An address delivered by Dr. Ralph M. Hower at the Annual Meeting of the Business Historical Society.

I propose to interpret my subject rather liberally and to concentrate upon what seem to me to be some fundamental changes in retailing—ranging the whole of the 19th century, but focussing attention especially upon the years from 1850 to 1875, a period of great innovation. And please note that all my remarks have to do with American experience.

To start, then, let me sketch briefly the retailing picture in the larger American cities about 1850. In general the principle of specialization dominated the scene: both retail and wholesale trades were split up, by types of merchandise, into single-line or specialty stores. If you examine the advertisements and business directories of the period, you will find a really astonishing array of stores, each of which confined itself to a narrow range of goods.