ABSTRACT
In the first chapter of this book, the world’s largest retailers were listed and comparisons were made between the internationalization of the retail industry and other sectors. Many of the world’s largest retailers are US in origin and several operate solely in their domestic market (Albertson, Kroger and Target). Consolidation in the retail industry is low compared with other sectors and the share of foreign to total assets is correspondingly low. This is indeed the case, but there has been considerable change in retail markets during the 1990s and the early part of the twenty-first century which will lead to further restructuring of global markets in the future. The catalyst for much of this change has been the rise of Wal-Mart as the world’s dominant retailer. Its sales of $245 billion for the fiscal year to 31 January 2003 not only makes it over three times larger than Carrefour, its nearest retail competitor, but the world’s largest company. Yet in the late 1990s, Wal-Mart’s sales in international markets was around 9 per cent of total sales. By 2010, this figure is expected to rise to 25 per cent, which will add another $75 billion alone – this equates to Carrefour’s total sales in 2002. This chapter will focus upon international operations of companies such as Wal-Mart; however, it is necessary to discuss other forms of internationalization and the conceptual framework within which retail internationalization (RI) research takes place.
