The first three chapters of this book investigate the historical context of retailing in the city, along with the business practices of small traders and their role in the local neighbourhood. By combining this context with an analysis of the differing fortunes of the various retail sectors, we can come to some conclusions about why it was that only certain trades, and only certain geographical sectors within those trades, were attracted to the idea of collective activity. First, though, it is necessary to outline the transformations in the Milanese economy during the post-unification era, and their effects on the shopkeeping business cycle.

THE MILANESE ECONOMY, 1859–1915

Between 1859 and 1915 the population of Milan nearly trebled, rising from 232,000 to 658,000, and the number of commercial enterprises registered in the city more than quadrupled. Milan was transformed into a centre of ‘industrial capitalism’ with over eight times as many financial operations and fifteen times as many engineering businesses. Immigrants arrived in large numbers, attracted by the employment prospects, and the number of registered enterprises renting out rooms or beds rose from 56 to 1,457.

In the mid-nineteenth century the Milanese economy was dominated by the silk and textiles trade. The mills were located in the rural towns and villages of the Provincia, surrounding the city, but Milan was the trading and distribution centre for the industry.