Distribution in Omnichannel Grocery Retailing: An Analysis of Concepts Realized

The advent of grocery sales via online channels means that former bricks-and-mortar retailers need to construct efficient but also customer-oriented omnichannel distribution concepts if they want to compete online. As the general understanding of such bricks-and-clicks logistics systems for grocery is still limited, the purpose of this chapter is to analyze the distribution concepts used to serve customers across channels and their components. We analyze warehousing, picking, internal transportation, and last-mile delivery systems. Bricks-and-mortar grocery retailers are leveraging their existing logistics structures to fulfill online orders. Our qualitative analysis of different design options will support the decisions of retailers developing distribution concepts for serving customers across channels. This chapter highlights the internal and external factors that drive decision making for omnichannel distribution for grocery retailers that were previously store based. We show that logistics networks are mostly determined by the question of where to split case packs into customer units. Furthermore, in non-food logistics channel integration is mostly seen as beneficial, but in grocery retailing this depends heavily on product, market, and retailer specifics. In doing this, we build a contingency and configuration theory of omnichannel grocery distribution concept design, illustrated by practical cases.