Costco and the Aussie shopper : a case study of the market entry of an international retailer

Retailing is a globalised industry, yet retailers must respond to local shopping habits if they are to be perceived as legitimate by the host country customers. However, some retailers may be unable or unwilling to respond to all customer requirements. Costco, the membership warehouse club retailer, has been successful in its international expansion efforts, establishing its first Australian store in Melbourne in 2009. In the first 12 months of operation, the store became one of Costco's top five stores in the world. We investigated this success by focussing on the customer and used institutional theory to analyse what concessions were made by the customer and the company. Data were collected from consumer interviews, site visits and secondary media and industry sources. Analysis revealed negotiations based on the rejection, acceptance or adaptation of the regulative, normative and cultural cognitive aspects of the Australian shopper and the Costco business model. Customers made concessions to accommodate the new business model, and Costco responded to entrenched Australian shopping habits. This case is the first to explore the outcome of retail internationalisation from the customers' perspective, revealing the concept of mutual concessions. The interaction and subsequent adaptation by both customer and retailer have resulted in the institutionalisation of new shopping norms in the host country and success for the international retailer.

Developments in the Japanese beef market following import liberalisation

Over the last several years there has been increasing pressure on most western industrialised countries to liberalise trade for food and agricultural products and yet the full implications of freer trade are not always well understood. This paper attempts to fill this gap by reviewing the developments in the Japanese beef market following import liberalisation. We conclude that the Japanese beef market has experienced major structural changes over a relatively short period as a result of liberalising beef imports. The most apparent impact has been on Japanese consumers who have benefited from lower retail beef prices and a greater variety of beef cuts to choose from. The types and quality of beef imported have also changed and consequently major suppliers have adapted their production systems and their products to the changing taste and preferences of Japanese consumers. Beef exporters to Japan, on the other hand, have experienced declining wholesale prices but have, nevertheless, benefited from the growing size of the market. Developments in the wider economy, such as changes in the retail distribution systems and the exchange rate have also influenced the beef sector.

Market environment, assortment policy, and performance of small retailers

This study surveys small retail pharmacies to examine the relationship between managers’ perceptions oflocal market environments, their stated assortment policies, and their reported performance levels for alarge product category. Managers report wider assortments when market diversity and market munificenceare high. In turn, wider assortments have a positive effect on reported relative category salesand stock. In addition, market uncertainty has a direct negative effect on reported margins. This studycontrols for both store space as well as the potential direct performance effects of the local market environmentfaced by small retailers.

The misanthropes, larrikins and mallrats of market square: an enduring public space dilemma in central Geelong

Market Square was a public reserve located in the centre of the Victorian regional city of Geelong. It was established by Governor Sir George Gipps during the initial surveying of the area in 1838. The square later became a produce market, before being progressively built upon for public and commercial purposes. Today, the modern Market Square Shopping Centre occupies a substantial portion of the original site. Opened in 1985 by the City of Geelong, the complex initially drew high rental incomes for the Council. However, by the early 1990s revenue began to decline after the collapse of the Pyramid Building Society and competition from the new Bay City Plaza shopping centre (now Westfield) that was built directly opposite. In 1993 the city council decided to sell the complex. Today it remains privately owned and while it adjoins the Little Malop Street Mall which was also part of the original public square, its connection with the surrounding urban environment is poor. The introverted architectural nature of Geelong’s two large retail shopping complexes has significantly altered the city’s spatial dynamic. The traditional intimate urban structure and streetscape has been fragmented. This has led to a deterioration of the city’s social cohesion, sense of place and economic prosperity. This paper chronicles the myriad errors of judgement by the institution of local government that have contributed to this situation. Heeding past mistakes, it explores ways in which the Council might work with private landowners to improve the permeability of the city’s public urban spaces and internalised retail centres for improved use, integration, functionality and resilience. Achieving a shared culture of concern for the city’s urban fabric presents some significant challenges. How might ‘big box’ shopping centres be reconsidered to make a positive contribution to the city’s urban spatial network while remaining commercially viable? The built environment has an important role to play in addressing the problem by presenting opportunities for these new urban institutions to also benefit from stronger connections between the public and private realm.