The Role of Store Image in Retail Internationalisation

Recent work on the internationalisation of retailing has focused on a number of themes such as the motives for internationalisation, the geographical flows of investment, the impact of internationalisation upon host environments, and methods and typologies of investment. Less attention has been paid to the process of internationalisation per se. This paper argues that for many retailers, competitive advantage in the home market has been based upon the development of strong store and corporate images as retailers strive to develop themselves as brands in their own right. The construction of store image, comprising both tangible and intangible dimensions, compounds problems of moving into international markets as consumers in the host environment are less familiar with the intangible dimensions of image, which have been built up over time with exposure to the retail company. Retail companies therefore need to fully understand the importance of image in competitive positioning and the components of store image before attempting to replicate this image and positioning overseas. This paper explores these issues with reference to Marks and Spencer and the company’s entry into the Spanish market. A survey of customer perceptions of a range of store image attributes in the UK and Spain, reveals differences and similarities in perceptions, which must be managed if a standardised position is to be sought in the host market.