British food retail capital in the USA - Part 1: Sainsbury and the Shaw's experience

International Journal of Retail & Distribution Management

Volumn 25, Issue 1, 1997, Pages 7-21

  Wrigley, Neil ^a  

^a UNIVERSITY OF SOUTHAMPTON   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84986082145     PISSN: 09590552     EISSN: None     Source Type: Journal    
DOI: 10.1108/09590559710156062     Document Type: Article

References (47)

1. Davidson, E., Treasurer of Sainsbury's quoted in The Times, 20 June 1987.
2. For example, a well-known article [3] fails to list the acquisition of Shaw's in a table of the ten largest acquisitions 1979-89 of US retailers by foreign buyers.
3. Kacker, M., “The lure of US retailing to the foreign acquirer”, Mergers and Acquisitions, Vol. 25 No. 1, 1990, pp. 63-8.
4. Wrigley, N., “The lure of the USA: further reflections on the internationalization of British grocery retailing capital”, Environment and Planning A, Vol. 21, 1989, pp. 283-8.
5. Wrigley, N., “Retail concentration and the internationalization of British grocery retailing”, in Bromley, R.D.F. and Thomas, C.J. (Eds), Retail Change: Contemporary Issues, UCL Press, London, 1993, pp. 41-68.
6. Alexander, N., “Sainsbury's move into New England”, in McGoldrick, P. (Ed.), Cases in Retail Management, Pitman, London, 1994, pp. 185-93.
7. Shackleton, R.E., “Retailer internationalization: a culturally constructed phenomenon”, in Wrigley, N. and Lowe, M.S. (Eds), Retailing, Consumption and Capital: Towards the New Retail Geography, Longman, Harlow, 1996, pp. 137-56.
8. Williams, B., “Multiple retailing and brand image: an Anglo-American comparison 1860-1994”, in Jones, G. and Morgan, N.J. (Eds), Adding Value: Brands and Marketing in Food and Drink, Routledge, London, 1994, pp. 291-309.
9. Shackleton, R.E., “Collisions of corporate culture: UK food retail investment in the USA”, unpublished PhD dissertation, Department of Geography, University of Southampton, 1996.
10. Wrigley, N., “Antitrust regulation and the restructuring of grocery retailing in Britain and the USA”, Environment and Planning A, Vol. 24, 1992, pp. 727-49.
11. Hughes, A.L., “Retail, restructuring and the strategic significance of food retailers’ own labels: a UK-USA comparison”, Environment and Planning A, Vol. 28, 1996, pp. 2201-26.
12. Hughes, A.L., “Changing food retailer-manufacturer power relations within national economies: a UK-USA comparison”, unpublished PhD dissertation, Department of Geography, University of Southampton, 1996.
13. Cotterill, R.W., “The food distribution system of the future: convergence towards the US or UK model”, paper presented at conference on Food Retailer-Manufacturer Competitive Relationships in the EU and USA, University of Reading, 17-19 July 1995, forthcoming in gribusiness., Vol. 13, 1997.
14. Cotterill, R.W., “Food retailing: mergers, leveraged buyouts and performance”, in Duetsch, L. (Ed.), Industry Studies, Prentice-Hall, Englewood Cliffs, 1993, pp. 157-81.
15. Denis, D.J., “Organizational form and the consequences of highly leveraged transactions: Kroger's recapitalization and Safeway's LBO”, Journal of Financial Economics, Vol. 36, 1994, pp. 193-224.
16. Wrigley, N., “Retailing and the arbitrage economy: market structures, regulatory frameworks, investment regimes, and spatial outcomes”, in Barnes, T. and Gertler, M. (Eds), Regions, Institutions and Technology, Routledge, New York, 1996.
17. Wrigley, N., “Leveraged recapitalizations and geographical market response: LBOs, retail capital and the economic landscape”, in Martin, R.L. (Ed.), Money and the Space Economy, Wiley, Chichester, 1997.
18. Chevalier, J.A., “Capital structure and product-market competition: empirical evidence from the supermarket industry”, American Economic Review, Vol. 85, 1995, pp. 415-35.
19. NatWest Securities, “US food retailing: the European Connection”, NatWest Securities, 135 Bishopgate, London, 1993, pp. 59-61.
20. Wall Street analyst interviews conducted by author, September 1995.
21. Merrill Lynch, US Food and Drug Merchandising Investment Snapshots, 18 December 1995, p. 7.
22. This description was described as“spot on” by Ian Coull, chairman of Shaw's, during an interview with the author, 4 July 1996.
23. Ian Coull, executive director of J. Sainsbury plc and chairman of Shaw's, interview with author, London, 4 July 1996.
24. Brokers have traditionally played an important“gate-keeper” role in US food retailing through which manufacturers wishing to sell own-label products to a retailer must pass and pay a commission. They were originally conceived to help retail chains in their own-label programmes, providing services such as quality specification and control, selection of suppliers and procurement, own-label pricing and merchandising. However, since the late 1980s more emphasis has been placed on commission rebates to the retailer and less on services. For an excellent consideration of their changing role see [25].
25. Marion, B.W., “Changing power relationships in the US food industry: brokerage arrangements for private label products”, paper presented at conference on Food Retailer-Manufacturer Competitive Relationships in the EU and USA, University of Reading, 17-19 July 1995.
26. Doel, C., “Market development and organizational change: the case of the food industry”, in Wrigley, N. and Lowe, M.S. (Eds), Retailing, Consumption and Capital: Towards the New Retail Geography, Longman, Harlow, 1996, pp. 48-67.
27. McKinnon, A.C., Physical Distribution Systems, Routledge, London, 1989.
28. Fernie, J. (Ed.), Retail Distribution Management, Kogan Page, London, 1990.
29. Smith, D.L.G. and Sparks, L., “The transformation of physical distribution in retailing: the example of Tesco plc”, International Review of Retail, Distribution and Consumer Research, Vol. 3, 1993, pp. 35-64.
30. Sparks, L., “Delivering quality: the role of logistics in the post-war transformation of British food retailing”, in Jones, G. and Morgan, N.J. (Eds), Adding Value: Brands and Marketing in Food and Drink, Routledge, London, 1994, pp. 310-35.
31. Fernie, J., “Distribution strategies of European retailers”, European Journal of Marketing, Vol. 26 No. 8/9, 1992, pp. 35-47.
32. Fensholt, C., “Has the EDI train left the supermarket station?”, Supermarket Business, Vol. 47, 1992, pp. 15-16.
33. Partch, K., “EDI and the market driven distribution system”, Supermarket Business, Vol. 48, 1993, pp. 30-35.
34. Duffey, J., “T-I keeps Shaw's on top of grocery game”, Network World, Vol. 19, 1992, pp. 9-12.
35. Hotchkiss, E.S., “Post-bankruptcy performance and managerial turnover”, Journal of Finance, Vol. 50, 1995, pp. 3-21.
36. Clark, G.L. and Wrigley, N., “Exit, the firm, and sunk costs: the corporate geography of disinvestment and plant closure”, Progress in Human Geography, Vol. 21, 1997.
37. Freathy, P. and Sparks, L., “Understanding retail employment relations”, in Wrigley, N. and Lowe, M.S. (Eds), Retailing, Consumption and Capital: Towards the New Retail Geography, Longman, Harlow, 1996, pp. 178-95.
38. Christopherson, S., “Flexibility in the US service economy and the emerging spatial division of labour”, Transactions of the Institute of British Geographers, Vol. NS14, 1989, pp. 131-43.
39. Wrigley, N., “After the store wars: towards a new era of competition in UK food retailing”, Journal of Retailing and Consumer Services, Vol. 1, 1994, pp. 5-20.
40. J. Sainsbury plc Annual Report, 1996, p. 25.
41. Tony MacNeary, NatWest Securities, personal correspondence to author, February 1996.
42. Merrill Lynch, US Food and Drug Merchandising Investment Snapshots, 24 June 1994.
43. Merrill Lynch, US Food and Drug Merchandising Investment Snapshots, 13 October 1995.
44. Merrill Lynch, US Food and Drug Merchandising Investment Snapshots, 16 May 1996.
45. Morck, R., Shleifer, A. and Vishny, R.W., “Do managerial objectives drive bad acquisitions?”, Journal of Finance, Vol. 45, 1990, pp. 31-48.
46. Montgomery, C.A., “Corporate diversification”, Journal of Economic Perspectives, Vol. 8 No. 2, 1994, pp. 163-78.
47. NatWest Securities, “J. Sainsbury: company update”, NatWest Securities, 135 Bishopsgate, London, 30 October 1995, p. 6.