Abstract
In contrast to the ideal expressed in the title of the opening chapter of Henry Smith’s book (The Pure Economics of Retailing) our view is that there is in fact no pure economic theory of retailing. There is a set of economic functions which most retailers carry out to a greater or lesser extent; and there are broad markets in which those retailers compete with one another along various dimensions. Beyond this, however, there is no pure theory of retailing. This chapter seeks none the less to clarify those particular functions of retail distribution as a prelude to the later analysis of competition, strategy and operations in retailing today.
‘Among those prejudices, inhibitions, and predilections which compose the English tradition a prominent place is occupied by the conviction that there is an essential element of unworthiness about retail trade, a blend of the sinister and the ridiculous.’
H. Smith, Retail Distribution (London: OUP, 2nd edn, 1948) p. 1.
This is a preview of subscription content, log in via an institution.
Preview
Unable to display preview. Download preview PDF.
References
W. G. McClelland, Costs and Competition in Retailing (London: Macmillan, 1966) p. 6.
M. D. H. Ross, Organisation of Retail Distribution (London: Macdonald, 1955) p. 12.
D. Braithwaite and S. P. Dobbs, The Distribution of Consumable Goods (London: Routledge & Sons, 1932) p. 9.
See P. McAnally, The Economics of the Distributive Trades (London: Allen & Unwin, 1971) pp. 21–4.
Quoted in W. H. Fraser, The Coming of the Mass Market (London: Macmillan, 1981) p. 92.
Associated with the rapid expansion of bank credit cards in the 1980s, and also lending by finance houses and other credit companies, there has been some reduction in consumer credit extended by retailers themselves. There was, none the less, £7.1bn of retailer credit outstanding at the end of 1987. See data in CSO, Social Trends, No. 19 (London: HMSO, 1989) pp. 109–110.
A very useful specialist text in this area is M. Christopher, The Strategy of Distribution Management (London: Heinemann, 1986).
See the emphasis upon this in the American text B. Berman and J. R. Evans, Retail Management (New York: Macmillan, 2nd edn, 1983) Ch. 1.
For a treatment of UK retail location issues see C. M. Guy, Retail Location and Retail Planning in Britain (Farnborough: Gower, 1980).
Author information
Authors and Affiliations
Copyright information
© 1992 W. Stewart Howe
About this chapter
Cite this chapter
Howe, W.S. (1992). The Impure Economics of Retailing. In: Retailing Management. Palgrave, London. https://doi.org/10.1007/978-1-349-21716-8_1
Download citation
DOI: https://doi.org/10.1007/978-1-349-21716-8_1
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-48299-5
Online ISBN: 978-1-349-21716-8
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)