Well into the late 19th century, the U.S. retail sector was overwhelmingly local, consisting of small, independent merchants throughout the country. That started changing after Sears and Roebuck’s famous catalog became popular, allowing the firm to grow, while a rival, Montgomery Ward, also expanded. By the 1930s, the U.S. had 130,000 chain stores, topped by Atlantic and Pacific supermarkets (the A&P), with over 15,000 stores.
A century onward, the U.S. retail landscape is dominated by retail giants. Today, 90 percent of Americans live within 10 miles of a Walmart, while five of the country’s 10 biggest employers — Walmart, Amazon, Home Depot, Kroger, and Target— are retailers. Two others in the top 10, UPS and FedEx, are a major part of the retail economy.
The ubiquity of these big retailers, and the sheer extent of the U.S. shopping economy as a whole, is unusual compared to the country’s European counterparts. Domestic consumption plays an outsized role in driving growth in the United States, and credit plays a much larger role in supporting that consumption than in Europe. The U.S. has five times as much retail space per capita as Japan and the U.K., and 10 times as much as Germany. Unlike in Europe, shopping hours are largely unregulated.
How did this happen? To be sure, Walmart, Amazon, Target, and other massive chains have plenty of business acumen. But the full story involves a century or more of political tectonics and legal debates, which helped shape the size of U.S. retailing and the prominence of its large discount chains.
Read Kathy's full interview with MIT News.
Better yet--get your hands on a copy of “Attention, Shoppers! American Retail Capitalism and the Origins of the Amazon Economy,” published this month by Princeton University Press.
