Retail Internationalization and Its Consequences on the Food Chain

In order to meet with the obstacles of market saturation and the resulting cut-throat competition in the home countries of most of the top food retailers, they use the chance to participate in the increasing standard of living in Asia, South America and Central- and Eastern Europe. Thus, retail internationalization can be regarded as a growth strategy for top food retailers. However, opposite to manufacturers internationalization is for retailers still a new strategy so that globalization continues to accelerate. AT Kearney (2006) shows that since 2001 more than 50 different retailers have entered 90 new markets. In this context our the aim of our paper is threefold. First, using different theories of internationalization we want to work out the courses why the retailers internationalize. Furthermore, by analyzing secondary data we will show the actual degree of internationalization. Second, using theories of the new institutional economics as well as strategic management we will elaborate on its consequences for the participants of the agri-food business. Building on the more general parts of our aim the third part contributes to the developments in Central and Eastern Europe. This includes a detailed analysis of the current situation and an outlook to future developments.