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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.

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.

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.

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.

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.

The need for retailers to internationalize is a growing reality in developed markets. Research examining problems in this process argues that the barriers to internationalization should be studied based on the situation in each country, and that public organizations which implement policies to support internationalization do not always adapt to company needs. The purpose of this paper is to contribute to the limited existing research on the subject of Spanish retail internationalization, analysing the problems faced by SMEs and the role of public support organizations in helping them.

By means of in-depth interviews with experts, the authors first, analysed the barriers faced by Spanish retailers in their internationalization processes, and found a predominance of endogenous as opposed to exogenous barriers. Second, the authors studied the appropriateness of support policies for retail needs and identified a significant mismatch.

Results show that the current international economic climate and restricted access to financing, combined with the small size of retailers, their lack of experience in internationalization processes, and the potential that still remains in the local market, are an inducement not to venture into other markets. Additionally, there is a lack of awareness on the part of public organizations about the reality and needs of the retail sector. In addition, the study of retail internationalization as a discipline seems to be in constant flux.

It would be pertinent to consider the findings in the light of a number of limitations of the study. The sample did not consist of retailers but its representatives. The reliance upon a single nation sample could also be viewed as a limitation.

The authors provide Spanish retailers with ideas about the problems they are facing which they will find useful as a starting point for strategic thinking about their internationalization prospects.

As for Spanish promotion organizations, they should consider the results of this research and further study the needs of retailers in their internationalization processes while also identifying which companies have the greatest potential for operating in foreign markets.

It is the first time a research for Spain is conducted that highlights the needs of developing a plan to support the internationalization of the retail sector and provide specific lines of action.

Research on international retailing has generally emanated from Europe and North America. Nonetheless, retailers from emerging countries can also be important players in regional markets. The purpose of this paper is to explore how retailers from emerging markets can become strong enough to compete internationally.

The study examines a longitudinal case study of the internationalisation process of Falabella, a Chilean retailer that has recently become an important player in the Latin America retail industry. Drawing on 32 interviews with company managers, as well as industry data and corporate reports, this paper provides insights into the successful internationalisation process of a retailer from an emerging country.

The paper offers insights into emerging market internationalisation. In particular, these findings suggest that specific capabilities and resources, such as local and regional partnerships, organisational learning, innovation orientation, adaptation to the local markets, and an experienced management team, are required for emerging market retailers to internationalise and improve their likelihood of success in foreign markets.

This paper explores an underdeveloped topic through the analysis of a longitudinal case study. Thus, it is necessary to further expand this line of research and investigate other emerging market retailers.

This study raises a number of important issues for emerging market retail managers that are reluctant to expand abroad and compete with large multinationals from developed markets, or that are struggling with their actual internationalisation process.

To date, the retail internationalisation literature has focused on the international experiences of firms from developed nations. However, there is a gap in the literature as to how retailers from emerging countries can become strong enough to compete internationally.

In the light of recent changes in the international environment, the purpose of this paper is to consider whether the drivers of, and impediments to, retail internationalisation and the business strategy adopted have also changed.

Interviews were conducted with 12 UK and US retailers. These exploratory data were combined with a review of the literature to explore changes in the drivers and impediments of retail internationalisation.

Findings of this study suggest that, while a variety of factors drive retail internationalisation, profit growth is the most dominant motivator. In terms of impediments to foreign expansion, domestic market conditions were a barrier to the initiation of foreign expansion, whilst the regulatory environment and previous experiences presented obstacles in the process of internationalisation. Interviewees also expressed a desire for increased standardisation, while acknowledging the need for a substantial degree of adaptation in response to cultural differences.

The research findings are limited in terms of their generalisability.

Much of the existing research into retail internationalisation was conducted in the 1990s. Given the substantial changes that have occurred over the past 15 years, the value of this paper lies in the updating of knowledge.

The purpose of this paper is to challenge earlier recommendations and explanations regarding companies’ behaviour after an economic shock and analyses worldwide retail companies’ internationalization processes before and after the 2008 crisis.

Drawing on information published between 2003 and 2012, the authors focus on the 2008 crisis and analyse 1,500 different internationalization moves by 109 companies from 26 countries.

The analyses confirm that the pace of retail internationalization increased after the 2008 crisis, that these companies had mainly moved into countries with newly developing economies, and that the entry modes ranged from high-cost entry modes and low-cost strategies.

This paper provides an initial indication of retailers’ actual internationalization behaviour in the period considered. Such material has not been available previously as international retailing research has primarily focused on theoretical assumptions. By focusing on the current financial crisis, the authors highlight the problem that researchers investigating various company behaviours face when comparing these to the theoretical expectations. By using a worldwide, multisectorial, and longitudinal retailing sample to illustrate the internationalization process, the authors not only generalize companies’ internationalization behaviour, but also challenge earlier recommendations and explanations regarding their behaviour after an economic shock.

In recent years the scale and scope of retailer internationalisation activity has grown markedly, mainly through increasing levels of cross‐border merger and acquisition activity. This has been particularly prevalent among companies operating in the food retail sector. During this time, and within the context of increased merger and acquisition activity in international markets, the financial institutions have taken an increasingly prominent role in the retail internationalisation process. Explores the nature of the financial institutions’ role in the retailer internationalisation process and, specifically, the extent to which the financial institutions actually inhibit and/or promote retail international activity. A key purpose of this study is to examine some of the drivers and inhibitors of the retailer internationalisation process. Reports the findings from 30 in‐depth interviews with food retail analysts of the leading investment banks in the City of London. The findings from this study should help to provide further insights into the nature of the retailer internationalisation process.

Considers the development of international retail thought and the need for an integrated conceptual approach to the process of retail internationalisation. The paper considers the development of international retail thought within the context of international retail activity and subject development and suggests the intellectual influences on the development of retail thought have, at times, constrained the development of a better understanding of the internationalisation process. Having established the parameters of debate, the paper considers the search for a synthesised approach to the understanding of the internationalisation process and integration of retail international theory within broader economic and international business frameworks. In the context of this theoretical material, the paper presents a framework within which international activity may be considered.

The purpose of this paper is to examine the effects of international expansion on the sales volumes of large‐scale retailers.

Sales data of 200 largest retailers from around the world reported in the 2004 Deloitte “Global Retail Power” survey were analyzed with regression analyses.

It was found that: even though internationalization makes a positive contribution to retailers' sales volumes its impact is small; this effect is not impacted by the moderating factor of the degree of retailer specialization along product lines; while another moderating factor, namely the identity of the retailer's country of origin, does make a difference.

The research methodology and the nature of the data precluded the use of more “soft” measures such as measures of managerial cognitions, perceptions and attitudes to analyze their impact on the effectiveness of internationalization for retailers. The research used cross‐sectional data and further research should compare results in additional time points to capture the possible dynamic changes in this industry.

Retailers seeking to expand their sales volumes should not rely too much on internationalization but consider also other strategic options. They should therefore analyze carefully whether large investments in overseas operations are justified. This is particularly relevant for US retailers.

This paper focuses on the issue of internationalization as a viable retail strategy to achieve larger sales volumes. The study reaches its conclusions on the basis of an analysis of data from a large population of diverse, domestic‐only and international retailers from around the world from different sectors and countries of origin, who – the international retailers – operate in different countries.

The internationalisation of large multinational retailers is well documented and much research attention has been given to their motives and strategies for expansion. Yet, no research in this field has specifically addressed the internationalisation of small‐ to medium‐sized companies (SMEs) operating in the retail industry. The theoretical insights from the literature revealed important gaps in extant research, which relate to the barriers, stimulants, drivers, facilitators, process, and market entry strategy of retail SME internationalisation.

This paper aims to fill these gaps. Since the intention of this study was not to describe, but rather to build theory from an unexplored area of research, an in‐depth case approach was deemed most appropriate. Therefore, the paper presents the findings from a number of case studies of SME retail internationalisation operating from the UK.

Key findings from this study not only confirm that smaller British retailers have both the potential and capability to enter international markets successfully, but provides initial insights into how they overcome the constraints of size and establish an international market strategy. The findings from this study also offer insights into the SME sector of the retail industry in the UK in terms of their experience and adoption of government exporting programmes, and details the main implications for managers of small international firms.

Although knowledge on SME retailer internationalisation, as it stands, is at a very early stage of development, this analysis of actual company activity in the UK retail industry provides important insights into a neglected area of international retail study and should help to develop the body of knowledge on SME internationalisation in general.