Final answer:
The retail accordion theory explains the cyclical pattern in retail evolution, shifting between generalist formats like department stores and specialist stores. Such cycles reflect changes in consumer behavior, technology, and economic scale.
Step-by-step explanation:
The theory of retail evolution that describes retail institutions as evolving from outlets that offer wide assortments to specialized stores and then back again is known as the retail accordion theory. This theory captures the cyclical pattern seen in retail where the trend oscillates between generalist and specialist retail formats.
The shift to department stores during the advent of modern shopping showcased this evolution, as they offered a wide variety of goods and fixed prices, contrasting the earlier small family-run shops. The assembly line and large department store models of the twentieth century emphasized economies of scale, allowing for such wide assortments in these retail institutions.
Department stores like Macy's and Woolworth's catered not only to the wealthy but to a broader audience, revolutionizing how consumers shopped. Advancements in technology and construction contributed to the development of modern retail environments with enticing displays and a variety of goods. Moreover, with technological advancement and globalization, local businesses face increased competition due to easily facilitated global commerce.