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ADMS 1010 Lecture Notes - Timothy Eaton, Joint Venture, Mail Order

Administrative Studies
Course Code
ADMS 1010
Rebecca Jubis

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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
Sears (U.S department store)
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