Handbook of Research on Retailing
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Handbook of Research on Retailing

Edited by Katrijn Gielens and Els Gijsbrechts

The advent of e-commerce and the rise of hard discounters have put severe pressure on traditional retail chains. Boundaries are blurring: traditional brick & mortar players are expanding their online operations and/or setting up their own discount banners, while the power houses of online retail are going physical, and hard discounters get caught up in the Wheel of Retailing. Even successful companies cannot sit back and rest, but need to prepare for the next wave of change. In the face of this complexity, it is all the more important to take stock of current knowledge, based on insights and experience from leading scholars in the field. What do we know from extant studies, and what are the ensuing best practices? What evolutions are ahead, and will current recipes still work in the future? This Handbook sheds light on these issues.
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Chapter 16: Retail entry and exit

Zhiling Bei, Katrijn Gielens and Marnik G. Dekimpe

Abstract

The landscape of the retail industry has witnessed dramatic changes, both globally and locally. Some retailers are thriving, adding more and more stores to their portfolio, while other retailers are struggling to keep pace with their competitors, and even have to shut down their business. Extant literature does not provide a systematic review on entries and exits in the retail industry, leaving managers with little guidance on how to assess the impact of such decisions on their own performance, on competitors, on consumers, and on society at large. This chapter summarizes recent insights on entries and exits in the retail sector. Focusing on brick-and-mortar operations, it discusses four phenomena in the global retail industry: (i) local entry, (ii) international/regional entry, (iii) local exit, and (iv) international exit. It also identifies new trends related to online retailers that are in need of more research.

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