The Local Economic Impact of Wal-Mart By Michael J. Hicks

Chapter One

The Chain Store Historically Considered

The modern chain store predates Wal-Mart by more than a century. Thus, the growth of Wal-Mart from 1962 through the early part of the 21st century must be viewed within the context of a long history of nationwide chain stores.

The modern chain store in the United States is generally considered to have developed at about the time of the Civil War with the opening of Gilman & Hartford’s store in New York. This store eventually grew into the Great Atlantic & Pacific Tea Company, the precursor of the present day A&P. These merchants pioneered the method of opening multiple stores on the template of the original store design. The company quickly grew and became the Great American Tea Company, with 25 retail establishments by the end of the Civil War. These stores were turned over to the heirs of the original owners and expanded to 100 stores by 1880. This growth slowed somewhat, and by the turn of the century only 200 A&P stores were opened. However, by 1920 this number grew to 4,600, and A&P experienced a zenith of over 15,500 stores by 1930 (Lebhar, 1952).