This is another report in global marketing that delves into the topic of the trends in grocery retailing.

1. Global Trends in Grocery Retailing
Retail is the process of selling consumer goods and/or services to
customers through multiple channels of distribution to earn a profit.
Demand is created through diverse target markets and promotional
tactics, satisfying consumers' wants and needs through a lean supply
chain.

2. Retailers have diversified
across product boundaries
• Most leading retailers have
developed their own private-
label program
• Retailers have increasingly
ventured into new formats
o discount format
o Virtual store

3. Changes in the global retail landscape
uniform
worldwide prices
cross-border
supply
chains
retailers may
threaten to ban a
manufacturer
Rationalize
assortment and
eliminate brands
The more concentrated the retail market, the
greater the power and size of the retailers
operating in those markets
Power shift between suppliers and retailers

4. Internationalization of grocery retailing
Scale of entry
Mode of entry
Order of entry
Adaptation of
retail format to
local market
conditions
Familiarity of
store format used
to the parent
company
Strategic entry decisions: Inventorize how retailers
make decisions in their
internationalization process
and how these decisions
have impacted their future
success in their new host
markets
attention to
competitor’s prior
decisions when
deciding on entry
timing and size; pay
closer attention to
decisions of home
competitors
The ultimate performance metric for foreign
entries is the exit of grocery retailers from
foreign markets

5. Growth and regional differences in private-label success
Countries’ national cultural environment
• Less where cultural power distance and
cultural uncertainty avoidance is high
Economic-institutional environment
• Certain economic infrastructure should
be present
• Government efficiency
• Business efficiency
• Technological resources
• Human resourcesRetail environment
• Private-label shares are higher when
retail concentration is higher, more
international retailers are active, hard
discounters are present
• International retailers - leverage their
private label skills across multiple

6. Format diversification
Retail formats
• Hypermarkets
• Supermarkets
• Discount stores
• Convenience
stores
City-center
formats
Discount chains
Success of hard discounts is a major source of concern for
conventional supermarkets and national brand manufacturers
 Discounters are direct market-share competition with
conventional supermarkets and put pressure to increase
operational efficiency and decrease prices
 Contributed to further, quasi-unobstructed, private-label
growth

7. National brand manufacturers
and discounters are starting to
cooperate
• Price differential bet. NB and
discounter’s private label brand
• Between store differential for
the NB bet. the discounter and
conventional retailers
• Attractiveness of the outer cases
• Innovativeness of the national
brand
Disadvantages
• NB may
cannibalize
their own
sales and sell
them at lower
price
• Friction with
other retailers
in the channel
portfolio
Format diversification
Conventional
retailers fight
back

8. Format diversification
Hard discounters – no or limited national
brands in their assortments
Soft discounters – more national brands
Multi-format retailer – internet
• Country character: perceived value from the internet
• Security protection of perceived value is stronger for
countries with weak rule of law
• high national identity give more weight on whether
there is cultural congruity bet. the site and themselves
• Individualistic countries give more weight to pleasure,
security protection, and customization in perceived
value judgments than people from collectivistic countries
• Internet gives opportunity for global retailers to
globalize and localize

9. Conclusion
Increasing
concentration in the
industry
Urge of many
retailers to
internationalize
Growing success of
private labels
Increasing popularity
of discount format
Transition of many
retailers into
multichannel
operaton
advances in
information
technology
shift towards mire
in-store promotions
changes in the use
of slotting
allowances
legal developments

10. assess competitive strengths
and position themselves –
reexamine success factors
Restructure business systems,
locally and globally
Create new relationships with
vendors
Manage alliances and
partnerships
Outsource non-critical activities
Build truly international
management teams
Adjust concepts and profit
formulas to achieve sustainable
levels of return
Operate effectively as
internet-based retailers (e-
retailers)
ensure brand relevance
with targeted consumers
Leverage global scale and
best practices while
understanding local needs
Leverage information
systems and business
processes for greatest
effectiveness and synergy
Identify market space

11. References
• Global retailing in the connected economy. (1999).
Chain Store Age, 75(12), 69-82. Retrieved from
http://search.proquest.com/docview/222047147?accou
ntid=50192
• Overcoming the hurdles in global retailing. (1996).
International Journal of Retail & Distribution
Management, , XI-XII. Retrieved from
http://search.proquest.com/docview/210971179?accou
ntid=50192
• Peterson, H. (2014). 4 Ways American Grocery Shopping
Is Changing Forever.
http://www.businessinsider.com/trends-that-are-
changing-grocery-stores-2014-4