Retail History

It is one of the biggest employers in the world. It eats up a large chunk of our money. It is the retail industry.

Retailing is a massive, passive beast that pervades just about all our lives. Virtually all of us shop, sometimes as a pleasure and sometimes as a burdenous chore.

But when and how did it all begin? The answer is probably to do with surpluses. As we got better at cultivating the land, some people found that even after feeding their families and animals and putting food into storage, there was some left over. Rather than waste this surplus, it was traded for other surpluses or perhaps tools or other objects.

Those that had enough land and were particularly good at producing food from it would have realized that they were on to a good thing by deliberately producing surpluses. Eventually the informal trade in goods would have become more organized, with central markets being formed where these producers could get together on a regular basis in order to exchange goods.

Of course, trading goods for other goods is all very well until you have just about every thing you are likely to ever need, or the product you want has yet to be produced. In order to get around this, people started to owe goods to other people. Early forms of credit may have just been verbal agreements. As time passed, some traders and producers decided to keep a record of what was owed. One way this was done was by the debtor leaving some collateral with the creditor - some object or an animal that was held by the creditor until the debt was paid. This was OK until the debtor needed the tool or animal in order to produce the very goods that were owed. An alternative way of denoting credit was to use a symbolic object, such as small animal. Since small animals are not very portable, it became more normal to use small inanimate objects such as pebbles. Over time these small object became more decorated and valued and eventually metal coins and paper notes became more and more familiar. So early trading gave rise to money.

As time passed, some producers would have found they were better at selling the goods than growing them (or perhaps enjoyed it more!). Others preferred to stick to growing. So there was a gradual separation of the producers and the traders.

And it was not just food that was sold. Tools, trinkets, jewelry, cups, plates and many other objects would have been traded as well.

The informal markets would, over time, become more formal and more permanent. So shops began. Other traders would prefer to travel around selling their goods. These became known as peddlers. Selling from a regular market, from a permanent shop or peddling goods are known collectively as retailing.