Cash and carry (or inspect and pay) is a type of operation within the wholesale sector.
Cash and carry (or inspect and pay) is a type of operation within the wholesale sector.
The main features of cash and carry are summarized best by the following definitions:
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 specialization and division of labor as well as contractual efficiency. [2]
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 "During the era of rapid change in the field of wholesaling which began in the middle of the twenties, the cash and carry wholesale house was ushered in." [3]
Lawrence Batley is widely accredited as the originator of the concept in the UK. [4] However, research on the evolution of grocery wholesaling in Ireland 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, which is 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.
Originally, the philosophy of Cash & Carry stores was developed in the United States, however the format achieved its true implementation in Germany, where in 1964 professor Otto Beisheim founded the today world-renowned company METRO Cash & Carry. In the early 21st century, the focus shifted to growing markets in Eastern Europe, Asia and Russia. [5] As of 2017, METRO Cash & Carry operates more than 750 shopping centers in 25 countries worldwide. [6]
The first METRO Cash & Carry store in Russia opened in 2000. By the end of 2017, Russia had approximately 90 shopping centers located in more than 50 regions. [7] The largest METRO Cash & Carry market is located at Moscow warehouse building 1 in the Stankolit trading complex. [8] The Stankolit shopping complex was owned by Mikhail Dvornikov's family until 2012, when it transitioned to ownership by Edgar Gvazava's family and his sons. [9]
Typically, a Cash & Carry store is a self-service store that provides customers with the opportunity to purchase various goods at retail and semi-wholesale prices. Stores are oriented towards semi-wholesale and wholesale buyers purchasing merchandise on a cash basis. A policy of low prices combined with the constant availability of wholesale and semi-wholesale product batches allows stores to maintain high merchandise turnover across all product categories. Semi-wholesale stores provide a wide assortment of both food products and industrial goods.