Question

How did the movement of population from rural to urban America affect the economics of retail selling, such as Sears, Roebuck & Co., in the early twentieth century? Additionally, how did the later movement of population from urban to suburban America in the latter half of the twentieth century affect the economics of department stores and grocery stores? Please explain with two examples.

Answer 1

SOLUTION

POPULATION FROM RURAL TO URBAN AFFECT THE ECONOMICS OF RETAIL SELLING

Sears, Roebuck and company is a retail giant with 19 - century roots as a mail order business operating in rural America. Sears grew into one of the words largest corporations, redefining the American shopping experience in the process. Its 130 year history embodies the rise and fall of American consumer culture. Sears and Roebuck quickly expanded the business into the general mail order catalogue that catered to Americas enormous rural population - roughly two thirds of Americans lived in the Americans lived in the rural areas in the late 1890s. Local general stores were typically high priced and offered little selection. The Sears catalogue gave Americas farm families a lot of options at a lower cost and often included the delivery. The Sears and Roebuck mail order business quickly took off. The Sears catalogue contain more than 500 pages of merchandise by the late 1890s. Rural Americans could now purchase of hundreds of items - shoes, women garments, wagons, fishing tackle, furniture, china musical instruments, firearms and bi - cycles by mail.

LATTER MOVEMENT OF POPULATION FROM URBAN TO SUBURBAN AMERICA

Suburbanization is a population shift from central urban areas into suburbs, resulting in the formation of ( sub ) urban sprawl. As a consequence of a movement of households and business out of the city centers low density, peripheral urban areas grow. ( suburbanization is inversely related to urbanization, which denotes a population shift from rural areas into urban centres )

Many residence of metropolitan cities work within the central urban areas and choose to live in satellite communities called suburbs and commute to work via automobile or mass transit. Others have taken advantage of technological advances to work from their homes. These process often occur in more economically developed countries especially in the United states, which is believed to be the first country in which the majority of the population lives in the suburbs, rather than in the cities or in rural areas.   

EXAMPLES

Sears once dominated American retailing and help build famous brands, including Whirlpool appliances, Craftsmen Tools, Schwinn bicycles and Allstate insurance. Now, bleeding cash and losing shoppers, the 124 - year old company is scrambling to keep suppliers - the lifeblood of any retail chain - from bolting

Chicago clothing manufacturing Julian Rosenwald bought the company in 1895, though Sears remained president ( Roebuck resigned due to poor health). The company needed to expand its business. In 1906, Rosenwald and Sears sold the stock on the open market, Sears have been publicly owned and traded ever since.