Michael J. Cullen (1884–1936) was an American

entrepreneur Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially involving values besides simply economic ones. An entreprene ...

and

salesman Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred ...

known as the founder of the King Kullen grocery store chain, widely considered to be the first

supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. Strictly speaking, a supermarket is larger and has a wider selecti ...

founded in America. He is recognized by the

Smithsonian Institution The Smithsonian Institution ( ), or simply the Smithsonian, is a group of museums, Education center, education and Research institute, research centers, created by the Federal government of the United States, U.S. government "for the increase a ...

as the inventor of the modern

History

Cullen was born in 1884 as the child of Irish

immigrant Immigration is the international movement of people to a destination country of which they are not usual residents or where they do not possess nationality in order to settle as permanent residents. Commuters, tourists, and other short- ...

s. His surname derives from the Irish name O' Cuileannain or Ó Cuilinn. He joined

The Great Atlantic & Pacific Tea Company The Great Atlantic & Pacific Tea Company, better known as A&P, was an American chain store, chain of grocery stores that operated from 1859 to 2015. From 1915 through 1975, A&P was the largest grocery retailer in the United States (and, until ...

in 1902 at the age of 18 and worked for the firm for 17 years. In 1919, Cullen joined Kroger Stores and worked for the company until 1930. While working as a Kroger regional manager in

southern Illinois Southern Illinois is a region of the U.S. state of Illinois comprising the southern third of the state, principally south of Interstate 70. Part of downstate Illinois, it is bordered by the two List of U.S. rivers by discharge, most voluminous ri ...

, he developed the idea of a supermarket. In 1930, at age 46, he wrote a letter to the president of Kroger, proposing a new type of food store with a focus on low prices, larger square footage, cash sales, no delivery service, and low-rent locations with plenty of parking. Cullen dramatically proclaimed: "I would lead the public out of the high-priced houses of bondage into the low prices of the house of the promised land." Cullen's letter went unanswered. Undaunted, and confident in his ability to see his idea become a reality, he quit his job and moved his family to

Long Island Long Island is a densely populated continental island in southeastern New York (state), New York state, extending into the Atlantic Ocean. It constitutes a significant share of the New York metropolitan area in both population and land are ...

to launch his own store. Cullen leased a vacant garage at the corner of 171st Street and Jamaica Avenue in

Queens Queens is the largest by area of the Boroughs of New York City, five boroughs of New York City, coextensive with Queens County, in the U.S. state of New York (state), New York. Located near the western end of Long Island, it is bordered by the ...

, just a few blocks from a busy shopping district. On August 4, 1930, King Kullen Grocery Company opened the doors to the world's first supermarket. The store carried a range of approximately 1,000 items, including automotive accessories and hardware, as well as groceries. Success was rapid. People came from miles around. To many of his customers, Cullen offered convenient and affordable food. Bold newspaper ads described the store as the "World's Greatest Price Wrecker." The chain expanded rapidly in the price-conscious environment of the

Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...

. King Kullen stores reused large older buildings, including abandoned factories and warehouses, in low-rent locations on the borders of populated areas. Facilities were simple. Service was minimal. Shopping carts were used and national

brands A brand is a name, term, design, symbol or any other feature that distinguishes one seller's goods or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and ...

were emphasized. The stores' no-frills bargain environment resonated with Depression-era customers. Ample, free parking was available in order to appeal to customers with automobiles and encourage them to purchase large quantities. By 1936 there were 17 King Kullen supermarkets with annual revenue of approximately $6,000,000. At the time, Cullen had plans for faster national expansion and franchising. However, in 1936, at age 52, Cullen died suddenly following an appendix operation. Following his death, the rate of growth of the firm slowed.

Legacy

Although Cullen did not live long enough to see himself vindicated by history, he correctly foresaw that the supermarket would literally become the "World's Greatest Price Wrecker". One sign of the supermarket's success in slashing labor costs, overhead, and food prices was that the percentage of

disposable income Disposable income is total personal income minus current taxes on income. In national accounting, personal income minus personal current taxes equals disposable personal income or household disposable income. Subtracting personal outlays ( ...

spent by American consumers on food plunged "from 21 percent in 1930 to 16 percent in 1940". Existing

grocery store A grocery store ( AE), grocery shop or grocer's shop ( BE) or simply grocery is a retail store that primarily retails a general range of food products, which may be fresh or packaged. In everyday US usage, however, "grocery store" is a synon ...

retailers, including leading chains Safeway,

Kroger The Kroger Company, or simply Kroger, is an American retail company that operates (either directly or through its subsidiaries) supermarkets and multi-department stores throughout the United States. Founded by Bernard Kroger in 1883 in Cinc ...

and

, found the supermarket concept easy to imitate. The number of supermarkets in the United States exploded from 94 in 1934 to 1,200 in 1936 to over 15,000 by 1950. Meanwhile, King Kullen continued to grow and expand through the leadership of Cullen's wife and the support of family members. However, relative to competitors, its rate of growth has been slow. From 17 stores in 1936, the firm grew to 52 stores in 2009 (effectively 35 stores in 73 years). As of 2010, King Kullen was the 72nd largest supermarket chain in the United States, with 52 stores and US$940m in sales in 2009."2010 Top 75", ''Supermarket News'', January 25, 2010, p. 11. It is currently owned and operated by the third generation of Cullen's descendants. As of October 2016, the chain has 34 King Kullen locations, and also operates five "Wild by Nature" natural and organic markets.

References

{{DEFAULTSORT:Cullen, Michael J. 1884 births 1936 deaths American businesspeople in retailing American grocers American people of Irish descent Kroger people The Great Atlantic & Pacific Tea Company Businesspeople from Newark, New Jersey Businesspeople from Queens, New York 20th-century American inventors 20th-century American businesspeople

History

Legacy

See also

References