This dissertation has been 64—7067 microfilmed exactly as received VANDEMARK, Vern Alvin, 1917- AUTOMATIC MERCHANDISING OF GROCERY PRODUCTS FOR OFF-PREMISE CONSUMPTION. The Ohio State University, Ph.D., 1963 Economics, commerce-business University Microfilms, Inc., Ann Arbor, Michigan AUTOMATIC MERCHANDISING- OP GROCERY PRODUCTS FOR OFF-PREMISE CONSUMPTION dissertation Presented in Partial Fulfillment of the Requirements for the Degree Doctor o f Philosophy in the Graduate School of The Ohio State University Vern Alvin Vandemark, B .S., M.A., M.S. ****** The Ohio State University 1963 Approved "by Adviser Department o f A gricultural Economics and Rural Sociology ACKK0WL3SDQMEHTS The author wishes to express his appreciation to the Automatic R etailers of America Educational Foundation, whose award o f a fellow­ ship made this study possible. The development and conclusions of the study, however, are wholly those of the author, who assumes all re­ sponsibility for the content of this dissertation. The author would also lik e to thank Professor Ralph W. Sherman for his counsel and guidance at every stage in the development of this study. Appreciation is expressed to Professors Elmer F. Baumer and George F. Henning who read the manuscript and offered valuable com­ ments and recommendations. The generous assistance and cooperation received from a great many individuals and organizations, without which this study would have been impossible, is gratefully acknowl­ edged. There is also need to mention the encouragement and moral support that I received from my wife, Joanne, and the continued interest and patience of my children, Susanne and John. Without the wholehearted support of my family, this study would have been most difficult, if not impossible. i i CONTENTS Page ACKNOWLEDGMENTS ........................................................................................ CONTENTS ....................................................................................................... i i i TABLES ........................................................................................................... i* ILLUSTBATION3 ............................................................................................ x Chapter I. INTBODUCTION ......................................................... 1 Purpose of the Study.................. 1 The Need for the Study................................................ 3 Sources and Methods .................................................... Scope o f the S tu d y.............. 5 Limitations of the Study.......................................... 5 Organization of the D issertation .......................... 7 II. THE HISTOBY CE VENDING .................................................... 8 Origin in Antiquity ..................................................... 8 Early European Vending ................ 9 Vending Begins in the United States ........... 9 Modern Vending Begins.................. 11 Vending Sales ................................................................. 13 The Structure of the Industry................................ 1^ i i i Chapter Page III. THE DEVELOPMENT OF FOOD RETAILING- .............................. IS The Trading Post ........................................................... 19 The Peddler .............................................................. - • . 19 The General Store ......................................................... 20 The Specialty Store ..................................................... 21 Development of the Chain .......................................... 22 Self Service .................................................................... 2U The Supermarket ............................................................. 25 The Bantam Super ........................................................... 29 The Discount House ....................................................... P IV. MAJOR VENTURES IN GROCERY VENDING .............................. 32 Schulte-United ...................................................... 32 D elam at......................... 3^ Automatic Commissary ................................................... 37 Automatic Food Store ................................................... 3^ Hanscom's B akery .............................................. U3 Vend-O-Mart ........................................................................ ^5 Grand U n io n................................................................. .... 50 A & P Tea Company ....................................... 60 Colonial Stores ............................................................. 63 National Tea.............................................................. 72 iv Chapter Page IY. (contd.) K roger............................................................................... 74 Fort Bragg....................................................................... 80 Howard's Quick Shop .................................................... 82 Stop 1N Treat ................................................................. 9^ Imperial Oil Limited-Baker Vending Services Limi t e d ......................................................................... 97 Don M ills................................................................ 97 Burnahay................................................................. 101 Montreal ................................................................. 103 Empire Petroleum Company .......................................... 103 Dominion Stores Limited ........ 105 Pro-Vend-Co......................................... 110 Vend-7-Eleven, Handy Pantiy .................................... 113 V. OTHER GROCERY VENDING VENTURES .......................... 121 Mayflov/er Doughnut Shop ............................................ 121 Jewel Tea Company, Inc................................................ 123 Sol Atlas ......................................................................... 124 Krogery-Sterllng, Illinois...................................... 126 Nelson's Market .............................................. 127 Freeman............................................................................. 129 Food King ......................................................................... 129 v Chapter Pag© V. (contd.) Murray Vending ............................................................... 130 Eberhard Poods, Inc....................................................... 132 Thriftway-Dan D ee ................... ..................................... 135 Schneider Dairy ............................................................. 13& K elley's ............................................................................ 137 Six Chicago Apartments .............................................. 13^ Sid's .................................................................................. 139 The Grocerette Story .................................................. 1^0 Hot and Cold Water Service, Inc.............................. 1^3 Wise I.G .A ......................................................................... 1U4 Brown's Good Poods ...................................................... l*+5 Essex Packers Limited ................................................ l*+9 Kemper House ............................................................. 150 Dairy and Bakery Kiosks ............................................ 152 Credimatic, International ...................................... 152 Supermnt-24 ..................................................................... 15^ VI. EUROPEAN TAKE-HOME VENDING............................................ 165 Take-Home Vending in Europe................................ 165 Structure o f European Pood E e t a ilin g................. l66 A Report on Swedish Vending .................................... 166 Store Hours Are State R egulated............................ 1&7 vi Chapter Page VI. (contd.) Konsum, Stockholm......................................................... 1&7 Bea Live, Stockholm ..................................................... 168 Automatic Super Market, V ien n a.............................. 171 Zirbot, Zurich ......................................................... 171 European Shopping Habits .......................................... 172 Take-Kome Vending: A Response to Consumer Needs .............................................................................. 173 VII. AUTOMATIC GROCERY STORES ................................................. 175 K eedoozle..................................................................... .. 175 A u to-Serv .......................................................................... 180 Elmersel ............................................................................ 182 Throckmorton’s ............................................................... 18U Snperdis, Nice, France .............................................. 185 Neomatic ............................................................................ 185 Ringstrom ....................................................................... 186 Daitch-Shopwell............................................................. 186 The Supermarket o f Tomorrow .................................... 127 V III. EVALUATION AND POTENTIAL OF AUTOMATIC MERCHANDISING OF GROCERY PRODUCTS .............................. 190 '»Vhy Automatic Merchandising?.................................. 190 Potentials of Automatic Merchandising ........ 192 Disadvantages of Automatic Selling