An exploratory analysis of extended grocery supply chain operations and home delivery

Abstract

This article examines ordering and delivery data from several home delivery grocers in both the USA and the UK. Contrary to popular perceptions, the demise of home delivery grocers (or Internet grocers as they were known during the artificial boom period of 1997‐2000) was exaggerated. In fact, sales for grocery home delivery are currently at least 50 per cent higher than their “peak” in 2000. This article examines the operational challenges involved in offering this value‐added service to consumers and posits the argument that prior efforts (notably Webvan) failed in large part due to poor operational execution and poorly planned business models. Closes with some insights regarding the problems which must be addressed if this extended grocery channel is to become successful in the long run.