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Regulatory Constrained Portfolio Restructuring: The US Department Store Industry in the 1990s

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  • Steve Wood

    (Department of Geography, University of Southampton, Southampton SO17 1BJ, England)

Abstract

The US department store industry has undergone a recent round of strategic acquisition-based portfolio restructuring. The author analyses one such acquisition, studying how its geography was restructured in the premerger stage to conform to the Federal Trade Commission's (FTC's) ‘fix-it-first’ policy and to improve the strategic fit of the transaction. He then investigates evidence, and analyses the effects, of a new era of stricter FTC enforcement, where divestiture may no longer be sufficient in cases of horizontal market overlap. Fundamentally, the author considers the nature of ‘real regulation’ in action, as rules partially dictate investment decisions.

Suggested Citation

  • Steve Wood, 2001. "Regulatory Constrained Portfolio Restructuring: The US Department Store Industry in the 1990s," Environment and Planning A, , vol. 33(7), pages 1279-1304, July.
    • Handle: RePEc:sae:envira:v:33:y:2001:i:7:p:1279-1304
    DOI: 10.1068/a33208
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    References listed on IDEAS

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    6. Cotterill, Ronald W. & Dhar, Tirtha Pratim & Franklin, Andrew W., 1999. "Post Merger Price Conduct: A Case Study of Pricing in Connecticut Markets After the 1996 Royal Ahold-Stop & Shop Merger," Research Reports 25198, University of Connecticut, Food Marketing Policy Center.
    7. yale-brozen, 1982. "Mergers in Perspective," Books, American Enterprise Institute, number 917621, September.
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    Cited by:

    1. Steve Wood & Jonathan Reynolds, 2014. "Establishing Territorial Embeddedness within Retail Transnational Corporation (TNC) Expansion: The Contribution of Store Development Departments," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1371-1390, August.
    2. Neil Wrigley, 2001. "Local Spatial Monopoly and Competition Regulation: Reflections on Recent UK and US Rulings," Environment and Planning A, , vol. 33(2), pages 189-194, February.

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