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Leveraging the physical network of stores in e-grocery order fulfilment for sustainable competitive advantage

Marcia Mkansi and Aaron Luntala Nsakanda

Research in Transportation Economics, 2021, vol. 87, issue C

Abstract: This work draws on the results obtained from a qualitative multi-case study carried out on a sample of retailers with a significant presence in the United Kingdom e-grocery market. Using the resource-based view model, the study determines whether operating an e-grocery channel, by leveraging the existing network of stores, yields a sustainable competitive advantage. The findings show that the network of stores is clearly the primary conduit through which e-grocery retailers offer a wide assortment of products, perishables and non-perishables, to a large geographically dispersed population, while meeting their high expectations of faster and on-time delivery. It offers e-grocery practitioners a different avenue of reflection in the exploration of the trade-offs between fulfilment responsiveness, last mile operation costs, and a seamless customer experience. The stores act, in e-grocery operations, as enablers of various other tangible or intangible benefits that translate into a sustainable competitive advantage. This is particularly important in the e-grocery market, where the physical space and handling requirements comprise significant costs that are difficult to recoup from delivery charges at levels acceptable to customers. Stores, as part of e-grocery retailing, maintain offline or pure online channels, and have implications in transportation and the overall value proposition of e-grocers.

Keywords: e-grocery; Resource-based view; Tangible resources; Multiple-channel retailing; Last mile delivery; Pure online traders (search for similar items in EconPapers)
JEL-codes: M10 M16 M19 O33 O39 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.retrec.2019.100786

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