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A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into

departments. It is larger in size and has a wider selection than a traditional grocery store, also selling items typically found in a convenience store, but is smaller and more limited in the range of merchandise than a hypermarket or big-box store. The supermarket typically comprises meat, fresh produce, dairy, and baked goods departments, along with shelf space reserved for canned and packaged goods as well as for various non-food items such as household cleaners, pharmacy products and pet supplies. Most supermarkets also sell a variety of other household products that are consumed regularly, such as alcohol (where permitted), medicine, and clothes, and some stores sell a much wider range of non-food products. The traditional suburban 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. Its 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 far into the evening or even 24 hours a day. Supermarkets usually allocate large budgets to advertising, typically through newspapers. They also present elaborate in-store displays of products. The stores are usually part of corporate chains that own or control (sometimes by franchise) other supermarkets located nearbyeven transnationallythus increasing opportunities for economies of scale. Supermarkets typically are supplied by the distribution centres of their parent companies, usually in the largest city in the province. Supermarkets usually offer products at low prices by reducing their economic margins. Certain products (typically staple foods such as bread, milk and sugar) are occasionally sold as loss leaders, that is, with negative profit margins. To maintain a profit, supermarkets attempt to make up for the lower margins by a higher overall volume of sales, and with the sale of higher-margin items. Customers usually shop by placing their selected merchandise into shopping carts (trolleys) or baskets (self-service) and pay for the merchandise at the check-out. At present, many supermarket chains are attempting to further reduce labor costs by shifting to self-service check-out machines, where a single employee can oversee a group of four or five machines at once, assisting multiple customers at a time. A larger full-service supermarket combined with a department store is sometimes known as a hypermarket. Other services offered at some supermarkets may include those of banks, cafs, childcare centres/creches, photo processing, video rentals, pharmacies and/or petrol stations.


1 History 2 Growth in developing countries 3 Typical supermarket merchandise

4 Typical store architecture 5 Criticisms 6 See also 7 References 8 Further reading 9 External links

[edit] History
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A supermarket in Sweden in 1941

Cashiers and check-out area of supermarket in a United States Army community in 1945 In the early days of retailing, all products generally were fetched by an assistant from shelves behind the merchant's counter while customers waited in front of the counter and indicated the items they wanted. Also, most foods and merchandise did not come in individually wrapped consumer-sized packages, so an assistant had to measure out and wrap the precise amount desired by the consumer. This also offered 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."[1] These practices were by nature very labor-intensive and therefore also quite expensive. The shopping process was slow, as the number of customers who could be attended to at one time was limited by the number of staff employed in the store.

The concept of a self-service grocery store was developed by American entrepreneur Clarence Saunders and his Piggly Wiggly stores. His first store opened in Memphis, Tennessee, in 1916. Saunders was awarded a number of patents for the ideas he incorporated into his stores.[2][3][4][5] The stores were a financial success and Saunders began to offer franchises. The Great Atlantic and Pacific Tea Company (A&P) was another successful early grocery store chain in Canada and the United States, and became common in North American cities in the 1920s. The general trend in retail 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, the costs of appropriate security measures ideally will be outweighed by reduced labor costs.[citation needed] Early self-service grocery stores did not sell fresh meats or produce. Combination stores that sold perishable items were developed in the 1920s.[6] Historically, there was debate about the origin of the supermarket, with King Kullen and Ralph's of California having strong claims.[7] Other contenders included Weingarten's Big Food Markets and Henke & Pillot.[8] To end the debate, the Food Marketing Institute in conjunction with the Smithsonian Institution and with funding from H.J. Heinz, researched the issue. It defined the attributes of a supermarket as "self-service, separate product departments, discount pricing, marketing and volume selling."[citation needed] It has been determined that the first true supermarket in the United States was opened by a former Kroger employee, Michael J. Cullen, on August 4, 1930, inside a 6,000-square-foot (560 m2) former garage in Jamaica, Queens in New York City.[9] The store, King Kullen, (inspired by the fictional character King Kong), operated under the slogan "Pile it high. Sell it low." At the time of Cullen's 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.

A Safeway advertisement from the 1950s. Other established American grocery chains in the 1930s, such as Kroger and Safeway at first resisted Cullen's idea, but eventually were forced to build their own supermarkets as the economy sank into the Great Depression, while consumers were becoming price-sensitive at a level never experienced before.[10] Kroger took the idea one step further and pioneered the first supermarket surrounded on all four sides by a parking lot.[citation needed]

Supermarkets proliferated across Canada and the United States with the growth of automobile ownership and suburban development after World War II. Most North American supermarkets are located in suburban strip malls as an anchor store along with other smaller retailers. They are generally regional rather than national in their company branding. Kroger is perhaps the most nationally oriented supermarket chain in the United States but it has preserved most of its regional brands, including Ralphs, City Market and King Soopers.[citation needed] In Canada, the largest such chain is Loblaw, which operates stores under a variety of regional names, including Fortinos, Zehrs and the largest, Loblaws, (named after the company itself). Sobeys is Canada's second largest supermarket with locations across the country, operating under many banners (Sobeys IGA in Quebec).[citation needed] In the United Kingdom, self-service shopping took longer to become established. Even in 1947, there were just ten self-service shops in the country.[1] In 1951, ex-US Navy sailor Patrick Galvani, son-in-law of Express Dairies 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, South London,[11] taking ten times as much per week as the average British general store of the time. Other chains caught on, and after Galvani lost out to Tesco's Jack Cohen in 1960 to buy the 212 Irwin's chain, the sector underwent a large amount of consolidation, resulting in 'the big four' dominant UK retailers of today: Tesco, Asda (owned by Wal-Mart), Sainsbury's and Morrisons. In the 1950s, supermarkets frequently issued trading stamps as incentives to customers. Today, most chains issue store-specific "membership cards," "club cards," or "loyalty cards". These typically enable the card holder to receive special members-only discounts on certain items when the credit card-like device is scanned at check-out.[citation needed] Traditional supermarkets in many countries face intense competition from discount retailers such as Wal-Mart, Tesco in the UK, and Zellers in Canada, which typically are non-union and operate with better buying power. Other competition exists from warehouse clubs such as Costco that offer savings to customers buying in bulk quantities. Superstores, such as those operated by WalMart and Asda, often offer a wide range of goods and services in addition to foods. The proliferation of such warehouse and superstores has contributed to the continuing disappearance of smaller, local grocery stores; increased dependence on the automobile; suburban sprawl because of the necessity for large floorspace and increased vehicular traffic. 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 multinational retailers have with suppliers around the world.[citation needed]

[edit] Growth in developing countries

There has been a rapid transformation of the food retail sector in developing countries, beginning in the 1990s. This applies particularly to Latin America, South-East Asia, China and South Africa. However, growth is being witnessed in nearly all countries. With growth, has come considerable competition and some amount of consolidation.[12] 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 and China. Local companies also entered the market.[13] Initial development of supermarkets has now been followed by hypermarket growth. In addition there were investments by companies such as Makro and Metro 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 formation; development of specialized wholesalers; leading farmers organizing supply; and farmer associations or cooperatives.[14] In some cases supermarkets have organized their own procurement from small farmers; in others wholesale markets have adapted to meet supermarket needs.[15]

[edit] Typical supermarket merchandise

Inside an Asda supermarket in Keighley, West Yorkshire.

Sainsbury's supermarket front end

Fruit on display in a supermarket in Japan.

Inside a Serbian supermarket

Exterior of a supermarket in Kulim, Kedah, Malaysia. Larger supermarkets in North America and in Europe typically sell a great number of items among many brands, sizes and varieties, including:

Alcoholic beverages (as state/provincial and/or local laws allow) Baby foods and baby-care products such as disposable diapers Breads and bakery products (many stores may have a bakery on site that offers specialty and dessert items) Books, newspapers, and magazines, including supermarket tabloids Bulk dried foods such as legumes, flour, rice, etc. (typically available for self-service) Canned goods and dried cereals

CDs, Audio cassettes, DVDs, and videos (including video rentals) Cigarettes and other tobacco products Confections and candies Cosmetics Dairy products and eggs Delicatessen foods (ready-to-eat) Diet foods Electrical products such as light bulbs, extension cords, etc. Feminine hygiene products Financial services and products such as mortgages, credit cards, savings accounts, wire transfers, etc. (typically offered in-store by a partnering bank or other financial institution) Flowers Frozen foods and crushed ice Fresh produce, fruits and vegetables Greeting cards House-cleaning products Housewares, Dishware and cooking utensils, etc. (typically limited) Laundry products such as detergents, fabric softeners, etc. Lottery tickets (where operational and legal) Luggage items (typically limited) Meats, fish and seafoods (some stores may offer live fish and seafood items from aquarium tanks) Medicines and first aid items (primarily over-the-counter drugs, although many supermarkets also have an on-site pharmacy) Nonalcoholic beverages such as soft drinks, juices, bottled water, etc. (some stores may have a juice bar that prepares ready-to-drink freshly squeezed juices, smoothies, etc.) Personal hygiene and grooming products Pet foods and products Seasonal items and decorations Snack foods Tea and Coffee (some stores may have a commercial-style grinder, typically available for self-service, and/or a staffed coffee bar that prepares ready-to-drink coffee and tea beverages) Toys and novelties

In some countries, the range of supermarket merchandise is more strictly focused on food products, although the range of goods for sale is expanding in many locations as typical store sizes continue to increase globally.

[edit] Typical store architecture

A Kroger store, Kroger of the Villages, in Hedwig Village, Texas Whilst 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 in order to get shoppers to spend more money whilst there. Every facet of the store is mapped out and attention is paid to colour, wording and even surface texture. The overall layout of a supermarket is a visual merchandising project that plays a major role in retailing. Stores can creatively use a layout to alter customers perceptions of the atmosphere. Alternatively, they can enhance the stores atmospherics through visual communications (signs and graphics), lighting, colours, and even scents.[16] For example, to give a sense of the supermarket being healthy, fresh produce is deliberately located at the front of the store. As explained by Dr Paul Harrison, cited in Browne (2010), supermarkets are designed to give each product section a sense of individual difference and this is evident in the design of what are called the anchor departments; fresh produce, dairy, delicatessen, meat and the bakery.[17] Each of these sections has different floor coverings, style, lighting and sometimes even individual services counters to allow shoppers to feel like there are a number of markets within this one supermarket

Department store
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A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, home appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewellery, toys, and sporting goods. Certain department stores are further classified as discount stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countrie

Department Store - A large store divided by departments, each specializing in a different product. shoes, apparel, sports, ect. Conveniance Store - A small store that sells small personal sized items such as candy, newspapers, coffee, and similar items meant for quick use. For your conveniance. Shopping Mall - Is a collection of different stores under one roof. Supermarket (one word) - Is a larger type of conveniance store, but the items it sells are meant for later use. It generally sells food plus items used in the home. By later use I mean it is for stocking your house, your fridge, medicine cabinet, ect rather than for immediate use (conveniance store).

Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses have come to dominate the market in many parts of the world. A franchise retail establishment is one form of chain store.

The displacement of independent businesses by chains has generated controversy[who?] and sparked increased collaboration among independent businesses and communities to prevent chain proliferation. These efforts include community-based organizing through Independent Business Alliances (in the U.S. and Canada) and "buy local" campaigns. In the U.S., trade groups such as the American Booksellers Association and American Specialty Toy Retailers do national promotion and advocacy. NGOs like the New Rules Project and New Economics Foundation provide research and tools for pro-independent business education and policy while the American Independent Business Alliance provides direct assistance for community-level organizing. In 2004, the world's largest retail chain, Wal-Mart, became the world's largest corporation based on gross sales.


1 History 2 Restaurant chains 3 Regulation and exclusion 4 See also 5 References

[edit] History

The first chain store was British-owned W H Smith.[citation needed] Founded in London in 1792 by Henry Walton Smith and his wife, the store sells books, stationery, magazines, newspapers, and entertainment products. In the U.S., chain stores began with the founding of The Great Atlantic & Pacific Tea Company (A&P) in 1859. By the early 1920s, the U.S. boasted three national chains: A&P, Woolworth's, and United Cigar Stores.[1] By the 1930s, chain stores had come of age, and stopped increasing their total market share. Court decisions against the chains' price-cutting appeared as early as 1906, and laws against chain stores began in the 1920s, along with legal countermeasures by chain-store groups.[2]

[edit] Restaurant chains

A Cracker Barrel chain restaurant A restaurant chain is a set of related restaurants with the same name in many different locations that are either under shared corporate ownership (e.g., In-N-Out Burgers in the U.S.) or franchising agreements. Typically, the restaurants within a chain are built to a standard format and offer a standard menu. Fast food restaurants are the most common, but sit-down restaurant chains (such as TimberLodge Steakhouse, T.G.I. Friday's, Ruby Tuesday, and Olive Garden) also exist. Restaurant chains are often found near shopping malls and tourist areas. They began in 1990.

[edit] Regulation and exclusion

Some small towns in the United States whose residents wish their distinctive character such as Provincetown, Massachusetts and other Cape Cod villages; McCall, Idaho; Port Townsend, Washington; Ogunquit, Maine; and Carmel-by-the-Sea, California closely regulate, even exclude, formula businesses; they don't exclude the chain itself, only the standardized formula the chain uses, for example, there could be a restaurant owned by McDonald's which sells hamburgers, but not the formula franchise operation with the golden arches and standardized menu, uniforms, and procedures. Another motivation is to protect independent businesses from competition.[3

Differnce between departmental and chain store?

A chain store has branches at various locations. A department store is a store where different items are displayed in different areas or floors of the same store. A department store may be part of a chain of stores.