Title: Business model innovation in the retail industry: growth by serving the silver generation

Authors: Veit Gregor Lange; Vivek K. Velamuri

Addresses: Kurt Salmon GmbH, Königsallee 11, 40212 Düsseldorf, Germany ' HHL Leipzig Graduate School of Management, Jahnallee 59, 04109 Leipzig, Germany

Abstract: How can an established retailer face the challenge of an ageing society? We study the components of business model innovation in the German retail landscape that are implemented on the sales floor to cater to the needs of the silver generation segment. Applying a multiple case-study approach our analysis suggests that the five firms under study focus on three specific areas: 1) store layout and physical environment; 2) intensified customer service; 3) increase in 'senior-friendly' product offerings. Improvements in these areas help retail firms increase the value proposition, improve customer relationships, and augment revenues. In total, our research highlights how retailers can alter their business models to better meet the needs of the growing silver generation segment.

Keywords: business model innovation; BMI; business models; retail industry; silver generation; value creation; qualitative study; case study; ageing society; Germany; older generation; senior citizens; store layout; physical environment; customer service; senior-friendly products.

DOI: 10.1504/IJEIM.2014.064210

International Journal of Entrepreneurship and Innovation Management, 2014 Vol.18 No.4, pp.310 - 329

Available online: 06 Aug 2014 *

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