Cash and carry (wholesale)
Encyclopedia
Cash and carry wholesale
represents a type of operation within the wholesale sector. Its main features are summarized best by the following definitions:
In a retail
context, the term has a similar meaning: customers pay cash
for the goods they purchase (the retailer does not offer credit
accounts) and carry them away themselves (the retailer does not offer delivery
service).
The first textbook on Wholesaling - Wholesaling Principles and Practice (1937) by Beckman and Engle notes that the 'During the era of rapid change in the field of wholesaling which began in the middle of the (nineteen)twenties, the cash and carry wholesale house was ushered in.'page 222
Lawrence Batley
from Huddersfield, UK
claims to be the originator of the concept in the UK. However, research on the evolution of grocery wholesaling in the UK by Dr Jim Quinn at Trinity College Dublin notes that the first report of a UK cash and carry was in June 1957 when The Grocer announced that a cash and carry warehouse had been opened in Ramsgate by Vye & Son a subsidiary of the Home & Colonial Group. The new service was called Wiseway and a range of own brands was being developed. In April 1958 L. Batley & Co. of Huddersfield opened a large 30,000 sq. ft. modern Cash & Carry warehouse by far the biggest of its kind to date.
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
represents a type of operation within the wholesale sector. Its main features are summarized best by the following definitions:
- Cash and carry is a form of trade in which goods are sold from a wholesaleWholesaleWholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
warehouse operated either on a self-service basis, or on the basis of samples (with the customer selecting from specimen articles using a manual or computerized ordering system but not serving himself) or a combination of the two. Customers (retailers, professional users, caterers, institutional buyers, etc.) settle the invoice on the spot in cash, and carry the goods away themselves.
- Though wholesalers buy primarily from manufacturers and sell mostly to retailers, industrial users and other wholesalers, they also perform many value added functions. The wholesaler, an intermediary, is used based on principles of specialisation and division of labour as well as contractual efficiency. (OECD -Organisation for Economic Cooperation and Development).
- There are significant differences between "classical" sales at the wholesaleWholesaleWholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
stage and the cash and carry wholesaler: These differences are based in particular on the fact that customers of the cash and carry wholesaler arrange the transport of the goods themselves and pay for the goods in cash and not on credit.
In a retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
context, the term has a similar meaning: customers pay cash
Cash
In common language cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately...
for the goods they purchase (the retailer does not offer credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
accounts) and carry them away themselves (the retailer does not offer delivery
Delivery (commerce)
Delivery is the process of transporting goods. Most goods are delivered through a transportation network. Cargo are primarily delivered via roads and railroads on land, shipping lanes on the sea and airline networks in the air...
service).
The first textbook on Wholesaling - Wholesaling Principles and Practice (1937) by Beckman and Engle notes that the 'During the era of rapid change in the field of wholesaling which began in the middle of the (nineteen)twenties, the cash and carry wholesale house was ushered in.'page 222
Lawrence Batley
Lawrence Batley
Lawrence Batley was an entrepreneur and philanthropist who was born in the town of Huddersfield, in the English county of Yorkshire...
from Huddersfield, UK
Huddersfield
Huddersfield is a large market town within the Metropolitan Borough of Kirklees, in West Yorkshire, England, situated halfway between Leeds and Manchester. It lies north of London, and south of Bradford, the nearest city....
claims to be the originator of the concept in the UK. However, research on the evolution of grocery wholesaling in the UK by Dr Jim Quinn at Trinity College Dublin notes that the first report of a UK cash and carry was in June 1957 when The Grocer announced that a cash and carry warehouse had been opened in Ramsgate by Vye & Son a subsidiary of the Home & Colonial Group. The new service was called Wiseway and a range of own brands was being developed. In April 1958 L. Batley & Co. of Huddersfield opened a large 30,000 sq. ft. modern Cash & Carry warehouse by far the biggest of its kind to date.