A Historical Approach to Comparative Retailing

One of the most serious problems faced by the multinational retailer is the estimation of the structure of retail markets in the many countries that he might want to enter. While marketing scholars have developed methods for assessing market potentials and for evaluating economic and political conditions, they have not been as successful in solving the market entry problem as it relates to the development of retailing. There are a large number of models of retail change which can be applied to the process, however, they generally fall short of management desires. In the first place, these models are often based on hypotheses of retail change in the North American market. In the second place, many of the models have not been formally tested within that environment and few have been evaluated in the wider context. Finally, these models are not comparative and the use of them in comparative analysis would suffer from the absence of acceptable categories and data. One approach that might help the difficulties of market entry is to apply historical research methods to the problem of understanding change. These methods by their very nature embody the elements of comparative analysis and offer the added advantage of dealing with specific firms and events rather than concentrating on more aggregate categories. By focusing on specific retailers in a single country and across many countries the researcher can develop general propositions which are deductively arrived at in a systematic fashion rather than rely on chance observation of aggregate structure and behaviour. Historical research demands a new outlook and sensitivity in the observation of events and in the analysis of data. The skills required to undertake such research have direct benefits because they force the researcher clearly to define the elements of his study in a way not possible when statistical methods are employed. Will such research be the answer to all of the issues of multinational retailing? The answer is clearly no; however, it can help managers and marketing scholars better understand the process of change in the past. There is no certainty that the past will predict the future, but understanding the process of change might make the future more manageable; and, what better place is there to start than a historical perspective?