Picket out to Tittsburgh, any burgh, hamburger
In a new book, Levinson explains how local mom-and-pop stores — with their limited selections, high prices and nonstandard packaging — paved the way for national chains like the A&P to swoop in and dominate the grocery industry. (…)
The A&P, which originally focused on the tea market, opened its first small grocery store in 1912. Unlike traditional mom-and-pop stores, the A&P had no telephone, no credit lines and no delivery options. They also had lower prices.
“People figured out they could save money by shopping there,” says Levinson. “It stocked only items that were fast-sellers, so it wasn’t stuck with an inventory of products no one was buying. It had limited hours. It had a single employee. … They found a way to sell groceries cheaper. … Within eight years, this approach turned their company into the largest retailer in the world.”
By 1930, the Hartford family, which owned A&P, had opened up almost 16,000 more stores. The stores themselves also expanded in both size and selection. (…)
Controlling both the retail store and the supply chain gave the A&P a huge advantage over corner grocery stores because the A&P could run the factories at a lower cost. In addition, the A&P started to bypass wholesalers and go directly to distributors for various products.
