Page 1 Retail Strategy Module David F. Miller Center for Retailing Education and Research 2. Globalization of Retailing.

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Presentation transcript:

page 1 Retail Strategy Module David F. Miller Center for Retailing Education and Research 2. Globalization of Retailing

page 2 Retail Strategy Module David F. Miller Center for Retailing Education and Research Agenda  Globalization of retail industry  BRIC countries

page 3 Retail Strategy Module David F. Miller Center for Retailing Education and Research Why do retailers (businesses) expand internationally?

page 4 Retail Strategy Module David F. Miller Center for Retailing Education and Research Motivation for International Expansion  Increase Sales  International markets more attractive than domestic markets  Saturated home market and low growth potential  Intensive competition at home  Expansion at home blocked by politics/legislation  Economic downturn at home  Reduce Costs  Scale economies  Economies of scope  Diversify Risk – Reduce uncertainty

page 5 Retail Strategy Module David F. Miller Center for Retailing Education and Research Why Have Retailers Been Slower to Expand Internationally than manufacurers? $40B vs 400B 100’s vs 15 countries

page 6 Retail Strategy Module David F. Miller Center for Retailing Education and Research Top 20 Retailers in the World Information source: GMID, Euromonitor RankingRetailerCountry of origin 2009 Sales ($millions) Type # of countries of operation % of sales in foreign countries 1Wal-Mart Stores, IncUSA163,532.00International1513.9% 2Carrefour GroupFRA52,196.10International % 3The Kroger CoUSA45,352.00Single Country 10.00% 4Metro AGGER44,163.37International % 5The Home Depot, IncUSA38,434.00International53.70% 6Albertson’s, IncUSA37,478.00Single Country 10.00% 7ITM Enterprises SAFRA36,762.45International % 8Sears, Roebuck and CO USA36,728.00International310.60% 9Kmart CorporationUSA35,925.00Single Country 10.00% 10Target CorporationUSA33,702.00Single Country 10.00% 11JC PenneyUSA31,503.50Single Country 10.00% 12Royal AholdNET31,222.15International % 13Safeway Inc.USA30,801.80International810.80% 14Rewe-GruppeGER30,567.69International % 15Tesco plcUK30,404.40International % 16Ito-Yokado Co, LtdJPN30,237.57International229.80% 17Edeka-GruppeGER30,002.57International22.40% 18Costco Companies, IncUSA26,976.45International818.40% 19Tengelmann Warenhande GER26,509.12International % 20The Daiei, IncJPN26,486.11Single country 10.00%

page 7 Retail Strategy Module David F. Miller Center for Retailing Education and Research Why are European retailers more global than U.S. retailers?

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