Abstract
Three phases of fundamental innovation in food retailing since the mid 20th century are described. Major dimensions of change presently underway are reviewed. The business model, with its core of innovation, underpinning the growth of large food retailers is explained. Five key aspects of the innovation at the core of the model are explored and examples provided of the innovations adopted by retailers. The implications of the changes in retailing for new product development are considered through the chapter. The innovation activity within retailers has become a major determinant of the acceptance of new products in the consumer market place.
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