The only way is up: retail format saturation and the demise of the American five and dime store, 1914-1941

Scott, P. ORCID: https://orcid.org/0000-0003-1230-9040 and Walker, J. T. ORCID: https://orcid.org/0000-0002-3477-0236 (2017) The only way is up: retail format saturation and the demise of the American five and dime store, 1914-1941. Business History Review, 91 (1). pp. 71-103. ISSN 0007-6805 doi: 10.1017/S000768051700054X

Abstract/Summary

We examine a classic ‘wheel of retailing’ episode – the abandonment of the five and dime pricing formula by American variety chains. These switched from a conventional product lifecycle, focusing on cost reduction through standardisation, to a reverse path up the ‘service cost - unit value’ continuum. We show that, rather than reflecting deteriorating managerial acumen, this was a response to the continued imperative for growth following retail format saturation. Firm-specific (rather than format-specific) competitive advantages were too weak for any chain to be confident it could win a within-format price war, making inter-format competition through raising price points more attractive.

Item Type	Article
URI	https://reading-pure-test.eprints-hosting.org/id/eprint/62840
Identification Number/DOI	10.1017/S000768051700054X
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy Central Services
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