04 Retail/Marketing/Business Applications

04.2 Retailing

Sternquist, B. & Kacker, M. (1994). European retailing's vanishing borders.
Westport, CT: Quorum Books. 0-89930-818, 232 pages, $59.95.

Reviewed by Soyeon Shim, University of Arizona

Today perhaps one of the most commonly heard statements in the retailing industry is "We are opening a store in Mexico or Japan or the U.K." This is not just a trendy catch phrase. The reality is that the retail industry must internationalize to remain competitive in the global economy. As the authors of this book argue, we have come to an age of truly global retailing. Largely in response to the volatility and changing needs in the retail industry and the global consumer marketplace, many of us are beginning to include international components in our curriculum. Professors Sternquist and Kacker fill a long-standing need on the part of academicians, practitioners, and students in the retailing arena. The authors combine existing piecemeal information about European retailing structures and trends into a comprehensive review of Euro-retailing. The text consists of nine chapters, which appear to be divided into three sections.
The first two chapters are devoted to an overview of internationalization of retailing in Europe and current economic and political trends. In the first chapter, an inevitable trend of internationalization of retailing is discussed in terms of the flow of innovative retail formats or concepts from one country to another. For instance, the discount store concept, which was initiated in the U.S., was subsequently accepted by European countries. Economic rationale of and approaches to international involvement, pan-European alliances, and future growth opportunities are briefly discussed. While providing an overview of several important topics, this chapter could be strengthened by more in-depth discussion and analysis. The second chapter deals with European economic and political trends, which followed, in the wake of the 1992 European Single Act.
The next four chapters deal with characteristics of retailing within the European countries which are classified into four groups: (a) Great Britain, the Netherlands, and Belgium; (b) Germany and France; (c) Spain, Italy, Greece, and Portugal; and (d) Czechoslovakia, Hungary, and Poland. At the end of each chapter, case studies are appended which profile a major food retailer (e.g., ASDA of U.K.) and a nonfood retailer (e.g., IKEA of Sweden). Each chapter showcases the unique retailing characteristics of each country, and thus may serve as an excellent source of reference for researching the retail industry in each particular country. This type of information is not readily available in the retailing literature. However, there are slight inconsistencies in the way these subjects are treated in the four chapters. Some chapters provide an overview of retailing industries within the group of countries while others do not. An analysis of the similarities and differences among retailers in the countries in each group will be illustrative for readers to have a better grasp of European retailing without necessarily reading and analyzing all the chapters. The firms that are showcased in the case studies represent excellent choices for providing information on European companies. However, minor inconsistencies also exist in the presentation of the case studies in terms of organization and focus.
The remaining three chapters are devoted to a discussion of European retailing in general. Chapter seven (Motivations to Internationalize) and chapter eight (Strategic Alliances in European Retailing) are well researched. However, one may wonder why theses two are discussed in isolation and why they are relegated to the final chapters. Perhaps the authors' intentions should be specified at the beginning of the book. Once again, some chapters include the authors' intentions and many others do not. Consequently, it is hard to judge whether or not the author's intentions were achieved. The book ends with the authors' prognostications of future trends in European retailing. Some of the information presented in this chapter is somewhat redundant as it was stated in the first two chapters of the book. However, it does constitute a nice attempt to preview 21st Century retailing.
In general, the book is well written and easily understood. The book is highly recommended as a reference rather than a textbook for the gamut of academicians, practitioners, upper-level undergraduate students, and graduate students. The reference sources listed in each chapter are fairly diverse and recent and thus provide excellent source for further reading. International, or perhaps more accurately stated, global retailing is rapidly evolving. Therefore, publishing a well-researched book presents a great challenge for authors. In light of the rapidly evolving nature of retailing, Professor Sternquist and Kacker's attempt to contribute to the international retailing field is commendable!