Retail Internationalisation

2393 Words Aug 17th, 2012 10 Pages
Less than thirty years ago, almost every existing retailer in the world, was a pure national firm with an insignificant share in overseas markets. That scenario has evolved dramatically. Today, Internationalisation proves to be one of the most significant trends within retailing and although it is not a new concept altogether, it is a concept that has accelerated tremendously within the last two decades (Hanf and Pall. 2009: 2)
The following paper aims to provide an insightful discussion on the concept of Retail Internationalisation and the factors that retailers need to be wary of when considering global expansion as an option (Corbishley. 2012: 8) This paper will not discuss all of the factors that retailers ought to
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Once a retailer reaches the maturity stage, there is a halt in the growth of sales and thus, the retailer becomes one that is viewed upon as old and uninteresting within its home market. But this retailer may be seen as interesting and innovative in a foreign market (Sternquist 2007: 10) Therefore market saturation is seen as a motive that “pushes” a retailer towards foreign markets (Corbishley 2012: 1)

• Intense Competition at Home
Sternquist (2007: 12) asserts that some markets are highly competitive in nature when compared to others, retailers within severe competitive environments such as Japan’s or America’s, may be faced with the decision to enter foreign markets in an effort to save their businesses. Sternquist provides evidence stating that several Japanese retailers were forced to pull out of the Hong Kong market due to the declining market share in Japan. This shows that intense competition at home is seen as an internationalisation “push” factor (Corbishley 2012: 1)

• Economic Downturn at Home
Corbishley (2012: 1) describes economic downturn as a factor that “pushes” retailers out of their home countries. Recessions are the major causes of retail internationalisation and during these periods, foreign markets appear
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