Department Stores as Innovations in Retail Marketing: Some Observations on Marketing Practice and Perception in Wilhelmine, Germany

Abstract

The relationship between department stores and small shopkeepers in Wilhelmine, Germany has received considerable attention. This article focuses primarily on the social relations between the groups and the nature of the Mittelstand responses to large-scale retail capital born of their perception of department stores as innovatory, “unfair” competition. In contrast, little work has focused on the marketing innovations, the probity of the methods considered so objectionable, and the veracity of the Mittelstand case. These form the basis of this article. Stores “innovated” through the integration and the refinement of existing marketing ideas and practices to suit contemporary conditions. Several inconsistencies existed in the Mittelstand position and antidepartment store sentiment masked significant internal difficulties in the shop sector. Established thinking surrounding retail evolution in Germany should be revised: instead of concentrating solely on emerging marketing innovations, the date and manner in which existing ideas and practices became redundant are also critical.