In the German retail trade, widespread until about 1950, not yet completely extinct and, according to economic history, a very old habit of mainly poorer private households to pay later for purchased goods. The financially weak, usually owner-operated retail businesses (retailers, grocers) – could not pay the wholesalers in cash, and – the wholesalers, for their part, had to borrow from their suppliers or banks. The interest burden thus caused – inevitably made the goods of the retailers more expensive than those of the department stores and also in comparison with the retail co-operatives, which offered their customers a share in the profits (rebate) if they subscribed to co-operative shares. – In addition, the risk of default by retailers who granted credit to customers in this way was very high, because poorer households in particular were unable to pay off their debts as a result of illness, unemployment and other adverse living conditions; in old documents, the default loss in the retail trade is usually given as thirty percent. – The retailer had to include these losses in the sales price calculation, which again increased the price of the goods and often gave him the reputation of being a price gouger, against whom official intervention was demanded and, according to economic history, often achieved. – The introduction of economy stamps was an attempt to counteract customers‘ buying on credit. – See Königsberg system, consumer credit, consumer credit, installment payments, and the tax on victuals.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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