Supermarkets are just places to shop; they represent the century-long evolution of consumer habits and retail innovation. From their humble beginnings as local stores to their rise as global juggernauts, these institutions have not only smoothed out the shopping process but have also left their mark on the economy, food production, and culture. From the modest beginning of supermarkets in 1930s America to the emergence of global chains that dominate the markets today, this article will delve deep into the history of supermarkets. We look at innovative ideas and milestones that transformed simple shops into an international retail phenomenon. On our journey, we will reveal some fascinating stories, including the odyssey of Iran’s first chain stores. Let’s journey through this magical history together with Foodex Magazine, your reliable companion in the world of food and beverages.
The History of Supermarkets
Supermarkets represent one of the most revolutionary creations that have ever been made in the retail industry and have changed how people shop today. But where did this change start, and what path did it take to become what it is? To gauge these questions, we have to go backward in time and track how and when supermarkets evolved over the years.
The Early Days: 1930s in the United States
The 1930s were the birthplace of the supermarket concept when the Great Depression took most of the United States down a downward spiral. During these economically disastrous years, retailers tried to think of ways to reduce costs both on their and customers’ ends by developing ways of increasing efficiency. The appearance of one more invention happened to be a store King Kullen, opened in New York in 1930, actually considered to be the world’s very first modern supermarket. A core difference from that time between King Kullen was its approach in customer self-service and the rendering of an optimum variety of commodities at cheap price levels. With such an approach in trade, all day-to-day needs for commodities could be provided within a single premises in the shortest timeframe, thusly making such purchasing style widely demanded.
Key factors contributing to the success of early supermarkets:
Variety of products: A wide variety of food items and household products under one roof impressed customers.
Self-service: Unlike the traditional store, customers were allowed to choose whatever they needed directly.
Competitive prices: Due to the low cost of operations, the stores were able to sell their products at relatively cheaper prices.
This successful combination formed the backbone of supermarket business models, which has become the standard to this date.
Post-WWII Era: Expansion in the U.S. and Europe
changes to people’s lifestyles and shopping habits. With economic recovery and population growth, the need for quicker shopping and access to a wider variety of products turned supermarkets into the primary family shopping hubs. During this period, other advances also cropped up, such as refrigeration systems and modern packaging, which allowed for longer preservation of food.
United States: The booming economy and rise in household incomes in the U.S. post-war period favored the rapid growth of supermarkets. Major chains such as Safeway and Kroger got wide acceptance due to the variety they offered and accessibility as well. This instantly came out as the new retail format in the country.
Europe: In the 1950s, Europe accepted the supermarket model, which gave a complete face-lift to European retail. In the UK, it was chain stores like Tesco that pioneered the concept and gained immediate consumer acceptance. This type of retailing became standard across other European nations because of the convenience regarding daily necessities and variety all under one roof.
The 1960s and 1970s: Global Expansion
During the 1960s and 1970s, the supermarket concept spread beyond Western borders to Asia, Africa, and the Middle East. Meanwhile, during the same period of time, other smaller and regional chains started to penetrate these various markets of differing needs and environments.
Japan: The truly modern supermarket models initially established in the 1960s updated the shopping experience with new and smaller-format stores. Seizing the opportunity, others followed, like 7-Eleven, whose target audience’s lifestyle-urban centers-requires store designs focused on quick purchases within smaller facilities. These innovations set the supermarkets into Japanese shopping culture firmly.
Africa and the Middle East: Supermarkets started to appear in African and Middle Eastern countries during the 1970s. Notwithstanding the problems in infrastructure and economic barriers, flexibility and adaptability in this retail model made it an attractive option for local consumers. Gradually, supermarkets became essential in meeting daily needs and provided access to a wide range of products.
The 1980s and Beyond: The Rise of Global Giants
The 1980s irrevocably altered the outlook of the supermarket industry. For the first time, with the aid of the advantages of globalization and advances in technology, multinational corporations such as Walmart and Carrefour entered different markets and soon became leading companies in the supermarket industry.
Key Features of Global Supermarket Giants
Advanced Supply Chains
Leveraging modern technologies, these companies optimized their supply chains, enabling them to deliver products to customers faster and at lower costs.
Reduced Operational Costs
Their business model focused on minimizing costs through economies of scale and efficient processes.
Localized Strategies
Although multinational, these companies adopted localized strategies to cater to the needs and cultures of each region, ensuring their success in diverse markets.
This combination of global reach and local adaptation positioned these giants at the forefront of the supermarket industry, shaping shopping experiences worldwide.
The 2000s and Beyond: Innovation and Digitalization
With the rise of the internet, the concept of supermarkets transcended physical stores, entering the realm of online shopping and digital services. Platforms like Amazon Fresh and Instacart revolutionized the shopping experience by enabling customers to order their necessities from the comfort of their homes and have them delivered quickly.
Simultaneously, smaller specialty stores such as City Stores thrived in urban areas. By focusing on specific needs and the lifestyles of densely populated regions, these stores carved out a unique place among consumers. These changes underscore the relentless innovation in the retail industry.
The First Chain Store in the World
The world’s first chain store marked the beginning of what we now know as chain retailing. These stores quickly transformed the retail model, paving the way for the emergence of global brands.
Piggly Wiggly: A Pioneer in Modern Retail
Piggly Wiggly, established in 1916 in Memphis, Tennessee, is recognized as the world’s first chain store. It introduced an innovative concept that would later become the standard for retail: customer self-service.
Key Features of Piggly Wiggly
Customer Self-Service
Instead of requesting items from a clerk, customers could pick products directly from the shelves.
Store Layout
The store was designed to guide customers in a specific sequence from the entrance to the checkout counter.
Lower Operational Costs
Reduced costs allowed the store to offer more competitive prices.
Global Impact
The Piggly Wiggly model quickly gained popularity, becoming a blueprint for chain stores worldwide in the decades that followed. It introduced the concept of the modern supply chain and standardization in retail, shaping the global retail industry we know today.
The First Chain Store in Japan
The history of chain stores in Japan started with one of the leading global brands within the retail industry. Yoshinoya was founded in 1899 by Eikichi Matsuda when he opened a small shop in the Nihonbashi fish market, Tokyo. Over time, it has grown into one of the biggest chains specializing in gyudon—a traditional Japanese dish made of rice and beef.
In the succeeding decades, 7-Eleven Japan, introduced to the Japanese marketplace in the early 1970s by Ito-Yokado, thoroughly transformed urban small chain stores. These new chain stores, designed to cater to the fast-paced lifestyles and high population density of Japanese cities, became extremely popular.
The success of Japanese chain stores such as 7-Eleven and Yoshinoya in Japan marked the beginning of their international journey. Today, Yoshinoya operates stores in countries like the United States, China, Indonesia, and Taiwan, maintaining its leading role in the retail world.
The First Chain Store in Iran
The earliest chain store in Iran dates back to the early 1960s. Iran Grand Chain Stores, established by the Akhavan Kashani brothers, was the first of its kind. It introduced centralized management and a unified brand name nationwide, offering a pioneering retail model at the time.
About eight years later, Mahmoud Khayami and his brother advanced the development of chain retail in Iran by founding the Kourosh Chain Stores. Inspired by Western models, these stores introduced a variety of products, self-service systems, and modern designs, revolutionizing the shopping experience for Iranian consumers.
Over time, chain stores in Iran expanded, with brands like Refah, Shahrvand, Sepah, and Etka entering the market. In the specialized food retail sector, brands such as Ofogh Kourosh, Jumbo, and Daily Market have played a crucial role in meeting daily needs. Today, chain stores in Iran operate not only in major cities but also in smaller towns, creating a broad network that ensures convenient access to goods.
The First Hypermarket in the World: A Revolution in Shopping
The hypermarket model represented a significant revolution in retailing, initiated by Carrefour in the 1960s. It combined the concepts of supermarkets with those of department stores, allowing customers to purchase a wide range of goods in a single location. This innovation not only reduced shopping time but also made purchases more cost-effective, transforming the retail experience for consumers worldwide.
How Did Supermarkets Go Global?
The years beginning from the end of the Second World War saw massive changes in lifestyle and shopping trends. Supermarkets came to be the main form of retail that supported economic growth and infrastructure across the entire planet. Although first introduced in America, the concept spread like wildfire to Europe, Asia, Africa, and the Middle East.
Europe: The Rise of Supermarket Giants
In the 1950s, European supermarkets as we know them made an appearance on the scene in both the UK and France. Chains such as Tesco in the UK and Carrefour in France innovatively changed the face of retailing in Europe. These were brands that not only brought the shopping experience on par but also set their eyes on the international markets.
Japan and Asia: Adapting to Local Cultures
As a more general illustration, when supermarkets first began to take Asia by storm in the 1960s, one would find that in Japan, Seven-Eleven was vigorously working the line to build a particular model of small, urban shops. By selling ready-made meals and staying open late, they became one of the most successful chains in the world.
Africa and the Middle East: Opportunities Amid Challenges
Supermarkets began to reach Africa and the Middle East in the 1970s. Chains like Shoprite in South Africa and Carrefour in the Middle East overcame infrastructural shortcomings and launched new forms of retail in these regions—establishing an early foothold for themselves.
The 1980s: Globalization and Retail Giants
In the 1980s, Walmart and Carrefour utilized modern technologies and sophisticated supply chain systems, becoming highly competitive in their home markets while also entering and thriving in global territories.
Further Evolution in the Retail Industry
Supermarkets, as one of the most impactful retail models, continuously evolve to align with customer demands and technological advances. Innovations and digitization are transforming the industry, making it more dynamic and responsive than ever.
Technological Innovations: A Bridge to the Future
Supermarkets are leveraging technological advancements to make shopping faster, easier, and more personalized. Tools like artificial intelligence for inventory management, robotics for shelf stocking, and contactless payment systems are revolutionizing the shopping experience. Some supermarkets are even integrating augmented reality to provide real-time product information for customer convenience.
Checkout-Free Supermarkets: A Seamless Shopping Experience
The latest innovation in the industry is checkout-free supermarkets, such as Amazon Go. These stores use advanced sensors and cameras, allowing customers to shop without traditional checkouts. Shoppers simply take what they need, and the system automatically deducts the cost from their accounts.
Hybrid Stores: Blending Online and Offline Experiences
Modern supermarkets are embracing omni-channel retailing by integrating physical stores with online platforms. This strategy allows customers to shop online and collect their orders in-store—or vice versa. This flexible approach enhances customer satisfaction and provides greater convenience.
The Growing Importance of Sustainability in Retail
With heightened awareness of environmental concerns, supermarkets are revising their practices to reduce ecological footprints. Initiatives include using recyclable packaging, minimizing single-use plastics, supporting local products, and investing in renewable energy to power their operations. These efforts contribute to a more sustainable future for retail.
Small Supermarkets: A Return to Simplicity
While large supermarkets continue to expand, small, local stores are also gaining popularity. Located in densely populated urban areas, they cater to the need for quick and convenient shopping. Examples like 7-Eleven and City Stores illustrate the success of this model in meeting the fast-paced demands of modern consumers.
The Future: Smart Supermarkets
With the growing adoption of the Internet of Things (IoT), future supermarkets are set to become even smarter. Internet-connected refrigerators will be able to track inventory and automatically place orders when needed. Additionally, smart applications will personalize shopping experiences by offering tailored product recommendations and exclusive discounts, transforming how customers interact with supermarkets.
Key Future Trends
Customized Products: Offering goods designed to meet specific customer needs.
Faster Delivery: Utilizing drones and robots for rapid product delivery.
Supply Chain Transparency: Leveraging blockchain technology to provide precise information about the origin and production process of products.
Conclusion: A Bright Path Ahead
Supermarkets will remain not only as shopping hubs but also as an integral part of consumer culture and innovation in daily life. With ongoing transformations, this industry is expected to stay at the forefront of technological, social, and environmental advancements, meeting customer needs in unprecedented ways.
As these advancements unfold, supermarkets will continue to serve as a cornerstone of modern living.
Frequently Asked Questions (FAQ) About the History of Supermarkets
Where was the world’s first supermarket established?
The world’s first supermarket, King Kullen, was established in 1930 in New York, USA. This store revolutionized retail by introducing self-service shopping and offering a wide variety of products.
What was the name of the first chain store in the world?
The first chain store in the world was Piggly Wiggly, which opened in 1916 in Memphis, Tennessee. This store pioneered the concept of self-service in retail.
What was the first chain store in Iran?
The first chain store in Iran was Kourosh, founded in the 1960s. These stores were modeled after Western retail practices and introduced a modern shopping experience for Iranian customers.
How did the internet transform the supermarket industry?
With the rise of the internet in the 2000s, online shopping entered the supermarket industry. Platforms like Amazon Fresh and Instacart revolutionized the shopping experience by enabling online orders and fast delivery for customers.
What factors contributed to the early success of supermarkets?
Factors such as product variety, self-service, and competitive pricing contributed to the early success of supermarkets. These features provided customers with a new and efficient way to shop.
What is the future outlook for the supermarket industry?
The future of the industry is moving toward digitalization and innovation. Trends such as online stores, advanced technologies, and personalized shopping experiences are driving the continued growth and evolution of the supermarket sector.
Ehsan Allahverdi
Executive Manager of Foodex Iran
Marketing Consultant for Leading Food & Beverage Brands
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