Stephen J. Arnold and Monika Narang Luthra
Identifies the effects associated with the entry of a large format (“big box”) retailer into a new market, especially a smaller one. A large format retailer can be a discount…
Abstract
Identifies the effects associated with the entry of a large format (“big box”) retailer into a new market, especially a smaller one. A large format retailer can be a discount department store, category specialist, warehouse club, superstore, supercenter or hypermarket. In order to identify these effects, a review was made of published and unpublished studies. In addition, interviews were conducted among key informants including developers, urban planners and professionals, economic development officers, retail executives and store managers. The result of this research includes a documentation, analysis and discussion of numerous effects, including benefits to the consumer, differences in the demographics of large format store shoppers, rapid growth in the sales and market share of the new entrant, growth in the community economy, growth and decline in various commercial sectors, decline in the economy of nearby markets, creation and losses of jobs, and increases and decreases in market efficiency. Given these effects, suggests implications for each community stakeholder. Listed are a large number of questions for future research.
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Elke Pioch, Ulrike Gerhard, John Fernie and Stephen J. Arnold
This paper aims to explore Wal‐Mart's varying performance in Europe and eventual exit from the German market by singling out the role of consumer acceptance of Wal‐Mart's market…
Abstract
Purpose
This paper aims to explore Wal‐Mart's varying performance in Europe and eventual exit from the German market by singling out the role of consumer acceptance of Wal‐Mart's market propositions.
Design/methodology/approach
The paper uses the macro‐constructs of institutional theory to interpret and conceptualise micro‐level consumer data. Data were collected via telephone surveys in two regional German and UK markets in 2002/2003. Salient patronage norms in each market were established and Wal‐Mart's as well as its competitors' performance on those norms were assessed.
Findings
In the German context, the institutional theory approach to explaining Wal‐Mart's problems clearly foreshadows market failure and exit. In UK market, no clear pattern between retailers adhering to salient patronage norms, patronage behaviour and market position could be established. The constructs of institutional theory were more likely to predict and explain market failure than success.
Research limitations/implications
Research in two regional markets limits the applicability of findings. Nevertheless, some key issues seem to indicate overall market performance. The telephone survey approach carries inherent problems, which however have only marginally impacted on the relevance of the findings.
Originality/value
The use of institutional theory constructs adds a further dimension to the discussion of international retailer success/failure and can constitute a valuable tool in the repertoire of the divestment and failure literature.
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John Fernie and Stephen J. Arnold
Wal‐Mart is the world’s largest retailer with ambitious plans to increase its international sales. Europe is a logical target for Wal‐Mart to consolidate and build upon…
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Wal‐Mart is the world’s largest retailer with ambitious plans to increase its international sales. Europe is a logical target for Wal‐Mart to consolidate and build upon acquisitions in Germany and the UK. This paper assesses the opportunities for Wal‐Mart in these markets and in France, which has the highest level of sales through food retailers in Europe. While Wal‐Mart has made an impact in both Germany and the UK, it has not been as successful as originally envisaged. Moreover, its growth aspirations have been frustrated by the difficulty in making further acquisitions in Germany and France because of the nature of ownership of targeted companies.
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Discusses Wal‐Mart’s entry into Europe. Explains the factors that have contributed to the success of the company, for example an efficient logistics system, extensive internal…
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Discusses Wal‐Mart’s entry into Europe. Explains the factors that have contributed to the success of the company, for example an efficient logistics system, extensive internal communications, and a capacity for innovation and reinvention. Outlines Wal‐Mart’s strategy for expanding into Europe, which is based on acquisition. Details the main challenges to Wal‐Mart’s entry into Europe, namely the size of the competition and cultural differences.
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The world’s best retailers – Ahold, Benetton, Carrefour, Home Depot, IKEA and Wal‐Mart – reflect several common characteristics: inspirational leadership, a motivational…
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The world’s best retailers – Ahold, Benetton, Carrefour, Home Depot, IKEA and Wal‐Mart – reflect several common characteristics: inspirational leadership, a motivational organisational culture, innovativeness, adaptability and consumer and community relevant behaviours.
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Stephen J. Arnold and John Fernie
The purpose of this paper is to assess the long‐term opportunity (or lack thereof) for Wal‐Mart in the UK. Wal‐Mart is the world’s largest retailer and the UK market offers a…
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The purpose of this paper is to assess the long‐term opportunity (or lack thereof) for Wal‐Mart in the UK. Wal‐Mart is the world’s largest retailer and the UK market offers a logical next step following Wal‐Mart’s 1997 entry into the European market via Germany. Retail internationalisation is discussed and how Wal‐Mart might enter the UK market. Wal‐Mart’s North American growth is attributed to a unique organisational culture, low cost operating procedures and a significant consumer impact related to the determinant low price, assortment, service and community support store choice attributes. These attributes are discussed in a UK context and conclude that the UK workforce would respond positively to the front‐line empowerment of the “Wal‐Mart Way”. UK consumers also would support the unique Wal‐Mart retail proposition. In terms of efficient supply chains, however, Wal‐Mart will not offer any significant competitive advantage over UK retailers.
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Who are the world’s best retailers? How do you select them? And just what are the features of their business that make them so successful? For the purposes of this study the…
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Who are the world’s best retailers? How do you select them? And just what are the features of their business that make them so successful? For the purposes of this study the selection criteria are: sales volume, growth, number of stores, number of countries they are represented in, longevity, as well as ranking compared to others in their particular retail category. To ensure that the choice is not too limited, the sectors covered include food and non‐food categories.
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Wal‐Mart is the world’s largest retailer. In fact, it is the biggest corporation on the planet. In January 2002, annual year to date sales exceeded a staggering $200 billion, and…
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Wal‐Mart is the world’s largest retailer. In fact, it is the biggest corporation on the planet. In January 2002, annual year to date sales exceeded a staggering $200 billion, and analysts predict that this figure will have rocketed to $700 billion by 2010. However, to meet such forecasts the organization must expand. Not that this comes as a surprise to the US food retail giant. Wal‐Mart has already increased its global presence from as far as Korea to Puerto Rico. As of March 2002, it had a total of 3,217 stores, over a third of which were located outside the USA. The foundations have been laid but Wal‐Mart cannot afford to rest on its laurels. These markets need to be developed.