Global Expansion of Major Retailers
Retailers with unique formats and strong brand positioning are increasingly moving into other countries. Many are expanding internationally to escape mature and saturated home markets. Over the years, some giant retailers, such as McDonald's, have become globally prominent as a result of their marketing prowess. Others, such as Wal-Mart, are rapidly establishing a global presence. Wal-Mart, which now operates more than 3,000 stores in 13 countries abroad, sees exciting global potential. Its international division alone last year racked up sales of more than $90 billion, an increase of
- Retail technology: In its new pilot store—Bloom—grocery chain Food Lion is using technology to make shopping easier for its customers.
almost 18 percent over the previous year and 42 percent more than rival Target's total sales of $63.4.27
However, most U.S retailers are still significantly behind Europe and Asia when it comes to global expansion. Ten of the world's top 20 retailers are U.S. companies; only 3 of these retailers have set up stores outside of North America (Wal-Mart, Home Depot, and Costco). Of the 10 non-U.S. retailers in the world's top 20, 7 have stores in at least 10 countries. Among foreign retailers that have gone global are France's Carrefour and Auchan chains, Germany's METRO and Aldi chains, and Britain's Tesco.28
French discount retailer Carrefour, the world's second-largest retailer after Wal-Mart, has embarked on an aggressive mission to extend its role as a leading international retailer:
The Carrefour Group has an interest in more than 14,576 stores in over 30 countries in Europe, Asia, and the Americas, including 1,108 hypermarkets (supercenters). It leads Europe in supermarkets and the world in hypermarkets. Carrefour is outpacing Wal-Mart in several emerging markets, including South America, China, and the Pacific Rim. It's the leading retailer in Brazil and Argentina, where it operates more than 900 stores, compared to Wal-Mart's 336 units in those two countries. Carrefour is the largest foreign retailer in China, where it operates more than 350 stores versus Wal-Mart's 203. In short, although Wal-Mart has more than three times Carrefour's overall sales, Carrefour is forging ahead of Wal-Mart in most markets outside North America. The only question: Can the French retailer hold its lead? Although no one retailer can safely claim to be in the same league with Wal-Mart as an overall retail presence, Carrefour stands a better chance than most to hold its own in global retailing.29
Retail communities: Scissors and crafting supplies maker Fiskars has created an online community of more than 4,000 crafting enthusiasts.
Crafting is a very high-involvement product category for the women who love it. As one enthusiast put it: "Crafting isn't a matter of life and death. It's much more important than that." So, to light a fire under the Fiskars brand, the company created Fiskateers, an exclusive community of crafters. You have to be invited to get in. When you join up, you
Retail communities: Scissors and crafting supplies maker Fiskars has created an online community of more than 4,000 crafting enthusiasts.
Continue reading here: Retail Stores as Communities or Hangouts
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