Beyond promotions: business model innovation in everyday low pricing grocery

Purpose This paper seeks to conceptualise an integrated, dynamic, everyday low-price (EDLP) retail business model (EDLP-RBM) and understand how retailers revitalise their EDLP business model in today’s hypercompetitive environment. Design/methodology/approach The study is based on an in-depth, longitudinal case study of EDLP retailers, employing a multi-case study methodology. The qualitative approach adopts an exploratory grounded theory perspective to build an interpretive theory for EDLP-RBM and BMI. Findings The paper proposes an extended representation of the EDLP-RBM, highlighting the interlocking elements that collectively renew the BM to create, capture and deliver value in a competitive context characterised by significant discontinuities for the retailers. Research limitations/implications The main limitation is related to the qualitative nature of the research, which reduces the opportunity for generalising the results. Practical implications The case studies reveal that the BMI can serve as a redefinition of the value proposition currently offered within the industry (i.e. conventional EDLP, HILO and discount retailing) and how the operating model delivers it. Originality/value The study puts in evidence how leading Italian EDLP retailers innovatively and dynamically (re)combine different conceptual frameworks of BMs, such as their strategic variables, by experimenting with new ways to renew their competitive advantage to create and capture value.