Innovation in Retailing

Abstract

A suggestion by Pellegrini is used to equate innovation in the retail process to “technology push” and product innovation to “market pull” within the mainstream literature on innovation. A model is proposed that recognizes the objective of retail innovation as market differentiation. Innovation is seen as possible on the two dimensions of product and process or on both simultaneously. The use of the model is illustrated by applying it to the British food retailing sector. This suggests that a decline in a retailer's fortunes results from imitative or innovative competitive actions, and that repeated product innovations should be considered to retain the requisite level of differentiation.

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