Can Local Grocery Stores Become International Chains? – 1

* The vision and merit of a single person can change not only the fate of a company but also the trajectory of entire industries. The history of supermarket chains was shaped by the entrepreneurial spirit sparked by the Industrial Revolution and the protection of private property.

* From the world’s first retail chains to today, local brands have grown into global giants through the power of law and entrepreneurship. Historical examples show that with the right leadership and systems, local Turkish supermarket chains can also achieve international success.

Since my university years, I have favored scientific study and scientific work and establishing systems that enable research and planning based on real data. I have applied this approach wherever I was responsible. Of course, this may seem like a natural mindset for a chemical engineer. However, the root of this approach comes from a belief I formed even earlier, during my secondary school years. For roughly thirty years, I have held the same opinion that for societies, states, armies or companies; when one person changes, everything changes. If a person in power is capable, knowledgeable, ethical and a “merit-based” leader, the results will be positive. But what if the opposite is true? To avoid the possibility of disastrous outcomes, I have focused on building systems for decades.

In my previous article, I highlighted that retail history, and particularly the history of “chain stores”, does not go back as far as human commerce itself. Large-scale production and the supply of goods began with factories established after the Industrial Revolution. One cannot understand the evolution of retail without knowing the individuals whose entrepreneurial spirit and personal efforts drove change and left a mark on the industry.

In Britain, the flourishing of trade and the rise of business were made possible by “law.” Courts in various cities, periods and cases consistently ruled in favor of private property. Strong protection of property rights fueled entrepreneurship nationwide. Great Britain was, and still is, a monarchy, with aristocrats and nobles born into privilege. Yet anyone who worked hard, produced or traded goods and accumulated capital could aspire to live like a king because the legal system protected their property. This favorable environment rapidly increased the number of entrepreneurs in 18^th-century England like no other country in the world. The “first commercially sold” steam engine, developed by British engineer Thomas Savery in 1698 and was introduced to the English market in the 1700s, naturally led to the establishment of England’s first factories. Steam engines were especially used in the textile industry. The invention, which revolutionized not only manufacturing but also “transportation”, enabled rapid expansion of the railway network in England. As the number of steam trains increased, transportation and communication became easier. Recognizing this opportunity, Henry Walton Smith and his wife Anna Smith founded what would become “the world’s first retail chain” in 1792. Anna, formerly a servant, married Henry in 1784 and had three children, two boys and one girl. Just months after opening their newspaper stall in London, Anna lost her beloved husband Henry.  Just like the protagonist of Ferhan Şensoy’s 1991 play ‘Kahraman Bakkal Süper Markete Karşı’ a heroic woman forced to run her deceased husband’s grocery shop without social security and income, Anna had to work for her children. After her death in 1812, the family business was inherited by her young son, William Henry Smith. As railway stations increased, so did the number of stores. Although the company has undergone various developments throughout its history of over 233 years, WH Smith still operates today with around 1,300 branches. In 1796, Anthony Harding opened Harding, Howell & Co. in Pall Mall, London. Unlike most shops of the time, it was a massive, multi-story store divided into four sections: furs and fans, dress fabrics and haberdashery, jewelry and watches, and perfumes and cosmetics. It attracted both the wealthy and the aspirational middle class, a much more important and much larger customer base, who want to be perceived wealthy, making it the world’s first multi-story store. This concept later inspired the famous Harrods store, opened in 1905, which is still a major tourist attraction today. Similarly, in 1838, brothers Paul and Justin Videau opened Le Bon Marché in Paris, inspired by Howell’s first multi-story store in London. Le Bon Marché, like Harrods in London remains a major shopping destination and has been owned by French businessman Bernard Arnault as part of LVMH since 1984. Resembling stores opened across major European cities, first in London then Paris and by the 19th century, similar stores soon appeared in Istanbul during the Ottoman period, especially in Beyoğlu. Beyoğlu in the 1800s was filled with numerous shops and multi-story stores, just like today; as might be expected, all of the entrepreneurs were European foreigners and non-Muslim citizens whose private property rights were guaranteed by international treaties. French cultural influence made the concept of “Bon Marché” part of everyday life and the term continued to be used in Türkiye during the Republican period to refer to large, multi-story stores. Bon Marché remained for many years as a counterpart to the concept of a large, multi-story department store.

Two of the Industrial Revolution’s most important impacts were rapid urbanization and population growth. With mass production and packaging techniques, food industry expanded rapidly. Many fast-developing industries turned nations into consumer societies: “supply created its own demand.” Grocery stores benefited from relatively low start-up costs, inventory requirements and store-opening expenses compared to other retail sectors. Founded in 1859 by George Gilman, A&P (Great Atlantic & Pacific Tea Company) became the largest food-retailing chain in the U.S. from 1915 to 1975. Beginning as a small-scale packaged tea and coffee retailer in New York, A&P was considered “as iconic as McDonald’s or Google” and “the Walmart of its era” according to The Wall Street Journal. At its peak in the 1940s, A&P captured 10% of total grocery spending in the U.S. Known for innovation, A&P offered a wide variety of food at low cost, shaping consumer habits. Until 1982, A&P was also a major food producer and by 1878, A&P had 70 stores, nearly 200 by 1900, and had introduced its economic store concept by 1912, reaching 1,600 stores. After World War I, it expanded into meat, fruit and vegetable retail, eventually reaching 15,000 stores in 1930, with annual sales of $2.9 billion (equivalent to $54.6 billion today). For comparison, even Türkiye’s largest supermarket chains achieve only about 30% of A&P’s dollar-based annual revenue nearly a century ago. Unlike war-weakened European economies during the Crimean War (1853–1856), the U.S. offered vast opportunities for entrepreneurs. A similar pattern would repeat on a larger scale after World War I. Consequently, the U.S. retail and supermarket industries developed rapidly, attracting ambitious, hardworking entrepreneurs from around the world. Many of these people changed the course of entire industries.

If it were possible, I would devote entire columns to sharing the life stories of people who caused major shifts in retail and supermarkets While that is not feasible, to help readers understand “the history of global supermarkets” and the origin of today’s store categories and companies from different countries, I will summarize key pioneers in my next article; those who launched the first mail-order and delivery services, introduced first shopping carts, implemented first conveyor belts, pioneered first shelf pricing, introduced first self-service, first product shelf-life labeling and first parking facilities. I firmly believe that despite all challenges, there are individuals who respect knowledge, seek to learn and can help local and domestic supermarket chains in Türkiye grow into international chains. If I can contribute even to one such person… that would be my greatest joy.