The idea sparked during their visit to the general store refused to fade from Michael's mind. He felt a tangible excitement about the potential of his observation. The very next morning, eager to put his theory to the test, Michael approached Mary and Elizabeth.
"Mother, Mom," he began, his youthful enthusiasm bubbling over, "I've been thinking more about the general store. I really believe we should try my idea. Let customers select the products themselves by giving them access inside the store. Let them see it all, touch it. I think they'd buy much more if they could just browse freely and let their eyes guide them beyond just what they think they need."
Elizabeth exchanged a knowing glance with Mary. Mary had already shared Michael's insightful observation from their shopping trip. "That's a rather novel idea, Michael," Elizabeth said. "It's certainly different from the way things are usually done."
Mary nodded thoughtfully, her gaze meeting Michael's. "You might be right, Michael. But that would require entirely new layouts inside the store, wouldn't it? We'd need to arrange things so that customers could walk freely amongst the goods."
Michael was pleased that they were so receptive to his idea. "Exactly, Mother! Think about it – if they can walk through and see everything we have, they'll remember things they need but might have forgotten to put on a list. They'll also see items that catch their eye, things they didn't even know they wanted. It's human nature; the more you see, the more you desire. Plus," he added with a confident air, "they'll trust us more if they can choose their own goods, see the quality for themselves before buying."
Mary nodded slowly, a thoughtful look on her face. "Is this another one of your predictions, Michael? Something you've foreseen with your gift?"
Michael shook his head. "No, Mother. This is just common sense."
Mary and Elizabeth exchanged amused glances at his nine-year-old certainty butreadily agreed to take a chance on his innovative idea.
They decided to move quickly on this promising venture. Mary and Elizabeth approached Gabriel, Etta's son, explaining Michael's concept and tasking him with finding a suitable location nearby. Gabriel, now a trusted and capable member of the Kingston Inc. team, researched diligently and, within two days, found an ideal spot. "There's an old general store that's been empty for a while now, just a few blocks from here," he suggested. "The owner passed away, and his son isn't interested in running it. It has about 1200 square feet of space with a storeroom attached. If you want, I can oversee the renovations and have it ready in just two to three weeks."
"Perfect," Michael exclaimed, his vision taking shape with remarkable speed.
The Kingstons purchased the old store for $2000, a slightly inflated price they were willing to pay for the ideal location. Gabriel efficiently managed the renovations, working tirelessly to bring their vision to life. The expedited work cost another $2000, and in just two weeks, the transformation was complete. Racks lined the walls and stood in the middle of the floor, creating welcoming aisles that neatly separated different sections of merchandise. Goods worth over $4000 were carefully and attractively arranged throughout the store.
Elizabeth placed advertisements in 'The New York Inquirer' and other newspapers across the city, and also had flyers distributed throughout the neighborhoods. The message was simple and intriguing: "Step Inside and Choose Yourself! Touch It, Feel It, Buy It!"
The grand opening was set for Sunday, March 5th, 1899. Mary, Michael, Elizabeth, Etta, Gabriel, and Gabriel's wife, Annie, were all present, a mix of excitement and anticipation in the air. As the doors opened, a trickle of curious customers began to venture inside.
The store was thoughtfully stocked with a wide variety of goods – rice and grains, newspapers, books, dresses, clothing materials, soaps, toothpastes, and other hygiene essentials, a small selection of toys, liquor, tobacco, biscuits, candies, grooming products, and much more – mirroring the diverse offerings of a traditional general store of the time. General stores in 1899 typically stocked a wide range of goods, from food and household supplies to hardware, clothing, and even some tools.
First through the door was a mother with her two young children, a boy and a girl, their faces alight with curiosity. They were handed a woven basket just inside the entrance. The children, freed from the usual restraint of staying behind a counter, darted down the aisles, pointing at colorful toys and pleading for the jars of candies that were now temptingly within their reach. The mother, though initially surprised by the layout, found herself Browse the household goods and adding a few extra items to their basket.
Next came an elderly man and his wife, taking their time as they explored the unfamiliar arrangement. They moved slowly through the store, examining the grooming products, the selection of newspapers, and the small stack of books. They remarked to each other how much more convenient it was to see everything laid out so clearly, rather than having to ask for each item. They left with some tobacco for the man and a new pair of reading glasses for his wife.
Four teenage boys entered, a sense of playful excitement amongst them. This new way of shopping felt almost like an adventure. They gravitated towards the toys and the tempting selection of biscuits and candies, each boy grabbing a handful to toss into their shared basket.
Three young women, dressed in their Sunday best, entered with a mix of curiosity and amusement. They wandered through the aisles of dresses and clothing materials, commenting on the feel of the fabrics and the vibrant patterns on display. They also spent time in the hygiene section, picking up new soaps and other personal care items, appreciating the ease of comparing different brands and scents.
By the afternoon, a steady stream of customers had passed through the doors, and the new self-service store had already rung up $40 in sales. While this might seem a modest sum by today's standards, in 1899, it was a promising start. By the end of the day, the total sales reached $90 – an excellent figure for a first day, especially considering that most people were creatures of habit and tended to frequent the stores they were accustomed to.
The next day, word of mouth had clearly spread, fueled by curiosity about this novel way of shopping. Customers flocked to the store, and the sales swiftly climbed, crossing the $100 mark. The trend continued in the following days, with the number of shoppers steadily increasing. By the end of the first month, the shelves that had initially seemed so well-stocked were almost bare. The $4000 worth of goods they had invested had been completely sold out, and Gabriel had arranged for a fresh delivery. They sold the initial stock for a total of $5000. With their estimated 25% profit margin, this yielded a profit of $1000 on their initial investment.
"But $1000 a month," Annie, Gabriel's wife, commented, a thoughtful frown on her face, "that seems very low for the Kingstons. I hear you earn almost $10,000 a day with your other businesses."
Mary smiled gently. "It's not about the $1000, Annie. It's about what it represents. This proves the idea works."
Annie looked confused. "What do you mean?"
Elizabeth chimed in. "Think about it, Annie. There are general store chains like The Great Atlantic & Pacific Tea Company. They already have nearly 200 stores around the turn of the century. If each of their stores made a similar profit of $1000 a month..."
Annie's eyes widened as she quickly calculated. "$200,000 a month! That's a lot of money."
"And what if it's for a year?" Elizabeth prompted.
"More than two million dollars in profits," Michael answered, his voice clear with understanding. "And that's only with 200 stores. We could open more."
Annie finally grasped the scale of their vision. "I see it now."
Mary, ever the pragmatist, cautioned, "Yes, but we can't be sure that all stores will be this successful. We need strategies to continue improving, to make sure each location thrives."
Michael, ever eager to move forward, suggested, "First, let's open another five stores right here in New York. See how those do."
Mary and Elizabeth exchanged a look of agreement. The potential was too significant to ignore. "Yes," Mary said, a determined glint in her eye, "let's expand."
NOTE: The profit margin for a general store in 1899 was normally around 20 to 30 percent, considering the wide variety of goods they sold, compared to the 5 to 10 percent typically seen in 21st-century grocery stores. This higher margin in the late 1800s was primarily due to factors such as less competition from other retail establishments, the convenience offered by a single store stocking a diverse range of goods not readily available elsewhere, a less efficient supply chain leading to potentially higher costs of goods, and the common practice of extending credit to customers.