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This paper deals with the international expansion of manufacturing small- and medium-sized enterprises (SMEs) through the opening of retail outlets in foreign countries. The paper develops and discusses five research questions.

The paper discusses emerging data from the analysis of a database set up in recent years. In particular, it deals with 1,419 retail operations regarding 246 Italian fashion brands in 77 foreign markets during the period from 2005 and 2010.

The paper points out that retail operations are largely used by Italian fashion SMEs to internationalize. This form of entry in foreign markets is used to develop in both mature and emerging markets and it seems related to the brand potential of Italian fashion SMEs abroad.

The paper is limited to the case of Italian fashion brands and to the period 2005–2010.

The paper considers an unexplored area of the internationalization theory of SMEs, that of the development abroad through retail store openings. The paper offers insights on the extent to what this strategy is used by Italian fashion brands.

For many retailers organic growth through the opening of new stores is a crucial cornerstone of the business model. The purpose of this paper is to explore the store opening process conducted by retail companies. The research questions cover: first, the role and organisation of the establishment function in charge of the process; second, the activities and functions involved in the process; and third, the coordination mechanisms applied during the process.

This research considers the store opening process as a company-wide project, managed by an establishment function, in which internal functions as well as external suppliers need to be coordinated. A multiple case study of eight retail companies is presented, focusing on the organisation of the establishment function, a mapping of the store opening process and the application of coordination mechanisms.

The role and organisation of the establishment function is described and the store opening process is summarised into 11 main activities to be conducted by either the establishment function or other involved functions. During the store opening process six different coordination mechanisms are utilised, including mutual adjustments and direct supervision, as well as different types of standardisation.

This research seeks to improve our understanding for the store opening process and how it can be managed and controlled in an effective manner.

Relatively little research explicitly considers how a firm’s channel decisions affect consumer tradeoffs between the cognitive costs of online search and the physical costs of visiting a retail store. This study aims to argue that opening a new retail store affects both cognitive and physical search costs, but that the magnitude of these effects depends on the location of the consumer relative to the new store. In addition, individual differences in consumers’ cognitive costs that should moderate these effects.

This study takes the opening of multiple retailer stores on the same day as the nature experiment. Combining with data from other sources, this study tests the hypotheses using conditional logit for the correction of incidental problem in the traditional fix-effect logit model. Endogeneity issue is tested with the control function approach.

This study finds that opening a new store leads to a 136% increase in the odds of online visiting by consumers who live in the broader metropolitan area of the new store, while it leads to a 43% decrease in the odds of online visiting by consumers who live in the nearby shopping region. However, the effect of store entry on increasing website search is weaker for consumers who are more loyal, and the effect of store entry on decreasing website search is weaker for consumers who are more efficient in searching online.

This study adds to prior research by identifying when, and for which consumers, opening a physical store has complimentary versus substitutive effects on online search behavior.

The Japanese retail environment is of interest to businessmen, politicians and academics. Different observers tend to base their views on their own vested interests and national expectations, Japanese observers included. There is a need for more objective, unbiased research into Japanese retailing, consumer behaviour and marketing. Presents an overview of Japanese retailing employing predominantly Japanese language sources. Outlines briefly the general structure of the retail industry, emphasizing the large number of outlets overall. Considers the independent retail sector, notably the existence of street associations, and the corporate retail sector, putting emphasis on the latter owing to the lack of information available in English. Considers three forms of corporate retailing in detail, namely department stores, general merchandise stores and groups, and speciality shopping centres – commonly known as “fashion buildings”. In conclusion, notes that there is great scope for further research into Japanese retailing, and three general sectors are suggested.

States that there is compelling evidence that the Japanese retail distribution system is changing. This study uses census data for ten years (1985 to 1994) to understand past changes in the structure of the retail distribution system. To understand the likely changes to the distribution system in the future, data were collected from 136 Japanese manufacturers and retailers. Results suggest significant future changes in the number of retailers, specialty stores, general merchandise stores, discount stores, and non‐store retailing.

The purpose of this paper is to address the topic of business network dynamics and identify different relational paths, as forms of change in business relationships and related types of network change. The paper contributes to the literature on business network dynamics by providing an understanding of relational paths in the context of firms’ internationalization and shading light on different forms of change in business relationships and types of network change. The paper also contributes to the understanding of liabilities in internationalization that has to do with business networks, namely the liability of outsidership.

This paper is based on qualitative research following the multiple case study research approach. The authors propose three cases of internationalizing firms in the fashion industry that follows relational paths corresponding to different forms of change in business relationships that imply different types of network change.

Changes to a firm’s business network may be addressed through relational paths, namely creation of new business relationships (activation), maintenance of existing relationships (integration) and ending of existing relationships (substitution). These relational paths can be considered forms of incremental (integration) and radical (activation and substitution) change in business relationships and lead to different types of network change for business network dynamics that coexist and influence each other within the same firm.

This paper contributes to a better understanding of business network dynamics by showing how firms change their business relationships following different relational paths as the best way to respond to the challenges and new opportunities offered especially by international markets. The present paper has relevant managerial implications since coping with change in business relationships is perhaps one of the most critical and difficult tasks for management, even more critical if compared to the increasing complexity of doing business internationally and the liabilities that firms face in their internationalization process, especially the liability of outsidership.

Sparks, in a case study of the takeover of The Southland Corporation (USA) by Ito‐Yokado and Seven‐Eleven Japan, raised a number of fundamental questions about the nature of retail internationalisation and our understanding of the subject. This paper returns to this subject and, using an analysis of the changes in both businesses since the takeover, again explores our depth of comprehension of the processes of retail internationalisation. The changes in The Southland Corporation since 1991 have essentially replicated the Japanese convenience store model and produced a business turnaround. This illustrates both the depth and length of components of internationalisation. The stage is now set for the global transformation of the business.

The learning outcomes are as follows: understanding online, traditional and omnichannel retail and the challenges and benefits of each method; evaluating the effect of consumer buying behaviour on a company’s growth strategy; assessing the effect of changing industry dynamics and technology on consumer behaviour; and understanding the role of consistent customer experience across different retail mediums.

This case looks at Yuppiechef, a successful e-commerce business, and their move from “clicks to bricks” with the introduction of retail stores. Founder and CEO of Yuppiechef, Andrew Smith, shares the current business status and considers how to maintain the brand’s culture with the growth of retail and being an omnichannel pioneer.

The primary target audience for this teaching case is postgraduate business students, especially students of digital marketing, strategy and e-commerce. This teaching case is intended to be used as case study in postgraduate business programmes such as Master of Business Administration (MBA), a specialist masters’ programme such as MM (Entrepreneurship), post-graduate diploma in management (PGDip), as well as selected executive education programmes.

Teaching Notes are available for educators only.

CSS 8: Marketing.

The purpose of this paper is to identify ways to reconfigure physical retailing to ensure it maintains a sustainable position within the town centre ecosystem in the twenty-first century. The discussion draws on the evolving service-dominant logic (S-DL) and its service ecosystems perspective and evidence of best practice provided by actors involved in town centre regeneration between 2013 and 2018.

The research adopts a case methodology drawing on data submitted and analysed as part of the Grimsey Review 2, an independent review of the UK town centres. The data set provides examples of good practice sourced from industry leaders, trade bodies, local authorities and extensive social media engagement.

The paper evaluates the response of physical retail through an S-DL and service ecosystem lens. The review of best practice suggests that physical retailers have the best chance of survival if they proactively collaborate with other actors within a wider community hub solution, align their strategic position and operations to a holistic centre place plan and take steps to actively engage operant resources of consumers in creating physical store experiences.

The paper provides an evaluation of best practice in town centre regeneration implemented between 2013 and 2018. The case offers a rich bank of examples, illustrating how physical retailers are responding to the twenty-first-century challenges facing town centres. It makes recommendations for further improvement in the three critical areas identified above.

This paper provides further empirical support for the application of an S-DL and service ecosystem perspective to place marketing. To achieve effective value co-creation, physical retailers need to align themselves more closely with other actors in the system and maximise the potential of operant (and operand) consumer resources.

The cosmetics retail industry in France is changing for at least two reasons: first, more and more services are available within cosmetics stores and, second, large groups like LVMH or Marionnaud are themselves looking for retail chains in order to exert greater control over their distribution systems. The findings from an exploratory study of several cosmetics retail companies operating in the French market seem to indicate that developing services is the best way of retaining business independence and resisting predators. Moreover, the development of new services leads these companies to implement plural form organisations. Many managerial and strategic advantages can be drawn from this type of organisation compared to pure franchise or company‐owned arrangements. A model is proposed to explain the evolution of organisational forms in cosmetics chains.