In recent years, the combination of economic growth and population growth in emerging markets and less developed markets has accelerated
the progression of globalization of retailing and globalization by retailers. The challenges faced by global and globalizing retailers (retailers who
currently have or intend to establish a market presence in mature markets, emerging markets and less developed markets) can be more daunting
compared to those faced by firms in other industries such as automobiles, steel, and computers. Retailing innovations that are responsive to the
characteristics of distinctive national markets and broader aggregations of markets such as mature, emerging and less developed markets are
critical to the success of global and globalizing retailers. Against this backdrop, this paper focuses on retailing innovations in the context of a
globalizing retailing environment. It attempts to shed insights into the characteristics of retailing innovations conducive to superior performance
in distinctive national markets and across broader aggregations of markets. Towards this end, we first examine the environmental conditions of
markets in different development stages, namely mature, emerging and less developed markets, and explore consumer based, industry based, and
legal/regulatory based challenges faced by globalizing retailers in these markets. Second, we show how these challenges can be transformed into
opportunities with retailing innovations. We conclude with a roadmap for future research and present propositions on future development with
respect to retailing innovations in these markets.
© 2011 New York University. Published by Elsevier Inc. All rights reserved.