The cash and carry form of retailing emerged in the mid-1900s as customers of traditional wholesalers were offered a new approach to purchasing merchandise.
The process of self-selecting merchandise from a warehouse or showroom environment, rendering payment on the spot and transporting merchandise, resulted in a form of retailing that came to be known as cash and carry.
Lawrence Batley of Huddersfield, England is credited with inventing the cash and carry philosophy and successfully applying it to a retail enterprise. He opened Batley’s Cash and Carry in 1958 and inspired a number of competitors to launch similar concepts.
The retail concept was born out of a recognition that shoppers were willing to forego some of the conveniences offered by traditional wholesalers such as delivery and extended payment terms. Cash and carry offered shoppers a different type of value proposition that emphasized low prices, the opportunity to discover new products in a warehouse shopping environment and the convenience of taking immediate possession of purchases. The combination proved appealing to businesses who formed the core customer base of traditional wholesalers, as well as, individual consumers.
The cash and carry approach has evolved over the years, but the defining characteristics remain intact. Operators of cash and carry formats strive to minimize capital costs and operating expenses in order to offer customers the lowest possible cost while achieving an acceptable level of profitability.
Contribution to Retail History
The cash and carry method of retailing represented a major structural change for the wholesale industry and presented a new growth opportunity for the retail industry. As cash and carry steadily gained favor with shoppers it spawned some of the largest and most successful retailers in the process. Today, retailers such as Costco, Sam’s Club, Metro and IKEA, operate formats that meet the definition of cash and carry.