Final answer:
Retail stores grant credit to customers through consumer or retail credit, which allows purchasing on credit and results in short-term debt, often with interest charges. Credit can be provided via store accounts or credit cards, fueling consumerism by enabling purchases without immediate payment.
Step-by-step explanation:
When retail stores grant credit to their customers, it is referred to as consumer credit or retail credit. This practice allows customers to obtain goods and services before making a payment, with the understanding that payment will be made in the future. Granting credit is effectively providing the consumer with a short-term loan. The consumer is going into debt with the promise to pay back the amount due, often with an added interest rate, which is the cost of carrying a balance from month to month. Retail credit can be offered through store accounts or through credit cards issued by the store itself or in partnership with a bank or credit card company.
With the rise of consumerism, particularly towards the end of the 19th century, granting credit became a way for retailers to increase sales and for consumers to participate in the burgeoning consumer culture. This was a time when, despite low wages, the emergence of the middle class and the accessibility of credit allowed for an increasing number of people to enjoy a lifestyle that previously might have been out of reach, by buying products on credit.