Steve Burt

The strategic role of retail brands in British grocery retailing

Assesses the evolution of retail brands within British grocery retailing over the past 25 years. Highlights key issues in defining retail brands which contribute to our understanding of their role and impact upon company strategy, and then explores how British retailers have managed the evolution of these product ranges. Identifies key factors as the changing basis and use of retail power in the distribution channel, the centralisation of management activities, and the appreciation of what constitutes retail image. Argues that British grocery retailers have successfully managed these factors to create a retail brand which is now regarded by customers as being at least equal to, if not better than, the established manufacturer brands.

Brands without boundaries – The internationalisation of the designer retailer’s brand

Addresses an area which has been neglected in the international retailing literature; the internationalisation of the fashion designer’s brand. Initial exploratory research revealed that there were 114 international fashion design houses competing for a global market of around £24 billion. Further research by postal questionnaire to entrants into the UK market, in addition to semi‐structured interviews with European and US designers, confirmed that this market was buoyant, fuelled by the development of diffusion lines for the mass market. Identifies four stages of market development: wholesale channels to department stores; the creation of ready‐to‐wear flagships; large diffusion flagships; the opening of stores in provincial cities. In order to acquire capital to enable this expansion, over 60 per cent of all fashion designers are now public limited companies. Even then franchising of stages 3 and 4, diffusion line development, is often franchised to third parties with the designer maintaining control over the product and its brand image. Between 20‐30 per cent of gross margin is spent on advertising support to create global campaigns to enhance brand image in foreign markets. However, there is increasing tension between the desire to be exclusive yet becoming involved in product line extensions and widespread distribution which could ultimately dilute the brand’s value.

The role of store image in retail internationalisation

Argues that for many retailers, competitive advantage in the home market has been based upon the development of strong store and corporate images as retailers strive to develop themselves as brands in their own right. The construction of store image, comprising both tangible and intangible dimensions, compounds problems of moving into international markets – as consumers in the host environment are less familiar with the intangible dimensions of image, which have been built up over time with exposure to the retail company. Retail companies therefore need to fully understand the importance of image in competitive positioning and the components of store image before attempting to replicate this image and positioning overseas. Explores these issues with reference to Marks & Spencer and the company’s entry into the Spanish market. A survey of customer perceptions of a range of store image attributes in the UK and Spain, reveals differences and similarities in perceptions, which must be managed if a standardised position is to be sought in the host market.

E-commerce and the retail process: a review

Abstract Views abound on the impact of the Internet and e-commerce on traditional forms of retailing. Scenarios range from on the one hand, the almost total devastation of existing physical retailing to, on the other, limited if any impact upon “real” retailing. Despite excessive hype, spectacular failures and the myriad of conflicting views and crystal-ball gazing, e-commerce processes and procedures provide the potential for a fundamental reassessment of how retailing operates and how retailers behave. Without doubt, the existing ways of operating and the associated cost structures within retailing will be reassessed under the onslaught of new technology and new retail structures. This paper reviews the published evidence on the impact of e-commerce on the retail process. It reviews the situation rather than introducing new evidence. The focus is on the process as it supports B2C activity and how retail processes and procedures could be affected by e-commerce, rather than a pre-occupation with sales impact through traditional merchandise and product sector typologies. Three conclusions are drawn. First, the largest retailers are now pursuing Internet-enabled advantages and cost reductions in operations, which could translate to an enhanced competitive position in process, structure and relationship terms. Secondly, consumer reactions to the new real and virtual offers will be fundamental to their success and failure, but as yet consumer reactions are not fully understood. Thirdly, existing retail floorspace will need enhancement in quality and presentation if it is to continue to provide retail functions.

Failure in international retailing: research propositions

Whilst retail internationalization practice has a long history, academic research into retail internationalization is a more recent phenomenon. We argue in this paper that our continuing conceptualization of retail internationalization would be aided by incorporating aspects of failure in international retailing. In internationalization practice, failure would seem to be a common occurrence, whereas in academia, such failure has been almost routinely ignored. Here, we attempt to define and conceptualize failure in international retailing. We then put forward a series of propositions that might serve as a guide to future research on failure in retail internationalization.

Retail internationalization and retail failure: issues from the case of Marks and Spencer

Retail internationalization has attracted much attention in recent years as the scale and nature of the activity has changed. Most analysis of retail internationalization however is based on market entry and mainly successful businesses. Here, the internationalization strategy of Marks and Spencer over 30 years is examined. Its recent large-scale withdrawal from such activity is considered in the light of theories about internationalization and business failure. The complexity of market exit in retailing is emphasized. It is suggested that market exit and failure are important underresearched dimensions of retail internationalization. More detailed and careful work on market entry and withdrawal (failure?) is needed to adequately conceptualize the subject area.

Temporal trends in the internationalization of British retailing

International retailing is widely recognized as a risky venture. The literature suggests that initial moves into foreign markets reflect attempts to minimize a range of perceived risks. Over time, as perceptions of risk change and experience curve factors come into play, one might expect a change of approach to foreign market investment. This paper examines the trends observed in British retail internationalization over the 1960–90 period and examines changes in the volume, nature and direction of investment. The relationship of these trends to risk reduction strategies and how they may change over time are considered. Geographical and cultural proximity, the use of specific entry mechanisms and the nature of the sector concerned are seen to be important considerations in understanding the patterns seen over time.

Power and Competition in the UK Retail Grocery Market

The UK retail grocery market is widely recognized as being oligopolistic. This has raised concerns over the level and use of power by the leading retailers. This paper considers the changes in the UK retail grocery market in the context of a discussion of power. This discussion focuses on the possibility of a dominant chain arising in the market. Vertical and horizontal relationships and price and non-price competition form the organizing principles of the analysis. Policy implications are suggested and other conclusions are drawn.

Channel power, conflict and conflict resolution in international fashion retailing

Research that has considered the problems faced by internationalising retailers has tended to focus upon such dimensions as non‐conducive environmental conditions and inferior internal capability, rather than the conflicts that may arise from the partnerships that are formed in order to facilitate the internationalisation of retailer operations. This study seeks to re‐dress this research neglect and does so by focusing upon the fashion sector. The aim of this study is to identify the problems that may arise from fashion retailers’ international relationships. The paper reports the findings of an in‐depth study of the relationships of ten international fashion retailers. It is found that these relationships face significant tensions, specifically with respect to strategy non‐compliance, perceptual disagreements, and arguments concerning the demarcation of decision making responsibility. The paper concludes by identifying areas for future research consideration.

The elderly consumer and non-food purchase behaviour

Demographic change is leading to an ageing of the population in the UK, but there is still a considerable debate as to whether the elderly should be treated as a distinct market segment. Previous work on the shopping preferences and activities of the elderly, undertaken mainly in the USA, has identified a number of issues relating to patronage behaviour and attitudes to store attributes. Seeks to examine some of these issues in a British context. Interviews were conducted with 838 shoppers over the age of 55 in three different shopping locations, investigating store choice and attitudes. An item of clothing was chosen to provide the shopping context. Results suggest that gender appears to be a more important attribute than age in determining a number of shopping traits, in particular, actual shop choice and the expressed motives for shop choice. Some general preference is evident among the elderly group for locally operated rather than nationally operated store options.