Foreign Multinationals and Innovation in British Retailing, 1850-1962

Abstract

This essay draws on the first systematic study of foreign direct investment in British retailing up to the 1960s. It shows that while foreign multinationals were unimportant in British retailing overall, they dominated some retail trades. Moreover, these retail entrants were mostly not by retailers but by manufacturers. Their motives varied but were mostly seemingly related to their need to control distribution channels and build brands. Foreign retailers per se were actually relatively rare and mostly unsuccessful. In contrast to British manufacturing, therefore, foreign innovations were not by and large introduced into British retailing by multinational enterprises. The article then explains why these foreign manufacturers of branded consumer goods pursued international marketing strategies that involved investing in costly retail outlets.