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The Effect of E-Commerce on Grocery Store Choice and Retail Competition

Author

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  • Etcheverry Clara

    (Institut Mines-Télécom Business School, 9 rue Charles Fourier, 91000, Evry, France)

Abstract

E-commerce continues its expansion, and most retail groups have opened online distribution channels in the French grocery market. Using purchasing data, I develop a store choice model and a supply model to estimate the effect of the online distribution channel on consumer welfare and retail competition. E-commerce leads to a small decrease in consumer surplus. Furthermore, only online leaders obtain more market shares and profits while the majority of retailers globally get lower market shares and profits with e-commerce.

Suggested Citation

  • Etcheverry Clara, 2022. "The Effect of E-Commerce on Grocery Store Choice and Retail Competition," Review of Network Economics, De Gruyter, vol. 21(1), pages 1-28, June.
    • Handle: RePEc:bpj:rneart:v:21:y:2022:i:1:p:1-28:n:1
    DOI: 10.1515/rne-2023-0017
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