Barriers to innovation in retailing

Book section : Chapter

This chapter discusses the various barriers that can hamper innovation in the retail sector. It categorizes these as internal or external. Key internal barriers include lack of financial resources, risk aversion and inertia, and organizational silos. External barriers identified include economic conditions, regulatory burdens, and policymakers' lack of understanding of retail's contribution. Retail firms tends to focus more on incremental innovation, with barriers to radical innovation being more entrenched. To overcome barriers, retail firms need visionary leadership and incentives promoting risk-taking. Other solutions include partnerships with start-ups, open innovation labs, lobbying for regulatory changes, and focusing innovation where there is greater regulatory flexibility. While internal barriers are more controllable, external factors remain challenging. Overall, the chapter argues substantial commitment is required to dismantle barriers to retail innovation.

Authors: Reynolds, J

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Edward Elgar Publishing
• Host title: Elgar Encyclopedia of Retailing
• Pages: 848-850
• Series: Elgar Encyclopedias in Business and Management
• Place of publication: Cheltenham, UK
• Publication date: 2025-12-01
• DOI: 10.4337/9781035319701
• EISBN: 9781035319701
• ISBN: 9781035319695
• Language: English
• Keywords: regulation; innovation; barriers; risk; retail; mitigation
• Subtype: Chapter