Where Did It All Start?
A walk back into history shows where the discount concept was born and all the factors that contributed to this. Wars and the Industrial Revolution started the ball rolling. Mass-production processes, mass-distribution systems and the post-war population boom led to mass merchandising.
Consumer shopping changed forever with the arrival of the department store followed by the chain store. Working hand in glove with these was the mail order option that brought another avenue for shoppers.
The Great Depression of the 1930s saw more changes; this is where the concept of discount was born and small neighbourhood shops started to disappear.
Streamlined supermarkets came along that were designed for self-service. Low-cost facilities plus their sheer size made it possible for them to operate on narrow profit margins, and they could sell below the competition. Mass production and mass distribution channels changed the face of retail business that grew into the global discount stores we take for granted today.
Things did not always go smoothly for the super stores and discount stores. The 1950s and 1960s were turbulent for the retail industry. Many businesses failed while others went on to grow into global industries. Legislation played a role in many companies faltering and the economic slump of the 1980s also contributed to this.
Consumers slowly lost their distrust in discount stores across the world and K-Mart, Wal-Mart and Tesco’s stores grew and expanded into some of the most well known household names in America and the UK. Discount is here to stay and consumers will continue to buy.
