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A supermarket is a
self-service Self-service is a system whereby customers acquire (or serve) themselves goods or services, paying for the items at a point-of-sale, as opposed to a shop assistant or clerk acquiring goods or providing services in addition to taking payment. Comm ...
shop Shop or shopping may refer to: Business and commerce * A casual word for a commercial establishment or for a place of business * Machine shop, a workshop for machining *"In the shop", referring to a car being at an automotive repair shop * Reta ...
offering a wide variety of
food Food is any substance consumed by an organism for Nutrient, nutritional support. Food is usually of plant, animal, or Fungus, fungal origin and contains essential nutrients such as carbohydrates, fats, protein (nutrient), proteins, vitamins, ...
,
beverages A drink or beverage is a liquid intended for human consumption. In addition to their basic function of satisfying thirst, drinks play important roles in human culture. Common types of drinks include plain drinking water, milk, juice, smoothie ...
and household products, organized into sections. Strictly speaking, a supermarket is larger and has a wider selection than earlier
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 ...
s, but is smaller and more limited in the range of merchandise than a
hypermarket A hypermarket or superstore is a big-box store combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full grocery lines and general merchandise. In ...
or big-box market. In everyday
American English American English, sometimes called United States English or U.S. English, is the set of variety (linguistics), varieties of the English language native to the United States. English is the Languages of the United States, most widely spoken lang ...
usage, however, "grocery store" is often casually used as a synonym for "supermarket". The supermarket
retail format The retail format (also known as the retail formula) influences the consumer's store choice and addresses the consumer's expectations. At its most basic level, a retail format is a simple marketplace, that is; a location where goods and services ar ...
first appeared around 1930 in the United States as the culmination of almost two decades of retail innovations, and began to spread to other countries after extensive worldwide publicity in 1956. The supermarket typically has places for fresh meat, fresh
produce In American English, produce generally refers to wikt:fresh, fresh List of culinary fruits, fruits and Vegetable, vegetables intended to be Eating, eaten by humans, although other food products such as Dairy product, dairy products or Nut (foo ...
,
dairy A dairy is a place where milk is stored and where butter, cheese, and other dairy products are made, or a place where those products are sold. It may be a room, a building, or a larger establishment. In the United States, the word may also des ...
, deli items, baked goods, and similar foodstuffs. Shelf space is also reserved for canned and packaged goods and for various non-food items such as
kitchenware :'' For a record label, see Kitchenware Records'' Kitchenware refers to the tools, utensils, appliances, dishes, and cookware used in food preparation and the serving of food. Kitchenware can also be used to hold or store food before or aft ...
,
household cleaner A detergent is a surfactant or a mixture of surfactants with cleansing properties when in dilute solutions. There are a large variety of detergents. A common family is the alkylbenzene sulfonates, which are soap-like compounds that are more s ...
s,
pharmacy Pharmacy is the science and practice of discovering, producing, preparing, dispensing, reviewing and monitoring medications, aiming to ensure the safe, effective, and affordable use of medication, medicines. It is a miscellaneous science as it ...
products and pet supplies. Some supermarkets also sell other household products that are consumed regularly, such as alcohol (where permitted), medicine, and
clothing Clothing (also known as clothes, garments, dress, apparel, or attire) is any item worn on a human human body, body. Typically, clothing is made of fabrics or textiles, but over time it has included garments made from animal skin and other thin s ...
, and some sell a much wider range of non-food products:
DVD The DVD (common abbreviation for digital video disc or digital versatile disc) is a digital optical disc data storage format. It was invented and developed in 1995 and first released on November 1, 1996, in Japan. The medium can store any ki ...
s, art supplies, sporting equipment, board games, and seasonal items (e.g.,
Christmas Christmas is an annual festival commemorating Nativity of Jesus, the birth of Jesus Christ, observed primarily on December 25 as a Religion, religious and Culture, cultural celebration among billions of people Observance of Christmas by coun ...
wrapping paper Gift wrapping is the act of enclosing a gift in some sort of material. Wrapping paper is a kind of paper designed for gift wrapping. An alternative to gift wrapping is using a gift box or bag. A wrapped or boxed gift may be held closed with ribb ...
,
Easter eggs Easter eggs, also called Paschal eggs, are eggs that are Egg decorating, decorated for the Christian holiday of Easter, which celebrates the resurrection of Jesus. As such, Easter eggs are commonly used during the season of Eastertide (Easter ...
, school uniforms, Valentine's Day themed gifts, Mother's Day gifts, Father's Day gifts and
Halloween Halloween, or Hallowe'en (less commonly known as Allhalloween, All Hallows' Eve, or All Saints' Eve), is a celebration geography of Halloween, observed in many countries on 31 October, the eve of the Western Christianity, Western Christian f ...
). A larger full-service supermarket combined with a
department store A department store is a retail establishment offering a wide range of consumer goods in different areas of the store under one roof, each area ("department") specializing in a product category. In modern major cities, the department store mad ...
is sometimes known as a
hypermarket A hypermarket or superstore is a big-box store combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full grocery lines and general merchandise. In ...
. Other services may include those of banks, cafés, childcare centers/creches, insurance (and other financial services),
mobile phone A mobile phone or cell phone is a portable telephone that allows users to make and receive calls over a radio frequency link while moving within a designated telephone service area, unlike fixed-location phones ( landline phones). This rad ...
sales, photo processing, video rentals, pharmacies, and
gas stations A filling station (also known as a gas station [] or petrol station []) is a facility that sells fuel and engine lubricants for motor vehicles. The most common fuels sold are gasoline (or petrol) and diesel fuel. Fuel dispensers are used to ...
. If the eatery in a supermarket is substantial enough, the facility may be called a "grocerant", a
portmanteau In linguistics, a blend—also known as a blend word, lexical blend, or portmanteau—is a word formed by combining the meanings, and parts of the sounds, of two or more words together.
of "grocery" and "restaurant". The traditional 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. The 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 into the evening or even 24 hours of the day. Supermarkets usually allocate large budgets to advertising, typically through newspapers and television. They also present elaborate in-shop displays of products. Supermarkets typically are
chain store A chain store or retail chain is a retail outlet in which several locations share a brand, central management and standardized business practices. They have come to dominate many retail markets, dining markets, and service categories in many p ...
s, supplied by the
distribution center A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to c ...
s of their parent companies, thus increasing opportunities for
economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of Productivity, output produced per unit of cost (production cost). A decrease in ...
. Supermarkets usually offer products at relatively low prices by using their buying power to buy goods from manufacturers at lower prices than smaller stores can. They also minimize financing costs by paying for goods at least 30 days after receipt and some extract credit terms of 90 days or more from vendors. Certain products (typically staple foods such as bread, milk and sugar) are very occasionally sold as
loss leader A loss leader (also leader) is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. With this sales promotion/marketing strategy, a "leader" is any popular artic ...
s so as to attract shoppers to their store. Supermarkets make up for their low
margins Margin may refer to: Physical or graphical edges *Margin (typography), the white space that surrounds the content of a page *Continental margin, the zone of the ocean floor that separates the thin oceanic crust from thick continental crust *Leaf ...
by a high volume of sales, and with sales of higher-margin items bought by the customers. Self-service with shopping carts (trolleys) or
baskets A basket is a container that is traditionally constructed from stiff fibers, and can be made from a range of materials, including wood splints, runners, and cane. While most baskets are made from plant materials, other materials such as horse ...
reduces labor costs, and many supermarket chains are attempting further reduction by shifting to self-service check-outs.


History


Early history of retail food sales

Historically, the earliest retailers were
peddler A peddler (American English) or pedlar (British English) is a door-to-door and/or travelling vendor of good (economics), goods. In 19th-century United States the word "drummer" was often used to refer to a peddler or traveling salesman; as exem ...
s who marketed their wares in the streets, but by the 1920s, retail food sales in the United States had mostly shifted to small corner grocery stores. In that era, the standard retail grocery business model was for a clerk to fetch products from shelves behind the merchant's counter while customers waited in front of the counter, indicating the items they wanted. Customers needed to ask because "most stores were designed to keep customers (and their children) away from the food". Most foods and merchandise did not come in individually wrapped consumer-sized packages, so the clerk had to measure out and wrap the precise amount desired. Merchants did not post prices, which forced customers to haggle and bargain with clerks to reach fair prices for their purchases. Haggling was further complicated by other factors such as the clerk's awareness of the customer's social status and ability to pay. This
business model A business model describes how a Company, business organization creates, delivers, and captures value creation, value,''Business Model Generation'', Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-pub ...
had already been established in Europe for millennia, with examples of primitive retail stores found as far back as
ancient Rome In modern historiography, ancient Rome is the Roman people, Roman civilisation from the founding of Rome, founding of the Italian city of Rome in the 8th century BC to the Fall of the Western Roman Empire, collapse of the Western Roman Em ...
. It offered extensive 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". These practices were by nature slow, had high
labor intensity Labor intensity is the relative proportion of labor (compared to capital) used in any given process. Its inverse is capital intensity. Labor intensity is sometimes associated with agrarianism, while capital intensity is sometimes associated with i ...
, and were quite expensive. The number of customers who could be attended to at one time was limited by the number of staff employed in the store. Early grocery stores were "austere" and tiny by modern standards, with as few as 450 items. Shopping for groceries often involved trips to multiple specialty shops, such as a
greengrocer A greengrocer is a person who owns or operates a shop selling primarily produce, fruit and vegetables. The term may also be used to refer to a shop selling primarily produce. It is used predominantly in the United Kingdom and Australia. In the ...
,
butcher A butcher is a person who may Animal slaughter, slaughter animals, dress their flesh, sell their meat, or participate within any combination of these three tasks. They may prepare standard cuts of meat and poultry for sale in retail or wholesale ...
,
bakery A bakery is an establishment that produces and sells flour-based baked goods made in an oven such as bread, cookies, cakes, doughnuts, bagels, Pastry, pastries, and pies. Some retail bakeries are also categorized as Coffeehouse, cafés, servi ...
,
fishmonger A fishmonger (historically fishwife for female practitioners) is someone who sells raw fish and seafood. Fishmongers can be wholesalers or retailers and are trained at selecting and purchasing, handling, gutting, boning, filleting, displaying, ...
and
dry goods Dry goods is a historic term describing the type of product line a store carries, which differs by region. The term comes from the textile trade, and the shops appear to have spread with the mercantile trade across the British Empire (and Common ...
store, in addition to a
general store A general merchant store (also known as general merchandise store, general dealer, village shop, or country store) is a rural or small-town store that carries a general line of merchandise. It carries a broad selection of merchandise, someti ...
. Milk and other items of short
shelf life Shelf life is the length of time that a commodity may be stored without becoming unfit for use, consumption, or sale. In other words, it might refer to whether a commodity should no longer be on a pantry shelf (unfit for use), or no longer on a s ...
were delivered by a
milkman Milk delivery is a Delivery (commerce), delivery service dedicated to supplying milk, typically in milk bottle, bottles or cartons, to customers' homes. This service is performed by a milkman, milkwoman, or milk deliverer. (In contrast, a Cowman ...
. These small retailers were the final links in a "long and tortuous food chain," as most of them were far too small to deal directly with most of the persons who actually harvested, processed, and distributed all that food. During the 1920s, the highly inefficient nature of the American food distribution system meant that the "average urban family spent fully one-third of its budget on food". One of the most important defining features of the modern supermarket is cheap food. The vast abundance of cheap, wholesome food which modern consumers take for granted today was simply unimaginable before the middle of the 20th century, to the point that the first American supermarket customers in the 1930s were overcome with emotion at the sight of so much cheap food. Before the 20th century, food was neither cheap, nor wholesome, nor abundant. For example, in 1812, almost 90 percent of Americans worked in food production, and they struggled to stay alive on food which was often scarce, of poor quality, and riddled with diseases which could and did often kill them.


Early experiments in building large stores and chain stores

The concept of an inexpensive food market relying on economies of scale was developed by
Vincent Astor William Vincent Astor (November 15, 1891 – February 3, 1959) was an American businessman, philanthropist, and member of the prominent Astor family. Early life Called Vincent, he was born in New York City on November 15, 1891. Astor was the eld ...
, but he was ahead of his time. He founded the Astor Market in 1915, investing $750,000 of his fortune into a 165′ by 125′ (50×38-metre) corner of 95th and Broadway,
Manhattan Manhattan ( ) is the most densely populated and geographically smallest of the Boroughs of New York City, five boroughs of New York City. Coextensive with New York County, Manhattan is the County statistics of the United States#Smallest, larg ...
, creating, in effect, an open-air mini-mall that sold meat, fruit, produce and flowers. The expectation was that customers would come from great distances ("miles around"), but in the end, even attracting people from ten blocks away was difficult, and the market folded in 1917.
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 ...
(A&P), which was established in 1859, was an early grocery store chain in Canada and the United States. It became common in North American cities in the 1920s. Early chains like A&P did not sell fresh meats or produce. During the 1920s, to reduce the hassle of visiting multiple stores, U.S. grocery store chains like A&P introduced the combination store. This was a grocery store which combined several departments under one roof, but generally maintained the traditional system of clerks pulling products from shelves on request. By 1929, only one in three U.S. grocery stores was a combination store.


Self-service grocery stores

The concept of a self-service grocery store predates the supermarket; it was developed by entrepreneur Clarence Saunders at his
Piggly Wiggly Piggly Wiggly is an American supermarket chain operating in the American Southern and Midwestern regions run by Piggly Wiggly, LLC, an affiliate of C&S Wholesale Grocers. Its first outlet opened in 1916 in Memphis, Tennessee, and is notable ...
stores, the first of which opened in 1916. Saunders was awarded several patents for the ideas he incorporated into his stores. The stores were a financial success and Saunders began to offer franchises. The general trend 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 Shoplifting (also known as shop theft, shop fraud, retail theft, or retail fraud) is the theft of goods from a retail establishment during business hours. The terms ''shoplifting'' and ''shoplifter'' are not usually defined in law, and genera ...
, the costs of appropriate security measures ideally will be outweighed by reduced labor costs.


Birth of the supermarket

Historically, there has been much debate about the origin of the supermarket. For example,
Southern California Southern California (commonly shortened to SoCal) is a geographic and Cultural area, cultural List of regions of California, region that generally comprises the southern portion of the U.S. state of California. Its densely populated coastal reg ...
grocery store chains
Alpha Beta Alpha Beta was a chain of supermarkets in the Southwestern United States. Stores under this brand existed between 1917 and 1995. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded. History Before Alpha Beta ...
and
Ralphs Ralphs is an American supermarket Chain stores, chain in Southern California. The largest subsidiary of Cincinnati-based Kroger, it is the oldest such chain west of the Mississippi River. Kroger also operates stores under the Food 4 Less and Fo ...
both have strong claims to being the first supermarket. By 1930, both chains were already operating multiple self-service grocery stores. However, as of 1930, both chains were not yet true supermarkets in the modern sense because their prices remained quite high; as noted above, one of the most important defining features of the supermarket is cheap food. Their main selling point was free
parking Parking is the act of stopping and disengaging a vehicle and usually leaving it unoccupied. Parking on one or both sides of a road is often permitted, though sometimes with restrictions. Some buildings have parking facilities for use of the bu ...
. Other strong contenders in Texas included
Weingarten's Weingarten's was a supermarket chain in the Southern United States until it was acquired by Safeway in 1983. J. Weingarten, Inc. had its headquarters in what is now the East End in Houston, Texas. History Hersch Harris Weingarten, a poor Jewi ...
and
Henke & Pillot Henke & Pillot was a chain of supermarkets headquartered in Houston, Texas.Gonzales, J.R.Houston's own Henke & Pillot" ''Houston Chronicle'' blogs. October 20, 2010. Retrieved January 13, 2011. "Offices at 3021 Washington" The chain began in 1872. ...
. To end the debate, the
Food Marketing Institute FMI, The Food Industry Association, is a national trade association for the food industry, especially food retailers and wholesalers, in the USA. FMI's members include approximately 40,000 retail food stores and 25,000 pharmacies, representing an ...
in conjunction with 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 ...
and with funding from
H.J. Heinz Henry John Heinz (October 11, 1844 – May 14, 1919) was an American entrepreneur who co-founded the H. J. Heinz Company of Pittsburgh, Pennsylvania. He was involved in the passage of the 1906 Pure Food and Drug Act. Many of his descendants ...
, researched the issue. They defined the attributes of a supermarket as "self-service, separate product departments, discount pricing, marketing and volume selling".Ryan Mathews, "1926–1936: Entrepreneurs and Enterprise: A Look at Industry Pioneers like King Kullen and J. Frank Grimes, and the Institution They Created (Special Report: Social Change & the Supermarket)", ''Progressive Grocer'' 75, no. 12 (December 1996): 39–43. They determined that the first true supermarket in the United States was opened by a former
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 ...
employee, Michael J. Cullen, on 4 August 1930, inside a former garage in
Jamaica, Queens Jamaica is a neighborhood in the New York City borough of Queens. It has a popular large commercial and retail area, though part of the neighborhood is also residential. Jamaica is bordered by Hollis, St Albans, and Cambria Heights to the ea ...
in New York City. The store
King Kullen King Kullen Grocery Co., Inc., is an American supermarket chain based in Hauppauge, New York. Founded by Michael J. Cullen on August 4, 1930, the company operated 27 locations across Long Island . History King Kullen was founded by Michae ...
, operated under the logic of "pile it high and sell it cheap". The store layout was designed by Joseph Unger, who originated the concept of customers using baskets to collect groceries before checking out at a counter. Everything displayed for sale in the store "had prices clearly marked", meaning that consumers would no longer need to haggle over prices. Cullen described his store as "the world's greatest price wrecker". At the time of his 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. Moreover, the supermarket format as pioneered by King Kullen was not only cheap, but convenient, in how it combined so many different departments under one roof which had formerly required trips to separate stores. Early supermarkets like King Kullen were called "cheapy markets" by industry experts at the time because they were literally so cheap, thanks to their rock-bottom prices; this was soon replaced by the less derogatory and more positive phrase "super market". The compound phrase was then closed up to become the modern term "supermarket".


Grocery stores become supermarkets

Other established American grocery chains in the 1930s, such as Kroger and
Safeway Inc. Safeway, Inc. is an American supermarket chain. The chain provides grocery items, food and general merchandise and a variety of specialty departments, such as bakery, delicatessen, floral and pharmacy, as well as Starbucks coffee shops, and veh ...
at first resisted Cullen's ideas, but were eventually forced to build their own supermarkets as the economy sank into 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 ...
. American consumers became extraordinarily price-sensitive at a level never experienced before. Kroger took the new retail format one step further and pioneered the first supermarket surrounded on all four sides by a
parking lot A parking lot or car park (British English), also known as a car lot, is a cleared area intended for parking vehicles. The term usually refers to an area dedicated only for parking, with a durable or semi-durable surface. In most jurisdi ...
. For A&P, the largest grocery store chain of that era, the conversion from traditional grocery stores to supermarkets came as a terrible shock for the thousands of retail employees whose lives and careers were changed forever. The armies of
retail clerk A retail clerk, also known as a sales clerk, shop clerk, retail associate, or (in the United Kingdom and Ireland) shop assistant, sales assistant or customer service assistant, is a service role in a retail business. A retail clerk obtains or re ...
s who were the public face of the traditionally slow and social retail experience were replaced with the tedious, specialized jobs necessary to operate a modern supermarket. Stock clerks, usually male, moved boxes and kept the shelves full of goods, while checkout clerks (cashiers), usually female, were faced with never-ending lines of impatient shoppers eager to check out and go. But A&P had no choice but to plunge ahead into this strange new world. One of King Kullen's earliest imitators, Big Bear, opened its first supermarket in 1933 in
New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
and collected more revenue in one year than over a hundred A&P stores. By 1937, 44 percent of A&P stores were losing money. By 1938, A&P had already opened over 1,100 supermarkets. By February 1940, A&P had closed 5,950 grocery stores and cut its percentage of money-losing stores to 18 percent. There was no way to escape the cold, hard numbers driving this brutal process: in A&P's traditional grocery stores, "wages and overhead expenses" had consumed 18 percent of sales, while in A&P's newly opened supermarkets in those same neighborhoods, those same numbers were less than 12 percent of sales. Once the large chains joined the supermarket trend, the new retail format exploded across the country like a wildfire. The number of American supermarkets almost tripled from 1,200 in 32 states in 1936 to over 3,000 in 47 states in 1937. It was well over 15,000 by 1950. One sign of the supermarket format'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". The modern era of "cheap food" had begun. As large chain stores began to dominate the American grocery landscape with their low overhead and low prices (while crushing numerous independent small stores along the way), a backlash to this radical alteration of food distribution infrastructure appeared in the form of numerous anti-chain campaigns. The idea of "
monopsony In economics, a monopsony is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers. The Microeconomics, microeconomic theory of monopsony assume ...
", proposed by Cambridge economist
Joan Robinson Joan Violet Robinson ( Maurice; 31 October 1903 – 5 August 1983) was a British economist known for her wide-ranging contributions to economic theory. One of the most prominent economists of the century, Robinson incarnated the "Cambridge Sc ...
in 1933, that a single buyer could outmaneuver a market of multiple sellers, became a strong anti-chain rhetorical device. With public backlash came political pressure to even the playing field for smaller vendors lacking the luxury of economies of scale. In 1936, the Robinson-Patman Act was implemented as a way of preventing such large chains from using their buying power to reap advantages over small stores, although the act was not well enforced and did not have much impact on such chains. Supermarkets rapidly proliferated across both
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
and the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
with the growth of automobile ownership and suburban development after World War II. Most North American supermarkets are located in suburban strip shopping centers as an anchor store along with other smaller retailers. They are generally regional rather than national in their company branding. Kroger is the most nationally oriented supermarket chain in the United States, but it has preserved most of its regional brands, including
Ralphs Ralphs is an American supermarket Chain stores, chain in Southern California. The largest subsidiary of Cincinnati-based Kroger, it is the oldest such chain west of the Mississippi River. Kroger also operates stores under the Food 4 Less and Fo ...
, City Market,
King Soopers King Soopers is an American supermarket chain located in the Rocky Mountains of the United States. It started as its own brand, and is now a subsidiary of Kroger. It is headquartered in Denver, Colorado. King Soopers has a significant presence ...
, Fry's, Smith's, and
QFC Quality Food Centers, Inc., better known as QFC, is an American supermarket chain based in Bellevue, Washington, east of Seattle. It is a subsidiary of Kroger and has 62 stores in western Washington and northwestern Oregon, primarily located i ...
.


International expansion

By the 1950s, supermarkets had become part of the everyday lives of American consumers, but were still extremely rare outside of the United States. Most persons outside the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
had never seen a supermarket or even heard of the term. That began to change after 1956, when the
U.S. Department of Agriculture The United States Department of Agriculture (USDA) is an executive department of the United States federal government that aims to meet the needs of commercial farming and livestock food production, promotes agricultural trade and production ...
presented an "American Way exhibit" at the International Food Congress in
Rome, Italy Rome (Italian language, Italian and , ) is the capital city and most populated (municipality) of Italy. It is also the administrative centre of the Lazio Regions of Italy, region and of the Metropolitan City of Rome. A special named with 2, ...
. The exhibit included "the first fully stocked supermarket outside of the United States". The exhibit was a rather "modest staging" with only about 2,500 items, not a truly comprehensive duplicate of a typical full-size U.S. supermarket, and yet it was much larger than anything the world had ever seen. Just like the American consumers who had entered the first supermarkets two decades earlier, conference attendees, local Italian visitors, and the international news media were all astonished, bewildered, and stunned by the "mountains of food". In 1957, the
U.S. Department of Commerce The United States Department of Commerce (DOC) is an executive department of the U.S. federal government. It is responsible for gathering data for business and governmental decision making, establishing industrial standards, catalyzing econo ...
and the National Association of Food Chains orchestrated an even grander presentation, Supermarket USA, at the Zagreb International Trade Fair in what was then part of
Yugoslavia , common_name = Yugoslavia , life_span = 1918–19921941–1945: World War II in Yugoslavia#Axis invasion and dismemberment of Yugoslavia, Axis occupation , p1 = Kingdom of SerbiaSerbia , flag_p ...
. Supermarket USA featured 4,000 consumer items in a 10,000 square-foot (929 m²) exhibit, "the first fully operational American-style supermarket in a communist country". The American Way ''supermercato'' the year before and Supermarket USA were among the first of several instances in which American supermarkets were deployed internationally at the height of the
Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
as
shock and awe Shock and awe (technically known as rapid dominance) is a military strategy based on the use of overwhelming power and spectacular displays of force to paralyze the enemy's perception of the battlefield and destroy their will to fight. Though ...
instruments of American propaganda to demonstrate the supposed superiority of
Western Bloc The Western Bloc, also known as the Capitalist Bloc, the Freedom Bloc, the Free Bloc, and the American Bloc, was an unofficial coalition of countries that were officially allied with the United States during the Cold War (1947–1991). While ...
capitalism over
Eastern Bloc The Eastern Bloc, also known as the Communist Bloc (Combloc), the Socialist Bloc, the Workers Bloc, and the Soviet Bloc, was an unofficial coalition of communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were a ...
communism. Before then, a few countries had already begun to implement supermarkets due to their proximity to or affinity for the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
. Canada, to the north, had implemented the new retail format at the same time during the 1930s. For example, Québec's first supermarket opened in 1934 in Montréal, under the banner Steinberg's. In
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
, the largest supermarket chain is
Loblaw Loblaw Companies Limited is a Canadian retailer encompassing corporate and franchise supermarkets operating under 22 regional and market-segment banners (including Loblaws), as well as pharmacies, banking and apparel. Loblaw operates a priva ...
, which operates stores under a variety of banners targeted to different segments and regions, including
Fortinos Fortinos is a Canadian supermarket chain that was founded in Hamilton, Ontario. It operates 24 stores across the western Greater Toronto and Hamilton Area. It is owned by Loblaw Companies Limited. History In 1961, Giovanni (John) Fortino, a ...
,
Zehrs Zehrmart Inc. (doing business as Zehrs Markets or simply Zehrs ) is a Canadian supermarket chain in southern Ontario. The chain has 42 locations and is a part of Loblaw Companies Limited, which purchased the Zehrs chain in the mid-1970s. Histo ...
,
No Frills A no-frills or no frills service or product is one for which the non-essential features have been removed to keep the price low. The term "Ruffle (sewing), frills" originally refers to a style of fabric decoration. Something offered to customers f ...
, the Real Canadian Superstore, and Loblaws, the foundation of the company.
Sobeys Sobeys Inc. is a national supermarket chain in Canada with over 1,500 stores operating under a variety of banners. Headquartered in Stellarton, Nova Scotia, it operates stores in all ten provinces and accumulated sales of more than C$25.1 bil ...
is Canada's second largest supermarket with locations across the country, operating under many banners (Sobeys IGA in
Quebec Quebec is Canada's List of Canadian provinces and territories by area, largest province by area. Located in Central Canada, the province shares borders with the provinces of Ontario to the west, Newfoundland and Labrador to the northeast, ...
). In the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
, self-service shopping took longer to become established, despite its
Special Relationship The Special Relationship is an unofficial term for relations between the United Kingdom and the United States. Special Relationship also may refer to: * Special relationship (international relations), other exceptionally strong ties between nat ...
with the United States. In 1947, there were just ten self-service shops in the country. In 1951, ex-US Navy sailor Patrick Galvani, son-in-law of
Express Dairies Express Dairies is a former brand of Dairy Crest, that specialised almost entirely in home deliveries of milk, and other dairy products. History The company was founded by George Barham in 1864 as the 'Express County Milk Supply Company,' so na ...
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 Streatham ( ) is a district in south London, England. Centred south of Charing Cross, it lies mostly within the London Borough of Lambeth, with some parts extending into the neighbouring London Borough of Wandsworth. Streatham was in Surrey ...
,
South London South London is the southern part of Greater London, England, south of the River Thames. The region consists of the Districts of England, boroughs, in whole or in part, of London Borough of Bexley, Bexley, London Borough of Bromley, Bromley, Lon ...
, taking in ten times as much revenue per week as the average British general store of the time. Other chains caught on. After Galvani lost out to Tesco's Jack Cohen in 1960 to buy 212 stores of the Irwin's chain, the sector underwent significant consolidation, resulting in "the big four" dominant UK supermarket chains:
Tesco Tesco plc () is a British multinational groceries and general merchandise retailer headquartered in the United Kingdom at its head offices in Welwyn Garden City, England. The company was founded by Jack Cohen (businessman), Sir Jack Cohen in ...
,
Asda Asda Stores Limited (), trading as Asda and often styled as ASDA, is a British supermarket and petrol station chain. Its headquarters is in Leeds, England. The company was incorporated as Associated Dairies and Farm Stores in 1949. It expanded ...
,
Sainsbury's J Sainsbury plc, trading as Sainsbury's, is a British supermarket and the second-largest chain of supermarkets in the United Kingdom. Founded in 1869 by John James Sainsbury with a shop in Drury Lane, London, the company was the largest UK r ...
and
Morrisons Wm Morrison Supermarkets Limited, trading as Morrisons, is the List of supermarket chains in the United Kingdom, fifth largest supermarket chain in the United Kingdom. As of 2021, the company had 497 supermarkets across England, Wales and Sco ...
. In the 1950s, supermarkets frequently issued
trading stamp Trading stamps were small paper stamps given to customers by merchants in loyalty programs in the United States, Canada and the U.K. which predated the modern loyalty card-based and online programs. Like the similarly-issued retailer coupons, these ...
s as incentives to customers. Today, most chains issue store-specific "membership cards", "club cards", or "
loyalty card A loyalty program or rewards program is a marketing strategy designed to encourage customers to continue to shop at or use the services of one or more businesses associated with the program. Single-company vs. coalition programs Loyalty prog ...
s". These typically enable the cardholder to receive special members-only discounts on certain items when the credit card-like device is scanned at the checkout. Sales of selected data generated by club cards is becoming a significant revenue stream for some supermarkets.


In the 21st century

A report published by the
international organization An international organization, also known as an intergovernmental organization or an international institution, is an organization that is established by a treaty or other type of instrument governed by international law and possesses its own le ...
ActionAid ActionAid is an international non-governmental organization whose stated primary aim is to work against poverty and injustice worldwide. ActionAid is a federation of 45 country offices that works with communities, often via local partner organi ...
in 2007, ''Who pays?'' estimated that 32 million people shopped in British supermarkets every week. , there were approximately 38,000 supermarkets in the supermarket's birthplace, the United States; Americans spent $701 billion at supermarkets that year; and the American supermarket stood at the pinnacle of a food production and distribution system so efficient that less than three percent of the U.S. population produced more than enough food to feed everyone. The average American adult "will spend 2 percent of their life inside" supermarkets. In the 21st century, traditional supermarkets in many countries face intense competition from discounters such as Wal-Mart,
Aldi Aldi (German pronunciation: ), stylised as ALDI, is the common company brand name of two German multinational family-owned discount supermarket chains operating over 12,000 stores in 18 countries. The chain was founded by brothers Karl and ...
and
Lidl Lidl ( ) is a trademark, used by two Germany, German international discount supermarket, discount retailer chain store, chains that operates over 12,600 stores. The ''LD Stiftung'' operates the stores in Germany and the ''Lidl Stiftung & Co. K ...
, which typically is non- union and operates with better buying power. Other competition exists from
warehouse clubs A warehouse club (or wholesale club) is a retail store, usually selling a wide variety of merchandise, in which customers may buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters ...
such as
Costco Costco Wholesale Corporation is an American multinational corporation which operates a chain of membership-only big-box warehouse club retail stores. As of 2021, Costco is the third-largest retailer in the world, and as of August 2024, Cos ...
that offer savings to customers buying in bulk quantities.
Superstores A big-box store, a hyperstore, a supercenter, a superstore, or a megastore is a physically large retail establishment, usually part of a chain of stores. The term sometimes also refers, by extension, to the company that operates the store. The ...
, such as those operated by Wal-Mart and Asda, often offer a wide range of goods and services in addition to foods. In
Australia Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
, Aldi, Woolworths and Coles are the major players running the industry with fierce competition among all the three. The rising market share of Aldi has forced the other two to cut prices and increase their private label product ranges. The proliferation of such warehouse and superstores has contributed to the continuing disappearance of smaller, local grocery stores, the increased dependence on the automobile, and
suburban sprawl Urban sprawl (also known as suburban sprawl or urban encroachment) is defined as "the spreading of urban developments (such as houses and shopping centers) on undeveloped land near a city". Urban sprawl has been described as the unrestricted ...
because of the necessity for large floor space and increased vehicular traffic. For example, in 2009 51% of Wal-Mart's $251 billion domestic sales were recorded from grocery goods. 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 multinationals have with suppliers around the world.


Online-only supermarkets (21st century)

During the
dot-com boom The dot-com bubble (or dot-com boom) was a stock market bubble that ballooned during the late-1990s and peaked on Friday, March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Intern ...
,
Webvan Webvan was a dot-com company and grocery business that filed for bankruptcy in 2001 after 3 years of operation. It was headquartered in Foster City, California, United States. It delivered products to customers' homes within a 30-minute window o ...
, an online-only supermarket, was formed and went bankrupt after three years and was acquired by Amazon. The British online supermarket
Ocado Ocado Group plc ( ) is a British business based in Hatfield, England, which licenses grocery technology. It also owns a 50% share in the UK grocery retail business Ocado.com (the other 50% is owned by UK retailer Marks & Spencer). The company ...
, which uses a high degree of automation in its warehouses, was the first successful online-only supermarket. Ocado expanded into providing services to other supermarket firms such as
Waitrose Waitrose Limited, trading as Waitrose & Partners, is a British supermarket chain, founded in 1904 as Waite, Rose & Taylor, later shortened to Waitrose. In 1937, it was acquired by the John Lewis Partnership, the UK's largest employee-owned b ...
and
Morrisons Wm Morrison Supermarkets Limited, trading as Morrisons, is the List of supermarket chains in the United Kingdom, fifth largest supermarket chain in the United Kingdom. As of 2021, the company had 497 supermarkets across England, Wales and Sco ...
. Grocery stores such as Walmart employ food delivery services offered by third parties such as
DoorDash DoorDash, Inc. is an American company operating online food ordering and food delivery. It trades under the symbol DASH. With a 56% market share, DoorDash is the largest food delivery platform in the United States. It also has a 60% market sha ...
. Other online food delivery services, such as
Deliveroo Deliveroo is a British multinational online food delivery company headquartered in London, United Kingdom. It operates in the United Kingdom, France, Belgium, Ireland, Italy, Singapore, the United Arab Emirates, Kuwait, and Qatar. It formerly ...
in the United Kingdom, have begun to pay specific attention to supermarket delivery. Delivery robots are offered by various companies partnering with supermarkets. Micro-fulfillment centers (MFC) are relatively small warehouses with sophisticated automated rack-and-tote systems which prepare orders for pickup and delivery. Once the order is complete, the customer will pick it up (i.e. "click-and-collect") or have it fulfilled via home delivery. Supermarkets are investing in micro-fulfillment centers with the hope that automation can help reduce the costs of online commerce and e-commerce by shortening the distances from store to home and speeding up deliveries. MFCs are said by many to be the key to profitably fulfilling online orders.


Types


U.S. categorization

The U.S. FMI food industry association, drawing on research by Willard Bishop, defines the following formats (store types) that sell groceries:


Organic and environmentally-friendly supermarkets

Some supermarkets are focusing on selling more (or even exclusively)
organically certified Organic certification is a certification process for producers of organic food and other organic agricultural products.Labelling, article 30 o''Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May 2018 on organic prod ...
produce. Others are trying to differentiate themselves by selling fewer (or no) products containing
palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 36% of global oils produced from o ...
. This as the demand of palm oil is a main driver for the destruction of rainforests. As a response to the growing concern on the heavy use of petroleum-based plastics for
food packaging Food packaging is a packaging system specifically designed for food and represents one of the most important aspects among the processes involved in the food industry, as it provides protection from chemical, biological and physical alterations ...
, so-called "
zero waste Zero waste, or ''waste minimization'', is a set of principles focused on waste prevention that encourages redesigning resource life cycles so that all products are repurposed (i.e. "up-cycled") and/or reused. The goal of the movement is to avoid ...
" and "plastic-free" supermarkets and groceries are on the rise.


Growth in developing countries

Beginning in the 1990s, the food sector in developing countries has rapidly transformed, particularly in
Latin Latin ( or ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken by the Latins (Italic tribe), Latins in Latium (now known as Lazio), the lower Tiber area aroun ...
America The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
,
South-East Asia Southeast Asia is the geographical southeastern region of Asia, consisting of the regions that are situated south of China, east of the Indian subcontinent, and northwest of the Australian mainland, which is part of Oceania. Southeast Asia i ...
,
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
,
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
and
South Africa South Africa, officially the Republic of South Africa (RSA), is the Southern Africa, southernmost country in Africa. Its Provinces of South Africa, nine provinces are bounded to the south by of coastline that stretches along the Atlantic O ...
. With growth, has come considerable competition and some amount of consolidation. 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 Latin America is the cultural region of the Americas where Romance languages are predominantly spoken, primarily Spanish language, Spanish and Portuguese language, Portuguese. Latin America is defined according to cultural identity, not geogr ...
and
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
. Local companies also entered the market. Initial development of supermarkets has now been followed by hypermarket growth. In addition there were investments by companies such as
Makro Makro is a Netherlands, Dutch international brand of warehouse clubs, also called Cash and carry (wholesale), cash and carry stores. Makro was founded by SHV Holdings, a Dutch conglomerate based in Utrecht in partnership with German company ...
and
Metro Cash and Carry Metro AG is a German multinational company based in Düsseldorf which operates business membership-only cash and carry stores primarily under the Metro brand. , Metro is operating 626 wholesale stores in 21 countries, including Europe and Pa ...
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 may refer to: Science and technology Astronomy * Cluster (spacecraft), constellation of four European Space Agency spacecraft * Cluster II (spacecraft), a European Space Agency mission to study the magnetosphere * Asteroid cluster, a small ...
formation; development of specialized wholesalers; leading farmers organizing supply, and farmer associations or cooperatives. In some cases supermarkets have organized their own procurement from small farmers; in others
wholesale markets The consumption and production of marketed food are spatially separated. Production is primarily in rural areas while consumption is mainly in urban areas. Agricultural marketing is the process that overcomes this separation, allowing produce to b ...
have adapted to meet supermarket needs.


Typical supermarket merchandise

Larger supermarkets in North America and in Europe typically sell many items among many brands, sizes and varieties. U.S. publisher ''Supermarket News'' lists the following categories, for example:
Hypermarkets A hypermarket or superstore is a big-box store combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full grocery store, grocery lines and product (bu ...
have a larger range of non-food categories such as clothing, electronics, household decoration and appliances. *Bakery (packaged and sometimes a service bakery and/or onsite bakery) *Beverages (non-alcoholic packaged, sometimes also alcoholic if laws permit) *Nonfood & Pharmacy (e.g. cigarettes, lottery tickets and over-the-counter medications (as laws permit),
DVD The DVD (common abbreviation for digital video disc or digital versatile disc) is a digital optical disc data storage format. It was invented and developed in 1995 and first released on November 1, 1996, in Japan. The medium can store any ki ...
rentals Renting, also known as hiring or letting, is an agreement where a payment is made for the use of a good, service or property owned by another over a fixed period of time. To maintain such an agreement, a rental agreement (or lease) is sign ...
, books and magazines, including
supermarket tabloid Tabloid journalism is a popular style of largely sensationalist journalism, which takes its name from the tabloid newspaper format: a small-sized newspaper also known as a half broadsheet. The size became associated with sensationalism, an ...
s, greeting cards, toys, small selection of home goods like light bulbs,
housewares Household goods are goods and products used within households. They are the tangible and movable personal property placed in the rooms of a house, such as a bed or refrigerator. Economic role Businesses that produce household goods are categoriz ...
(typically limited) *Personal care e.g. cosmetics, soap, shampoo *Produce (fresh fruits and vegetables) *Floral (flowers and plants) *Deli (sliced meats, cheeses, etc.) *Prepared Foods (packaged and frozen foods) *Meat (fresh packaged, frozen, sometimes with a butcher service counter) *Seafood (fresh packaged, frozen, sometimes with a butcher service counter) *Dairy (milk products and eggs) *Center store (e.g. detergent, paper products, household cleaning supplies) *Multicultural (ethnic foods) *Bulk dried foods *Animal foods, toys and products


Layout strategies

Most merchandise is already
packaged Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages. Packaging can be described as a coo ...
when it arrives at the supermarket. Packages are placed on shelves, arranged in aisles and sections according to type of item. Some items, such as fresh produce, are stored in bins. Those requiring an intact
cold chain A cold chain is a supply chain that uses refrigeration to maintain perishable goods, such as pharmaceuticals, produce or other goods that are temperature-sensitive. Common goods, sometimes called cool cargo, distributed in cold chains include fr ...
are in temperature-controlled display cases. While branding and store advertising will differ from company to company, the layout of a supermarket remains virtually unchanged. Although big companies spend time giving consumers a pleasant shopping experience, the design of a supermarket is directly connected to the in-store marketing that supermarkets must conduct to get shoppers to spend more money while there. Every aspect of the store is mapped out and attention is paid to color, wording and surface texture. The overall layout of a supermarket is a visual merchandising project that plays a major role. Stores can creatively use a layout to alter customers' perceptions of the atmosphere. Alternatively, they can enhance the store's atmospherics through visual communications (signs and graphics), lighting, colors, and scents. For example, to give a sense of the supermarket being healthy, fresh produce is deliberately located at the front of the store. In terms of bakery items, supermarkets usually dedicate 30 to 40 feet of store space to the bread aisle. Supermarkets are designed to "give each product section a sense of individual difference and this is evident in the design of what is called the anchor departments; fresh produce, dairy, delicatessen, meat and the bakery". Each section has different floor coverings, style, lighting and sometimes even individual services counters to allow shoppers to feel as if there are a number of markets within this one supermarket. Marketers use well-researched techniques to try to control purchasing behavior. The layout of a supermarket is considered by some to consist of a few rules of thumb and three layout principles. Aghazedah, S 2005, "Layout strategies for some of the operations", Management Research News, vol. 28, no. 10, pp. 31–46. Retrieved 8 May 2012, Business Source Complete, EBSCO host. The high-draw products are placed in separate areas of the store to keep drawing the consumer through the store. High impulse and high margin products are placed in the most predominant areas to grab attention. Power products are placed on both sides of the aisle to create increased product awareness, and end caps are used to receive a high exposure of a certain product whether on special, promotion or in a campaign, or a new line. The first principle of the layout is circulation. Circulation is created by arranging product so the supermarket can control the traffic flow of the consumer. Along with this path, there will be high-draw, high-impulse items that will influence the consumer to make purchases which they did not originally intend. Service areas such as restrooms are placed in a location which draws the consumer past certain products to create extra buys. Necessity items such as bread and milk are found at the rear of the store to increase the start of circulation. Cashiers' desks are placed in a position to promote circulation. In most supermarkets, the entrance will be on the right-hand side because some research suggests that consumers who travel in a counter-clockwise direction spend more. However, other researchers have argued that consumers moving in a clockwise direction can form better mental maps of the store leading to higher sales in turn. The second principle of the layout is coordination. Coordination is the organized arrangement of product that promotes sales. Products such as fast-selling and slow-selling lines are placed in strategic positions in aid of the overall sales plan. Managers sometimes place different items in fast-selling places to increase turnover or to promote a new line. The third principle is consumer convenience. The layout of a supermarket is designed to create a high degree of convenience to the consumer to make the shopping experience pleasant and increase customer spending. This is done through the character of merchandising and product placement. There are many different ideas and theories in relation to layout and how product layout can influence the purchases made. One theory suggests that certain products are placed together or near one another that are of a similar or complementary nature to increase the average customer spend.Bezawada, R Balachander, S Kannan, PK Venkatesh, S 2009, "Cross-Category Effects of Aisle and Display Placements: A Spatial Modeling Approach and Insights", ''Journal of Marketing'', vol. 73, no. 3, pp. 99–117, 3 May 2012, Business Source Complete. This strategy is used to create cross-category sales similarity. In other words, the toothpaste is next to or adjacent the toothbrushes and the tea and coffee are down the same aisle as the sweet biscuits. These products complement one another and placing them near is one-way marketers try to increase purchases. For vertical placement, cheap generic brands tend to be on the lowest shelves, products appealing to children are placed at the mid-thigh level, and the most profitable brands are placed at eye level. The fourth principle is the use of
color psychology Color psychology is the study of colors and hues as a determinant of human behavior. Color influences perceptions that are not obvious, such as the taste of food. Colors have qualities that may cause certain emotions in people. How color influen ...
, and the locations of the food, similar to its use in fast food branding. Consumer psychologists suggest that most buyers tend to enter the store and shop to their right first. Some supermarkets, therefore, choose to place the entrance to the left-hand side as the consumer will likely turn right upon entry, and this allows the consumer to do a full counter-clockwise circle around the store before returning to the checkouts. This suggests that supermarket marketers should use this theory to their advantage by placing their temporary displays of products on the right-hand side to entice you to make an unplanned purchase. Furthermore, aisle ends are extremely popular with product manufacturers, who pay top dollar to have their products located there. These aisle ends are used to lure customers into making a snap purchase and to also entice them to shop down the aisle. The most obvious place supermarket layout influences consumers are at the checkout. Small displays of candy, magazines, and drinks are located at each checkout to tempt shoppers while they wait to be served.


Criticisms

The large scale of supermarkets, while often improving cost and efficiency for customers, can place significant economic pressure on suppliers and smaller shopkeepers. Supermarkets often generate considerable
food waste The causes of food going uneaten are numerous and occur throughout the food system, during food production, production, food processing, processing, Food distribution, distribution, Grocery store, retail and food service sales, and Social clas ...
, although modern technologies such as
biomethanation Methanogenesis or biomethanation is the formation of methane coupled to energy conservation by microbes known as methanogens. It is the fourth and final stage of anaerobic digestion. Organisms capable of producing methane for energy conservation h ...
units may be able to process the waste into an economical source of energy. Also, purchases tracking may help as supermarkets then become better able to size their stock (of perishable goods), reducing food spoilage. In 1997, the
Reverend The Reverend (abbreviated as The Revd, The Rev'd or The Rev) is an honorific style (form of address), style given to certain (primarily Western Christian, Western) Christian clergy and Christian minister, ministers. There are sometimes differen ...
John Papworth John Papworth (12 December 1921 – 4 July 2020) was an English clergyman, writer and Activism, activist. Throughout his life, he campaigned for the causes of antimilitarism, Localism (politics), localism and ecologism. He founded Resurgence & ...
attracted international attention with his criticism of giant supermarkets. For him, they are "places of evil and temptation", destroyers of
local communities A local community has been defined as a group of interacting people living in a common location. The word is often used to refer to a group that is organized around common values and is attributed with social cohesion within a shared geographical l ...
, and
shoplifting Shoplifting (also known as shop theft, shop fraud, retail theft, or retail fraud) is the theft of goods from a retail establishment during business hours. The terms ''shoplifting'' and ''shoplifter'' are not usually defined in law, and genera ...
in them would be illegal but not
sinful In religious context, sin is a transgression against divine law or a law of the deities. Each culture has its own interpretation of what it means to commit a sin. While sins are generally considered actions, any thought, word, or act considered ...
.


See also

* * * **s *


References


Further reading

* * Longstreth, R. W. (1999). ''The Drive-In, the Supermarket, and the Transformation of Commercial Space in Los Angeles, 1914-1941''. The MIT Press. * Lorr, B. (2020). ''The Secret Life of Groceries: The Dark Miracle of the American Supermarket''. Avery. * Newman, K. (2012). ''The Secret Financial Life of Food: From Commodities Markets to Supermarkets'' (Illustrated edition). Columbia University Press. * Petroski, Henry (November–December 2005)
"Shopping by Design"
''American Scientist'' 93 (6): 491. * Sowell, Thomas. ''Basic Economics'' (Third Edition, 2007 Basic Books). Pages 92–94 describe the competition between the dominant grocery chains in the United States through the 20th century and beyond. * Yee, A. (2003). ''Shopping at Giant Foods: Chinese American Supermarkets in Northern California'' (Illustrated edition). University of Washington Press.


External links


Food Stories
– Explore a century of revolutionary change in UK food culture on the British Library's Food Stories website
Groceteria
– supermarket history and architecture from the 1920s to the 1970s
Scrambling for customers
4 August 2005, ''
San Francisco Chronicle The ''San Francisco Chronicle'' is a newspaper serving primarily the San Francisco Bay Area of Northern California. It was founded in 1865 as ''The Daily Dramatic Chronicle'' by teenage brothers Charles de Young and M. H. de Young, Michael H. ...
'' {{Authority control American inventions Food retailing