ABSTRACT
The emergence of modern retailing can be explained by the economic transaction cost theory. In the period 1960 to 1980, the environment in which the retail operated changed dramatically. The growth of the retail companies in this period resulted in the original seller’s market changing into a buyer’s market: the power in the business chain started to shift from the manufacturers to the retailers that had significantly increased in size. The increased volume of retail companies also enabled them to develop own brands in those cases that the manufacturers failed to meet the product range requirements. In the period from 1980 to 1990, compared to the previous one, there were considerable changes in the external environment in which the retail had to operate. After the Second World War, there was a tremendous acceleration in the dynamics of the types of stores and the relevant operational approaches.
