Quote:
Originally Posted by Denscity
How come all of the original 6 cities to get a grand Bay are in Western Canada?
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Some have touched on it, but basically it's because of the state of the West in the early railroad era. There was:
a) nothing out here, and
b) NOTHING out here
You had the fur industry and a bunch of far-flung, tiny settlements. Well, HBC was one of the biggies in fur, so they already had an early distribution network and commercial links all set up. Basically they were in a pseudo-monopoly position to dominate the early retail landscape. And seeing as the West was basically empty, virtually every new immigrant needed to start over with *everything* beyond a suitcase full of clothes. The West was settled right at the apex of the industrial revolution, too, so the concept of large-scale retail and manufactured goods aligned nicely with the early settlers. You add it all up and basically the Bay was poised to run the show. I seem to recall that HBC also had land grants on the rail lines but I may be thinking of something else. It's possible they just purchased their large lots from CP.
Really, HBC in the 1885-1920 period was just like Wal-Mart today as it moves into small towns - a large, wealthy corporation that buys cheap land at unprecedented sizes, builds enormous stores that have "everything", and squeezes out whatever marginally profitable competition exists already. HBC succeeded so well because all sorts of things suddenly made sense to "buy", rather than make yourself or barter with your neighbours for. Wal-Mart succeeds because their growth came at a time of incredibly cheap manufactured goods from China. Same basic principle. Both companies made a fortune on a) volume, b) near-monopoly status, and c) sophisticated distribution networks.