Retail multinationals and globalization: the evidence is regional

Rugman, A. and Girod, S. (2003) Retail multinationals and globalization: the evidence is regional. European Management Journal, 21 (1). pp. 24-37. ISSN 0263-2373 doi: 10.1016/S0263-2373(02)00150-0

Abstract/Summary

This paper reports an empirical study of the world’s 49 largest retail multinational enterprises (MNEs). Of these only one MNE is found to be a ‘global’ MNE, while five are ‘bi-regional’, i.e. with at least 20 per cent of sales in two parts of the ‘triad’ of the European Union, North America (NAFTA) and Asia. The remaining MNEs are either purely domestic or have sales in only their home-triad market. Thus, we conclude that the retail MNEs neither operate globally nor do they need global strategies. Instead, they are mainly regional MNEs and their focus is local, home-triad market-oriented.