Supermarket produce section
A supermarket is a store that sells a wide variety of food. Most supermarkets also sell a variety of other household products that are consumed regularly, such as alcohol (where permitted), household cleaning products, medicine, clothes, and some sell a much wider range of non-food products. Supermarkets are often part of a chain that owns or controls (sometimes by franchise) other supermarkets located in the same or other towns; this increases the opportunities for economies of scale. In the United States, supermarket chains are often supplied from the distribution centers of a larger business.
Supermarkets usually offer products at low prices by reducing margins. Certain products (typically staples such as bread, milk and sugar) are often sold as loss leaders, that is, with negative margins. To maintain a profit, supermarkets attempt to make up for the low margins with a high overall volume of sales, and with sales of higher-margin items. Customers usually shop by putting their products into shopping carts (trolleys) or baskets (self-service) and pay for the products at the check-out. At present, many supermarket chains are trying to reduce labour costs further by shifting to self-service check-out machines, where a group of four or five machines is supervised by a single assistant.
A larger full-service supermarket combined with a department store is sometimes known as a hypermarket. Other services that supermarkets may have include cafés, creches, photo development, pharmacies, and/or gas stations.
History
Early retailers did not trust their customers. In many stores, all products had to be fetched by an assistant from high shelves on one side of a counter while the customers stood on the other side and pointed to what they wanted. Also, many foods did not come in the individually wrapped consumer-size packages taken for granted today, so a clerk had to measure out the precise amount desired by the consumer. These practices were obviously labor-intensive and therefore quite expensive.
The concept of a self-service grocery store was developed by Clarence Saunders and his Piggly Wiggly stores. A&P was the most successful of the early chains in the United States, having become common in American cities in the 1920s. The general trend in retail since then has been to stack shelves at night and let the customers get 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 will be ideally outweighed by the economies of scale and reduced labor costs.
According to the Smithsonian Institution, the first true supermarket in the United States was opened by ex-Kroger employee Michael J. Cullen, on August 4, 1930, in a 6,000 square foot (560 m²) former garage in Jamaica, Queens, New York[1]. The store, King Kullen, following King Kong, operated under the slogan "Pile it high. Sell it low." When Cullen died in 1936, there were seventeen stores in operation.
Supermarkets proliferated in the United States along with suburban areas after World War II. Supermarkets in the USA are now often co-located with department stores in strip malls and are generally regional rather than national. Kroger is probably the closest thing in the U.S. to a national chain but has preserved most of its regional brands like Ralphs.
It was formerly common for supermarkets to give trading stamps. Today, most supermarkets issue store-specific "members cards," "club cards," or "loyalty cards" which are scanned at the register when the customer goes to check-out. Typically, several items are given special discounts if the credit card-like devices are used.
In Britain, France and other European countries, the proliferation of out-of-town supermarkets has been blamed for the disappearance of smaller, local grocery stores and for increased dependency on the motor car (and the consequent traffic). In particular, some critics consider the practice of selling loss leaders to be anti-competitive, and are also wary of the negotiating power large retailers have with suppliers.
Today supermarkets face price competition from discount retailers such as Wal-Mart (non-union labor and greater buying power) and warehouse stores such as Costco (savings in bulk quantities).
Typical supermarket merchandise
Larger supermarkets in the United States typically sell many different types of items, such as:
Soda in a Virginia supermarket.
In other countries, the range of products is sometimes more narrowly focused on food products, although the ranges sold are broadening in many countries as average store sizes increase.
See also
Patent
Further reading
- William Greer, America the Bountiful: How the supermarket came to main street, Food Marketing Institute, 1986. ISBN 999925568X
References
^ Anonymous. "The place where supermarketing was born." Mass Market Retailers 19, no. 9 (17 June 2002): 172.
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