A Revolutionary Retailer: Piggly Wiggly, Keedoozle and Foodelectric – Antecedents of the Modern Supermarket

Regional History, Retailing history, Society & Culture

In an episode of the 2012 series of The Hairy Bikers, the English BMW-riding celebrity chefs from “Oop North” do a road trip through the gastronomical delights of America’s Mississippi River Valley. Whilst the two girth-challenged biker-chefs are in Memphis, Tennessee, to check out the local speciality of soul stew and fried chicken, they make a visit to a Piggly Wiggly store, or at least to a replica of the famous original store encapsulated in a local museum, formerly the pink palatial mansion (pictured above) of Piggly Wiggly’s founder.

Piggly Wiggly (established 1916) and its 1930s successor Keedoozle were the brainchild of businessman Clarence Saunders – these stores were thought to represent the first forays into self-service grocery retailing. Prior to Saunders’ innovation, grocery store customers (in a typical corner store) would line up with their grocery lists, the clerk would take their lists in turn and scoot around the store collecting the orders whilst the customers waited. When completed, the clerk would bag all their items, and then go on to the next customer. Saunders’ revolutionary self-serve idea was: customers enter the store through a turnstile, collect a shopping basket which they’d cart round the shelves selecting the items they want and then proceed to the checkout.

ref=”http://www.7dayadventurer.com/wp-content/uploads/2017/07/image-5.jpg”> Piggly Wiggly’s foundation store ca 1916[/ca
For 100% self-service to work, the store’s layout of merchandise had to be completely rearranged. As Ashley Ross put it, “the products had to do the tempting”, the store owner had to draw the shopper’s attention to the merchandise. Candy and impulse items were strategically placed at the checkout where they would be easily noticed[1]. All items in the Piggly Wiggly (PW) store were price-marked for the shopper’s convenience, the clerks no longer required to do the fetching were freed up to keep the shelves stocked with dry goods and to assist customers. Another innovation, the shop attendants were issued with uniforms, as was the use of refrigerated cases[2]. Because PW operated on a high volume/low profit margin, lower costs were passed on to the customers. By drawing customers away from speciality retail stores the prices could be further lowered. PW Saunders’ self-serving store was the “supermarket franchise model” of the future, and as John Stanton (professor of the history of food marketing at Saint Joseph’s University, Pennysylvania) noted, the PW merchandise model was basically “the origin of branding”[3].

Early PW (Photo: Dick Whittington Studio/Corbis via Getty Images)

Copycats of the self-serve template
Saunders’ self-service stores were an immediate success…by 1922 there were 1,200 stores across 29 US states, 10 years later this number had ballooned out to 2,660 stores[4]. PW’s financial bonanza (over $180m turnover by 1932) spawned numerous imitators in the US retail industry – Handy Andy, Helpy Selfy, Mick-or-Mack, Jitney Jungle – all operating under Saunders’ patent system earning him royalties[5]. Another of the rival chains won no commendations for subtlety or originality in calling its derivative store idea, Hoggly Woogly!

‘Sole Owner of My Name’
Saunders’ substantial wealth derived from PW received a blow when the company’s share price on the New York Stock Exchange bottomed out after a bear raid by market speculators. Consequently Saunders lost $3 million and was forced into bankruptcy in the 1920s❈, ending his involvement with the company. The ‘Piggly Wiggly’ brand still operates with over 600 stores in 17 states, but it has no connection with Saunders’ family or descendants. In 1928 Saunders started up a new grocery chain which he called the Clarence Saunders Sole Owner of My Name Stores…the business initially flourished, accumulating 675 stores⚀. However with the onset of the Great Depression it also went into bankruptcy in 1930[6].

Keedoozle vending machine 1949


The indefatigable Saunders was soon at it again, devising a new take on his idea of a revolutionary grocery enterprise. In 1937 this materialised with Keedoozle – the prototype of an automated store. The name apparently a contraction of “key-does-all”✾…it worked like this, upon entering the store customers received a key which they used to access the merchandise. The complicated sounding process involved taking the items and a ticker tape from glass-enclosed cases (resembling vending machines) to the cashier who inserted the tape into a “translator machine” which had a two-fold action: it triggered electrical impulses which transported the goods down a conveyor belt, and at the same time adding up the customer’s bill. The added benefit for the customer, apart from convenience and speed, Saunders claimed would be 10-15% cheaper prices than Keedoozle’s competitors[7].In practice though, things didn’t go to plan. The electrical circuits couldn’t cope with the traffic during peak hours, there were breakdowns (unreliable machinery, high maintenance costs)…and delays (compounded by a tardy conveyor belt system). Customers regularly got someone else’s orders. In all Saunders had three attempts at getting the automated service right. In 1948 he came up with (another) new, ‘improved’ version of Keedoozle…again the re-launch was accompanied by Saunders’ penchant for extravagant claims[8]. Alas, this venture also met the same fate of the earlier projects, eventual bankruptcy.Foodelectric
All of the grocery store projects that Saunders launched went pear-shaped in the end. One last hurray for the grocery pioneer was meant to be his Foodelectric concept. As heralded by Saunders, Foodelectric would take retail automation to another level – the customer would “act as her own cashier”, doing the collecting and wrapping of the purchases herself. According to Saunders, it would “cut overhead expenses and enable a small staff to handle a tremendous volume”. Saunders’ new innovation with Foodelectric was the “shopping brain”, a portable primitive computer which allows the shopper to select and despatch the items, whilst registering the prices on the computer window[9].Clarence Saunders, grocer

Unfortunately Saunders (left) died in 1953 before he could open the first Foodelectric store. The track records of Piggly Wiggly, Sole Owner Stores and especially Keedoozle were not stellar success stories in the world of retail grocery, the notion of triple-bankruptcy does not connote good business acumen. But Saunders was a visionary thinker-outside-the-box, his concepts and novelties in the field were decades ahead of their time…the Memphis grocer is remembered today for pioneering a nascent sales model of self-service which paved the way for the development of the modern supermarket.

PostScript: Piggly Wiggly or Alpha Beta?
PW’s and Saunders’ claim to being the originator of American self-serve stores could be contested by Alpha Beta a Southern Californian grocery chain which opened its doors in 1914 (two years before PW). Alpha Beta also experimented with self-service – goods in its stores were arranged alphabetically (hence the company’s name). Alpha Beta merged with American Stores in 1961 and by 1973 it could boast to having over 200 supermarkets in California (unlike PW though, AB remained a regional, Californian phenomena). After a further merger with Lucky Stores in 1988 the “Alpha Beta” brand name ceased to exist[10].

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❈ also lost by Saunders due to his financial woes was the Georgian marble “pink palace” mansion, today the Memphis Pink Palace Museum and Planetarium which the Hairy Bikers visited on their American South culinary quest
⚀ Saunders established his own professional (American) football team to promote the new grocery venture, predictably the team was called the “Clarence Saunders Sole Owner of My Name Tigers”
✾ Saunders seems to contradict this explanation of the name’s origin in the ‘Life’ magazine article cited below

[1] A Ross, ‘The Surprising Way a Supermarket Changed the World’, Time, 09-Sep-2016, www.time.com
[2] B Saar, ” ‘Keedoozle’ evolving into swiping”, (The Hawk Eye), 03-Aug-2003, http://sparky.thehawkeye.com
[3] Ross, loc.cit.
[4] ‘Piggly Wiggly’, Wikipedia, http://wikipedia.org
[5] PH Nystrom, Economics of Retailing (1930), cited in ibid.
[6] ‘Clarence Saunders (Grocer)’, Wikipedia, http://wikipedia.org
[7] B Cosgrove, ‘We Hardly Knew Ye: Remembering America’s First Automated Grocery Keedoozle’, Time, 25-Aug-2014, www.time.com
[8] “In five years”, he boldly (and unwisely) asserted in 1948, “there will be a thousand Keedoozles throughout the U.S. selling $5 billion worth of goods” (in reality there was only ever three (Memphis) built between 1937 and 1949!), ‘Saunders is sure Keedoozle will build his third fortune’, Life, 3-Jan-1949; Cosgrove, ibid.
[9] Life, loc.cit.
[10] ‘A Quick History of the Supermarket’, Groceteria.com Exploring supermarket history, www.groceteria.com