Accenture globalization report finds emerging market retailers on the move
New York — The growing appeal of smaller format stores and the increasing number of international moves by emerging market retailers are two of the key trends revealed in the Accenture Globalization Index, Quarter One 2013.
“Retailers are rethinking their investment in opening large stores in new markets, especially when they already have too much space in their home market. Instead, retailers are choosing to enter new markets with smaller format and temporary stores (pop-ups) to gauge consumer interest in the brand and the potential success of a permanent store presence,” said Chris Donnelly, global managing director, Accenture Research.
The report analyzes Planet Retail data for nearly 500 of the largest global retailers and examines their entry into new markets. It found that global expansion increased in the first quarter (January 16 – April 15, 2013) as retailers entered 25 new markets. This is up from the previous quarter’s (October 16, 2012 – January 15, 2013) 17 market entries. But is well below the 43 new market entries during the period of July 15 – October 15, 2012.
In other first quarter highlights:
- Grocery retailers led the way for global expansion with 11 market entries in the fitsr quarter, compared to only four market entries in the previous quarter. Apparel retailers’ global growth remained flat with five recorded market entries in the quarter. Department stores had three market entries. “Grocers are leading the way with an emphasis on small formats, e-commerce sites and even temporary stores,” the report stated. “These routes avoid the heavy capital investment and the risk of a large and partially redundant store network.”
- Twenty percent of all market entries in the quarter were made by retailers based in emerging markets compared to 0% in fourth quarter 2012 and 12% in third quarter 2012. Over the three quarters, seven of the nine market entries by emerging market-based retailers have been made into other emerging market countries.
- U.K. retailers launched the highest number of overseas expansions in– seven out of a global total of 25. U.S. retailers followed with three. In the previous quarter, those positions were switched with the U.S. launching seven and the U.K. with four.
- Expansion into the U.S. halted. There were no market entries by large foreign retailers in the United States from Jan. 16 to April 15, 2013.
Lifestyle retailer Fixtures Living to change name to PIRCH
San Diego — Fixtures Living, which specializes in premium lifestyle products for the home, is changing its name to "PIRCH." The official switchover occurs on Aug. 29.
"This is a seminal moment in the continuing evolution of our company," said company CEO Jeffery R. Sears. "As we expand our presence in the U.S., and touch more and more lives along the way, we feel it’s important to have a name that conveys why we exist — our purpose and our promise. "PIRCH" captures that, as it suggests an elevated experience, a place to branch out and discover new ways to ‘feather your nest.’ "
A variant of the word "perch," PIRCH is spelled with an "i," added Sears, "to make the name uniquely ours."
The privately held retailer has aggressive plans for expansion over the next five years. It currently operates stores in California, with plans to move its San Diego showroom to Westfield’s UTC this fall. It also will soon have a presence in Oakbrook Center, Oak Brook, Ill., as well as Dallas’ NorthPark Center.
"Despite the significant change we’re embarking on," said Sears, "the most critical aspects of our company will stay the same. Our management team remains fully intact, and the way we conduct business — openly, honestly, respectfully, and joyfully — will never change."
Michaels Kors files suit against Costco
New York — Michael Kors is suing Costco Corp., accusing the chain of illegally using pictures of its pocketbooks in its ads to attract customers, according to the Associated Press. Michael Kors said Costco was not authorized to sell the designer’s goods.
In a federal lawsuit, Michael Kors accused Costco of using the bags as a lure. It claimed Costco advertised the bags as starting at $99, but didn’t actually have any to sell, the report said.