The supermarket typically
comprises meat, fresh
produce, dairy, and baked
goods departments, along
with shelf space reserved
for canned and packaged
goods as well as for various
non-food items such as
household cleaners, pharmacy
products and pet supplies.
Most supermarkets also sell
a variety of other household
products that are consumed
regularly, such as alcohol (where
permitted), medicine, and
clothes, and some stores
sell a much wider range of
non-food products.
The traditional suburban
supermarket occupies a large
amount of floor space,
usually on a single level.
It is usually situated near
a residential area in order
to be convenient to
consumers. Its basic appeal
is the availability of a
broad selection of goods
under a single roof, at
relatively low prices. Other
advantages include ease of
parking and frequently the
convenience of shopping
hours that extend far into
the evening or even 24 hours
a day. Supermarkets usually
allocate large budgets to
advertising, typically
through newspapers. They
also present elaborate
in-store displays of
products. The stores are
usually part of corporate
chains that own or control (sometimes
by franchise) other
supermarkets located nearby?even
transnationally?thus
increasing opportunities for
economies of scale.
Supermarkets typically
are supplied by the
distribution centres of
their parent companies, such
as Loblaw Companies in
Canada, which operates
thousands of supermarkets
across the nation. Loblaw
operates a distribution
centre in every province?usually
in the largest city in the
province.
Supermarkets usually
offer products at low prices
by reducing their economic
margins. Certain products (typically
staple foods such as bread,
milk and sugar) are
occasionally sold as loss
leaders, that is, with
negative profit margins. To
maintain a profit,
supermarkets attempt to make
up for the lower margins by
a higher overall volume of
sales, and with the sale of
higher-margin items.
Customers usually shop by
placing their selected
merchandise into shopping
carts (trolleys) or baskets
(self-service) and pay for
the merchandise at the
check-out. At present, many
supermarket chains are
attempting to further reduce
labor costs by shifting to
self-service check-out
machines, where a single
employee can oversee a group
of four or five machines at
once, assisting multiple
customers at a time.
A larger full-service
supermarket combined with a
department store is
sometimes known as a
hypermarket. Other services
offered at some supermarkets
may include those of banks,
cafés, childcare
centres/creches, photo
processing, video rentals,
pharmacies and/or petrol
stations.
Contents [hide] 1 History
2 Growth in developing
countries 3 Typical
supermarket merchandise 4
Typical store architecture 5
Criticisms 6 See also 7
References 8 Further reading
9 External links
[edit] History This
section needs additional
citations for verification.
Please help improve this
article by adding reliable
references. Unsourced
material may be challenged
and removed. (July 2010)
A supermarket in Sweden
in 1941 Cashiers and
check-out area of
supermarket in a United
States Army community in
1945In the early days of
retailing, all products
generally were fetched by an
assistant from shelves
behind the merchant's
counter while customers
waited in front of the
counter and indicated the
items they wanted. Also,
most foods and merchandise
did not come in individually
wrapped consumer-sized
packages, so an assistant
had to measure out and wrap
the precise amount desired
by the consumer. This also
offered opportunities for
social interaction: many
regarded this style of
shopping as "a social
occasion" and would often
"pause for conversations
with the staff or other
customers."[1] These
practices were by nature
very labor-intensive and
therefore also quite
expensive. The shopping
process was slow, as the
number of customers who
could be attended to at one
time were limited by the
number of staff employed in
the store.
The concept of a
self-service grocery store
was developed by American
entrepreneur Clarence
Saunders and his Piggly
Wiggly stores. His first
store opened in Memphis,
Tennessee, in 1916. Saunders
was awarded a number of
patents for the ideas he
incorporated into his
stores.[2][3][4][5] The
stores were a financial
success and Saunders began
to offer franchises. The
Great Atlantic and Pacific
Tea Company (A&P) was
another successful early
grocery store chain in
Canada and the United
States, and became common in
North American cities in the
1920s. The general trend in
retail since then has been
to stock shelves at night so
that customers, the
following day, can obtain
their own goods and bring
them to the front of the
store to pay for them.
Although there is a higher
risk of shoplifting, the
costs of appropriate
security measures ideally
will be outweighed by
reduced labor
costs.[citation needed]
Early self-service
grocery stores did not sell
fresh meats or produce.
Combination stores that sold
perishable items were
developed in the 1920s.[6]
Historically, there was
debate about the origin of
the supermarket, with King
Kullen and Ralph's of
California having strong
claims.[7] Other contenders
included Weingarten's Big
Food Markets and Henke &
Pillot.[8] To end the
debate, the Food Marketing
Institute in conjunction
with the Smithsonian
Institution and with funding
from H.J. Heinz, researched
the issue. It defined the
attributes of a supermarket
as "self-service, separate
product departments,
discount pricing, marketing
and volume
selling."[citation needed]
It determined that the
first true supermarket in
the United States was opened
by a former Kroger employee,
Michael J. Cullen, on August
4, 1930, inside a 6,000
square foot former garage in
Jamaica, Queens in New York
City. [9] The store, King
Kullen, (inspired by the
fictional character King
Kong), operated under the
slogan "Pile it high. Sell
it low." At the time of
Cullen's death in 1936,
there were seventeen King
Kullen stores in operation.
Although Saunders had
brought the world
self-service, uniform stores
and nationwide marketing,
Cullen built on this idea by
adding separate food
departments, selling large
volumes of food at discount
prices and adding a parking
lot.
A Safeway advertisement
from the 1950s.Other
established American grocery
chains in the 1930s, such as
Kroger and Safeway at first
resisted Cullen's idea, but
eventually were forced to
build their own supermarkets
as the economy sank into the
Great Depression, while
consumers were becoming
price-sensitive at a level
never experienced
before.[10] Kroger took the
idea one step further and
pioneered the first
supermarket surrounded on
all four sides by a parking
lot.[citation needed]
Supermarkets proliferated
across Canada and the United
States with the growth of
automobile ownership and
suburban development after
World War II. Most North
American supermarkets are
located in suburban strip
malls as an anchor store
along with other smaller
retailers. They are
generally regional rather
than national in their
company branding. Kroger is
perhaps the most nationally
oriented supermarket chain
in the United States but it
has preserved most of its
regional brands, including
Ralphs, City Market and King
Soopers.[citation needed]
In Canada the largest
such chain is Loblaw, which
operates stores under a
variety of regional names,
including Fortinos, Zehrs
and the largest, Loblaws,
(named after the company
itself). Sobeys is Canada's
second largest supermarket
with locations across the
country, operating under
many banners (Sobeys IGA in
Quebec).[citation needed]
In the United Kingdom,
self-service shopping took
longer to become
established. Even in 1947,
there were just ten
self-service shops in the
country.[1] In 1951, ex-US
Navy sailor Patrick Galvani,
son-in-law of Express
Dairies chairman, made a
pitch to the board to open a
chain of supermarkets across
the country. The UK's first
supermarket under the new
Premier Supermarkets brand
opened in Streatham, South
London,[11] taking ten times
as much per week as the
average British general
store of the time. Other
chains caught on, and after
Galvani lost out to Tesco's
Jack Cohen in 1960 to buy
the 212 Irwin's chain, the
sector underwent a large
amount of consolidation,
resulting in 'the big four'
dominant UK retailers of
today: Tesco, Asda (owned by
Wal-Mart), Sainsbury's and
Morrisons.
In the 1950s,
supermarkets frequently
issued trading stamps as
incentives to customers.
Today, most chains issue
store-specific "membership
cards," "club cards," or
"loyalty cards". These
typically enable the card
holder to receive special
members-only discounts on
certain items when the
credit card-like device is
scanned at
check-out.[citation needed]
Traditional supermarkets
in many countries face
intense competition from
discount retailers such as
Wal-Mart, Tesco in the UK,
and Zellers in Canada, which
typically are non-union and
operate with better buying
power. Other competition
exists from warehouse clubs
such as Costco that offer
savings to customers buying
in bulk quantities.
Superstores, such as those
operated by Wal-Mart and
Asda, often offer a wide
range of goods and services
in addition to foods. The
proliferation of such
warehouse and superstores
has contributed to the
continuing disappearance of
smaller, local grocery
stores; increased dependence
on the automobile; suburban
sprawl because of the
necessity for large
floorspace and increased
vehicular traffic. Some
critics consider the chains'
common practice of selling
loss leaders to be
anti-competitive. They are
also wary of the negotiating
power that large, often
multinational retailers have
with suppliers around the
world.[citation needed]
[edit] Growth in
developing countriesThere
has been a rapid
transformation of the food
retail sector in developing
countries, beginning in the
1990s. This applies
particularly to Latin
America, South-East Asia,
China and South Africa.
However, growth is being
witnessed in nearly all
countries. With growth, has
come considerable
competition and some amount
of consolidation.[12] The
growth has been driven by
increasing affluence and the
rise of a middle class; the
entry of women into the
workforce; with a consequent
incentive to seek out
easy-to-prepare foods; the
growth in the use of
refrigerators, making it
possible to shop weekly
instead of daily; and the
growth in car ownership,
facilitating journeys to
distant stores and purchases
of large quantities of
goods. The opportunities
presented by this potential
have encouraged several
European companies to invest
in these markets (mainly in
Asia) and American companies
to invest in Latin America
and China. Local companies
also entered the market.[13]
Initial development of
supermarkets has now been
followed by hypermarket
growth. In addition there
were investments by
companies such as Makro and
Metro in large-scale
Cash-and-Carry operations.
While the growth in sales
of processed foods in these
countries has been much more
rapid than the growth in
fresh food sales, the
imperative nature of
supermarkets to achieve
economies of scale in
purchasing, means that the
expansion of supermarkets in
these countries has
important repercussions for
small farmers, particularly
those growing perishable
crops. New supply chains
have developed involving
cluster formation;
development of specialized
wholesalers; leading farmers
organizing supply; and
farmer associations or
cooperatives.[14] In some
cases supermarkets have
organized their own
procurement from small
farmers; in others wholesale
markets have adapted to meet
supermarket needs.[15]
[edit] Typical
supermarket merchandise
Inside an Asda supermarket
in Keighley, West Yorkshire,
England. Sainsbury's
supermarket front end in the
UK Fruit on display in a
supermarket in Japan. Inside
a Serbian supermarket
Exterior of a supermarket in
Kulim, Kedah, Malaysia.Larger
supermarkets in North
America and in Europe
typically sell a great
number of items among many
brands, sizes and varieties,
including:
Alcoholic beverages (as
state/provincial and/or
local laws allow) Baby foods
and baby-care products such
as disposable diapers Breads
and bakery products (many
stores may have a bakery on
site that offers specialty
and dessert items) Books,
newspapers, and magazines,
including supermarket
tabloids Bulk dried foods
such as legumes, flour, rice,
etc. (typically available
for self-service) Canned
goods and dried cereals
Car-care products (motor oil,
cleaners, waxes) CDs, Audio
cassettes, DVDs, and videos
(including video rentals)
Cigarettes and other tobacco
products Clothing and
footwear (typically a
general, limited assortment)
Confections and candies
Cosmetics Dairy products and
eggs Delicatessen foods (ready-to-eat)
Diet foods Electrical
products such as light bulbs,
extension cords, etc.
Feminine hygiene products
Financial services and
products such as mortgages,
credit cards, savings
accounts, wire transfers,
etc. (typically offered
in-store by a partnering
bank or other financial
institution) Flowers Frozen
foods and crushed ice Fresh
produce, fruits and
vegetables Greeting cards
House-cleaning products
Housewares, Dishware and
cooking utensils, etc. (typically
limited) Laundry products
such as detergents, fabric
softeners, etc. Lottery
tickets (where operational
and legal) Luggage items (typically
limited) Meats, fish and
seafoods (some stores may
offer live fish and seafood
items from aquarium tanks)
Medicines and first aid
items (primarily
over-the-counter drugs,
although many supermarkets
also have an on-site
pharmacy) Nonalcoholic
beverages such as soft
drinks, juices, bottled
water, etc. (some stores may
have a juice bar that
prepares ready-to-drink
freshly squeezed juices,
smoothies, etc.) Personal
hygiene and grooming
products Pet foods and
products Seasonal items and
decorations Snack foods Tea
and Coffee (some stores may
have a commercial-style
grinder, typically available
for self-service, and/or a
staffed coffee bar that
prepares ready-to-drink
coffee and tea beverages)
Toys and novelties In some
countries, the range of
supermarket merchandise is
more strictly focused on
food products, although the
range of goods for sale is
expanding in many locations
as typical store sizes
continue to increase
globally.