The Limits to Portfolio Restructuring: Lessons from Regional Consolidation in the US Department Store Industry

Steve Wood

Regional Studies, 2002, vol. 36, issue 5, 515-529

Abstract: The relationship between merger and acquisition activity and the making of competitive space remains an underemphasized theme within contemporary economic geography. This paper seeks to add to this debate through a case study of the regional consolidation strategies of US department store firms during the 1990s. It seeks to establish lessons regarding the importance of competitive space, synergy and due diligence in the analysis of potential consolidation targets and how neglect of these factors is likely to result in failure of the constituent firms. Au sein le geographie economique, le rapport entre les activites de fusion et d'acquisition et la creation d'un espace competitif reste une question a laquelle on ne donne pas assez d'importance. Cet article cherche a contribuer a ce debat par moyen d'une etude de cas des strategies de consolidation regionales des grands magasins aux Etats-Unis pendant les annees 1990. Il cherche a en tirer des lecons quant a l'importance de l'espace competitif, de la synergie et de la diligence normale dans l'analyse des cibles de consolidation eventuelles, et comment ne pas faire attention a ces facteurs risque de finir par l'echec des entreprises constituantes. Die Beziehung zwischen Fusion und Erwerbesinn, und der Schaffung von Wettbewerbsraum ist ein immer noch wenig behandeltes Thema der modernen Wirtschaftsgeographie. Dieser Aufsatz versucht, zu der Debatte beizutragen, indem er den Fall regionaler Zusammenlegungsstrategien von Warenhausfirmen in den Vereinigten Staaten wahrend der neunziger Jahre darstellt. Er versucht, daraus Lehren fur die Bedeutung von Wettbewerbsraten, Synergie und den notigen Fleiss zu ziehen, und zu zeigen, wie Vernachlassigung dieser Faktoren durchaus zum Scheitern der einzelnen Teilfirmen fuhren kann.

Keywords: Consolidation; Synergy; Merger; Acquisition; Retailing; Portfolio Restructuring (search for similar items in EconPapers)
Date: 2002
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DOI: 10.1080/00343400220137128

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