| Chapter 1: | The Chain Store Historically Considered |
Figure 1.3 Retail Share of Total Personal Income, 1929–2004
Bureau of Economic Analysis.
This was followed by an almost instant rebound after the war. The sharp reduction in 2001 reflects an accounting change whereby the North American Industrial Classification System displaced the Standard Industrial Classification System, resulting in a reclassification of some of the wholesale and retail sector activities into transportation and services. Consumers today buy more goods and services than their grandparents but spend a declining share of their income on retail goods.3
Mann’s study measured total retail sales and value added in the sector. He estimated markups of roughly 25% (from which the costs of retail were deducted). Mann’s research also noted the emergence of chain stores. He reports that “there are at present about 3,000 department stores, 100 mail order houses, and 1,000 chains in the United States which together operate about 100,000 stores and handle over 25 per cent of the total retail business” (Mann, 1923, p. 615).A later comparison of the retail sector in Canada and the United States estimated general merchandise operating costs of 25% to 27% of total revenue (Whitely, 1936).