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Shutting up shop: understanding the international exit process in retailing

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  • Paul Jackson
  • Kamel Mellahi
  • Leigh Sparks

Abstract

Internationalisation is a much-studied phenomenon. Exit from international markets has been less analysed. Where it has been studied, most work has been on motives and causes, with relatively little on processes. This article explores the process of international exit in a retail context. It examines the run-up to, announcement of and fall-out from the decision by Marks and Spencer (one of Britain's leading retailers) to close its French stores. The article concludes that understanding the process of market exit is at least as important both for theoretical and practical reasons as understanding the decision to exit or divest. Further research needs to be undertaken on market exit and the processes involved, in order to contribute further to the theory and practice of internationalisation.

Suggested Citation

  • Paul Jackson & Kamel Mellahi & Leigh Sparks, 2005. "Shutting up shop: understanding the international exit process in retailing," The Service Industries Journal, Taylor & Francis Journals, vol. 25(3), pages 355-371, April.
    • Handle: RePEc:taf:servic:v:25:y:2005:i:3:p:355-371
    DOI: 10.1080/02642060500050475
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    Cited by:

    1. Ayamga, Matthew & Annosi, Maria Carmela & Kassahun, Ayalew & Dolfsma, Wilfred & Tekinerdogan, Bedir, 2024. "Adaptive organizational responses to varied types of failures: Empirical insights from technology providers in Ghana," Technovation, Elsevier, vol. 129(C).
    2. Sangcheol Song, 2014. "Subsidiary Divestment: The Role of Multinational Flexibility," Management International Review, Springer, vol. 54(1), pages 47-70, February.
    3. Deligonul, Seyda Z., 2020. "Multinational country risk: Exposure to asset holding risk and operating risk in international business," Journal of World Business, Elsevier, vol. 55(2).
    4. Ryan W. Tang & Ying Zhu & Hongbo Cai & Jinrong Han, 2021. "De-internationalization: A Thematic Review and the Directions Forward," Management International Review, Springer, vol. 61(3), pages 267-312, June.
    5. Song, Sangcheol, 2014. "Unfavorable Market Conditions, Institutional and Financial Development, and Exits of Foreign Subsidiaries," Journal of International Management, Elsevier, vol. 20(3), pages 279-289.
    6. Burt, Steve & Coe, Neil M. & Davies, Keri, 2019. "A tactical retreat? Conceptualising the dynamics of European grocery retail divestment from East Asia," International Business Review, Elsevier, vol. 28(1), pages 177-189.
    7. Sangcheol Song, 2014. "Entry mode irreversibility, host market uncertainty, and foreign subsidiary exits," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 455-471, June.
    8. Alex Mohr & Georgios Batsakis & Zita Stone, 2018. "Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector: An extended Penrosean perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(7), pages 779-808, September.
    9. Schmid, David & Morschett, Dirk, 2023. "Retailers’ foreign market exits over time: A strategic management perspective," International Business Review, Elsevier, vol. 32(5).
    10. David Schmid & Finn de Thomas Wagner & Dirk Morschett, 2021. "Archetypes of Driver Combinations Leading to Foreign Market Exit: An Investigation into European Grocery Retailing," Management International Review, Springer, vol. 61(4), pages 521-562, August.
    11. Franco GANDOLFI & Magnus HANSSON, 2015. "A Global Perspective on the Non-Financial Consequences of Downsizing," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 185-204, May.

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