Internationalization of Retail in Poland and Croatia

Abstract

Purpose

Retail, by definition, used to be an industry focused on local markets and aiming to distribute goods to consumers in a narrow geographical area. In developed market economies, the internationalization of retail operations started with global sourcing, while in Eastern Europe the process of retail internationalization intensified after the fall of communism in late 1980s and early 1990s. Although there are plenty of papers discussing the conceptual framework of retail internationalization, publications analyzing the present level of internationalization and the current status of specific geographic markets are scarce. Therefore, this chapter will analyze and compare the Croatian and Polish markets in order to explain the paths and drivers of retail internationalization in postcommunist economies.

Design/methodology/approach

Research has focused on the Polish and Croatian markets. The first and second part of the chapter explain retail internationalization per se on the basis of existing relevant literature, as well as elaborate on the process of retail internationalization in the postcommunist economies of Poland and Croatia. The main part of the chapter presents the results of a comparative study. This comparative study has been based on secondary data available in official statistical publications of Poland, Croatia, and European Union. As the source of information on large retailers, secondary data has been used as well. Our research analyzes key trends and calculates and presents key indicators showing the importance of retail in national economies.

Findings

Both Croatia and Poland are considered attractive host markets for the largest global retailers. Dynamics and intensity of retail internationalization have been different, but the process of retail internationalization is currently intensified in both countries. Retail internationalization is changing the scope of domestic market conditions. Several indicators and effects are observed in this chapter: growth of larger formats within the retail structure, growth in the number of employees per outlet, and growth of the share of trade in GDP creation.

Originality/value

The chapter explains the process of retail internationalization and the level of retail internationalization reached in Croatia and Poland. International retailers from different countries entered the Polish and Croatian markets driven by opportunities offered by these non-saturated markets. The process of internationalization, which is currently intensified, is analyzed in this chapter. Poland and Croatia are markets and countries with similar socioeconomic development. Therefore, this chapter contributes to a better understanding of retail internationalization and its effects on transitional, postcommunist economies.

Citation

Knezevic, B. and Szarucki, M. (2013), "Internationalization of Retail in Poland and Croatia", Challenges for the Trade of Central and Southeast Europe (International Business and Management, Vol. 29), Emerald Group Publishing Limited, Leeds, pp. 1-18. https://doi.org/10.1108/S1876-066X(2013)0000029005