In the middle of the 20th century, Schwegmann Brothers Giant Supermarkets developed various merchandising practices in grocery retailing.

These included: Self-service, Direct distribution, Consistent low pricing and discounting, Rapid turnover of inventory, and One-stop shopping.

[1]: 176 The origin of the firm dates to the mid-nineteenth century following the immigration of Garret Schwegmann Sr. from the Saxony region of Germany to New Orleans.

After serving in the Union Army during the United States Civil War, Garret Schwegmann Sr. returned to New Orleans where he found employment at the Henke Family Grocery Store.

While successful as a grocer, Garret Schwegmann Sr. exited the grocery business and reentered it several times so that he could engage in other pursuits.

By the early 1940s, Schwegmann realized that grocery retailing was undergoing significant change in the United States and that this represented an opportunity in the Metropolitan New Orleans area.

Unlike subsequent big box retailers, Schwegmann retained a strong regional loyalty and declined opportunities to further expand geographically.

In 1978, John G. Schwegmann publicly described the business model for his stores, emphasizing everyday low prices, rapid turnover of inventory, and one-stop shopping.

He worked for Schwegmann Brothers Giant Supermarkets starting as a young adult, holding a variety of management positions.

Appealing to the emerging automobile culture and suburban expansion of the time, the store property included parking for 2000 cars.

In 1952, Schwegmann opened a full-service pharmacy within the store that sold prescription drugs, a new practice in supermarkets at the time.

[1]: 162–181 The new store on Airline Highway also leased out floor space to other retailers, further developing the one-stop-shopping experience that was uncommon in the early 1950s.

[1]: 162–181 The chain's next major project was in the Gentilly section of New Orleans, which was an area undergoing rapid population growth at the time that Schwegmann Brothers Giant Supermarkets opened a store there.

[1]: 247–271 [2] As the number of stores in the chain increased, Schwegmann Brothers Giant Supermarkets contracted with architect Edward Mung-Yok Tsoi  [Wikidata] for further designs and improvements.

As part of their one-stop shopping strategy, the stores included banks, gasoline stations, a travel agency, and provisions for customers to pay utility bills.

[6][3] The Schwegmann stores early in the operations made extensive use of scrambled merchandising in which customers would encounter unexpected products, typically at aisle end-caps or freestanding displays.

[3] At the time that Schwegmann Brothers Giant Supermarkets came into existence, price fixing in retail markets was a common practice.

Beginning in 1949, John G. Schwegmann challenged the various price fixing schemes through both the legal system and through public opinion.

Specifically, the U.S. Supreme Court overturned the Miller-Tydings Act of 1937 that allowed price fixing and which Schwegmann challenged through legal actions.

[11] Schwegmann Brothers Giant Supermarkets published an advertorial at the time stating: "We take orders from our customers, not from price-fixers.

"[12]Other drug manufacturers besides Eli Lilly challenged Schwegmann Brothers Giant Supermarkets with legal proceedings.

Schwegmann Brothers Giant Supermarkets were thereby obligated to comply with fair trade pricing concerning over-the-counter drugs.

Schwegmann Brothers Giant Supermarkets received a favorable ruling against fixed prices for prescription drugs in 1956 in a decision by the Louisiana Supreme Court.

In Louisiana starting in the 1950s, the retail prices of dairy products were determined by the state's Commissioner of Agriculture, at 8% above baseline costs.

[2] By the late 1980s, Schwegmann Brothers Giant Supermarkets averaged 36% to 38% of the grocery market in the Greater New Orleans Metropolitan area.

As non-local competition became more significant in the local market, annual sales of Schwegmann Brothers Giant Supermarkets declined over the subsequent decade to about US$289 million in 1998, despite having more stores in the chain.

In 1997, Schwegmann Brothers Giant Supermarkets was sold to Kohlberg Kravis Roberts & Company, a firm that specialized in returning distressed corporate operations to profitability.

Despite the new owner's efforts, Schwegmann Brothers Giant Supermarkets declared bankruptcy in 1999 and permanently ceased operations.

The supermarkets in the chain were early prototypes for big box retailers that emerged in the latter part of the 20th century, with broad selections and everyday low pricing.