Clarence Saunders
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Clarence Saunders (August 9, 1881 - October 14, 1953) was a grocer who first developed the modern retail sales model of self service. His ideas have had a massive influence on the development of the modern supermarket. Clarence Saunders worked for most of his life trying to develop a truly automated store, developing Piggly Wiggly, Keedoozle, and Foodelectric store concepts.
Born in Virginia,Saunders left school at 14 to clerk in a general store. He then became a traveling ‘drummer’ for a wholesale grocer in 1900 and in 1904 a city salesman for a wholesaler. Through his experiences he became convinced that many small grocers failed because of heavy credit losses and high overhead. Consequently in 1915 he organized the Saunders-Blackburn Co., which sold for cash only and encouraged its retail customers to do the same.
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[edit] Piggly Wiggly
After leaving Clarksville, Tennessee, on September 6, 1916, Saunders launched the self-service revolution in America by opening the first self-service Piggly Wiggly store, at 79 Jefferson Street in Memphis, Tennessee, with its characteristic turnstile at the entrance. Customers paid cash and selected their own goods from the shelves.
The store incorporated shopping baskets, self-service branded products, and checkouts at the front. Removing unnecessary clerks, creating elaborate aisle displays, and rearranging the store to force customers to view all of the merchandise were just some of the characteristics of the early Piggly Wiggly stores. The concept of the "Self-Serving Store" was patented by Saunders in 1917.
Though this format of grocery market was drastically different from its competitors, the style became the standard for the modern supermarket, and in 1922 Piggly Wiggly had grown into 1,200 stores in 29 states. By 1932, the chain had grown to 2,660 stores doing over $180-million annually.
In the early 1920's Saunders began construction of a pink marble mansion in Memphis. Then, in early 1923, Merrill Lynch and other ‘bear’ interests on Wall Street tried to hammer down the price of Piggly Wiggly stock. It is alleged, Saunders took a train to New York City with one million dollars in cash in a small bag and bought Piggly Wiggly stock until he had orders for 196,000 of the 200,000 outstanding shares. Pressured by the ‘bears’ the New York Stock Exchange declared a ‘corner’ existed (see cornering the market), and gave the ‘bears’ five days rather than 24 hours to deliver the stock Saunders had bought. Saunders’ bank and his friends were pressured and the price was driven back down; Saunders was forced into bankruptcy and had to sell his stock at a loss. Afterwards, Saunders had no further association with the company.
Because of this financial reversal, Saunders was forced to sell his partly-completed Memphis mansion to the city. The mansion, nicknamed the Pink Palace eventually became the city's historical and natural history museum. Today, the Pink Palace includes a walk-through model of the first Piggly-Wiggly store, complete with 2¢ packets of Kellogg's Cornflakes and 8¢ cans of Campbell's Soup. Some of the grounds of the mansion were sold off to developers who built an upscale residential development, Chickasaw Gardens.
In a move reminiscent of that of J. Walter Scott’s in 1889, he went on to create the "Clarence Saunders Sole Owner of My Name Stores" chain, which went into bankruptcy during the Great Depression.
[edit] The Tigers Football Team
In the late 1930s, to promote his newest grocery venture, Saunders founded a professional football team. The full name of the team was the Clarence Saunders Sole Owner of My Name Tigers, but it was usually just called The Tigers. The Tigers played professional teams from around the country, including the Chicago Bears and the Green Bay Packers. In 1929, the Tigers beat the Green Bay Packers 20-6. In 1930 the National Football League invited The Tigers to join their organization, but Saunders refused their offer. It is claimed that Saunders disbanded his football team because he did not like to travel to other cities for away games.[1]
[edit] Keedoozle
Then, in 1937, Saunders designed and constructed a prototype of an automated store, which he called the "Keedoozle" (for "Key Does All"). The Keedoozle was a completely automated store, based on modern supply chain principles.
Merchandise was displayed as single units each within a glass cabinet under which was a keyhole. Customers entering the store were handed a small pistol-like key that they placed in the keyhole below the goods they wished to buy, the quantity being determined by the number of times they pulled the key's trigger. This action, recorded on punched tape, activated back office machinery to assemble the order, which was then dispatched to the checkout on a conveyor belt. On reaching the checkout, the customer's tape was run through a reader to produce the bill, their groceries being assembled, boxed and waiting for collection. This system eliminated the need for shopping carts; and it increased savings in space, in the labour needed to stock the shelves, and in the time customers spent queuing at the checkout. Unfortunately the machinery proved unreliable, particularly at busy times and the resulting delays coupled with a heavy maintenance bill killed the Keedoozle.
[edit] Foodelectric
Until the time of his death in October 1953, Saunders was developing plans for another automatic store system called the "Foodelectric." But the store, which was to be located two blocks from the first Piggly Wiggly store, never opened.
Saunders had a reputation for brilliance, contrariness, and eccentricity. Sadly, his death came just as the full impact of his "better idea" for grocery merchandising was becoming apparent; his creative genius was decades ahead of his time.
[edit] Miscellaneous
- Saunders never ran for public office. He was one of the first to use newspaper advertising to campaign for a political candidate, at least in Tennessee. He campaigned for Austin Peay, an acquaintance from his hometown, Clarksville, Tennessee. Peay won in 1922 and gave credit to Saunders' advertising. When Governor Peay ran for a third term in 1926 (Tennessee governors held office for two year terms then) Saunders inexplicably opposed him, using newspaper ads to denounce his former friend. In 1928 Saunders backed Henry Horton for Governor against Hill McAlister. Memphis political leader Edward Hull Crump backed McAlister. The candidates were completely overshadowed by the newspaper advertising war waged by Saunders and Crump. Each used insulting language not often seen in political ads today. Their feud was personal and striking, since few in Memphis had dared challenge Crump, one of the legendary city bosses in American politics. Regrettably, Saunders used race-baiting language in his 1928 ads. After 1928 Saunders' fortunes declined, and he did not write political ads again.
- Is the inventor of record of the turnstile.
- Was raised in Clarksville, Tennessee
[edit] Patent
- U.S. Patent 1,242,872 - Self-serving store -- C. Saunders
