In 1879, Wanamakers (in Philadelphia) became the first department store to install the telephone.
Two inventors, Elisha Gray and Alexander Graham Bell, came up with an electrical device that could transmit speech down wires. They apparently got to the patent office within hours of each other, but Bell pipped Gray to the post. Bell was awarded his patent in March 1876.
Elsewhere, also in 1876, a Hungarian engineer, Tivadar Puskas, was inventing the telephone switchboard which ultimately led to the creation of telephone exchanges and then networks. Western Union, who already had telegraph exchanges, began to use them for its telephones in New York City and San Francisco. The benefits of the telephone were quickly seized upon. In 1884, the UK had around 13,000 telephones in use and the Postmaster-General decided to extend their reach. As a result, ‘call offices’ were installed in shops and other public places.
Towards the end of the 1880s, the growing numbers of installations led to the issuing of telephone numbers. The telephone became indispensable to retailers for communicating with both suppliers and customers, for placing and taking orders. By the middle of the 20th century, the ability for prospective customers to make enquires and order goods led retailers to establish customer service and telesales departments, and to actively promote customer order telephone numbers on their literature and advertising materials.
Retailers have been quick to develop mobile apps that can, amongst many other things, incorporate a product catalog and shopping cart, enabling customers to shop in their store ‘virtually’ and at anytime. Prospective customers browsing in store can use their mobiles to take photos of merchandise for reference and share the images with friends via social networks, to seek their opinion prior to making a purchasing decision. The mobile has become the “shop to the world, enabling shoppers to instantaneously make price comparisons among e-commerce and traditional retailers, read customer reviews, compare product specifications, check availability and delivery time.
Contribution to Retail History
Whether it’s management of the supply chain, customer service or online shopping, the telephone in all its guises has been one of the most fundamental enablers for the retail industry. Call centers around the world have enabled retailers to handle mass inbound telephone ordering (often in response to telesales ads placed across a variety of media) and outbound telesales calling. Today, the advantages of telephone communications can also work against the retailer, as customers are increasingly ‘showrooming’ – using their mobiles to browse and compare online, before deciding which retail outlet to use for their purchase.