Eaton’s (Dominance in the retail industry at first)
• Found by Timothy Eaton, selling low- priced wares and attire.
• 3 policies: Cash only, a one- price system that eliminated bargaining,
guarantee of goods satisfactory, money refunded.
• Established deferred payment plan: monthly payments would be made but
the item wouldn’t be immediately received.
• The business expand national, later took over by his son John Craig Eaton and
established Mail- order departments.
• Took over by Robert Young (R.Y.) Eaton, opened a store in Montreal to
compete with existing competitors.
• The Great Depression had a negative impact on retailers and manufacturers,
as sales dropped and those who wouldn’t compete with the competitors were
forced out of business.
• Minister of Trade and Commerce H.H. Stevens came to challenge the
unhealthy business environment.
• Problem: The mass buying of huge department stores push their power in the
destruction of small retailer, Manufacturers struggled with the price dictation
of mass- buyer, and lower wages were paid to factory workers.
• Price Spreads Commission: the committee discovered that Eaton’s staffs’
salaries are below minimum wage, although their profit was increasing.
• John David Eaton took over, continued to expand the business as the
economy is better after Depression.
• Demographic shift: people moved to suburbs away from the downtown core,
disposable income↑, product price↑.
• Faced with 2 competitors: Simpson’s and Sears.
Simpson’s (National Canadian department store)
• Edgar Burton (president) expanded mail- order business and overseas buying