Seeing the news that Tesco is reviewing its Central European business got me thinking about the UK’s global retail track record.
We produce world-class retail talent, so why have so few British retailers built truly global businesses?
The answer isn’t as straightforward as it might seem. Looking at Britain’s international retail story reveals some interesting lessons about growth, leadership and why boards are increasingly looking beyond their domestic markets when appointing senior executives.
Executive Summary
- British retailers have historically excelled at developing world-class leaders.
- International expansion requires adaptation rather than replication.
- Global retailers design operating models for international growth from day one.
- Retail executive search is increasingly international.
- Boards should prioritise leadership capability over geography.
Britain has long been recognised as one of the world’s leading retail markets.
We pioneered the supermarket and helped shape category management, loyalty programmes and multichannel retailing. Our high streets and shopping centres have produced many of the industry’s most respected operators, while British executives have spent decades leading retail businesses across Europe, North America, Asia and the Middle East.
Alongside some of these global success stories sit businesses that expanded overseas before ultimately pulling away.
And that’s why Tesco’s review of its Central European operations particularly interesting.
What Made Some Of Our British Retailers An International Success Story?
Tesco’s international expansion programme was one of the most ambitious undertaken by a British retailer.
Reports that Tesco is exploring the sale of its Central European business may seem like just another portfolio decision. If completed, it would bring to a close almost thirty years of investment across more than 500 stores generating around £4.5 billion in annual revenue.
It got me thinking about Britain’s wider international retail record, including retailers that have withdrawn from overseas markets, scaled back their international ambitions, as well as others that have built highly successful international businesses.
One such success story is JD Sports, which has become one of the world’s leading sports fashion retailers through disciplined acquisitions, deep supplier partnerships and a proposition that has been successfully adapted across multiple markets. B&M is another retailer to establish a successful operation in France, demonstrating that international growth is possible when retailers adapt their model rather than simply exporting it unchanged. Kingfisher continues to operate across several European markets, while Currys has also reinforced its international focus.
Taken together, these businesses show that international success is possible. None simply exported a successful UK formula. They adapted to local markets, integrated acquisitions where appropriate and built operating models capable of supporting growth across multiple countries.
However, not every British retailer enjoyed the same outcome. Some withdrew from overseas markets after significant investment, while others scaled back their international ambitions. In many cases, the key was recognising that international growth required a different way of operating, rather than simply expanding what already existed into new markets.
Global Success for European Retailers
Brands such as Zara (Inditex), H&M, Decathlon, Lidl, Aldi and Carrefour have all built businesses that span dozens of countries. Today, Zara generates the majority of its revenue outside Spain, H&M operates in more than 75 markets, and Lidl and Aldi have become two of the world’s most successful international grocery retailers.
That success reflected both why these businesses expanded internationally and how they approached that expansion. For many of these businesses, international expansion was a commercial necessity. Their domestic markets were too small to support decades of uninterrupted growth, so looking beyond their borders became part of the strategy from the outset.
That shaped the way these organisations were built. Leadership teams were assembled with multiple markets in mind. Supply chains, sourcing strategies and operating models were designed to scale internationally. Just as importantly, adapting to different customers, cultures and regulatory environments became a core organisational capability, not something developed later as expansion gathered pace.
British retailers grew up in a different environment. The UK offered one of Europe’s largest, most sophisticated and fiercely competitive retail markets, providing ample opportunity for growth at home. International expansion was often a strategic choice rather than an economic necessity. As a result, many British retailers developed exceptional domestic operators, while their European counterparts were building organisations, and leadership teams, designed to operate across multiple markets.
How Global Retail Has Changed Executive Hiring
A generation ago, retail executives typically built their careers within one market. Boards often looked for leaders who understood the local competitive landscape and had worked for familiar brands.
Today, boards increasingly look beyond their domestic market.
The challenges facing retail businesses are progressively more consistent wherever they operate. Whether a CEO is leading a business in London, Madrid, Chicago or Sydney, they’re likely to be tackling the same strategic questions: accelerating digital transformation, improving productivity, integrating AI, strengthening customer loyalty, managing global supply chains and delivering profitable growth.
As those challenges have become more consistent across markets, so too have the skills boards are looking for.
It’s much less about where a leader has built their career than whether they’ve solved comparable strategic challenges, whether that’s experience leading a digital transformation in North America, integrating acquisitions across Europe or scaling operations in Asia.
British retailers continue to develop leaders who are in demand around the world. Executives from companies such as Tesco, Marks & Spencer, Boots and Kingfisher are sought after for their expertise in merchandising, grocery, operations and commercial leadership.
And that flow of talent works both ways. British retailers recognise that leadership capability is not confined by geography. B&M appointed Tjeerd Jegen after holding senior leadership roles at Ahold Delhaize, Metro and Takko Fashion. Morrisons recruited Rami Baitiéh following an international career with Carrefour. More recently, Currys appointed Fredrik Tønnesen as CEO after successfully leading its Nordic business and JD Sports is led by Régis Schultz, whose career has spanned France, the UK and the Middle East before becoming CEO.
The result is a genuinely global leadership market, giving boards access to a far broader pool of executives.
What Should Boards Look for When Hiring Senior Retail Leaders?
Based on our experience, there are three considerations for boards when making senior appointments.
Look beyond your home market. The right leaders may not be based in your domestic market. Expanding the search from the outset gives boards access to a broader pool of proven leadership talent.
Prioritise experience over geography. Focus on leaders whose experience matches where the business is heading, and who are the right cultural fit for the organisation. Experience integrating acquisitions, scaling internationally or leading transformation can often be more valuable than domestic market familiarity.
Build teams with complementary perspectives. Leadership teams that combine experience from different markets bring different ways of thinking and can strengthen decision-making.
Leadership Is Retail's Competitive Advantage
The best retailers I’ve worked with bring together leaders who’ve solved similar problems in different markets. They know when to adapt, when to challenge established thinking and when experience from another market can offer a different perspective.
Today, many searches focus on identifying leaders who have transformed businesses across multiple countries, integrated cross-border acquisitions, led international digital transformation programmes or built global consumer brands.
At Redgrave, we’ve seen this evolution first-hand. It’s one of the reasons we opened our New York office. Clients increasingly wanted access to leadership talent beyond the UK, and New York sits at the heart of one of the world’s deepest retail, consumer and quick service restaurant talent markets.
Britain still produces outstanding retail leaders. The difference today is that they’re part of a global leadership market, and so are the people they’re competing with.
For boards, the challenge isn’t finding great leaders. It’s making sure you’re looking broadly enough to find them.
About the Author
Paul Williams is a Partner at Redgrave Search, specialising in executive search across the retail, consumer and digital sectors. He advises Boards and investors on senior leadership appointments and has worked with organisations across the UK, Europe and North America.
