Sainsbury comes a cropper in Cairo: Did HRM factors contribute to supermarket's failure in Egypt?

Abstract

Purpose

The purpose of this paper is to examine the HRM factors that may have contributed to the failure of UK supermarket group Sainsbury's attempt to enter the Egyptian market.

Design/methodology/approach

The paper draws on participant observations and interactions with stakeholder groups during a three‐month study based in a Sainsbury store in Egypt.

Findings

The paper reveals that failure to listen to the advice of its Egyptian employees may have been a reason for Sainsbury's failure in Egypt, which occurred despite the supermarket's technical superiority over its rivals.

Practical implications

The paper highlights retailers' need for a deep understanding of host countries' cultures if they are to expand successfully abroad.

Originality/value

The paper presents some interesting suppositions on why, only 14 months after opening the first Sainsbury store in Egypt, the company pulled out and sold the subsidiary at a loss to its Egyptian partner.

Citation

(2009), "Sainsbury comes a cropper in Cairo: Did HRM factors contribute to supermarket's failure in Egypt?", Human Resource Management International Digest, Vol. 17 No. 2, pp. 5-7. https://doi.org/10.1108/09670730910940195