Ten Retailers That Changed America

I recently completed Paul Freedman’s tasty study of ten restaurants that changed America. From Delmonico’s to Chez Panisse, each profiled eatery offered some sort of unique breakthrough and/or reflected a larger cultural movement underway in the United States. It got me thinking: what are the ten retailers that changed America? The list below (which is actually ten plus one) does not include auto dealers, groceries or pharmacies. See what you think, and feel free to weigh in with your thoughts.

Macy’s (1858): More than 150 years of business innovation including pioneering the department store concept, expanding across the U.S. with the acquisition of other retailers and the implementation of private label/private brands as well as licensed products. Trivia: the NYC Herald Square location features more than 2.2 million square feet.

Wanamaker’s (1876): The Philadelphia-based department store was a trailblazer in store design and technology (elevators, electric lights, and the price tag), merchandising, customer service, marketing, employee benefits, and recognizing the value of entertainment as part of the shopping experience. Trivia: Wanamaker’s held the first “white sale” in 1878.

Marshall Field & Co. (1856/1881): A Chicago institution heralded for serving an emerging upper middle class through its European collections, themed window displays, and services including a restaurant, personal shopping, liberal return policy, and individual lines of credit. Trivia: Marshall Field & Co. is credited with popularizing the phrase “The customer is always right.”

Filene’s (1881): The Boston-based store pioneered the “Automatic Bargain Basement” in 1908. The concept may not have been new but Filene’s began perfecting the merchandising and scheduled price reduction of surplus, overstock, or closeouts. Its success (and tapping into the consumer hunger for bargains) has influenced retail practices ever since. Trivia: Filene’s “Running of the Brides,” the legendary one-day wedding gown sale, began in 1947.

Sears, Roebuck, & Co. (1886): Worthy of recognition if only for its mail-order catalogue (1888–1993) but also for the expansion, beginning in 1923, into physical locations across the country and then the innovative development of iconic in-house brands such as Kenmore, Craftsman and Die-Hard followed by business extensions like All State Insurance and the Discover credit card. Trivia: More than 70,000 homes were sold via the Sears catalog in North America between 1908 and 1940.

JC Penney (1902): At its peak, the retailer had more than 2000 stores, beginning first in downtown locations across the country and then as shopping mall anchor stores beginning in the 1950's. Its national presence created a well-regarded coast to coast brand recognized for convenience and value as well as innovations including a robust catalog business, important private label expansion, and even engaging in television sales via cable tv beginning in the 1980s. Trivia: James Cash Penney named his first store the Golden Rule Store because he made it a priority to treat customers the way they would want to be treated.

Neiman Marcus (1907): From the very beginning, this retailer’s stock and trade has been high-end products showcased in luxurious surroundings. Upon Stanley Marcus’ leadership ascension in the early 1950’s the marketing, store design and merchandising were elevated to new heights. Serving both the highest-end customers and creating aspirational shopping for the masses, Neiman’s cultivated a sophisticated image via the introduction of European and American fashion collections, lavish in-store events, and its extravagant Christmas Book. Trivia: The first “His and Hers” gifts in the annual Christmas Book were Beechcraft airplanes offered in 1960.

Wal-Mart Stores (1962): From rather humble beginnings in Rogers, Arkansas, the discount chain and hypermarket juggernaut became perhaps the most important 20th century brick and mortar retailer. Its rapid expansion across the U.S. in the 1980’s and 1990’s capitalized upon consumer appetites for basic goods and low prices delivered in a standardized retail space. Behind the scenes, its logistics and buying operations have served as a laboratory for many business leaders. Trivia: according to the company, about 75% of store management teams started as hourly associates.

Lowe’s / The Home Depot (1946/1978): You can’t mention one home improvement center without the other, and together they rose to prominence in the 1990’s. Each has had a deep and abiding influence on retail and shopping habits by expanding upon the hardware store concept and creating large destinations for the average do-it-yourselfer and professionals. Each has also aggressively developed exclusivity with key national brands (Behr, Hitachi, Ryobi) and developed in-house brands. Trivia: the average Home Depot stocks up to 40,000 different products.

Amazon (1995): The slow rise and then the rapid ascent of Amazon as an omnibus retail channel has been the most dramatic business story of the new century. Its e-commerce domination is the result of a focused leader, patient investors, relentless technological innovation, aggressive acquisitions, and a complex matrix of site design and fulfillment strategies, distribution, and support from third-party partners. Today, Amazon commands an estimated 43% of all U.S. online sales and has begun opening brick and mortar locations. Trivia: Founder Jeff Bezos originally considered the name “Relentless” for the company.

Apple (2001): On May 19, 2001 American shopping entered a new era via the first Apple retail locations. The stores were not merely designed as high-concept spaces utilizing contemporary architecture to showcase the full range of Apple products but as sites of eagerly anticipated product releases and as “technology town squares” where customers gather for information, technical support, and interaction with employees who are knowledgeable brand evangelists. Despite the high construction price tag, the 270 domestic Apple stores generate some of the highest sales per square foot in the U.S. Trivia: there are only six U.S. states without an Apple store: West Virginia, Wyoming, North Dakota, South Dakota, Vermont, and Montana.

So, among the retail icons that “changed America” who did I miss? Let me know.

Cole Daugherty, PhD

Written by

SVP Marketing Communications @DallasMarketCenter; Adjunct faculty @SMU; Student of Retail and Wholesale; Content Strategist for Innovative Brands

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