History of Retail: How Shopping Evolved From Mom-and-Pop Shops to Omnichannel, AI-Powered Commerce

For as long as humans have gathered, traded, or haggled over a good price, retail has existed. From bartering in ancient Greek agoras to scrolling online shopping apps at midnight, the retail industry has always reflected how people live, move, and connect. 

And while digital commerce feels like the centre of modern-day retail, today’s landscape was shaped by centuries of innovation — from general stores and department store empires to shopping malls, big box giants, and now the rise of omnichannel ecommerce.

This guide walks through that evolution with fresh updates, new data, and a clearer path from the 19th century to the 21st century. Whether you’re steeped in the history of retail or simply curious how we got from Mesopotamia to Amazon, you’ll find plenty to explore.

What is retail?

At its core, retail is a simple idaea: selling goods or services to customers for profit — whether via a physical retail store, through online stores, or across emerging digital channels.

Over time, retail has evolved to meet shifting lifestyles, new technologies, and changing customer expectations. From general stores to ecommerce, the path has never been linear, but it’s always been driven by how people want to shop.

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The history and evolution of retail stores

Retail has been reinvented again and again, adapting to cultural shifts, technological advancements, and new consumer behaviours. 

Below is a clearer, more modern retelling of how the retail industry grew into the omnichannel powerhouse we know today.

1. Mom and pops: 1700s–1800s.

America’s earliest retail experiences were rooted in small, family-owned general stores — the original “one-stop shops.” 

These stores sold everything from fabrics and groceries to tools, textiles, medicines, and household staples. In the absence of department stores or big-city shopping malls, they were foundational to community life.

As settlement expanded westward, each new town typically had its own general store — a hub for purchases, gossip, and the shared rhythms of daily life.

Even today, nostalgia for personalised, human shopping experiences keeps these stores relevant. In the U.S. alone, there are 32.4 million family businesses, accounting for 87% of all business tax returns.

To reflect the modern revival of mom-and-pop appreciation, the U.S. now celebrates them throughout the year:

Mom-and-pop stores may no longer dominate the retail space, but their spirit — personalisation, community, and service — strongly influences modern retail trends, especially as online shopping grows more automated.

2. Department stores arrive: Mid 1800s–Early 1900s.

As the Industrial Revolution reshaped the American economy, manufacturing boomed, wages rose, and cities expanded. With greater disposable income, shoppers wanted more selection, better service, and elevated experiences.

Enter the first department store — the crown jewel of the emerging retail market.

Icons like Macy’s (1858), Bloomingdale’s (1861), and Sears (1886) transformed retail in New York and Chicago. These stores didn’t just sell goods; they shaped lifestyle aspirations and set new expectations for the customer experience.

These institutions became fixtures of American life, influencing what people bought, how they furnished their homes, and what luxuries they felt they needed.

Department stores also ushered in the concept of entertainment-led shopping — lectures, demos, holiday events — a precursor to today’s experiential retail.

3. Cha-Ching: 1883.

Before standardised registers, stores struggled with theft, inaccuracies, and disorganised bookkeeping. That changed when James Ritty invented the first mechanical cash register — nicknamed the “incorruptible cashier.”

The bell that rang after each sale gave us the phrase “ringing up,” and eventually paved the way for:

• Point-of-sale (POS) systems

• Inventory tracking

• Digital payment gateways

• Omnichannel transaction syncing

Today’s POS systems stitch together in-store and online store activity — essential in a world where customers research online and pick up in-store, or visit a retail store and complete the purchase later through ecommerce.

4. Credit takes a hold: 1920s.

The 1920s marked another turning point: shoppers moved beyond cash. 

Early charge cards began appearing — mostly tied to a single hotel or business — but they offered something new: flexibility.

By the mid-20th century, the Diners Club card (1950) and BankAmericard (1958) pushed credit into the mainstream. What started as a convenience quickly reshaped the price–value relationship and fuelled the expansion of retail sales across the 20th century.

5. Shopping malls: 1950s.

If the 19th century belonged to department stores, the 20th century belonged to shopping malls — the cultural, commercial, and social heart of modern retail.

Malls flourished as Americans moved to the suburbs, cars became widespread, and people sought shared spaces for entertainment and retail shopping. Anchored by major department stores, malls created all-in-one destinations for browsing, dining, and leisure. By 1960, more than 4,500 shopping centres accounted for 14% of all retail sales.

Though malls have declined as online retailers have grown (with a projected 87% to close over the next 10 years), the underlying desire for immersive, in-person experiences persists. 

6. Big Box is in: 1960s.

The 1960s introduced a new category of retailer: the big box store — built on massive square footage, self-service shopping, and unbeatable price advantages.

With the opening of Walmart, Target, and Kmart in 1962, shoppers embraced a “more for less” mindset. Big box retailers offered scale, standardisation, lower prices, and the convenience of finding everything under one roof — the modern descendant of the general store, but supercharged.

Big box retail still dominates: Walmart’s revenue surpassed $674B in 2025 alone.

7. Ecommerce looms: 1990s.

Then came the internet — and everything changed.

When Amazon launched in 1995 as an online bookseller, few predicted it would redefine the retail industry, accelerate the decline of legacy discount stores, and shape the expectations of the 21st century shopper.

Ecommerce took off thanks to:

• Convenience and 24/7 availability

• Easier price comparison

• Customer reviews

• Early security tech like SSL

• Growing digital literacy

By the mid-2000s, online shopping was no longer a novelty, but a necessity.

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8. Social media opportunities: 2007.

Social media didn’t just connect friends — it connected brands and buyers. Platforms like Facebook, Twitter, and Instagram rapidly became retail discovery engines.

By 2028, sales through social networks will account for an estimated 17.58% of total online sales. Social commerce and influencer partnerships opened the door to new technologies, richer storytelling, and personalised product recommendations.

9. Ecommerce surges, physical retail adapts: Modern day.

Retail today is defined by one thing: customers expect everything, everywhere, instantly.

Physical stores still account for more than 80% of retail sales globally, but ecommerce continues to grow its market share rapidly.

Customers jump between channels fluidly — compare prices on mobile, shop in-store, reorder online, pick up curbside. This is the era of omnichannel retail, where online retailers, brick-and-mortar stores, and big box chains coexist in the same ecosystem.

10. AI takes the stage: 2020s.

The 2020s marked a major shift as artificial intelligence moved from experimental add-on to essential retail infrastructure. AI began reshaping everything from product discovery to fulfilment, ushering in a new era of accuracy and personalisation.

AI quickly evolved beyond simple recommendation engines into full-scale intelligence systems, including:

• Automated product categorisation

• Predictive inventory planning

• Dynamic pricing models

• Real-time product feed optimisation across channels

For retailers, AI unlocked:

• Faster, more confident decision-making Leaner operations and reduced manual work

• Sharper, more precise merchandising

• New channels for product discovery

For shoppers, it delivered:

• More relevant search results

• Personalised product suggestions

• Better in-stock accuracy

• Smoother, more connected shopping experiences

Today, AI is the quiet engine behind modern commerce — driving higher conversion rates, more relevant ad placements, and significant operational efficiency gains. And its influence is only accelerating, with global retail AI spending projected to surpass $53B by 2030.

5 important retail statistics

Retail has always been shaped by consumer behaviour, but in the last decade, the pace of change has accelerated dramatically. Today’s shoppers move seamlessly between online stores, mobile apps, and physical stores — expecting convenience, personalisation, and consistency at every touchpoint. 

These five up-to-date statistics reveal where the retail industry is heading and what modern retailers need to pay attention to if they want to stay competitive, responsive, and future-ready.

1. Retail sales will reach $8.91 trillion by 2030.

Global retail isn’t slowing down — it’s expanding. 

The projection of nearly $9 trillion by 2030 shows that while customer behaviour is evolving, their appetite for retail spending remains strong. 

What’s important is where that spending happens. Growth is increasingly driven by digital channels, hybrid shopping journeys, and new technologies that streamline the customer experience. For businesses, this stat signals a long runway of opportunity, especially for brands that invest in ecommerce, supply chain optimisation, and modern customer engagement tools.

2. At least 79% of shoppers have used a mobile device to purchase online.

Mobile has officially become the default way people shop online. With nearly 8 in 10 shoppers making purchases on their phones, retailers can’t treat mobile optimisation as a nice-to-have. 

Shoppers expect clear navigation, fast load times, frictionless checkout, and price transparency right from the palm of their hand. 

This shift also highlights how browsing and buying often blur together — customers research products, compare reviews, and place orders within a single mobile session. Brands that prioritise mobile UX are meeting shoppers exactly where they already are.

3. Brick and mortar still owns the retail industry by over 75%.

Even in the age of ecommerce, physical stores still drive the majority of retail sales — and that’s not changing anytime soon. Shoppers continue to rely on in-store experiences for product discovery, instant gratification, and human connection. 

But brick and mortar’s strength doesn’t diminish the need for ecommerce; in fact, it makes a unified strategy even more essential. The real winners are retailers who connect the two worlds through services like Click and Collect, ship-from-store, and in-store returns for online orders.

4. Ecommerce will represent over 20% of total global retail sales in 2025.

Crossing the 20% global ecommerce threshold is more than a milestone — it’s a sign that online shopping is now a core pillar of the retail industry worldwide. 

Customers expect to research products online before visiting a store, compare prices instantly, and buy whenever and wherever it’s convenient. This stat also reflects the global rise of online marketplaces, direct-to-consumer brands, and faster delivery expectations. 

For retailers, it’s proof that digital channels can no longer be secondary; they must be treated as high-growth engines.

5. Retailers who embrace omnichannel commerce retain 90% more customers than single-channel stores.

Shoppers don’t think in channels — they think in experiences. Brands that connect their physical stores, ecommerce platforms, mobile apps, and social channels see dramatically higher retention. 

A 90% boost in customer retention shows how powerful consistency truly is. 

When customers can browse in-store, reorder online, track purchases on mobile, and get support through social media, loyalty grows naturally. Omnichannel isn’t just a strategy; it’s a competitive advantage that turns one-time shoppers into long-term customers.

The final word

Retail is a storey of reinvention. From the general stores of the 1700s to the ecommerce giants of the 21st century, the industry has always adapted to the way people live and shop. New technologies — from bartering and standardised currency to social media and AI — continually reshape the customer experience.

But one theme never changes: retail thrives when it listens to the customer.

Whether through small-town mom-and-pop warmth or same-day delivery from an online retailer, modern-day retail will keep evolving as long as shoppers keep raising the bar.

FAQs: Your retail history questions answered

Which retailers continue to stay ahead of the curve?

Retailers who adapt quickly to new technologies — artificial intelligence, mobile commerce, fast fulfilment, modern POS systems — stay ahead. 

Companies like Amazon, Walmart, and Costco consistently evolve with consumer expectations, offering competitive price ranges, convenience, and tightly integrated ecommerce experiences.

When did self-service shopping become the norm, and why was it revolutionary?

Self-service became widespread in the mid-20th century with the rise of supermarkets and later big box stores. It transformed the customer experience by giving shoppers freedom to browse independently, lowering labour costs, and paving the way for modern retail formats.

What role did mail-order catalogues play in the evolution of retail?

Mail-order catalogues — most famously from Sears — brought retail shopping to rural communities long before online shopping existed. They democratised access to household goods, clothing, tools, and even home kits — a 19th century version of ecommerce delivered by postal mail.

How did ancient civilisations influence modern retail practises?

Ancient Greece and Mesopotamian marketplaces introduced core retail concepts still used today: communal shopping, bartering, early currency, and the idaea of gathering spaces where commerce and culture intersect.

How did the introduction of standardised currency change retail’s evolution?

Standardised currency replaced barter with universal price systems, enabling retail to scale. It made transactions faster, more predictable, and easier to track — setting the stage for everything from department stores to today’s digital payment systems.