1. What Is International Retailing?
“All activities involved in selling products and services to final international consumers for their personal consumption”

2. Great diversity in Retail Patterns
Retail Outlets Population Employees
Country (000) per Outlet per Outlet
Argentina
Australia
Canada
India NA
Japan
Malaysia
Mexico
Philippines
South Africa
South Korea
U.S.A
14-9
SOURCES: International Marketing Data and Statistics, 21st ed (London: Euromonitor Publications, 1997), and "Indicators of Market Size for 115 Countries," Crossborder Monitor, August 27, 1997.
Irwin/McGraw-Hill

3. Retail Formats (General Merchandise): (1)Specialty Stores
Specialty Stores (narrow product line and wide assortment)
Very popular, especially in developed countries; independent stores often dominant

4. (2)Specialized Markets
Markets that contain specialty stores specializing in a particular product category
Exist worldwide in both developed and developing countries

5. (3)Department Stores
General Retailers that offer a broad variety of goods and wide assortments
U.S. & Canada losing share to discounters, specialty stores, category killers
European department stores focus on home countries with eye towards European Union
Often include supermarket sections

6. (4) General Merchandise Discount Stores
Retailers that sell high volumes of merchandise, offer limited service, and charge lower prices, e.g. Wal-Mart, Target, Home Depot

7. Retail Formats (Food): (1) Super Stores / Hypermarkets
Hypermarkets Large retailers that combine supermarket, discount, and warehouse retailing principles

8. Trends in International Retailing
Both U.S. & European retailers expanding internationally
Top 10 Global Retailers (1999)
Wal-Mart (U.S.)
Metro AG (Germany) grocery
Sears Roebuck (U.S.)
Rewe Gruppe (Germany) grocery
Edeka Gruppe (Germany)
Aldi Gruppe (Germany) grocery
Dayton Hudson (U.S.)
Carrefour (France) grocery
Tenselmann Gruppe (Germany)
Consolidation & acquisition among retailers

9. Issues in International Retailing
Local regulations – e.g. restrictions on expansion of hypermarkets; operating hours
Taxation – e.g. Taxes higher in Norway than Denmark; Consumers shop on duty free shop on Ferry
Consumer Preferences- e.g. U.S. shop less frequently & buy in bulk; Argentina prefer to shop in small food stores

10. Food Fight in the Aisle de France Los Angeles Times 4/2/96
“Huge hypermarkets (hypermarches) are squeezing out quaint boulangeries. The government is cracking down on chains, but shoppers-albeit guiltily-are picking convenience over culture.”
1,000 up 100% from 1985

11. Reasons For Change
Poor economy
Growth of two career couples

12. Resistance To Change (Ethnocentric)
French deeply conflicted. “They sniff at crass commercialization in America, which they see as a free market run amok, and they lavish praise on their neighborhood stores but more than half of food purchased at larger supermarkets.”
New Stiffer Law prohibiting selling anything below cost; Sets up council to monitor compliance

13. Consequences Lower priced goods Profitable retailers
Small businesses in villages going under
Character of countryside and even urban center changing
Market for larger appliances

14. Brainstorm - How To Succeed
Culturally Congruent Strategy
E.g. employs 22 bakers who make 4,000 baguettes a day from fresh (not frozen) dough and a wide variety of pastries - all in ovens visible to shoppers.
Roasting chickens can be chosen right off the rotisserie similar to butchery
Helpful workers clean and skin fish while you wait.

15. Warehouse or Wholesale Clubs
Require members to pay an annual fee; operate in low-overhead, warehouse-type facilities, offer limited lines of brand name and dealer groceries, apparel, appliances, etc. at low prices

16. Convenience Stores, Kiosks
Small retailers located in residential areas, open longer hours, carry limited lines of high-turnover necessities.