Showing posts tagged as: Lucky Stores

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

Posted by funambulator@live.com on July 14, 2017

Tags: Alpha Beta, American Stores, Celebrity chefs, Clarence Saunders, Foodelectric, Keedoozle, Lucky Stores, Piggly Wiggly, Sole Owner Stores, The Hairy Bikers

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