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Market-Based Solutions to Vital Economic Issues
Research
Aug 31, 2018

Retail Entry and Exit

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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