International Retail Divestment

The divestment of international retail operations is an under-explored area of research. Conceptual and theoretical developments within retailing have tended to focus on those organisations that have sustained international development rather than on those organisations who have experienced market failure and strategic withdrawals from international markets. The paper discusses two prominent UK cases where market withdrawal has been a feature of international activity. A cross-case analysis is then used to identify issues for further research activity. In particular, the cross-case analysis uses the existing constructs that have emerged from the general literature to explain divestment activity while highlighting the limitations of using these constructs within the retail sector. The paper concludes by noting the limitations of existing frameworks that seek to explain the internationalisation process without due consideration of the divestment process.