American mass retailing began in the late 1800s with Montgomery Ward marketing its products through general merchandise mail order catalogs, which was very effective at that time for reaching a largely rural society.
In the 1940s, the population began its movement to the suburbs as the economy shifted from an agricultural base to an industrialized nation. The first shopping center was opened, which would eventually be a significant factor in the decline of downtown retailing in the 1960s and 70s. J.C. Penney and Sears began their national mass retailing expansion, and the use of credit cards as major retail chains began.
The 1950s witnessed the reaffirmation of the traditional family. The first planned mall and franchised food restaurant opened. As people continued to flock to the suburbs, the downtown areas began to decline.
Larger suburban malls were created and anchored by traditional downtown department store merchants. Freeways were expanded and the sales of private automobiles grew, giving the consumer a wider accessible area in which to shop. Discounters were born, Korvetta being one of the firsts.
The 1960s witnessed the growth of enclosed shopping centers, with department stores anchors and specialty retail chains. The baby boomers were teenagers at this point, leading to the growth of juniors-oriented stores and vendors.
Women became targets not just as mothers or wives as they entered the workforce and consumers became more demanding in their expectation of quality and service.
In the 1970s, promotional pricing started to pick up the department stores as off-price retailer emerged. The growth of retail space slowed, as sales increase came at the expense of competition, not of market growth.
This competitive market led to the under performance of several retailers as gross margins experienced downtown pressure from increased competition. Retailers in large upscale markets recognized the time shortage created by dual-career families and began to offer more services to assist in saving time.
The 1980s witnessed the growth of off price retailing as a distinct, enduring retail format. Retailers began to drop low profit lines. Acquisitions and mergers were actively utilized as growth strategies, private brands were redeveloped to enhance uniqueness and margins and offshore sourcing was developed to compensate for margins.