International Strategy

The Commerce Secretary of the United States met with eBay executives and merchants and announced a partnership between the government and the e-commerce company. Commerce Secretary Penny Pritzker said the partnership would promote U.S. trade and investment expansion. The partnership advances the Obama Administration's National Export Initiative, an ambitious plan to sell more American goods and services into foreign markets. eBay said the joint effort would focus on increasing awareness of the economic benefits of trade, specifically the important role that small and midsized enterprises (SMEs) can play in growing America's export economy.

For some retailers, the grass is greener on the other side … of the pond, that is. Emaciated traffic and extreme price competition have left the industry in a slugfest just to achieve positive domestic same-store sales. As a result, many retailers have been looking to plant their flags overseas, scouring Europe and emerging markets in search of growth. While the strategy has proven successful for some U.S. firms going abroad — as well as international companies gaining entry in the United States — some within the industry say the globalization of retail has brought with it a new challenge.

When Canadians crossed the border into the United States on shopping excursions, Target was a prime destination. But when Target crossed the border last year and brought its stores to Canada, the magic somehow vanished. Lost in the turmoil over the immense theft of Target's customer information in the U.S. has been the remarkable failure of its Canadian expansion. Instead of reaching profitability by the end of the year, as Target had hoped, analysts expect that the company will report this week that the Canadian operations produced an $8 billion to $9 billion loss. 

A new Alibaba subsidiary is close to launching a marketplace in the U.S. and has been onboarding third-party sellers since late last year, EcommerceBytes has learned. 11Main.com has hand-picked eBay sellers to participate in the pre-launch phase. The marketplace is called 11 Main to connote "Main Street" shopping from friendly mom-and-pop retailers. The plan is to charge charges sellers a 3.5 percent commission fee when an item sells with a $50 cap. There's no charge for selling printed books, DVDs and music.

Men's Wearhouse has introduced international shipping to online customers in more than 100 countries. The company is promising affordable shipping rates and order totals guaranteed at the time of purchase to the international community. "We have customers around the world that trust us as their menswear fashion expert, but the only way they could shop with us was if they were based in the USA," said Men's Wearhouse Executive Vice President Susan Neal. "With our international shipping option, our customers will be able to shop and ship to more than 100 countries anytime and anywhere that's convenient for them."

Retailers are moving quickly to open new markets, enticed by double-digit growth and the global scale of international e-commerce. The appetite for U.S. brands is strong around the world, and the desire to shop online is growing at a tremendous clip.

Hudson's Bay said on Monday that it will sell its flagship downtown Toronto store and neighboring office tower for $587.09 million to commercial real estate heavyweight Cadillac Fairview and open a full-line Saks store in the leased-back space. The historic Canadian retailer has long floated plans to unlock the value of its real estate but had previously given no time frame. 

Global retail giant Wal-Mart has registered a new company in India as it prepares to enter the country's lucrative multibrand retail market with a new partner. Wal-Mart and Bharti Enterprises decided to part ways in October last year, bringing an end to their six-year-long partnership. The retailer has registered a new company called Wal-Mart India Private Ltd in the country, according to the data available with the Ministry of Corporate Affairs.

With a global economy becoming more of a reality by the day, brands are setting their sights on expanding their operations beyond their borders to grow profitably. One such brand taking this approach is Claire's Stores, an apparel and accessories retailer for teen girls and young women. In a keynote session at the National Retail Federation's Big Show in New York City yesterday, Jim Fielding, CEO of Claire's Stores, discussed his brand's experiences going international, as well as some takeaway lessons for the retailers in attendance who may be following closely behind.

Japanese apparel retailer Fast Retailing remains deliberate in its approach to the growth of its Uniqlo brand in the U.S., with plans for five more stores by mid-year. There are currently 1,300 Uniqlo locations worldwide in 13 countries, but only 17 stores in the U.S. The five new stores the company is adding this spring and summer will be located in King of Prussia, Pa., Stamford, Conn., and Daly City, Concord, and Milpitas, Calif. The company's other existing stores are clustered in the Northeast and Northern California.