International Retail Divestment Activity

P Cairns, N Alexander, Barry Quinn

Research output: Contribution to journalArticle

44 Citations (Scopus)

Abstract

Purpose – The research presented here initiates the process of the detailed analysis of international retail divestment activity through the identification of the volume of global divestment activity and the characteristics of that activity during the timeframe of 1987-2003. Design/methodology/approach – The methodology followed here is essentially historical in nature and draws on a wide range of contemporary periodicals, reports and other sources. Findings – The paper reports findings on: the form and extent of divestment activity; the year of divestment; divestment by retail sub-sector; divested chain size; length of time spent in the market of divestment; divestment by retail sub-sector; and the market of origin of divesting retailer. Originality/value – This paper provides an initial indication of the volume and nature of international retail divestment in the period considered. Such material has not been available previously. International retailing research has primarily focused on the internationalisation process rather than retail divestment from international markets. However, divestment from international markets is an issue of increasing importance within the competitive global environment. Previously research into retail divestment has focused on individual company experience. For the first time, the research presented here attempts to build a picture of the scale and dimensions of international retail withdrawal. The paper shows that patterns of international divestment are discernible.
LanguageEnglish
Pages5-22
JournalInternational Journal of Retail and Distribution Management
Volume33
Issue number1
DOIs
Publication statusPublished - 2005

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Divestment
Retail
International markets
Global environment
Retailers
International retailing
Design methodology
Methodology
Internationalization process

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title = "International Retail Divestment Activity",
abstract = "Purpose – The research presented here initiates the process of the detailed analysis of international retail divestment activity through the identification of the volume of global divestment activity and the characteristics of that activity during the timeframe of 1987-2003. Design/methodology/approach – The methodology followed here is essentially historical in nature and draws on a wide range of contemporary periodicals, reports and other sources. Findings – The paper reports findings on: the form and extent of divestment activity; the year of divestment; divestment by retail sub-sector; divested chain size; length of time spent in the market of divestment; divestment by retail sub-sector; and the market of origin of divesting retailer. Originality/value – This paper provides an initial indication of the volume and nature of international retail divestment in the period considered. Such material has not been available previously. International retailing research has primarily focused on the internationalisation process rather than retail divestment from international markets. However, divestment from international markets is an issue of increasing importance within the competitive global environment. Previously research into retail divestment has focused on individual company experience. For the first time, the research presented here attempts to build a picture of the scale and dimensions of international retail withdrawal. The paper shows that patterns of international divestment are discernible.",
author = "P Cairns and N Alexander and Barry Quinn",
note = "Reference text: Alexander, N. (1990), “Retailers and international markets: motives for expansion”, International Marketing Review, Vol. 7 No. 4, pp. 75-85. Alexander, N. (1995), “Expansion within the Single European Market: a motivational structure”, International Review of Retail, Distribution and Consumer Research, Vol. 5 No. 4, pp. 472-87. Alexander, N. (1997a), International Retailing, Blackwell, Oxford. Alexander, N. (1997b), “Objects in the rearview mirror may appear closer than they are”, International Review of Retail, Distribution and Consumer Research, Vol. 7 No. 4, pp. 383-403. Alexander, N. and Doherty, A.M. (2000), “The internationalisation of retailing: current research themes and future directions”, International Marketing Review, Vol. 17 No. 4/5, pp. 322-5. Alexander, N. and Myers, H. (1999), “European retail expansion in South East Asia”, European Business Review, Vol. 99 No. 2, pp. 91-104. Alexander, N. and Myers, H. (2000), “The internationalisation process”, International Marketing Review, Vol. 17 No. 4, pp. 334-53. IJRDM 33,1 20 Alexander, N. and Quinn, B. (2000), “International retailers’ strategic response to market withdrawal”, 7th International Conference on Recent Advances in Retailing and Services Science, Lisbon, 7-10 July, p. 5. Alexander, N. and Quinn, B. (2001), “Divestment and the internationalisation process”, 11th International Conference on Research in the Distributive Trades, Tilburg, 27 June-1 July, p. A12. Alexander, N. and Quinn, B. (2002), “International retail divestment”, International Journal of Retail & Distribution Management, Vol. 30 No. 2, pp. 112-25. Brown, S. and Burt, S. (1992), “Retail marketing: international perspectives – introduction”, European Journal of Marketing, Vol. 26 No. 8/9, pp. 5-7. Burt, S. (1986), “The Carrefour Group: the first 25 years”, International Journal of Retailing, Vol. 1 No. 3, pp. 54-78. Burt, S. (1991), “Trends in the internationalisation of grocery retailing: the European experience”, International Review of Retail, Distribution and Consumer Research, Vol. 1 No. 4, pp. 487-515. Burt, S. (1993), “Temporal trends in the internationalisation of British retailing”, International Review of Retail Distribution and Consumer Research, Vol. 3 No. 4, pp. 391-410. Burt, S. (1994), “Carrefour: internationalising innovation”, in McGoldrick, P.J. (Ed.), Cases in Retail Management, Pitman, London, pp. 154-64. Burt, S., Dawson, J. and Sparks, L. (2003), “Failure in international retailing: research propositions”, International Review of Retail, Distribution and Consumer Research, Vol. 13 No. 4, pp. 355-73. Burt, S., Mellahi, T., Jackson, T. and Sparks, L. (2002), “Retail internationalization and retail failure: issues from the case of Marks & Spencer”, International Review of Retail, Distribution and Consumer Research, Vol. 12 No. 2, pp. 191-219. Cameron, K.S., Sutton, R.L. and Whetton, D.A. (Eds) (1998), Readings in Organisational Decline: Frameworks, Research and Prescriptions, Ballinger Publishing, Cambridge, MA. Clark, G.L. and Wrigley, N. (1997), “Exit, the firm and sunk costs: reconceptualising the corporate geography of disinvestment and plant closure”, Progress in Human Geography, Vol. 21 No. 3, pp. 338-58. Corporate Intelligence Group (1996), UK Retailers’ Cross-border Activities, Corporate Intelligence, London. Duhaime, I. and Baird, I. (1987), “Divestment decision making: the role of business unit size”, Journal of Management, Vol. 13 No. 3, pp. 483-98. Evans, J., Treadgold, A. and Mavondo, F. (2000), “Psychic distance and the performance of international retailers: a suggested theoretical framework”, International Marketing Review, Vol. 17 No. 4/5, pp. 373-91. Fernie, J. (Ed.) (2002), “International retailing”, International Journal of Retail & Distribution Management, Vol. 30 No. 2/3, special issue. Frank, M. (1998), “An intertemporal model of industrial exit”, Quarterly Journal of Economics, Vol. 103, pp. 333-44. Godley, A. and Fletcher, S. (2001), “International retailing in Britain, 1850-1994”, The Service Industries Journal, Vol. 21 No. 2, pp. 31-46. Hildebrand, T. (1989), “An investigation of retailers entering and adapting to the US market”, unpublished PhD thesis, University of Western Ontario, London. International retail divestment activity 21 Jovanovic, B. and Lach, S. (1989), “Entry, exit and diffusion with learning by doing”, American Economic Review, Vol. 79 No. 4, pp. 690-9. Knee, D. (1993), Survey of International Moves by Retailers 1991-1993, Oxford Institute of Retail Management, Oxford. Lippman, S. and Rumlett, R. (1982), “Uncertain imitability: an analysis of inter-firm differences in efficiency under competition”, The Bell Journal of Economics, Vol. 13, Autumn, pp. 418-38. McGoldrick, P.J. and Davies, G. (Eds) (1995), International Retailing, Trends and Strategies, Pitman, London. O’Grady, S. and Lane, H. (1996), “The psychic distance paradox”, Journal of International Business Studies, Vol. 27 No. 2, pp. 309-34. Palmer, M. (2002), International Restructuring and Divestment: The Experience of Tesco, Working Paper Series, Faculty of Business and Management, University of Ulster, Coleraine, pp. 1-33. Palmer, M. and Quinn, B. (2003), “The strategic role of investment banks in the retailer internationalisation process: is this venture marketing?”, European Journal of Marketing, Vol. 37 No. 10, pp. 1391-408. Vida, I. and Fairhurst, A. (1998), “International expansion of retail firms: a theoretical approach for further investigations”, Journal of Retailing and Consumer Services, Vol. 5 No. 3, pp. 143-51. White, A. (1995), Cross-border Retailing: Leaders, Losers and Prospects, Financial Times Management Report, Pearson, London. Wood, S. (2001), “Regulatory constrained portfolio restructuring: the US department store industry in the 1990s”, Environment & Planning A, Vol. 33, pp. 1279-304. Wood, S. (2002), “The limits to portfolio restructuring: lessons from regional consolidation in the US department store industry”, Regional Studies, Vol. 36, pp. 515-29. Wrigley, N. (1999a), “Market rules and spatial outcomes: insights from the corporate restructuring of US food retailing”, Geographical Analysis, Vol. 31 No. 2, pp. 1-25. Wrigley, N. (1999b), “The consolidation in US food retailing: characteristics, causes and consequences”, paper presented at the 6th Recent Advances in Retailing and Services Science Conference, Las Croabas, 18-21 July. Wrigley, N. (2000a), “The globalization of retail capital: themes from economic geography”, in Clark, G., Gertler, M. and Feldman, M. (Eds), Handbook of Economic Geography, Oxford University Press, London. Wrigley, N. (2000b), “Strategic market behaviour in the internationalisation of food retailing”, European Journal of Marketing, Vol. 34 No. 8, pp. 891-918. Wrigley, N. and Currah, A. (2003), “The stresses of retail internationalisation: lessons from Royal Ahold’s experience in Latin America”, International Review of Retail, Distribution and Consumer Research, Vol. 13 No. 3, pp. 221-43. Further reading Clarke, I. and Rimmer, P. (1997), “The anatomy of retail internationalisation: Daimaru’s decision to invest in Melbourne, Australia”, The Service Industries Journal, Vol. 17 No. 3, pp. 361-82. Wrigley, N. (2002), “The landscape of pan-European food retail consolidation”, International Journal of Retail & Distribution Management, Vol. 30 No. 2, pp. 81-91.",
year = "2005",
doi = "10.1108/09590550510577101",
language = "English",
volume = "33",
pages = "5--22",
journal = "International Journal of Retail and Distribution Management",
issn = "0959-0552",
number = "1",

}

International Retail Divestment Activity. / Cairns, P; Alexander, N; Quinn, Barry.

In: International Journal of Retail and Distribution Management, Vol. 33, No. 1, 2005, p. 5-22.

Research output: Contribution to journalArticle

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T1 - International Retail Divestment Activity

AU - Cairns, P

AU - Alexander, N

AU - Quinn, Barry

N1 - Reference text: Alexander, N. (1990), “Retailers and international markets: motives for expansion”, International Marketing Review, Vol. 7 No. 4, pp. 75-85. Alexander, N. (1995), “Expansion within the Single European Market: a motivational structure”, International Review of Retail, Distribution and Consumer Research, Vol. 5 No. 4, pp. 472-87. Alexander, N. (1997a), International Retailing, Blackwell, Oxford. Alexander, N. (1997b), “Objects in the rearview mirror may appear closer than they are”, International Review of Retail, Distribution and Consumer Research, Vol. 7 No. 4, pp. 383-403. Alexander, N. and Doherty, A.M. (2000), “The internationalisation of retailing: current research themes and future directions”, International Marketing Review, Vol. 17 No. 4/5, pp. 322-5. Alexander, N. and Myers, H. (1999), “European retail expansion in South East Asia”, European Business Review, Vol. 99 No. 2, pp. 91-104. Alexander, N. and Myers, H. (2000), “The internationalisation process”, International Marketing Review, Vol. 17 No. 4, pp. 334-53. IJRDM 33,1 20 Alexander, N. and Quinn, B. (2000), “International retailers’ strategic response to market withdrawal”, 7th International Conference on Recent Advances in Retailing and Services Science, Lisbon, 7-10 July, p. 5. Alexander, N. and Quinn, B. (2001), “Divestment and the internationalisation process”, 11th International Conference on Research in the Distributive Trades, Tilburg, 27 June-1 July, p. A12. Alexander, N. and Quinn, B. (2002), “International retail divestment”, International Journal of Retail & Distribution Management, Vol. 30 No. 2, pp. 112-25. Brown, S. and Burt, S. (1992), “Retail marketing: international perspectives – introduction”, European Journal of Marketing, Vol. 26 No. 8/9, pp. 5-7. Burt, S. (1986), “The Carrefour Group: the first 25 years”, International Journal of Retailing, Vol. 1 No. 3, pp. 54-78. Burt, S. (1991), “Trends in the internationalisation of grocery retailing: the European experience”, International Review of Retail, Distribution and Consumer Research, Vol. 1 No. 4, pp. 487-515. Burt, S. (1993), “Temporal trends in the internationalisation of British retailing”, International Review of Retail Distribution and Consumer Research, Vol. 3 No. 4, pp. 391-410. Burt, S. (1994), “Carrefour: internationalising innovation”, in McGoldrick, P.J. (Ed.), Cases in Retail Management, Pitman, London, pp. 154-64. Burt, S., Dawson, J. and Sparks, L. (2003), “Failure in international retailing: research propositions”, International Review of Retail, Distribution and Consumer Research, Vol. 13 No. 4, pp. 355-73. Burt, S., Mellahi, T., Jackson, T. and Sparks, L. (2002), “Retail internationalization and retail failure: issues from the case of Marks & Spencer”, International Review of Retail, Distribution and Consumer Research, Vol. 12 No. 2, pp. 191-219. Cameron, K.S., Sutton, R.L. and Whetton, D.A. (Eds) (1998), Readings in Organisational Decline: Frameworks, Research and Prescriptions, Ballinger Publishing, Cambridge, MA. Clark, G.L. and Wrigley, N. (1997), “Exit, the firm and sunk costs: reconceptualising the corporate geography of disinvestment and plant closure”, Progress in Human Geography, Vol. 21 No. 3, pp. 338-58. Corporate Intelligence Group (1996), UK Retailers’ Cross-border Activities, Corporate Intelligence, London. Duhaime, I. and Baird, I. (1987), “Divestment decision making: the role of business unit size”, Journal of Management, Vol. 13 No. 3, pp. 483-98. Evans, J., Treadgold, A. and Mavondo, F. (2000), “Psychic distance and the performance of international retailers: a suggested theoretical framework”, International Marketing Review, Vol. 17 No. 4/5, pp. 373-91. Fernie, J. (Ed.) (2002), “International retailing”, International Journal of Retail & Distribution Management, Vol. 30 No. 2/3, special issue. Frank, M. (1998), “An intertemporal model of industrial exit”, Quarterly Journal of Economics, Vol. 103, pp. 333-44. Godley, A. and Fletcher, S. (2001), “International retailing in Britain, 1850-1994”, The Service Industries Journal, Vol. 21 No. 2, pp. 31-46. Hildebrand, T. (1989), “An investigation of retailers entering and adapting to the US market”, unpublished PhD thesis, University of Western Ontario, London. International retail divestment activity 21 Jovanovic, B. and Lach, S. (1989), “Entry, exit and diffusion with learning by doing”, American Economic Review, Vol. 79 No. 4, pp. 690-9. Knee, D. (1993), Survey of International Moves by Retailers 1991-1993, Oxford Institute of Retail Management, Oxford. Lippman, S. and Rumlett, R. (1982), “Uncertain imitability: an analysis of inter-firm differences in efficiency under competition”, The Bell Journal of Economics, Vol. 13, Autumn, pp. 418-38. McGoldrick, P.J. and Davies, G. (Eds) (1995), International Retailing, Trends and Strategies, Pitman, London. O’Grady, S. and Lane, H. (1996), “The psychic distance paradox”, Journal of International Business Studies, Vol. 27 No. 2, pp. 309-34. Palmer, M. (2002), International Restructuring and Divestment: The Experience of Tesco, Working Paper Series, Faculty of Business and Management, University of Ulster, Coleraine, pp. 1-33. Palmer, M. and Quinn, B. (2003), “The strategic role of investment banks in the retailer internationalisation process: is this venture marketing?”, European Journal of Marketing, Vol. 37 No. 10, pp. 1391-408. Vida, I. and Fairhurst, A. (1998), “International expansion of retail firms: a theoretical approach for further investigations”, Journal of Retailing and Consumer Services, Vol. 5 No. 3, pp. 143-51. White, A. (1995), Cross-border Retailing: Leaders, Losers and Prospects, Financial Times Management Report, Pearson, London. Wood, S. (2001), “Regulatory constrained portfolio restructuring: the US department store industry in the 1990s”, Environment & Planning A, Vol. 33, pp. 1279-304. Wood, S. (2002), “The limits to portfolio restructuring: lessons from regional consolidation in the US department store industry”, Regional Studies, Vol. 36, pp. 515-29. Wrigley, N. (1999a), “Market rules and spatial outcomes: insights from the corporate restructuring of US food retailing”, Geographical Analysis, Vol. 31 No. 2, pp. 1-25. Wrigley, N. (1999b), “The consolidation in US food retailing: characteristics, causes and consequences”, paper presented at the 6th Recent Advances in Retailing and Services Science Conference, Las Croabas, 18-21 July. Wrigley, N. (2000a), “The globalization of retail capital: themes from economic geography”, in Clark, G., Gertler, M. and Feldman, M. (Eds), Handbook of Economic Geography, Oxford University Press, London. Wrigley, N. (2000b), “Strategic market behaviour in the internationalisation of food retailing”, European Journal of Marketing, Vol. 34 No. 8, pp. 891-918. Wrigley, N. and Currah, A. (2003), “The stresses of retail internationalisation: lessons from Royal Ahold’s experience in Latin America”, International Review of Retail, Distribution and Consumer Research, Vol. 13 No. 3, pp. 221-43. Further reading Clarke, I. and Rimmer, P. (1997), “The anatomy of retail internationalisation: Daimaru’s decision to invest in Melbourne, Australia”, The Service Industries Journal, Vol. 17 No. 3, pp. 361-82. Wrigley, N. (2002), “The landscape of pan-European food retail consolidation”, International Journal of Retail & Distribution Management, Vol. 30 No. 2, pp. 81-91.

PY - 2005

Y1 - 2005

N2 - Purpose – The research presented here initiates the process of the detailed analysis of international retail divestment activity through the identification of the volume of global divestment activity and the characteristics of that activity during the timeframe of 1987-2003. Design/methodology/approach – The methodology followed here is essentially historical in nature and draws on a wide range of contemporary periodicals, reports and other sources. Findings – The paper reports findings on: the form and extent of divestment activity; the year of divestment; divestment by retail sub-sector; divested chain size; length of time spent in the market of divestment; divestment by retail sub-sector; and the market of origin of divesting retailer. Originality/value – This paper provides an initial indication of the volume and nature of international retail divestment in the period considered. Such material has not been available previously. International retailing research has primarily focused on the internationalisation process rather than retail divestment from international markets. However, divestment from international markets is an issue of increasing importance within the competitive global environment. Previously research into retail divestment has focused on individual company experience. For the first time, the research presented here attempts to build a picture of the scale and dimensions of international retail withdrawal. The paper shows that patterns of international divestment are discernible.

AB - Purpose – The research presented here initiates the process of the detailed analysis of international retail divestment activity through the identification of the volume of global divestment activity and the characteristics of that activity during the timeframe of 1987-2003. Design/methodology/approach – The methodology followed here is essentially historical in nature and draws on a wide range of contemporary periodicals, reports and other sources. Findings – The paper reports findings on: the form and extent of divestment activity; the year of divestment; divestment by retail sub-sector; divested chain size; length of time spent in the market of divestment; divestment by retail sub-sector; and the market of origin of divesting retailer. Originality/value – This paper provides an initial indication of the volume and nature of international retail divestment in the period considered. Such material has not been available previously. International retailing research has primarily focused on the internationalisation process rather than retail divestment from international markets. However, divestment from international markets is an issue of increasing importance within the competitive global environment. Previously research into retail divestment has focused on individual company experience. For the first time, the research presented here attempts to build a picture of the scale and dimensions of international retail withdrawal. The paper shows that patterns of international divestment are discernible.

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DO - 10.1108/09590550510577101

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VL - 33

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EP - 22

JO - International Journal of Retail and Distribution Management

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ER -