The big players in US supermarkets in 2017 are names like Kroger, Costco and Safeway❈ but long before Costco, Safeway and Walmart existed and whilst Kroger was still a cash-and-carry grocer, there was King Kullen.

Founder of King Kullen

The entrepreneur behind the King Kullen story was Michael J Cullen – Cullen was an ex-employee of the Kroger Company (and before that he had worked for the famous Great Atlantic & Pacific Tea Company, better known simply as A & P Tea). The manner by which Cullen came to start up his own supermarket chain is a classic story of turning rejection into a virtue. Cullen was managing a number of small Kroger stores in the late 1920s and identified a raft of improvements to the way Kroger did business that he believed, if implemented, would increase the company’s revenue tenfold. Cullen wrote to the Vice President of Kroger with his suggestions for a new, revolutionary type of dry goods/grocery store. In his letter Cullen envisaged “monstrous stores, size of same to be about forty feet wide and hundred and thirty to a hundred and sixty feet deep…located one to three blocks from the high rent district with plenty of parking space, and same to be operated as a semi-self-service store – twenty percent service and eighty percent self-service”, low prices and cash sales[1].

Kroger’s VP, whether through indifference, complacency or sheer lack of business nous, did not reply to his branch manager’s suggestions. Cullen, rebuffed but confident in the efficacy of his own store model, resigned from Kroger and set about realising the kind of new revolutionary grocery store he had envisaged. Settling his family in Long Island, Cullen found a vacant warehouse in Jamaica (Queens) with 6,000 square feet of space, which he chose as the optimal retail location. Cullen’s new store, which he dubbed “King Kullen”, opened its doors for business in August 1930[2].

King Kullen, Queens

Billing itself as the “World’s Greatest Price Wrecker”, King Kullen was an instant success in New York with its formula of high volume and low cost…KK’s slogan was “Pile it high, sell it low!” Customers were willing to travel up to 30 miles to the Queens store to cash in on the bargains[3]. The American Food Marketing Institute (FMI) Identified the contribution of King Kullen as “serv(ing) as a catalyst for a new age in food retailing” and the Long Island-based grocery company is widely thought to be the first example of the modern supermarket. King Kullen’s reputation as the prototype form of supermarket (or at the very least a strong candidate for being so) rests in part on the endorsement given it by the Smithsonian Institute…FMI in 1980 with funding from the Heinz Corporation) initiated research by the Smithsonian which concluded that King Kullen met its five-point criteria for a supermarket, viz. it provided separate departments for produce; it offered self-service; it offered discount pricing; it conducted chain marketing; and it dealt in high volume quantities[4].

Under Cullen’s leadership the supermarket chain grew exponentially…8 stores by 1932 (each new store bigger than the preceding one), 17 stores by 1936 with annual sales of $6 (this despite a climate of economic depression)[5]. To match the “belt-tightening” days of the Depression and deliver the lowest possible prices, Cullen took a “no frills” approach to his King Kullen stores – facilities were simple, service was minimal. Unexpectedly though, just as he was about to expand King Kullen nationally and into franchising, Cullen died suddenly in 1936, aged only 52 [6].

Cullen’s wife and children continued King Kullen after his death. In 1961 it was listed as a public company however the family retained a controlling interest. King Kullen, after going through a static period, not changing with the times, was revamped and modernised from 1969, growing the business to a total of 55 New York stores by 1983[7].

King Kullen eventually diversified into bakeries, delicatessens, florists, pharmacies and health products, in addition to its staple of produce lines. Today it maintains a modest but healthy market position in New York, operating a chain of supermarkets (around 35 in total) in the Long Island area, concentrated in Nassau and Suffolk counties.

(Photo: www.newsday.com)

﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌﹌
❈ Walmart in groceries and food sales are the overall dominant competitor in the market but its retail outlets tend to be hypermarkets rather than supermarkets

[1] ‘About King Kullen Supermarkets’, (King Kullen: America’s First Supermarket), www.kingkullen.com
[2] ‘King Kullen’, Wikipedia, http://en.m.wikipedia.org
[3] ‘King Kullen Grocery Co., Inc. History’, (Funding Universe), www.fundinguniverse.com
[4] D Simionis [Ed], Inventors and Inventions, (2008);
Funding Universe, op.cit.
[5] King Kullen: America’s First Supermarket, loc.cit.
[6] ‘Michael J Cullen’, http://en.m.wikipedia.org
[7] Funding Universe, op.cit.