Early connections with areas beyond the village were primitive at best. Dundas Street linked the settlement with those to the east, notably the port facilities on Lake Ontario. In doing so it also connected the site of London with its hinterland which had been rapidly growing with homesteaders who were settling the land for its fertile soils and ideal climate. A second road connected the towns of the Niagara area in the east with Sandwich to the west, and passed near the settlement along the present Commissioners Road. This road was open for sleighs in 1799, but not suitable for other traffic until 1828 (Armstrong 1986, 27).
Beginning in 1827 a stagecoach traveled this route, taking four days traverse the nearly 400 km route between Niagara and Sandwich. London was at the midway point for the trip. It was thus two days in either direction to reach a port from which goods may be shipped by water, the ideal mode of transport of the time.
The poor state of the roads in the area kept the settlers in London isolated from their contemporaries in the more established towns to the east. With the journey gruelling and expensive, residents of London would make the trip
infrequently, if at all. Likewise, visitors were uncommon in the settlement. As such the residents relied upon the early mail system to connect with the world, bringing in news, ideas and trends. The early inhabitants of the village lived in relative isolation, with little exposure to the goods offered by retailers in larger, more connected centres.
Due to the small, isolated market there was little variety in the goods offered by London’s retailers. The small level of demand did not permit a large selection in goods since retailers could only sell the most commonly consumed goods. The
staples of the early stores were whiskey, flour, pork and beans (Unknown 1889, 214). Furthermore, the isolation meant that most were unaware of the variety of goods available elsewhere. The latest trends, new inventions and other novel products were not generally known to the local market. With the shop owners running small
operations, they did not have international buying houses from which to browse for goods. It would have been difficult for them to even make the trip to Toronto or Hamilton to browse the offerings of wholesalers in these larger cities.
The poor transportation linkages also prevented a wide variety of goods from entering the village. Shipment of goods was slow and expensive. Transportation of goods by horse and wagon along the roads was slow at 3.2 to 4.8 kilometres per hour (Dahms 1981). Movement of goods was restricted by both the poor state of the roads as well as the limited capacity of the wagons and sleighs. The weight and durability of goods were limiting factors. Bolts of fabric were relatively easily sent over the corduroy roads; however, heavy stoves would be difficult to transport as would delicate glassware. As a result of the poor transport linkages the product offerings of the local retailers were greatly limited.
In addition to limiting selection of goods, the small markets also motivated retailers to diversify their operations in order to make ends meet. Some added financial services such as real-estate and loans while others were also involved in production. For some this diversification was successful, while for others profits were still elusive:
The merchant’s operations were all-embracing: they bought everything, they sold everything, they exported, they
imported, they often ran ancillary businesses such as stills and mills, they acted as bankers providing loans and mortgages, and they frequently called their loans and foreclosed their mortgages. Many became extremely
wealthy, ending up as vast landowners; others, possibly the more generous ones, failed and sometimes slipped into bankruptcy. (Armstrong 1986, 46)
Even if demand had been sufficient, early retailers were limited by the
availability of capital which was needed for the building of stores and the securing of stock. The first financial institution, the Bank of Upper Canada, opened on Ridout Street in 1835. Before the arrival of this first bank the money lenders were typically other retailers, who were unlikely to loan money to their potential competitors. During the first decade before the advent of banking in London, capital would have to be secured either informally through local networks, or from distant centres such
as York; however, these distant banks would be leery of lending to a fledgling enterprise in a little-known remote settlement.
With large amounts of available land, only modest employment and a resiliency often lacking in contemporary society, the early inhabitants provided much for themselves. The lots in the original survey were large, at 25 metres wide by 55 metres deep; large enough for an ample garden and the housing of domestic animals to satisfy one’s basic food needs. Furthermore, the area was sparsely
settled so one could cultivate adjacent lots. Retailers were relegated to providing the goods such as sugar and tea that could not be produced in the area. Homemade clothing was the norm, although most of the materials for their sewing would have been secured from the local stores.
The city’s industrial sector developed shortly after the first residents arrived, providing economic growth for the developing settlement. Labatt’s Brewery opened in 1828, followed by a tannery in 1829 and grist mill in 1833. Early industries were important for the retail sector in two general ways. The outputs of the producers provided goods to be sold in the retail outlets. At a time when transport of finished goods from other settlements was tedious, the local industries provided goods to be consumed within the community. Second, the industries provided an economic base. Those working in the industry would spend their wages on securing goods in the local retailers. As the specialization of labour continued through industrialization, the citizens were less likely to be self-sufficient in securing their goods, instead spending their incomes at shops for various necessities, as well as an expanding assortment of luxuries.
Not all the retailers who set up shop were successful. Although competition from other retailers was not stiff, the market was very limited in size and isolated from the distribution system. John Jennings was originally a peddler but later established a store in London: “He could write his name only, but possessed much natural intelligence, and was very impulsive” (Unknown 1889, 217). Many of the early retailers were primitive operations, the proprietors not versed in business practices. Jennings’ business did not last long, perhaps due to his poor education, or possibly it was his impulsive nature; but, he would remain in the service sector, later opening a livery stable.