The history of mankind started with the most basic of economic interactions - the barter. In this case, you would trade one good for another. For instance, if I had 10 sheep, I might trade you two of them for one of your horses. Clearly, we are a long way from that. Now, we almost always buy our goods through retail stores. But what do you really know about retail? And is it possible that retail is about to be as outdated and extinct as bartering? Here are some facts about retail history and what it means for the future of shopping.
As civilizations grew, they developed money which became a stand in for the bartering process. Collectively, we agreed that a gold coin, a slip of paper or, more recently, a plastic card had a certain value and could be exchanged for a good. Previously, if you wanted a certain good, you went to the person who had or manufactured this good. You went to the dairy to get some milk, the cobbler to buy some shoes, et cetera. These days we would call such purchasing, wholesale buying - purchasing directly from the manufacturer.
Retail grew out of a need when people wanted to buy manufactured goods that were not readily available to them. For instance, if I wanted a certain style of hat, but no one in my town made them, I would hope that a traveling salesman might bring one as they followed their route. This traveling salesman is the first example of retail.
That is, he sold goods that he didn't himself make. This is where the term "middleman" comes from. The manufacturer sold the goods to a salesman or merchant and then the merchant would sell the goods to customers at a marked up price. This way of commerce was very effective in bringing goods to places where they were previously unavailable. In this way, most people had a fairly high opinion about retail.
The thing about retail these days is that it is entirely unnecessary. Global corporations and the Internet make goods and services available to anyone, virtually anywhere. This is a good thing for consumers as it means that prices are lower as the retail make up is removed. You can buy factory direct for a number of manufactured goods and retailers are slowly dying. Most likely, in your lifetime, to find out about retail you would not look in a economics book, but a history book. - 30544
As civilizations grew, they developed money which became a stand in for the bartering process. Collectively, we agreed that a gold coin, a slip of paper or, more recently, a plastic card had a certain value and could be exchanged for a good. Previously, if you wanted a certain good, you went to the person who had or manufactured this good. You went to the dairy to get some milk, the cobbler to buy some shoes, et cetera. These days we would call such purchasing, wholesale buying - purchasing directly from the manufacturer.
Retail grew out of a need when people wanted to buy manufactured goods that were not readily available to them. For instance, if I wanted a certain style of hat, but no one in my town made them, I would hope that a traveling salesman might bring one as they followed their route. This traveling salesman is the first example of retail.
That is, he sold goods that he didn't himself make. This is where the term "middleman" comes from. The manufacturer sold the goods to a salesman or merchant and then the merchant would sell the goods to customers at a marked up price. This way of commerce was very effective in bringing goods to places where they were previously unavailable. In this way, most people had a fairly high opinion about retail.
The thing about retail these days is that it is entirely unnecessary. Global corporations and the Internet make goods and services available to anyone, virtually anywhere. This is a good thing for consumers as it means that prices are lower as the retail make up is removed. You can buy factory direct for a number of manufactured goods and retailers are slowly dying. Most likely, in your lifetime, to find out about retail you would not look in a economics book, but a history book. - 30544
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