The history of American retail is one of perseverance, pluck and innovation. From outback stores in the middle of nowhere and the first chain stores to mega malls and the emergence of ecommerce, we'll be exploring – with the help of some incredible imagery – how the American shopping experience has changed over the years and shaped the country we know today.
Click through the gallery to discover the fascinating story of American retail...
As America expanded westward in the 18th and 19th centuries, new towns were cropping up everywhere. Most of these would have a 'Mom and Pop' store serving their communities. Some of the earliest modern retail stores, these small, family-run operations were where most people headed for their everyday shopping. Acting as drug stores or general stores, they sold everything from groceries and fabrics to toys, tools and medicines. Although most would eventually give way to larger retailers and chain stores, some small family businesses still survive today.
As towns across America grew and flourished, the concept of the 'Main Street' as a centre of commercial and social life became firmly established. With its dry goods and hardware stores, drug stores, barber shops and banks, every Main Street was both unique and yet much like all the others across the nation, representing something both local and universal. This idea remains firmly rooted in the American sense of self-identity, perfectly reflected by the nostalgic confection of 'Main Street USA' that greets visitors to Disney theme parks around the world.
Inspired by the European model, department stores such as Marshall Field in Chicago (pictured here in 1852) began to appear in major US cities from the mid-19th century onwards. As rapid growth in manufacturing and industry brought new jobs and higher standards of living, these vast retail palaces became integral parts of their communities. Grandly designed and selling a huge range of goods under one roof, they not only offered unique services such as demonstrations and lectures but also directly influenced what people bought, how they furnished their homes and which luxuries they felt they could afford with their disposable income.
Every department store had a unique personality, offering something that its rivals didn’t. It could be a great book department, a focus on high fashion, a renowned restaurant, a distinctive architectural feature, or an extraordinary level of customer service. Rich’s in Atlanta, for example, had a legendary exchange policy, often giving full refunds on items purchased at other stores or which were visibly used. They offered store credit to almost everyone. Although seemingly self-defeating, this liberal policy would endear Rich’s to its local community and help it thrive in the long run.
Opened in 1876 and housed in the old freight depot of the Pennsylvania Railroad Station in Philadelphia, Wanamaker’s was one of America’s largest department stores. It was also one of its most innovative. Not only was it the first to have electrical illumination, telephones, an in-store restaurant and pneumatic tubes to transport cash, it was also the first to introduce price tags to stop customers haggling over prices with the staff. A devout Christian, founder John Wanamaker wanted his store to evoke the interior of a giant church, even installing the world’s largest pipe organ in its Grand Court in 1911.
Nineteenth century retailers had one major problem: how to keep employees’ hands off their profits. Designed to stop such petty embezzlement, saloon owner James Ritty patented the world’s first mechanical cash register in 1879. It was known as Ritty’s Incorruptible Cashier. His business was soon bought out by the National Cash Register Company, who perfected the original design and within two decades this handy device became a vital fixture in almost every retail establishment. Elaborate brass and silver-plated models not only enhanced the look of a store but also reduced theft.
Launched in 1872, the Montgomery Ward mail order catalogue was the first of its kind and proved to be a revolution in American retail. Offering an extensive range of goods to the masses, it provided a much-needed lifeline to many consumers, especially those in isolated rural and farming communities. Originally just a single sheet, by 1876 it had grown to 152 pages and was listing 3,000 items. By the turn of the century, the publication had three million subscribers. It was followed in 1888 by the Sears Roebuck catalogue, which would eventually consist of more than 1,000 pages, offering 100,000 items.
While department stores thrived in major cities, certain areas of America remained too remote for major retail outlets or mail order. During the Klondike Gold Rush of 1897 to 1898, enterprising individuals established rough-and-ready general stores to take advantage of the prospectors’ need for food and other essential supplies while traversing arduous trails into the Canadian Yukon. Most such businesses had short lifespans, however. Canyon City, Alaska (where this pictured store was located) sprung into existence in 1897, but was all but abandoned two years later, after the Gold Rush ended.
While we tend to think of indoor shopping centres as a mid-20th century phenomenon, they actually appeared much earlier. Opening in 1890, the Cleveland Arcade in Cleveland, Ohio can claim to be one of the first in America. Modelled after the Galleria Vittorio Emanuele II in Milan, it cost $875,000 to build and was financed by a team of prominent businessmen including John D. Rockefeller and Louis Severance. Known as Cleveland’s Crystal Palace, this stunning Victorian gem consists of two nine-storey buildings joined by a five-storey arcade with a vast glass skylight spanning 300 feet (91m).
Much like indoor shopping centres, the history of chain stores stretches back further than one might think. The earliest examples in America grew out of grocery stores in the late 19th century, the most prominent being The Great Atlantic and Pacific Tea Company (or A&P). Founded in the 1860s, by 1900 the company operated 200 outlets throughout the country, and by 1925 had expanded to an incredible 14,000 'economy stores', making it the largest grocery chain in the United States and one of the very few billion-dollar companies in the world.
When pharmacist Charles R. Walgreen purchased the small Chicago drugstore where he worked in 1901, he had little idea that he was founding an empire which would span the nation. He began manufacturing his own medicines to ensure high quality and low prices. By 1926, he had opened his 100th store. Today, with around 9,000 stores in total, there is a Walgreens in every state. Medicines aside, Walgreens employee Ivar 'Pop' Coulson also invented the malted milkshake in 1922.
Today we take self-service grocery shopping for granted, but in the early 20th century shoppers were accustomed to having their orders assembled by store clerks. So, when Clarence Saunders founded the nation’s first self-service grocery in Memphis, Tennessee in 1916, it was something of a novelty (and not just because of its bizarre name). With no clerks to help the customers, wooden shopping baskets and open shelves, Piggly Wiggly was the forerunner of the modern supermarket. It was an instant success. Within a year, another eight stores had opened. These days, there are over 500.
Chain stores continued to multiply and expand in the early 20th century, with companies such as the grocer's Kroger (pictured) continuing to offer new innovations such as own-brand products and home deliveries. But not everyone was happy. By the 1920s and 1930s, many felt that independent local stores (the 'Mom and Pops') were being driven out of business by unfair competition. This 'chain store evil' was even investigated by state legislatures and Congress. It’s an argument, of course, that's never really gone away, with chain stores becoming an integral part of Main Streets everywhere.
Despite the backlash, chain stores continued to thrive with their combination of reliable quality and cheap prices. By 1929, Woolworths, pioneers of the 'five-and-dime' store had become a household name around the world, with almost 1,500 stores in six countries. It was so successful that it inspired a film, The Girl From Woolworth’s, a rags-to-riches musical comedy starring Alice White (pictured). One of the first 'talkies', it was a popular success and inspired various tie-in products such as a book, gramophone records and sheet music, all of which were, of course, sold in branches of Woolworths.
Now check out the earliest photos of America that will amaze you
Another revolution came in 1930, when Michael J. Cullen opened the first branch of King Kullen in Queens, New York. Much larger than a standard grocery store it was, according to the Smithsonian Institute, the first such establishment to meet all the criteria of a modern supermarket: 'separate departments; self-service; discount pricing; chain marketing; and volume dealing'. The formula proved an instant success, attracting customers from miles around. Within six years, the company had seventeen stores. They were deliberately located away from the high street, with ample car parking to accommodate as many shoppers as possible.
By mid-century, department stores continued to thrive, often by using innovative publicity techniques. Probably the most famous is the Macy’s Thanksgiving Parade, which has become an integral part of the American festive season, as essential as turkey and pumpkin pie, since it began in 1924. The first parade was fairly basic, with store employees dressed in costumes and animals borrowed from the Central Park Zoo. But it has grown into a lavish spectacle, with its iconic giant balloons, marching bands and celebrity guests, all broadcast live on television every year since 1947. A little publicity goes a long way.
Another American innovation, which has become an unmissable festive tradition for children around the world, is the department store Santa. The first in-store Santa is thought to be James Edgar, a dry goods store owner in Brockton, Massachusetts who caused a sensation when he had the idea to dress up as Santa Claus in 1890. Children flocked from Boston, Providence, Worcester and even New York to see him. Department stores across the country took note and by the end of the decade the in-store grotto was a regular festive feature. Macy’s even persuaded the actor Monty Woolley (pictured) to don the garb.
When businessman Frank McNamara realised he’d forgotten his wallet while out to dinner, he came up with an idea which would revolutionise the way people paid for goods and services. Launched in 1950, the Diners Club card (which was, literally, made of cardboard until 1961) was originally intended for use in restaurants only, hence the name. But it was soon expanded to include other businesses such as hotels, car rentals and flower shops, making it the first multipurpose charge card in America. Within a year, its membership had reached 42,000. By 1955, it had spread across the globe.
When the Southdale Center opened its doors in Edina, Minnesota, in 1956, it was unlike anything that had come before. The first fully enclosed, climate-controlled shopping centre, this enormous retail monolith was designed to bring the town centre to the suburbs. Housing two department stores, a Walgreens and some 70 smaller shops spread over two levels, it had pedestrian boulevards, a lush courtyard and even an 'outdoor' café with umbrellas on the table. Like it or not, it became the template for the indoor mall as we know it, inspiring around 3,000 similar examples by the late 1980s.
In subsequent years, American shopping centres would keep getting bigger and bigger. The King of Prussia Mall in Pennsylvania opened in 1962 as a modest open-air complex, but grew rapidly, adding major stores like JCPenney, Gimbels and Woolworth’s along with a 1,400-seat cinema. By the end of the decade, it spread over one million square feet (92,903sqm), housed over 100 stores and had parking for 27,000 cars, making it the largest shopping centre in the east. Today, with more than 450 stores, it's even bigger, welcoming 22 million visitors every year.
The rapid expansion of American retail coincided with both a post-war boom in the nation’s economy and the beginning of the Golden Age of American advertising. As we all know from the TV series Mad Men, ad agencies upped their game in the 1960s, producing innovative campaigns designed to part consumers from their disposable income, coaxing them into the ever-expanding number of department stores, chain stores and malls cropping up across the country. Lavish ads appeared on TV, billboards and in magazines, such as the two-page spread for Samsonite pictured here (a brand that the iconic character Don Draper pitches for himself).
While department stores, chains and malls may have left the biggest mark on American retail, the nation has also been home to countless wonderful independent stores, many of which have achieved legendary status. Opened in 1920, New York’s Gotham Book Mart was one such cultural landmark; not just a bookshop, but a publisher, bastion of the avant-garde and meeting place for famous writers, artists and other celebrities. Its customers included J.D. Salinger, Arthur Miller, Charlie Chaplin and Dylan Thomas (pictured). Miller once said of the store: "It's impossible to imagine New York City without it." Unfortunately, it closed in 2007.
The arrival of VHS revolutionised home viewing with video stores becoming a staple of every American town. At the peak of the 1980s VHS boom, a store like Video Shack in New York was popular enough to be chosen as the venue for in-store signings by megastars like Duran Duran, attracting huge queues in the process (pictured). They are now virtually extinct, killed by streaming services such as Netflix and Amazon. Between 2007 and 2017, 86% of the 15,300 surviving video stores closed their doors for good. Today, only a few hundred are left.
Malls dominated US retail in the 1980s and 1990s, and none came bigger than the Mall of America in Bloomington, Minnesota. When it opened in 1992, it instantly became the largest mall in North America (a title it retains to this day). As well as shops, it also managed to incorporate a cinema, an aquarium, two hotels, dozens of food outlets and even a theme park. These sprawling suburban mega malls would fall out of fashion in the 21st century, with many closing as a result. The Mall of America still attracts an astonishing 40 million visitors a year though.
However big and successful they might be, department stores can still fall victim to forces outside their control. Spread over 32 floors, Hudson’s in Detroit was once the tallest department store in the world, with 51 passenger elevators, 48 escalators and almost 100 restrooms. Every year it would unfurl the biggest American flag in the world across its immense façade, which needed a whole mile of rope to hang it. But as the Motor City’s fortunes declined in the 1970s, so did those of Hudson’s. Forced to close its doors in 1983, the landmark was eventually demolished.
The biggest shake-up of American retail in recent years had modest beginnings. Founded in the mid-1990s as an online bookseller, Amazon didn’t post its first profit until 2001. But it has since grown into the world’s biggest online retailer, selling pretty much anything one could think of, fundamentally reshaping the retail landscape of the 21st century and redefining customer expectations. Its impact has not always been positive, leading to the closure of many brick-and-mortar stores and raising questions about the company’s treatment of employees. But for now, it seems, Amazon is here to stay.
For a while Amazon’s meteoric rise seemed likely to crush Barnes & Noble, the historic bookstore chain founded 1917. Back in 2018 it seemed to be in irreversible decline. But after a hedge fund takeover in 2019 installed James Daunt as CEO – the man who was responsible for turning around the fortunes of UK bookstore chain Waterstones – the company staged a remarkable comeback. Today, Barnes & Noble has a presence in every state. Boasting 630 stores in total, it sells around 190 million books every year and is the largest bookstore chain in the US. Good news for anyone who prefers browsing for books in person.
Macy’s is another iconic store that has faced difficulties over the years, even facing bankruptcy in 1992. A merger with Federated Department Stores in 1994 saved it back then, with the company later renaming itself Macy’s Inc (no doubt recognising brand star power). The company gobbled up rivals including Marshall Field and Rich’s and, at one point, operated in around 640 locations in 43 states. However, fierce competition from online rivals means the company will be closing around 150 stores in the coming years, in a bid to become a leaner, more luxury-focused brand. The iconic New York store is of course safe, for now.
The rise of ecommerce and changing consumer behaviour has also seen many shopping malls and centres struggle. If you’re going to attract visitors in this day and age, you have to have something special. As the largest open-air shopping centre in the world, The Ala Moana Center in Hawaii certainly fits the bill. A place to indulge in some serious retail therapy, it's home to over 350 shops and restaurants. This impressive number includes several department stores and high-end boutiques.
When it comes to attracting contemporary consumers, size isn't everything. The new owners of the HHLA Mall, Los Angeles, are looking to reimagine the mall as more than just a simple shopping destination, transforming it into a go-to entertainment and lifestyle destination. They have already bagged 60out Escape Rooms as a tenant and will also be including a permanent exhibit by Meow Wolf, the immersive art production company behind the hugely popular Omega Mart supermarket experience (pictured) at the AREA15 entertainment district in Las Vegas. The future of American retail is certainly looking bright.