Editorial

Citation

Fernie, J. (2009), "Editorial", International Journal of Retail & Distribution Management, Vol. 37 No. 3. https://doi.org/10.1108/ijrdm.2009.08937caa.001

Editorial

Article Type: Editorial From: International Journal of Retail & Distribution Management, Volume 37, Issue 3

Issue 3 in 2009 has an international theme in that the first three papers relate to foreign retailers’ entry into domestic markets and the final paper discusses a US retailer’s international sourcing strategy.

The first paper, of which I am co-author with Elke Pioch, Ulrike Gerhard and Stephen Arnold, discusses Wal-Mart’s varying performance in Europe through the lens of institutional theory. Data were collected from two consumer surveys in Germany and the UK to assess consumer acceptance of Wal-Mart in both markets. Institutional theory was more likely to explain product market failure than success. Hence, Wal-Mart’s failure in Germany can be explained by the company’s inability to shift consumer preferences to norms which it excelled in – range, customer service and store ambience compared to the UK where norms were shifting towards price dominance, a key Asda/Wal-Mart norm.

Shivee Ranjanee Kaliappan and colleagues from Malaysia continue this theme by discussing the impact of foreign hypermarket operators on domestic suppliers in Malaysia. Using a mixture of data collection methods, the authors reveal that domestic suppliers have benefited from the influx of foreign retailers, partly because of the Government’s strong local sourcing policy. Although the operational efficiency of suppliers has improved considerably, these suppliers, especially the smaller ones, have shown concern about the imposition of “western” practices such as listing fees, rebates and other allowances which impact upon policies.

Our third paper is by Stephen Wigley and Chu-Ling Chiang. They investigated the retail marketing strategies of Per Una (part of Marks & Spencer) in the context of its franchise operation in Taiwan. The research shows that it is important for Per Una to have a consistent global brand image with standardised product design, store environments and operational procedures but more flexible policies with regard to pricing, range and promotion. As Per Una has announced its intention to withdraw from Taiwan since the writing of this article, clearly the adaption to the Taiwanese market was not successful.

Jinsook Erin Cho from the US contributes our last paper on the topical issue of global sourcing of apparel firms and the decisions which these firms make with regard to backward integration. Using transaction cost analysis (TCA) as the basis for the conceptual framework of the research, she shows that TCA does have a significant effect on the choice of sourcing governance by retailers. Using a pre-tested mailed questionnaire, 151 retailers responded to the survey, results indicate that companies avoid backward integration when faced with high volume fluctuations, high country risk and limited experience in the sourcing market.

John Fernie