European Business Review

Identifying the characteristics of small specialist international retailers

Karise Hutchinson Barry Quinn
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Karise Hutchinson Barry Quinn, (2012),"Identifying the characteristics of small specialist international
retailers", European Business Review, Vol. 24 Iss 2 pp. 106 - 119
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EBR
24,2 Identifying the characteristics
of small specialist international
retailers
106
Karise Hutchinson and Barry Quinn
Department of Business, Retail and Financial Services,
Ulster Business School, Coleraine, UK

Abstract
Purpose – The purpose of this paper is to examine the internationalisation process of small,
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specialist retailers with the aim of identifying the key characteristics that define this specific category
of international retailer.
Design/methodology/approach – Qualitative case studies of nine UK-based small international
retailers, coupled with interviews with government and consultancy organisations, form the empirical
basis of the work.
Findings – Findings highlight five characteristics of small specialist international retailers:
possession of a strong company brand image/identity with luxury/middle market appeal; niche
strategy; dual strategy of expansion; ownership characteristics defined either by the founder or parent
company; and vertical integration from manufacturing to retailing.
Practical implications – With the increasing internationalisation of retail operations, the specialist
sector comprises a significant number of retailers operating in international markets or contemplating
the move into the international marketplace. The findings of the current work highlight the key factors
that characterise those small specialist firms that operate outside their domestic market.
Originality/value – The paper identifies the key characteristics that define a significant category of
international retailer, hitherto unexplored in the literature.
Keywords Small enterprises, Retailing, Niche marketing, International business, International retailing,
Specialist, Small firm
Paper type Research paper

European Business Review
Vol. 24 No. 2, 2012
pp. 106-119
q Emerald Group Publishing Limited
0955-534X
DOI 10.1108/09555341211203982
Introduction
The international retailing literature categorises retailers in various ways including
operational approach (Hollander, 1970); geographical dispersion and operational cost
and control (Treadgold, 1988); strategy (Salmon and Tordjman, 1989); market position
of retail offer and format (Dawson, 1994); and merchandise/product sector (Burt, 1995).
As Alexander (1997) states, no classification exists that is universally acceptable in the
international retail literature. In great part this is because “multinational retailers vary
considerably in size, role, functions, ownership, control, history and objectives”
(Hollander, 1970, p. 14).
As a result some retail organisational types receive far more research attention than
other organisational types. Although, the past decade bears witness to a growth in
research that examines international fashion retailing (Moore, 1998; Doherty, 2000;
Moore et al., 2000) rather than large format food retailing, larger retailers and larger
formats tend to dominate the agenda.
Likewise, in terms of the broader international small- and medium-sized enterprises
(SME) literature, research tends to focus on manufacturing company activities,
 with the internationalisation of smaller retailers being largely neglected in this body of Specialist
work. That said some researchers from the SME field do emphasise the need to international
examine international activity on an industry-by-industry basis (Chadee and Mattsson,
1998; Antoncic and Hisrich, 2000). retailers
The current work therefore aims to address these gaps in the literature and identify
the characteristics that define the small specialist international retailer. That is, identify
the characteristics that facilitate the development of an international capability by small 107
specialist retailers. By investigating the international activity of these companies,
this work aims to contribute to both the SME and international retailing domains by
providing insights into a category of international retailer that is increasingly
significant yet remains under researched.

Literature review
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The internationalisation of specialist retailers

Research that explores the internationalisation of specialist retailers is surprisingly
sparse given the numbers of specialist retailers with international operations. The work
of Tordjman (1994) on European specialist retailers and Simpson and Thorpe’s (1996,
1999) contributions may be the only studies focusing on this retail type. That said, the
evolution of the internationalisation of fashion retailing during the past decade makes a
major contribution to our understanding of this type of specialist international retailer
(Moore, 1995; Moore et al., 2000; Moore and Birtwistle, 2004). The following section
attempts to highlight the key issues emerging from these contributions.
Tordjman (1994) identifies four distinct types of specialist retailers based in Europe:
single-industry specialists, single-product specialists, single-client specialists, and
single-theme specialists. Tordjman (1994) notes that, when operating in the international
environment, such retailers should specialise: either in hyper-specialisation, the vertical
integration of operations, or international concentration. Notably, his work focuses on
case description and observation rather than the analysis of primary data. Therefore,
this classification also includes larger retailers such as IKEA and as such is not exclusive
to the small specialist international retailer.
Utilising a literature review and analyzing secondary data, Simpson and Thorpe
(1996) identify the success factors required for US-based specialty retailers considering
moving into the international marketplace. They find that differential advantages for
this sector are grounded in the product, lifestyle, image and niche elements of the
retailer’s merchandise or brand. These allow, they conclude, such firms to successfully
employ international expansion as a viable growth strategy (Simpson and Thorpe,
1996). On the basis of this conceptual framework, their later work, explores how these
four concepts operate in practice in the case of one US specialty retailer.
It is possible to identify product advantages as the desire to capitalise upon an
internationally appealing offer, a concept central to the international retailing literature
(Williams, 1992). According to Hollander (1970), distinguishing the product range from
that of indigenous competitors is important for both international and domestic retailers.
Spannagel (1993) also contends that small and medium-sized retailers should contrast
with larger retailers in their product offering in terms of their exclusivity, quality and
price. According to Feigenbaum (1993) and Simpson and Thorpe (1996) specialty
retailers that focus on a single merchandise category and have brand name recognition
are the retail formats more likely to succeed because “they focus on a narrow group
 EBR of products, making it easier to adjust to local tastes and fill gaps in international
24,2 retailing” (Feigenbaum, 1993, p. 4). However, Vida et al. (2000) argue that unique product
distinction alone is not enough to guarantee success for the global retailer.
Lifestyle advantages recognise the importance of gaining competitive advantage
through selling a carefully designed and controlled retail operation to a precisely
specified consumer segment. The importance of this factor to international retail success
108 acknowledges the fact that lifestyle retailers such as IKEA, Benetton and The Body
Shop are key players in the international arena (Treadgold, 1988; Salmon and Tordjman,
1989). More recently, literature on the internationalisation of luxury fashion retailing
also highlights the important role lifestyle advantages play in gaining competitive
advantage in international markets (Wigley et al., 2005). For example, the clear brand
position of Burberry, which communicates a definite set of attractive brand values and
lifestyle associations, reflects this (Moore and Birtwistle, 2004). However, before
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deciding on the move to the international marketplace, specialty retailers must ensure
that there is a compatible match between the company’s unique store environment,
merchandise and the characteristic lifestyle patterns of a distinctive group of target
consumers (Michman and Mazze, 2001). Such retailers often use lifestyle graphics and
high quality store environments to make tangible the aspiration that their products
might help their customers to achieve (Birtwistle and Freathy, 1998; Kent, 2003).
Third, the image advantages of the retailer are the attributes which exist in the mind of
the consumer, representing a composite picture about the status and personality of the
company (Simpson and Thorpe, 1996). Williams’ (1991) work reveals that the majority of
international retailers in his survey believe that a strong market image, prestige and
esteem are very important in establishing foreign expansion, a factor management regard
as their most valuable asset. For example, some retailers may feel their international
appeal and unique image stems from the Britishness of their offering (Alexander, 1988;
Moore, 1995; Wigley and Moore, 2007). Consumer perceptions of store attributes and their
differentiation are very important for retailers expanding into foreign markets (Burt and
Carralero-Encinas, 2000). However, international retailers need to present a consistent
and uniform corporate image throughout all their stores in order to maintain a strong
position in the overseas market.
In terms of niche advantages, Salmon and Tordjman (1989) attribute the international
success of global retailers to the originality of the retail concept or niche. A retailer develops
a niche strategy when the company focuses on a particular market segment and customer
(Michman and Mazze, 2001) and carves out a narrow position in the marketplace that offers
a high potential for success and profits and then specialises in meeting the needs of that
segment (Salmon and Tordjman, 1989). This type of retailer should present a product
selection, atmosphere, personnel, and price range that fits the consumer psychographic
and demographic profile (Simpson and Thorpe, 1996). In a rapidly evolving global retail
market, focused retail concepts are a particularly important means by which to address
consumer demand and to adapt rapidly to new opportunities (Alexander and Quinn, 2001).

SME internationalisation
In view of the fact that this paper seeks to identify the characteristics of small specialist
international retailers, this research takes the broader literature specific to SME
internationalisation into account. The current work notes, however, that the
manufacturing sector dominates this literature and therefore neglects, by-and-large,
 the specifics of international retailing. Nevertheless, such research does provide useful Specialist
insights that are worthy of note. international
The international SME literature highlights the key characteristics of these small and
medium-sized companies, with studies arguing that smaller businesses are not smaller retailers
versions of big businesses (Shuman and Seeger, 1986). They differ from larger companies in
terms of particular managerial, financial and operating characteristics. Indeed, factors such
as limited financial and managerial resources, personal objectives of owners/managers, 109
and informal central planning and control systems indicate that the international strategies
and structures of SMEs may differ from those of larger firms (Baird et al., 1994). Larger
firms, on the other hand, are inherently more complex in their organisation and structure;
divided into more specialist departments with many layers of management, the
decision-making process in large firms is often more complex (McAuley, 2001). This is not
to argue that small firms are simple versions of larger firms but, according to McAuley
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(2001), SMEs also exhibit complex attitudes, behaviour and decision-making, depending on
the personality of the owner-manager, where the responsibility for decision-making resides.
Papadopoulos (1987) discusses firm characteristics unique to international SMEs in
comparison to larger firms, in terms of weaknesses and strengths. He argues that
inherent weaknesses of SMEs include lack of ability to grow and gain expertise in the
domestic market before expanding internationally and the difficulty in finding foreign
markets. However, the instinctive strengths of the SME in international markets bring
about success in many cases. In a study by Voss et al. (1998), SMEs are found to have a
customer orientated response which focuses on new products; their competitive
advantage coming from speed, responsiveness and closeness to customers. Some
SMEs concentrate in sectors that allow them to capitalise upon their special strengths
and operate as a niche marketer. According to Merrilees and Tiessen (1999), SMEs can
successfully serve a narrowly defined segment and compete with their larger
counterparts in the international market. These findings, however, relate primarily to
the manufacturing sector, and do not address the particularities of the retail sector.

Summary
International retail research primarily focuses on the internationalisation of the larger
retailer and retail format. Consequently, knowledge of the characteristics of the small
specialist international retailer does not go beyond studies based on one specialist sector
that is fashion retailing, which fails to consider explicitly the small firm. In turn, in the
international SME literature, various defining characteristics are evident but these
findings are manufacturing sector specific. While informative, these findings are not
generalisable within the retail context. Indeed Dawson (1994) and others warn of the
dangers of directly applying research on the manufacturing sector directly to the retail
sector because of the differences between these specific areas of international business.
In order, therefore, to identify the characteristics that can define the key characteristics of
the small specialist international retailer, this paper proposes to examine the
internationalisation activity of specialist retail firms in their specific context, while
triangulating findings via relevant government and industry organisations.

Methodology
Historically, research in the domain of international retailing has been predominantly
quantitative in nature, employing survey methods (Alexander, 1990). More recent studies,
 EBR however, increasingly recognise of the value of qualitative techniques, in particular, the
24,2 case study method (Doherty, 2000, 2007; Doherty and Alexander, 2004, 2006; Moore and
Birtwistle, 2004). The SME literature argues that positivistic research does not yield a rich
understanding of small firm activity (Fillis, 2001). Given the paucity of research on the
small specialist international retailer, this study is exploratory in nature and adopts an
interpretive research paradigm, employing qualitative techniques and a case study
110 design. Such an approach is in line with approaches taken in the international SME
literature (Coviello et al., 1998; Westhead et al., 2002) and extant international retailing
research studies which examine emerging research issues requiring in-depth
investigation (Doherty, 2000, 2007; Moore and Birtwistle, 2004; Hutchinson et al., 2007).
The importance of SME internationalisation from the perspective of policy-makers
and government organisations is given emphasis in the work of Fischer and Reuber
(2003), Spence and Crick (2003) and Terzioski (2003). In recognition of the value of a
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macro-level viewpoint on this study, in addition to the case study research with retail
companies, qualitative interviews with government and consultancy organisations
provide an analysis of the international activity of small specialist retailers from the
perspective of the wider UK industry.
A purposeful sampling design was used in the selection of case companies, thus
allowing for the selection of “information-rich” cases (Patton, 2002). An initial
investigation was conducted using the Retail Rankings (2001) and the internet, which
provided information on relevant firms according to retail sector, management
structure, UK stores, and presence overseas. This process initially identified 18 potential
companies relevant for this research. That is, all retailers originated in the UK market
with Head Office locations in the UK; operated in at least one international market
outside the UK; and had, at the time of investigation, sales turnover less than £24 million
(definition of SME according to European Commission, 2000).
The final sample of companies consisted of nine small specialist retailers at different
stages of international development and operating in different sectors of the industry.
As illustrated in Table I, three broad patterns of international activity is displayed
according to company age and experience overseas: “early” internationalists who
expanded overseas in first eight years of business (i.e. companies D and G),
“intermediate” internationalists who expanded overseas in the first 20 years of business
(i.e. companies B, C, F and I), and “late” internationalists who expanded overseas after a
significant time of establishment in the domestic market (i.e. companies A, E and H).
These companies also operated in a number of retail sectors:

UK turnover Number Age of company Years Number overseas Parent

Company (millionm £) UK stores (years) overseas countries ownership

D 5.7 22 21 13 17 £
E 6.5 14 135 12 10 U
H 8.2 3 166 10 2 U
F 10.8 4 25 2 2 £
I 11.5 32 47 32 3 £
Table I. G 12 16 11 5 10 £
Domestic and A 18 20 150 60 29 U
international profile C 22.3 34 36 25 30 U
of case companies B 24 10 36 25 21 U
 .
clothing and accessories (companies A, B, I); Specialist
.
health and beauty (companies C, D, E); international
.
sports and leisure (companies H); and retailers
.
giftware (companies F and G).

While in qualitative case study research there are no precise guidelines to the number 111
of cases to include in a study, there are several recommendations (Eisenhardt, 1989;
Lincoln and Guba, 1985). Eisenhardt (1989) recommends between four to ten cases.
For the purpose of this study, nine case studies offering the right balance between
breadth and depth of experience form the basis of the case study analysis (see Table I
for more details on companies).
In order to provide a macro-level perspective of international activity by small
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specialist retailers, participation of government and consultancy organisations became

an integral part of the research. As no specific organisation/s exists in the UK to assist
small specialist retailers in their international activity, organisations were approached
based on the relevance of their services to the types of case companies under study.
An initial examination of industry experts in these areas revealed 11 such organisations
in the UK; a total of eight government and consultancy organisations agreed to fully
participate in the study.
The study employs two fundamental aspects of case study research in the collection
of data: interviews (with government and consultancy organisations as well as senior
personnel responsible for the international decision-making process in their respective
retail companies) and company documentation (company histories, press releases,
advertising and marketing material, and product market strategies). Qualitative,
open-ended, semi-structured interviews (Gillham, 2000) were conducted with elite
informants (that is, personnel with senior positions) in the case companies and industry
organisations. The duration of each interview extended to approximately 90 minutes.
Following the recommendations of Eisenhardt (1989) and Gillham (2000), preliminary
research questions were set in order to provide focus to the data collection. While the
overall aim of the study is to explore the international activity of small specialist
retailers, more specifically, this research seeks to investigate key factors that
characterise these firms as they internationalise their retail operation.
In addition to interview data, documentary evidence, which the literature views as a
rich source of insight (Adam and Healy, 2000), was collected from the case companies and
industry organisations in order to supplement the evidence from interview transcriptions.
The qualitative analysis of data followed an inductive process, observing the
recommendations of both Morse (1994) and Lindlof (1995). Throughout the duration of
the study, analysis of the data went hand in hand with data collection to allow for the
emergence of important themes and patterns in the data (Taylor and Bogdan, 1984). This
allowed for the early analysis of themes from case companies and industry organisations
in a like manner, reflecting a triangulated approach where the theory is continually
supported (or contradicted) by evidence from different groups (Hartley, 1994).
Table I provides information on each of the nine case companies detailing turnover,
number of stores in the UK, age, years of experience overseas, number of foreign
countries and finally, ownership status. As the issue of confidentiality was important to
the companies in this study, cases are referred to as companies A, B, C, D, E, F, G, H, and I.
 EBR Findings
24,2 By examining the process of internationalisation of these nine firms, key characteristics
of the international small specialist retailer emerge from the data. These are: possession
of a strong company brand image/identity, niche strategy, dual strategy of expansion,
dimensions of ownership and vertical integration from manufacturing to retailing.
The following section details each of these characteristics.
112
Strong company brand image and identity
The brand identity for companies A, C, E, F, G and H incorporates a strong luxury
appeal supported by British/English image. In terms of foreign market expansion, for
example: “The brand and its product line pretty much open most of the first and second
doors” (Managing Director of Company C).
However, for some small specialist international retailers, such as company D, the
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location of brand identity in an original lifestyle concept is also a key stimulant for
expansion in key foreign markets. Findings show that the brand identity of almost all
these firms is linked to the product, image and market appeal of the company.
Government and consultancy organisations emphasise the role of branding in the
establishment of successful retail operations in international markets. In terms of high
quality/luxury retailers, the interviews show that a strong innovative brand is a
necessary requirement. One informant notes, that for those retailers seeking to expand
through in-store concessions: “Department stores [. . .] are looking for a brand that has
made a name for itself because of its innovation”.

Niche strategy
Findings highlight the importance of niche market opportunities overseas both in the
luxury and middle market. Company informants identify the strategies of the case
companies as single-product, single-client and single-theme, as illustrated in Table II.
Several industry experts, both from government and private perspectives, highlight
the importance of niche opportunities for smaller retailers moving into international
markets. The Department of Trade and Industry Report concurs, noting, “there is also
some merit in focusing on small specialist niche markets, which represent particular
attributes of the UK”.
For instance, company H positions their product and brand internationally as
ultimate luxury at the top end of the market. In the middle section of the market,
companies D and I focus on particular market segments and customers with recognizable

Market focus Company

Single-product Company D: natural product

Company E: perfumer
Company F: jeweler
Company G: luxury gifts/accessories
Single-client Company H: (S&T division) gun collectors
Company I: clothes/accessories for tall and large men
Single-theme Company A: pure British style
Table II. Company B: English lifestyle aspirations
Niche market strategies Company C: luxuries that capture the essence of English style
of case companies Company H: (C&A division) luxury adventure image
 and more affordable middle market brands and products. For companies D and I the Specialist
appeal of their products to customers in the international market is based more upon international
the lifestyle concept of their business, which targets the middle market consumer.
Company D, for example, describes itself as affordable to most consumers. retailers
Dual expansion strategy
In light of the need to minimise cost and resource commitment in the process of 113
international expansion, the current work finds that some case companies operate a
combined strategy of:
.
retail stores at home; and
. wholesale/distribution of the store brand abroad.

The case companies’ choice of retail owned stores and in-store concessions as market
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entry methods is the result of a desire to control and protect the company brand or identity
in international markets. For example, the Managing Director of company C explains that
retail stores are important in terms of how the merchandise and the brand are presented,
as retail stores “give you a greater degree of control of what the brand represents”.
Furthermore, several companies specifically note the operation of flagship stores,
primarily in capital city locations, as an important marketing tool, as well as a control and
support strategy to reinforce the luxury and high quality image of their international
brand. As the Market Manager of company B stated, flagship stores are “prototypes of
the corporate (company B) image in its entirety”.
In like manner, companies A, B and F also operate a strategy of wholesaling overseas in
order to sustain the retail side of business in the UK, noting the high risk and resource
commitment involved in overseas expansion. For example, the International Director of
Company A explains: “In order to create the volume that’s required to make things
economically viable you have to have wholesale business unless you’re a very big retailer”.
For other case companies, wholesale or distribution arrangements alongside other
methods enable them to access a vast number of international markets. company C, for
instance, operates a distribution strategy augmented by a wholesale business, which,
according to the company’s Managing Director allows the company “to carry the brand
through a greater number of doors”.
Case firms note that the lack of organisational and financial resources influence the
choice of entry mode strategy. At the same time, government organisations highlight
small retailers’ desire to control internationalisation via owned stores. As company B
explained:
A lot of UK clothing designers are actually only designers in the UK and will actually open
their own stores in overseas markets, particularly in the capital cities like Milan and Paris.
Dimensions of ownership. This study highlights two distinct types of management:
(1) internal management by entrepreneur and/or founder; or
(2) external management by a parent corporation (Table I).

For companies C, D, F, G, and I the uniqueness of the retail concept is grounded in the
vision and values of the entrepreneur and founder of the firm. The Marketing Manager
of company F explains: “[. . .] (the founder) as an individual is completely original. And
that is really seen throughout the business”.
 EBR For companies A, B, C, E, and H, a recent change in ownership affects management
24,2 decision-making and, in turn, internationalisation strategy. The acquisition of funds,
knowledge and networks from the parent company promotes internationalisation. For
example: “The parent company is very strong, supportive and very keen on strategy
and development. There is no doubt that the ownership and income makes life a lot
easier” (Respondent, company C).
114 While industry organisations do not note the external management of a parent
organisation as significant, they do emphasise the management vision and experience
as a key aspect of retail internationalisation by small specialist retail firms. As one
government informant explains:
With the smaller retailer, the power and control in decision-making nearly always lies with
one person [. . .]. It is amazing how even little personal details can dictate quite important
strategic decisions.
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Vertical integration from manufacturing to retailing

The study finds the vertical integration of business activities from manufacturing to
retailing is characteristic of small specialist international retailers. While the Retail
Rankings Directory (2001) categorises all the case companies in the current study as
retailers, from conducting the case research it is clear that the majority of companies
originally started business as manufacturers or producers of merchandise. In examining
the timing of vertical integration from manufacturing to retailing in the light of company
internationalisation, two patterns of activity emerge. For some case companies, exporting
to international markets precedes or occurs simultaneously with the establishment
of retail presence, while for others international expansion occurs after the establishment
of a retail presence in the domestic market. For some case companies in the latter category,
retail activity is important in supporting the business and company brand as it grows
both in the domestic and international market. One informant explains that a combined
strategy of retail and in-house manufacture gives greater control over business operations:
“To make and organize your own product line became more sensible [. . .] it allows the
management of a greater part of the process” (Managing Director, company C).

Discussion
In view of the case and industry evidence, this paper concludes that such sectors of the
industry present specialist retailers with the opportunity to fill gaps in international
retailing (Feigenbaum, 1993). It is argued that a number of characteristics
have been found to categorise small specialist retail internationalisation. These include:
.
strong brand image/company identity;
.
niche strategy;
.
dual strategy of expansion;
.
company ownership; and
.
vertical integration from manufacturing to retailing.

The possession of a strong company brand image or identity is the first dimension that
identifies small specialist international retailers and is both a key impetus for
expansion and the platform from which these retailers develop competitive advantage
 in international markets. In view of existing studies which conclude that brand image Specialist
is a key characteristic of international fashion and luxury retailing (Laulajainen, 1992; international
Fernie et al., 1997; Burt and Carralero-Encinas, 2000; Moore et al., 2000; Moore and
Birtwistle, 2004; Wigley et al., 2005), this study likewise concludes that a strong brand retailers
image or company identity is a key feature of the small specialist international retailer.
Niche strategy, linked to brand image, is the second dimension that identifies small
specialist international retailers. In particular, existing research points out that the 115
luxury or exclusive appeal of focused merchandise distinguishes SMEs from larger
competitors (Spannagel, 1993). The distinct appeal of small specialist international
retailers targeting the luxury or middle market consumer and following a niche market
approach reflects a marketing differentiation strategy. For such retailers, a niche
strategy focusing on a particular market segment (and targeting the luxury or middle
market consumer), that allows them to adapt rapidly to new opportunities in foreign
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markets, supports existing studies on SME internationalisation (Alexander and Quinn,

2001; Michman and Mazze, 2001).
Operational approach is the third dimension identified. The trade-off between
controlling the brand and making international expansion economically viable leads to a
dual strategy of expansion. Retailers use stores in key locations to protect brand/company
reputation and wholesale/distribution to fund and build brand awareness in a greater
number of markets. In light of existing studies in the literature, this operational strategy is
also characteristic of the market entry decision exhibited by luxury fashion retailers
(Hollander, 1970; Fernie et al., 1997, 1998; Moore et al., 2000; Moore and Birtwistle, 2005).
This classification of small specialist international retailing brings new evidence to support
existing work by Alexander (1997) that compares Hollander’s (1970) and Treadgold’s
(1988) typologies, which cite specialist retailers as aggressive internationalists.
Company ownership characteristics are the fourth dimension that identifies the
smaller specialist international retailer. Two distinct types of management are
characteristic of these companies, that is, internal management by entrepreneur and/or
founder, or external management by a parent corporation. This research confirms the
knowledge, experience and vision of the entrepreneur or founder is as important as the
literature suggests (Alexander and Myers, 2000; Lloyd-Reason and Mughan, 2002).
Likewise, for these small specialty retailers, a parent company take-over and the
acquisition of funds, knowledge and networks represent a critical incident in the process
of internationalisation (Bell et al., 2003; Lindsay et al., 2003; Spence and Crick, 2003).
Parenting advantage is important in developing international operations and distribution;
while it does not create the born global qualities of the brand, it does facilitate growth.
Therefore, following the work of Moore and Birtwistle (2005), it is argued that parent
ownership is characteristic of smaller specialist retailers appealing to the luxury market.
Vertical integration from manufacturing to retailing is the fifth and final dimension
that identifies small specialist retailers with international operations. Given that the
impact of vertical integration upon international retail activity receives little attention in
the literature (Tordjman, 1994), the current study contributes new empirical evidence,
which confirms the importance of such a strategy for the small specialist retail company.

Conclusions
Overall, the findings of this paper and, in particular, the categorisation of small specialist
international retailers, makes an important theoretical contribution to existing
 EBR knowledge in the field of retail internationalisation, that neglects to empirically examine
24,2 or classify such factors specifically. Furthermore, existing research in the field of SME
internationalisation focuses predominantly on the manufacturing sector. The current
work provides new empirical evidence of international activity by small specialist
retailers operating in the luxury and middle market sectors of the industry.
The research highlights five characteristics and provides a guide to those small
116 specialist firms considering the move into the international marketplace. The majority
of the case companies have operated internationally for over a decade. Their
experiences can inform other firms of the characteristics smaller international retail
operations require for survival in the specialist sector.
As the current study focuses on nine small specialist retailers and eight industry
organisations based in the UK the findings do not claim generalisability. Rather, the
paper argues that the in-depth case approach of this work facilitates the construction of
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a holistic and context sensitive analysis of the internationalisation process particular to

small specialist retailers based in the UK. In terms of future research, the current work
recommends that the characteristics of small specialist retail internationalisation that
this work identifies, is a starting point for future comparative studies with companies
in other regions and countries.

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About the authors

Dr Karise Hutchinson is a Lecturer in the Department of Business, Retail and Financial Services,
Ulster Business School, University of Ulster, UK. She holds a PhD from the University of Ulster
and the overall focus of her research is the retail industry and small and medium sized enterprises
(SMEs). Most recent research has focused on rural retailing, branding and supplier relationships.
Her work has been presented at international conferences and published in journals such as the
Journal of International Marketing, Journal of Marketing Management, International Marketing
Review, International Review of Retail, Distribution and Consumer Research and the Journal of
Small Enterprise and Development. Karise Hutchinson is the corresponding author and can be
contacted at: kc.hutchinson@ulster.ac.uk
Barry Quinn is Professor of Retail Marketing in the Ulster Business School, University of
Ulster, UK. He received his PhD from the University of Ulster on the internationalisation of
retailing and his areas of expertise include internationalisation and retail marketing. He has
published widely in journals such as Journal of International Marketing, International Marketing
Review, International Journal of Retail & Distribution Management, European Journal of
Marketing and the Journal of Strategic Marketing.

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