Retail executives and economists at the World Retail Congress in Berlin, Germany are not looking for Europe or the U.S. to fall into a double-dip recession. That said, many are predicting slow growth for the foreseeable future and think it's time to look to developing markets to spur expansion.
"The retail industry has grown too rapidly and has increased capacity far more than demand over the last decade and now we're left with too many stores, too many retailers and certainly too many shopping centers," Dr. Ira Kalish, director of global research at Deloitte, said of the U.S. retail business.
Stuart Rose, chairman of Marks & Spencer, said the current economic environment does not concern him as much as the recession in the 1970s did.
"Retailers have got to be more efficient, got to innovate and got to be confident," he said.
Dr. Kalish said retailers will be looking to use cash on hand to expand through acquisitions in markets such as Brazil, China, India and Russia.
Mr. Rose said an alternative to going headlong into a new market is to test the waters through e-commerce first.
Online is "already our largest store" and "the internet will be the advance guard into new markets."
Discussion Questions: Do you expect to see substantially more global expansion on the part of U.S. retailers? Do you favor the online or acquisition route for moving into foreign markets?