Retail Growth and Consolidation Strategies in the EU – Recent Developments in Scandinavia

During the past decades the retail industry in the EU has experienced an intensified wave of restructuring activities. Many retailers have launched and developed new retail formats and concepts in order to enhance their com-petitiveness in terms of cost efficiency and their attractiveness to customers in terms of customer loyalty. Quite a few retailers have also integrated vertically, horizontally and/or even laterally in their search for ways of reducing risk and uncertainty in the supply chain as well as obtaining and realising economies of scale and scope at the retail level. These integration activities have taken the form of mergers and acquisitions (M&As) and the establishment of long-term partnerships via either joint ventures or what may be regarded as strategic alliances between similar types of retailers. Until recently the restructuring activities have primarily been domestically oriented and focused on growth opportunities on the retailers ’ home market. Along with the on-going harmonisation and integration of European markets, the retailers tend to become increasingly interested in cross-border activities and lately a number of large M&As has taken place. This paper mainly reports on the development in Scandinavia. It covers a select literature review and some preliminary findings from recent survey and case studies. Very preliminary version: Quotation is not allowed without the permission of the authors! The authors welcome comments and wish to thank Handelns Forskningsstiftelse i Göteborg for financial support