Home / Knowledge / News / Apparel/Garments / Global retailers slowdown expansion plans – Accenture
Global retailers slowdown expansion plans – Accenture
26
Apr '13
The world’s largest retailers have been scaling back their global expansion activities, particularly in Asia, and turning their attention inward by integrating operations and strengthening their store, internet and mobile sales channels, new analysis by Accenture reveals.

According to the Accenture Globalization Index, which analyzes Planet Retail data for nearly 500 of the largest global retailers and examines their entry into new markets, while the retailers entered 43 markets in the July 15 - October 15, 2012 quarter, that number fell to just 17 in the following quarter: October 16, 2012 - January 15, 2013.

New-market entries include the opening of a new retail format – physical store or website, launch of a new country-specific website, acquisition of a company in a target market, creation of a joint venture or launch of a franchise in a target market.

Moves by retailers into the six key markets in “Emerging Asia” – China, Indonesia, Kazakhstan, Malaysia, Pakistan and Thailand – fell significantly – from 13 out of the 43 new-market entries during the first quarter to just two in the second quarter. Accenture believes the drop indicates a retrenchment by retailers as they turned their attention from international expansion to multichannel reorganization.

“The operating model and supporting infrastructure required by retailers to meet their customers’ expectations for a seamless experience across all available channels is both time- and capital- intensive,” said Chris Donnelly, global managing director of Accenture’s Retail Practice.

“These results suggest that retailers are focusing more on getting it right at home before exporting it internationally. Part of their effort to integrate the ecommerce experience into the main business may require a reorganization of the roles and responsibilities of the company’s top management team, which may be reflected in the decline seen in international expansion as retailers turned their attention to strengthening their internal structure.”

U.S. Remains an Attractive Market Despite the Competition

Big retailers made five market entries in the United States in the July 15 – October 15 quarter, an indication that the country remains a popular target for expansion. Additionally, U.S. retailers launched the highest number of overseas expansions – 14 out of a global total of 43 – in the July 15 – October 15 quarter, as well as in the October 16 – January 15 quarter, accounting for seven out of 17 expansions globally.

“The United States is still the largest single marketplace in the world and, while it is incredibly competitive and overstored, it does have a long history of being the launch pad for new concepts,” said Donnelly. “It continues to be an extremely attractive established market for retailers to enter, either as a location for a flagship opening or as part of a larger market-entry strategy.”


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search