Internationalization in Grocery Retail: Much Ado About Not Very Much
INSEAD - Marketing
Harvard Business School
September 9, 2010
INSEAD Working Paper No. 2010/67/MKT
We find that internationalization in the grocery sector has steeply increased over the last 15 years, but is still surprisingly limited. Although internationalization has a number of undeniable advantages for grocery retailers, our statistical analysis shows that the degree of internationalization is not a significant driver of profits nor of growth for grocery retailers. This suggests that internationalization should be developed differently or that other, more profitable growth strategies exist for grocery retailers. We provide a typology of such strategies and identify ‘weightless brand ownership’ as a promising underexploited profitable growth opportunity for grocery retailers.
Date posted: September 10, 2010