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Alex Stobart

Spatial Strategy and Growth of Western Retailers in China © 2008

This research project examines the internationalization of three major Western retailers: Carrefour S.A., Metro A.G., and Tesco PLC, and their entry, performance and penetration of the Chinese retail market. With its admission to the World Trade Organisation (WTO) and subsequent elimination of trade barriers, China has recently become a desirable market for major retailers. Up until this point, few studies have documented the entry, performance and spatial penetration of retailers in China. This study focuses upon the corporate strategies of each retailer and how they have faired in terms of corresponding market performance and penetration. While the study identifies Carre four as the current market leader among the three, it also attempts to identify the most successful corporate strategies used by all three retailers. The study concludes that different strategies are successful in different regions, such as the urban East and the rural West, which effectively split China in half economically.

 

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