop floor. Garments were
displayed with more efficient
use of store space and to far
better effect uncreased,
and more accessible to
browsing customers, making
it easy for them to see what
was in style and in stock,
and encouraging closer
scrutiny and handling. The
clothes hanger also enabled
more efficient distribution of
merchandise between the
manufacturer and the store.
In fact, in the USA, there have been many patents for various
types of clothes hangers; over 200 have been counted to date.
Back to the Parkhouse wire clothes hook. This was further
improved in 1932 when Schuyler C. Hulett received a patent for
putting cardboard tubes onto the upper and lower portions
of the hook, so that when freshly washed clothes were put
over them they did not crease. In 1935, the next evolution was
seen in the form of a hanger with a tube on the lower bar, the
invention of Elmer D Rogers.
Over the years, hangers have become carriers for the name
of the brands as well as the clothes themselves, but the basic
principles of their design have remained pretty much the same.
They remain an excellent example of form following function.
Modern Shopping
1908
Plastic
Packaging
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Float and
Armoured Glass
We call it window shopping. We walk along the High Street,
stare at the clothes or other products in the windows, but
probably take for granted the glazing through which were
gazing. However, the allure of the artfully arranged window
displays that draw us in to spend money only works because
of the developments in glass-making techniques that made
such walls of glass possible.
In the late 17th century, the French began using grinding and polishing
techniques to produce the first plate glass, but at that time it was
something only the rich could aspire to own. The French Revolution and
the English Industrial Revolution coincided with a revolution in glass
manufacturing, using compressed air to produce better, flatter, glass panes.
By the 1860s, store and office buildings were using plate glass. In the
20th century, machines could produce sheet after sheet of flat glass for
windows. That glass became stronger and tints were applied. In 1903,
bullet proof glass was accidentally discovered when a French chemist,
Edouard Benedictus, dropped a glass beaker on the floor. It didnt break
completely apart as it was coated with plastic cellulose nitrate.
When Henry Gordon Selfridge came to build his Oxford Street store in
the early 1900s, he invested 400,000 (a small fortune) acquiring a series
of Georgian buildings and turning them into a steel framed, five-storey
department store. The store opened in 1909, complete with cast iron
window frames and glass windows measuring over 19 feet by 12 feet.
A revelation, now passers-by were confronted with merchandise displays
that drew them in. Lifestyle tableaux, seasonal goods, working televisions
the windows provided a 3-D advertising hoarding.
In the 1950s Sir Alistair Pilkington and Kenneth Bickerstaff, developed the
float glass manufacturing technique (produced by heating a furnace
to 1500c and then allowing the molten liquid inside the furnace to flow
through molten tin). The molten glass floats because the density of
materials is different and it is this technique that gives the flatness to the
surface of the glass. This float glass became commercially successful during
the 1960s and is still manufactured and in use across the world today.
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Selfridges
Lavatory
Allen
Key
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Contribution to
Retail History
The humble Allen key facilitated a
boom in the sale of flat packed goods
for home assembly and resulted
in the emergence of a new kind of
DIY store, of which IKEA is the best
recognised across the world. From
its first stores in Scandinavia in the
1960s, IKEA spread its revolutionary
retail model across Europe and
the US during the 1970s and 1980s
and then into China, which is now
its second largest market. Today,
throughout its 400 plus stores across
31 countries, customers are navigated
through room sets that sell a lifestyle
they with the help of an Allen Key
can re-create, relatively cheaply
and easily, in their own home.
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Neon
Lighting
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Modern Shopping
1912
Shopping
Bag
Four years later, he had
developed a prefabricated
inexpensive package a paper
bag with a cord running
through it. This Deubner
Shopping Bag was easy to
use and strong enough to
carry up to seventy-five
pounds of groceries. The
bags cost five cents each.
Deubner patented his bag in
1912 and within three years,
he was selling over a million
shopping bags a year.
Modern Shopping
1913
One observant Minnesota grocery store owner,
Walter H Deubner, wanted to increase trade at
his store. He noticed that what people purchased
was limited by what they could carry.
The inventor of the modern lightweight
plastic shopping bag was the Swedish
engineer, Sten Gustaf Thulin. He created
a bag, made in one piece from a flat tube
of plastic for the packaging company
Celloplast, who patented it worldwide in
1965. It was strong and could carry a lot.
The company was a pioneer in plastics
processing and expanded across Europe
and the US to manufacture shopping bags.
The US petrochemicals group, Mobil,
overturned Celloplasts US patent in 1977.
The Dixie Bag Company, of Georgia, the
Houston Poly Bag, and Capitol Poly all
Delivery
Van
Contribution to
Retail History
Polythene shopping bags
increased the average
transaction value by
enabling customers to
purchase and transport
more products. The bags
also provided a relatively
cheap but highly visible
way for retailers to promote
their brand. In recent years,
retailers have encouraged
customers to move towards
a bag for life system to
improve the rate of re-use.
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Contribution to
Retail History
As well as delivering to order (such as the daily milk round), grocers, bakers,
fishmongers and others would drive their vans from place to place (to a
regular schedule), park up and sell before moving on to the next destination.
It was the Ford Model T that first brought the delivery van within the reach of high
street businesses (the American Messenger Company in Seattle, Washington, founded
by James Casey, started using its first Model T delivery car in 1913), followed by the
purpose built light vans, after 1945. The first generation of compact vans appeared in
the US in the 1960s, borrowing their design from the Volkswagen Bus. They were called
step vans because a deliveryman could step-up into one via low van steps built under
the doors. It became a standard truck type widely used by delivery services, courier
companies and parcel post.
The growth in private car ownership, coupled with the advent of the supermarket and
out-of-town retail shopping centres, saw a decline in use of the van for home delivery
services during the last quarter of the 20th century. However, the past decade has seen
a resurgence in use as the massive growth of online shopping has reinstated the delivery
van in its pivotal position at the end of the retail distribution chain.
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Modern Shopping
1914
Calculator
Modern Shopping
1916
In 1642, a Frenchman, Blaise Pascal, invented
the Pascaline - a mechanical calculator that
could add, subtract, multiply and divide.
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Checkout
The retail industry is dependent on properly functioning checkouts with billions of transactions
processed at millions of merchant locations worldwide every day.
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Contribution to
Retail History
Centralised checkouts gave retailers
the ability to quickly and accurately
tally customers purchase and process
payments. The checkout contributed
to the rise of self-service retail and
reshaped shoppers expectations of
the store experience. As such it became
a key consideration in store design
and exerted a powerful influence
on decisions relating to operations,
marketing and merchandising.
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Modern Shopping
1919
Conveyor
Belt
Modern Shopping
1922
Conveyor belts began in the latter half of the 17th
Century, devised as a way of moving grain sacks over short
distances. They worked by allowing a belt made of leather,
canvas or rubber to travel over a flat wooden bed.
Shopping
Centre
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Contribution to
Retail History
By merging the
mechanisation of the
conveyor belt with
computer control systems,
retail distribution centre
operations around the
globe have become faster
and more efficient and have
been able to achieve huge
savings in labour costs.
Contribution to
Retail History
The shopping centre represented
the earliest form of retail
development and established
the philosophy that a mutually
beneficial effect was created by
assembling a group of retailers
together to form a destination.
This foundational principle
shaped shopping centre
development over the centuries
and continues to do so today. The
enduring appeal of the shopping
centre lies in its ability to evolve
the tenant mix to provide the
most relevant offering of products
and services to secure the
shopping centres status as a local,
regional or global destination.
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Modern Shopping
1926
Tannoy
However, the first working PA system was invented in the united states by Edwin Jensen and Peter
Pridham. In 1915, their company, Magnavox, created the first ever dynamic loudspeaker. Prior to that,
PA systems were in effect, just a funnel or bullhorn without any form of electronic amplification.
Contribution to
Retail History
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Aeroplane
During the first half of the 20th Century, innovations in flight and plane design blossomed, achieving
another key landmark with the development of the jet engine in the late 1930s by two engineers: Frank
Whittle of the UK and Hans von Ohain of Germany. In the second half of the 20th Century, it was the
passengers and the tourist industry that began to reap the rewards of modern flight.
Modern Shopping
1930s
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Modern Shopping
1930s
Kvass
Barrel
Modern Shopping
1935
Kvass has been enjoyed in Russia and across parts of Eastern
Europe for centuries, by every social group from Tsars to peasants.
Even today, in the summer you will see people lining up to purchase
a glass of this tangy beverage from the street vendors barrel.
Avoska
Shopping Bag
In the 1970s soviet consumers spent hundreds
of hours of their lives waiting in line to buy
goods. They were well versed in impulse
buying, in that if they saw a queue forming,
it was standard procedure to join it and only
then enquire about what was being sold. The
uncertainty of what goods would be available,
when and where, instilled in people an instinct
to stockpile. This is where the Avoska bag was
so useful. When goods suddenly appeared in
a shop or a market, the expanding string bag
enabled the shopper to stock up in bulk at a
moments notice.
Contribution to
Retail History
The Avoska bag was a
major cultural phenomenon
of everyday Soviet life,
symbolising the ongoing
struggle of sourcing and
purchasing everyday
consumer goods. In recent
years, the principle of the
Avoska bag has begun to
be applied in the West but
it is prompted by a different
concern shoppers have
begun to carry fold away
shopping bags with them
to reduce the use of plastic
carrier bags.
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Modern Shopping
1935
Price Gun
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Shopping
Trolley
Made with a metal frame it had two wire baskets. Customers could place their
hand-held baskets on the carriers and take them off again at the checkout. The
trolleys became known as folding basket carrier carts and Goldman set up a
company to produce them called the Folding Carrier Basket Company.
A patent war followed in 1946, when Orla
Watson of Kansas City, wanted to produce
a telescoping trolley, but Goldman filed
for a similar patent too. In 1949, Goldman
gave his patent rights and royalties to
Watson keeping licensing rights for
himself. By 1947, shopping trolleys had
child seats and by 1954, coloured handles
and personalised store names.
However, Goldmans trolleys did not have
an easy reception from customers in the
early days. Young women thought they were
unfashionable and young men thought
they would appear weak if they used
them. Then came the marketing campaign.
Goldman hired models of all ages and both
sexes to push the trolleys around the store,
pretending they were shopping. Attractive
store greeters met the shoppers as they
came in, encouraging them to use their carts.
Trolleys increased sales for all stores that
adopted them, as shoppers were better able
to self-serve throughout the store and make
more purchases.
The development of the price gun was a major technological step forward for the retail
industry. It simplified operations for retailers of fast-turning consumer packaged goods and
instilled trust in shoppers by improving price transparency and accuracy. Although seldom
used today, the price guns development had impacted retail efficiency and enabled
retailers who used the device to establish a new store experience for their shoppers.
Customers were no longer restricted to buying only the amount of goods they could carry in a basket. This, and being able to
wander the streets in comfort, encouraged them to buy more. The success of the trolley is also closely associated with the rise
in car ownership, as bulk buying was only possible if the customer had access to a car to transport the goods home. Like the
advent of refrigeration, the trolley was partly responsible for the transition to less frequent supermarket shopping occasions as
customers could do a weekly shop. The supermarket itself was redesigned to accommodate the trolleys, including wider aisles
and new checkout counters.
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Modern Shopping
1938
High Street
High Street was first published
in 1938. It showcased 24 colour
lithographs by the illustrator,
Eric Ravilious, with accompanying
text by the architectural historian,
J.M. Richards.
Ravilious created his lithographs in 1936 and 1937,
drawing straight onto stone in the studios of the
Curwen Press. The idea of an alphabet of shops
came from his lover, Helen Binyon and the book was
actually designed for children. The Ravilious images
evoke nostalgia for a past era of shopping, but in the
case of the cheesemonger (Paxton & Whitfield in
Jermyn Street) the shop faade and window display
still remain much the same today.
Initially Ravilious did not have a publisher, but
continued working on the book, subsidised by Curwen
Press until Noel Carrington (brother of the Bloomsbury
artist, Dora Carrington) agreed to publish it. Sadly, only
2,000 copies of High Street were printed and the
lithographic plates were subsequently destroyed by
the London Blitz. Today, it is an extremely collectable
item, and copies change hands at high prices.
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Modern Shopping
1938
Fluorescent
Tube
Modern Shopping
1940s
The arrival of fluorescent lighting gave them a highly economical alternative. Fluorescent lights
produce a lot of light ideal for illuminating merchandise to its best advantage, day or night
consume very little energy, and generate very little heat. The average life of fluorescent bulbs is
long, reducing the labour involved in replacing them.
Think of a light bulb and you summon up
the name of Thomas Edison, its inventor, but
although Edison dabbled with fluorescent lighting
too, he lost interest in it. Others experimented
further, but it wasnt until 1901 that Peter Cooper
Hewitt patented the first mercury vapour lamp,
which was the prototype of the fluorescent tube.
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During the 1930s, 40s, and even into the 1950s, rationing changed
the face or retailing in the UK. British citizens were no longer
living in an age of plenty, scarcity became the norm.
Ration
Book
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Modern Shopping
1945
Pallet
Speciality
Store
Pallets are strong; they can carry loads of 1,000 kg, and as more goods are
transported via container trucks and ships, the pallet industry has burgeoned.
An amazing half a billion pallets are made each year, with around two
billion pallets apparently in use across the US alone. Once merchandise is
stored on a pallet, it can be lifted by forklift trucks or by equipment called
pallet jacks. Warehouse layouts are designed to enable the forklifts to
weave in and out of the storage shelves that hold the pallets on them.
Large discount stores and sheds (for example DIY retail outlets) use pallets
to store and display merchandise within the retail environment itself.
The use of pallets reduces retailers handling and storage costs by allowing
ease of movement. Surprisingly, there is no single international standard
for pallet sizes, but in principle, those pallets used in shipping have to be
made of materials that wont carry insects or plant diseases.
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Contribution to
Retail History
Unassumingly modest, the humble pallet
has become fundamental to the smooth
running of the supply chain. A vital
merchandising tool for retailers like Aldi,
Costco and Walmart, the pallet is used as
an efficient display by retailers across the
world. Globally, trillions of dollars worth
of merchandise is sold from pallets.
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Contribution to
Retail History
The speciality store
represented a new approach to
serving shoppers and created
powerful growth opportunities
for retailers and brands.
By offering deep product
assortments within narrow
merchandise classifications,
retailers created a new
approach that had powerful
appeal in a marketplace with
shoppers who were receptive
to the greater level of choice
that speciality stores afforded.
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Modern Shopping
1946
Tupperware
Modern Shopping
1949
Closed Circuit
Television
Contribution to
Retail History
The Tupperware marketing
and distribution model
was enormously successful
and is still applied globally
today. Largely attributable
to Brownie Wises ability to
create marketing strategies
that tapped into popular
culture and encouraged
women to sign up to become
hosts, her belief that if we
build the people, theyll
build the business created a
new retail paradigm.
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Modern Shopping
1950s
Discount Store
Discount stores offered a wide
range of merchandise categories and
employed a pricing philosophy that
proved so popular with shoppers it
would come to dominate the industry.
The earliest discount stores sought to satisfy shoppers
everyday needs for a wide range of basic products,
as well as, an assortment of discretionary items. The
discount pricing philosophy required operators to be
mindful of capital costs and operating expenses so
as to generate an acceptable level of profitability by
selling products at lower prices. This resulted in a more
austere shopping experience than what customers were
accustomed to at traditional department stores of the
day, but the no frills approach presented by the likes of
Aldi and Lidl was a trade-off many were willing to make in
exchange for significant savings.
Today, the stores operated by traditional discount
retailers such as Walmart, Kmart and Target, bear little
resemblance to the store formats of the 1960s and 1970s
which propelled them to dominance in American retailing.
The addition of food to their traditional product offerings
has transformed many locations into large supermarkets
while retailers, such as Dollar General and Family Dollar
have emerged as a new breed of discount store.
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#
97
#
Modern Shopping
1951
Computer
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Credit
Card
In 1951 Franklin National Bank in New York issued its first bank credit card, which could only be used by that
Banks account holders. At the same tiMe, Frank McNamara was developing the Diners Club Card.
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Retail History
Contribution to
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Modern Shopping
1951
Shannon Airport
In March 1947, the Irish Parliament passed legislation that
heralded the arrival of the global Duty Free industry.
the Customs Free Act meant
that normal duty and tax
procedures did not apply
to passengers purchasing
goods at Shannon Airport.
This radical retail development
was largely down to the efforts and
entrepreneurialism of one man, Brendan
ORegan. He had been the Catering
Comptroller at Foynes, which was the
refuelling point for seaplanes between
the UK and US. In 1945, ORegan was
transferred to the airbase at Shannon
and it was here that he identified the
opportunity to offer goods for sales to
transit passengers. However, he took his
idea further, managing to persuade the
airport authorities that the transit area
was not, technically, part of the Irish state
and therefore goods purchased within it
should not be liable for taxes and duties.
Having gained the support of Parliament
and seen the legislation passed, in May
1947, ORegan opened the worlds first
Duty Free shop, staffed by one woman
(Ms Kitty Downes). Offering a service
for Trans-Atlantic airline passengers
typically travelling between Europe and
North America whose flights stopped for
refuelling on both outbound and inbound
journeys, it was an immediate success.
To begin with, the Duty Free shop was a
small kiosk in Shannon Airports terminal
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Modern Shopping
1951
Modern Shopping
1952
The Barcodes retail history began in
1952 when the first patent for a barcode
type product was issued to inventors
Joseph Woodland and Bernard Silver.
Tetra Pak
of how to fill, store and distribute liquids in this way. It was Rausings
wife, Elisabeth, who suggested continuously sealing the package,
as if stuffing sausages, to prevent oxygen getting in. Working with
Swedish paper mills and foreign chemical companies, a paper
coated with polythene was produced. This made the paper
waterproof and it could also be heatsealed.
AB Tetra Pak was set up in Lund Sweden in 1951 and the new
packaging system was presented to the press. In 1952 the first filling
machine (which was able to package 100ml cream tetrahedrons)
was delivered to a local dairy.
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Barcode
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Modern Shopping
1956
Forklift Truck
Supermarkets, big chain stores and small stores
alike, all rely on storing vast quantities of goods
in warehouse and distribution centres across
their supply chain, ready to be transferred to
trucks and driven through the night to get to
your local branch of their store.
Forklift trucks were specially designed to navigate the wide aisles of the
distribution centres, taking the pallets off the shelves onto waiting lorries.
Early civilisations have always used a lever of some kind for lifting, and in
the 19th century, manually powered sack trucks were in common use. The
modern forklift was developed in the 1960s by a number of companies,
bringing together mechanical advancements in the US, the UK and Japan too.
In 1906, the Pennsylvania Railroad in the US had battery powered platform
trucks for moving luggage, and in the UK, the Ipswich based engineering
company, Ransomes, Sims and Jeffries used various types of material
handling equipment to overcome labour shortages during the First World
War. In 1917 in the US, Clark started using powered lift tractors in their factories
and in 1919, Towmotor Company. In 1920 Yale & Towne Manufacturing also
began producing forklift trucks. One of the impacts of the two world wars was
improved use of the forklift technology and warehousing, as huge quantities
of cargo were loaded onto ships and containers bound for the troops.
Today, warehouses forklifts can lift loads between one to five tonnes, while
shipping forklifts can lift up to 50 tonnes.
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Southdale
Center
Shipping
Container
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Modern Shopping
1957
Bubble Wrap
The story of plastic transparent
Bubble Wrap begins in 1957
with two inventors and
engineers: Al Fielding and Marc
Chavannes, from New Jersey,
USA. They originally set out to
produce a textured wallpaper.
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Cash and
Carry
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Modern Shopping
1959
Aluminium
Can
Modern Shopping
1959
In 1959, the American brewery, Coors offered customers
one cent back for each of its new all-aluminium cans
they returned. Unlike the tin and steel cans they
replaced, these were two-piece seamless designs with
the added benefit of being recyclable.
Contribution to
Retail History
The chilled canned drinks category (comprising
both beer and carbonated soft drinks) has
become, along with confectionery, coffee and
tobacco, one of the underpinnings of the global
convenience store industry. Retailers like 7-Eleven
and Familymart, not to mention the legions of
retail outlets operated by major oil companies,
shift billions of beverages in aluminium cans every
year. The cans ensure that drinks are kept fresh,
hygienic and portable, and are better in terms of
logistics, display and multi-pack merchandising
than bottles. Recent improvements in design,
manufacture and recycling have made canned
packaging more efficient than ever.
These cans were lighter too; the Can Manufacturers Institute estimates that first generation aluminium
cans weighed three ounces per unit. (Todays cans weigh less than half-an ounce.)
In 1964, aluminium cans entered the soft drinks market, with
RC Cola and Diet Rite being launched by Royal Crown Cola
in a two-piece 12 oz aluminium container. These cans were
not only a lighter weight, they also had a better surface on
which text and graphics could be printed to help reinforce
awareness of the brand. In just one year, one million cases
of soda were packaged in these new aluminium cans.
In 1967, Coca-Cola and Pepsi-Cola adopted aluminium cans
too. But it wasnt until the early 1970s that the aluminium
industry launched its buy-back centres, where consumers
returned their cans, which were then recycled and returned
to the shelves of our stores. This reduced the cost of the
original raw materials to the industry, and gave us our
money back on the cost of our drinks.
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ATM
Machine
Contribution to
Retail History
The ATM liberated shoppers from the tyranny
of restrictive banking hours and the necessity
of going to a bank to obtain cash. Having the
freedom to withdraw funds at any time of day or
night extended their ability to shop and spend.
The inclusion of ATMs inside stores and shopping
centres helps increase spend, as customers
are not limited to spending only the cash they
have with them. The ATM fuelled the growth
of impulse purchasing and being able to take
advantage of opportunistic deals from retailers.
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Modern Shopping
1960s
Retail Brand
Retail brands go by different names private
label, store brand or house brand but the
objective is similar. A retail brand is a means by
which to achieve competitive differentiation, offer
shoppers an enticing value proposition, enhance
loyalty, generate a superior rate of profitability
and gain leverage over branded suppliers.
Retailers employed brand building strategies early in the industrys
development as they sought to establish an identity for their stores
with shoppers. The concept of the retailer as a brand gained further
traction in the early 20th century when chain stores began expanding
more aggressively and needed to cultivate their image with shoppers in
new markets. Retail brands came to occupy a special place in the minds
of consumers as the businesses they represented tended to be large,
successful and regarded as trustworthy.
Retailers sought to capitalise on that trust through several strategies
that helped reshape the industry beginning in the 1960s. Some sought
to build entire operations focused on the sale of retail brands or
proprietary branded products, examples of which include Germanys
Aldi stores and more recently US retailer Supervalus Sav-A-Lot food
stores. The retail brand strategy also became prevalent in the apparel
world where companies such as The Gap, H&M and Victorias Secret
achieved success with carefully cultivated brands.
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113
Modern Shopping
1962 - 1963
Hypermarket
114
Intel Chip
The History
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Modern Shopping
1971
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Modern Shopping
1970s
EAS Security
System
RFID
Technology
Electronic Article
Surveillance (EAS) are the
plastic and metal security
tags that are fitted to goods,
and removed or deactivated by
the assistant at the checkout
when the item is purchased. If
a tag is not removed, when the
customer tries to leave the store
the sensors in the detection system
at the exit pick up the presence of the
tag and sound an alarm to alert staff.
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Modern Shopping
1974
Planogram
A tool for optimising visual merchandising in
store, the planogram is a diagram or model
that indicates the placement of retail products
on shelves and throughout the store.
A full planogram shows every level of the store, what is being
exhibited on each level, what products are stocked on what shelves,
and the volume of each product on each shelf. If the rules of the
planogram are followed, then (the theory is), the products sales
and the customer experience are maximised. Kmart is credited with
pioneering the planogram.
Sometimes planograms will consist of texts and boxes and others
for instance, those used by clothes manufacturers may use
pictures that show how the products should look when on display.
Planograms are often distributed to stores ahead of a new product
launch to ensure the product is displayed consistently across each
of a stores branches.
Retailers use research to decide how best to make use of the
available space.
Analysis of past and current sales patterns influence the planogram.
For example, the number of facings a certain product should
have on display. Margin placement allows the retailer to put those
products with a higher profit margin in specific parts of the store
and market share placements allow a product to be placed alongside
others of a similar nature, decided by how much its likely to sell.
Planogramming software helps retailers to conduct stocktaking
more speedily and accurately and enables virtual teams of
manufacturers, retailers, researchers, store managers and of
course, the planogrammer, to come together to plan what goes
where, in stores all over the globe.
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119
Modern Shopping
1977
Modern Shopping
1981
Learning From
Las Vegas
Loyalty
Card
An architectural manifesto
and endorsement of US
popular culture, it used an
analysis of the buildings, lights
and signage of the Las Vegas
strip to explore modern day
architectural communication.
Learning from Las Vegas was produced as a result of a road trip taken by
Venturi, Scott Brown, Izenour and a group of their Yale architecture students.
On this trip they collected data and photographs and used them to support
their argument that the decorated shed (the dominant architectural
influence in Las Vegas) was as valid as more orthodox architectural forms.
The book dismissed the rigid functionalism of International-style
modernism in favour of the energetic and spontaneous design eruptions
of American car culture, expressed in the neon lights and signs along the
Las Vegas Strip.
Although it created a furore when first published, it also helped usher
in a new understanding and appreciation of commercial architecture.
Venturi Scott Brown and Associates in Philadelphia won numerous
awards and honours for their work.
Contribution to
Retail History
Learning from Las Vegas (LFLV) is that rare
thing - an influential polemic from a grande
architect in praise of the everyday.
Since the the modern built landscape
has come to be greatly influenced, if not
dominated by, the architecture, design and
communications of the shopping experience,
the LFLV manifesto gave a welcome, if
belated recognition to the role of retail
vernacular in helping to shape social culture.
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Today it seems at times that virtually every retailer offers some form of a branded
loyalty programme with incentive structures that vary widely to include cash back offers,
reduced prices, percentage discounts, access to special promotions, free shipping of
online orders or the ability to accrue points that can be redeemed for merchandise.
Although retailers and their trading partners incur costs associated with loyalty cards,
the expense is justified by the wealth of purchase behaviour data generated by card
usage. The data allows retailers to know the intimate details of shoppers purchase
behaviour and in turn more precisely target shoppers or shopper segments with
relevant offers to drive even greater loyalty. Increasingly powerful data analytics
capabilities now give retailers the ability to blend loyalty card usage information with
other data streams to develop an even deeper understanding of shopper behaviour.
Today, loyalty cards are so prevalent that retailers are challenged to develop ever
richer reward structures to drive participation and usage among shoppers whose
pocketbooks are stuffed with loyalty cards.
Contribution to
Retail History
The loyalty card changed retailers
approach to marketing and introduced
a new competitive dynamic to the
industry. Retailers sought to devise
and promote branded loyalty
offerings with incentive structures
optimised to drive participation and
shopping frequency. In the process,
a new type of value proposition
was created that required shoppers
to assess the value of loyalty card
benefits in determining where to shop.
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I Shop
Therefore
I Am
American conceptual
artist, Barbara Kruger
began her career
working for magazines
in the late 1960s
and this exposure
to fashion and the
revolutionary culture
of the era strongly
influenced her work.
The use of this type of in-store television was limited to all but the largest retailers who had sufficient
means to make the sizable investment to install, maintain, operate, periodically upgrade the
technology and cope with the increased operational complexity.
Contribution to
Retail History
122
Technological advancements such as the barcode and point-of-sale scanning provided retailers
with a wealth of data regarding sales and product performance. These new sources of data were
robust and insightful when it came to understanding historical sales trends, but did little to advance
knowledge regarding how to influence shoppers on their path to purchase. Extensive study of
consumer behaviour prior to arriving at the store led to the view that many purchase decisions were
made in store while shoppers stood at the shelf.
Consequently, retailers and brands directed considerable energy against influencing customers while
they shopped. It was this desire that led to the development of in-store television. Early versions
introduced in the 1990s seemed innovative at the time, but rapid advancements in technology meant
large analog boxes used to display content had to be upgraded to higher resolution flat panel screens.
Retailers experimented with screen sizes and locations throughout the store with some opting to
integrate screens into endcaps where messaging could be surrounded by the featured product.
The History
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In-Store
Television
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Modern Shopping
1990s
Internet
The origins of the Internet
date back to the 1960s
when the U.S. government
began research into
computer networks. The
subsequent development of
interconnected networks
first allowed researchers
to share information, but
by the 1990s the commercial
potential of the technology
had become evident.
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125
Modern Shopping
1990s
Internet
While Amazon.com was busy leveraging the
internet to help shoppers buy, eBay was focused
on the sell side of the commerce equation.
The company launched its online
auction platform in 1995 and quickly
gained favour with sellers and buyers.
The auction approach evolved into
something much more significant and
soon encompassed all aspects of
commerce. Many users sold directly,
foregoing the auction process entirely, to
establish digital storefronts, in essence
making eBay the equivalent of the
worlds largest online mall. The company
enables users to buy and sell in nearly
every country and through its PayPal
subsidiary it facilitates the ability to
securely send and receive payments.
Today, eBay is the second most heavily
trafficked e-commerce site on the
Internet and generates annual revenues
of slightly more than $14 billion.
The likes of eBay, Amazon and other
online-only retailers were at one point
regarded as a death knell for traditional
brick and mortar chains, especially
those who offered categories that
were well-suited to online purchasing.
However, retailers such as Walmart,
Tesco, Costco and Macys recognised
their physical stores were not the liability
some believed them to be during the
Internets heady early years. Faced with
a new breed of competitor and shopper
expectations that were being elevated
Contribution to
Retail History
The Internets contribution to retail history is
impossible to overstate and far from complete. In
roughly 15 years, the Internet spawned disruptive
companies such as Amazon, eBay, Google,
Facebook, Twitter and Alibaba. The growth the
Internet allowed these companies to achieve changed
everything retailers thought they knew about retail.
From the sourcing and development of merchandise,
to marketing communications, store operations and
supply chain logistics, retailers were forced to cope with an
unprecedented pace of change.
Retailers boardroom conversations were dominated by
discussions of e-commerce, multichannel integration and how
to serve customers rapidly advancing expectations. Traditional
retailers were forced to adjust to new marketplace dynamics
created by online only retailers who were gaining market share
at an alarming pace, while conventional retailers were shifting to
an integrated model that leveraged physical assets and the trust of
well established brand identities.
The Internets contribution to retail history remains a work in progress
as innovative companies seem to reinvent the future daily. However, an
enduring contribution promises to be one of consumer empowerment
and access to limitless possibilities. That is the new expectation of
shoppers in the digital age and the competitive climate in which retailers
now operate thanks to behaviours, communications and lifestyle choices
that didnt exist a generation ago. For many people, anytime, anywhere
access to the Internet and the ability to purchase a limitless assortment
of products is now taken for granted in much the same way as electricity,
indoor plumbing and air travel.
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Modern Shopping
1993
During the course of the early 1990s and early 21st century, most of
Western Europe, Australia, and New Zealand began to adopt Chip &
PIN smartcards (the US has yet to adopt it, although Canada has begun
the migration). The system replaced the old cards with magnetic stripes
down the sides, which had to be validated with a customer signature.
These gave rise to security concerns including forged signatures and
the ability for employees to swipe transactions through fraudulently
when they took customers cards out of sight. Chip & PIN technology
quickly became an established standard for safety and security for
card transactions, providing enhanced protection against fraud from
lost, stolen, and counterfeit cards. When France introduced the system
around 1993 it saw card fraud drop by 80%.
With the introduction of Chip & PIN, responsibility for paying the
cost of fraudulent transactions passed from the issuing bank to the
retailers themselves thus giving retailers an incentive to upgrade
to the new technology. These days, banks have to prove that the
cardholder is at fault if fraud does take place, rather than assuming
that it is the customers fault.
The advent of Chip & PIN technology coincided with the advances in
wireless data communication, enabling the card reader system to be
portable for example, for use in restaurants and ensuring that the
card need never leave the customers sight.
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Modern Shopping
1994
QR Code
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Modern Shopping
2007
Smartphone
Smart phones are powerful tools for shopping that give users
unprecedented access to information and the ability to instantly
communicate with a global audience via social media.
The earliest devices to combine telephony and computing emerged in the early
to mid-1990s and were produced by IBM and Nokia. However, the phrase smart
phone didnt appear until 1997 when Ericisson introduced a concept product billed
as a smart phone. A few years later it began actively marketing several products as
smart phones and then in 2002 the Blackberry arrived on the scene and quickly
gained acceptance among business users who found its email functionality addictive.
While these early models possessed various smart phone
attributes, it wasnt until 2007 with the introduction of Apples
iPhone that the smart phone revolution began. The iPhones ease
of use, feature set, elegant design, touch screen user interface
and most importantly, abundance of applications, made the
product an instant hit. Apple fans clamoured for upgrades of
the original model and soon other handset manufacturers
introduced competing products with similar feature sets running
on alternative operating systems. Smart phone sales quickly
outpaced those of conventional handsets and in the span of less
than six years the smart phone penetration rate had surpassed
50% and was climbing steadily.
Smart phones have had a tremendous impact on the retail industry in a compressed
period of time, but even greater change is expected as new shoppers join the mobile
revolution. The capabilities of smart phones are advancing, downloads speeds and
wireless access are improving and form factors are evolving to include the emerging
genre of wearable devices. The impact of smart phones and all manner of internetenabled mobile devices on the retail industry is just beginning.
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131
What do you think the future will be like? When you imagine
tomorrow what do you see? Do you see jet packs and flying
cars? Is your future a utopia of possibilities or a dark dystopia
of events gone horribly wrong? Are you ready for the future?
Future Objects
A glimpse of the retail future through objects not yet invented/commercialised
Written by
Brian David Johnson
Futurist, The Intel Corporation
and
David Roth
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Smart Clothing/
Intelligent Fashion
Intelligent Shelves
How many times have you looked for a
product in a store, only to be confused
by the many sizes, options and
attributes of all the options available?
Holostores
The viability of holographic
technology is drawing ever closer
due to technological advancements in
3D cameras, sufficient computational
performance, advanced compression
algorithms, improved broadband
speed, and holographic display.
Holograms will be used in-store to deepen the customer
experience. Aside from being a high-end draw for
shoppers, retailers will be able to integrate them as part of
the physical store to create virtual environments. Shelving
may not be physical but a fully digital display of current
products and offers. Retailers will no longer be bound
by capital expenditure to update stores, as daily updates
and rearrangement of the store will now be possible. The
photon will replace the euro hook.
Whether a few centimetres high and projected on the
counter top, or several metres in height and used in
windows or in-store display, 3-D projections will play
through scenarios, ask the customer questions, and
respond accordingly. Using Big Data and information held
on the individuals smart device, the holograms will be
programmed to interact and deliver calls to action based
on the customers history and preferences.
Use of holograms in the home will also prompt greater
consumer engagement and such a volumetric display
would remove many of the physical retailing setbacks
for home commerce. Consumers would be able to see,
accurately assess dimensions and possibly touch (using
developments in haptic sensory feedback), any product
that they are viewing online.
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135
Sentient Stores
Drones
Drones will have a part to play in
several key stages of the supply chain.
As intelligent autonomous machines,
they will allow retailers to operate with
greater computational intelligence in
the real world, getting to places and
spaces that would be impossible for
human employees. From monitoring
the environment and stock levels
within all areas of a warehouse, to
implementing the last mile personal
delivery service to customers, drones
will be both reconnaissance and
dropship carrier vehicles.
Personal 3D Printing
Before the modern age, many of us were defined by what
we made. Do you know anyone named Smith? Or Mason?
Or Cobbler? Products were made by someone in the
community with the creativity to design and the knowledge
to build. Creativity and production resided together in the
forges and shops of a creative artisan class. Goods were
produced specifically to the needs of the customer.
Mass manufacturing prompted a redefinition. Specialisation
meant that creativity and production split into separate groups.
Both became cogs in the factories. Products were produced for
the masses instead of for the individual. Massive distribution
systems were built to deliver the benefits of economies of
scale and mass manufacturing.
TransPak
The main focus of packaging
of the future will be
protection, new methods
of delivery efficiency,
sustainability of production,
and personal interactive
engagement with the
consumer. Printed packaging
will evolve into a richer digital
augmented reality experience.
The reduction in the cost
of computing will enable
packaging to have embedded
GPS and digital display rather
than printed information. The
packaging will know whats
in it and where it should be
delivered. This self-awareness
will allow it to constantly
communicate its position and
status as it progresses through
the supply chain.
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139
Insight
Brand value
2013 $M
Brand
contribution
Brand value %
change 2013 vs 2012
34%
Amazon
45,727
Walmart
36,220
5%
18,488
43%
eBay
17,749
40%
Tesco
16,303
-9%
Ikea
12,040
31%
Target
11,879
13%
Woolworths
11,039
New
Aldi
8,885
-5%
10
Lowes
7,559
26%
11
Carrefour
7,372
-6%
12
Costco
6,789
33%
13
Whole Foods
6,728
New
14
Walgreens
5,925
New
15
CVS
5,620
New
16
Falabella
5,611
7%
17
M&S
4,649
7%
18
Asda
4,617
19%
19
Lidl
4,524
-2%
20
Coles
4,416
New
Retail
Top 100 013
2
Objects
p 100
BrandZ To le
ab
u
al
V
st
Mo
13
rands 20
Global B
10%
48%
49%
32%
42%
19%
Year of recovery,
refinement,
relevance
The definitive
brand valuation
methodology
Brand value
growth across
categories
Valuations include data from BrandZ, Kantar Worldpanel, Kantar Retail and Bloomberg.
Brand Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).
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- Helping
1960 +
1901-1959
pre 1900
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Acknowledgements
contributors
Advisory Board
Andrew A. Grant
Helen Barraclough
Senior Legal Counsel
WPP
David L. Sisson
Carolyn Cummings-Osmond
MA Coordinator & Senior Lecturer
Southampton Solent University
Tamsin Grant
Wordscout
Nicola McCormick
Michael Simkins LLP
Boni Sones OBE
Executive Producer at
www.bonisonesproductions.com
Joe Jensen
Jose Avalos
Mike Troy
Editor-in-Chief
Retailing Today
Bryan Roberts
Peter Walshe
Global BrandZ Director
Millward Brown
David roth
Maroun Ishac
project management
Business Development
Amanda harrison
The Store WPP
photography
cecilie stergen
www.ostergren.dk
The History
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other
The story of the intel chip courtesy
of the Intel Corporation Museum
All photography 2013 The Store, WPP 2005 Ltd
with the following exceptions: Cuneiform Tablet, Greek
Agora, Rialto Bridge, Ledger, Royal Exchange, Galleria
Vittorio Emanuele II, Tannoy and the Ration Book are
used under license from Shutterstock.com. Southdale
Center Bobak HaEri. Kvass Barrel Jason Rogers.
Intel Chip 2013 Intel Corporation. Intel and the Intel
logo are trade marks or registered trade marks of Intel
Corporation or its subsidiaries in the United States and
other countries. All rights reserved. *Other names and
brands may be claimed as the property of others.
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