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Sociodemographic and spatial disaggregation of e-commerce channel use in the grocery market in Great Britain

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  • Hood, Nick
  • Urquhart, Ryan
  • Newing, Andy
  • Heppenstall, Alison

Abstract

The UK Grocery e-commerce industry is amongst the most developed in the world with an estimated value of £11.4Billion in 2018. Assisted by technological developments, the market has experienced dramatic growth over the past two decades. Grocery retailers have invested in online infrastructure and home delivery networks. As a result, consumers have a range of options which enable them to shop interchangeably between in-store and online channels. The proliferation of new grocery shopping channels such as home delivery or ‘click and collect’ (collect in store or collection from a non-store collection point), coupled with changing consumer behaviour, provides new challenges for retailers in understanding consumer dynamics in this market. This paper explores consumer behaviour and preferences for e-commerce in the grocery retail industry in Great Britain (GB) using a survey of 19,033 respondents from the major market research company YouGov. Respondents were asked a range of questions around uptake and channel usage in the grocery e-commerce sector. The survey presents a novel opportunity to analyse self-reported consumer behaviour in GB, with survey responses attached to key sociodemographic and locational information. We find that sociodemographics are an important driver of groceries e-commerce usage and channel choice, with females, more affluent households and those in the 25–44 age group most likely to use home delivery, corroborating previous research. Contrasting previous research, we also find statistically significant evidence of relatively high values of home delivery use among over-55s. Whilst overall usage is lower, we find a particular affinity to collection facilities among males and skilled manual workers. Spatially, we find evidence of both the innovation-diffusion theory and the efficiency theory at both a national and local authority district level, using a brief case study of Yorkshire and the Humber. These insights can support grocery retailers as they further develop costly localised infrastructure to support e-commerce. It could also assist retailers in understanding the localised drivers of channel choice as they seek to shift demand from home delivery (with high costs faced by the retailer in relation to the ‘last mile’) to click and collect (in which the customer faces the costs associated with the last mile).

Suggested Citation

  • Hood, Nick & Urquhart, Ryan & Newing, Andy & Heppenstall, Alison, 2020. "Sociodemographic and spatial disaggregation of e-commerce channel use in the grocery market in Great Britain," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    • Handle: RePEc:eee:joreco:v:55:y:2020:i:c:s0969698919303315
    DOI: 10.1016/j.jretconser.2020.102076
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    References listed on IDEAS

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    2. Daniel Francisco Pais & António Cardoso Marques & José Alberto Fuinhas, 2022. "The cost of healthier and more sustainable food choices: Do plant-based consumers spend more on food?," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-21, December.
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    4. Wang, Jiawei, 2023. "The relationship between loneliness and consumer shopping channel choice: Evidence from China," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    5. Maltese, Ila & Le Pira, Michela & Marcucci, Edoardo & Gatta, Valerio & Evangelinos, Christos, 2021. "Grocery or @grocery: A stated preference investigation in Rome and Milan," Research in Transportation Economics, Elsevier, vol. 87(C).
    6. Islam, Towhidul & Meade, Nigel & Carson, Richard T. & Louviere, Jordan J. & Wang, Juan, 2022. "The usefulness of socio-demographic variables in predicting purchase decisions: Evidence from machine learning procedures," Journal of Business Research, Elsevier, vol. 151(C), pages 324-338.
    7. Beckers, Joris & Weekx, Simon & Beutels, Philippe & Verhetsel, Ann, 2021. "COVID-19 and retail: The catalyst for e-commerce in Belgium?," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    8. Bart Geurden & Jeroen Cant & Joris Beckers, 2022. "Food Accessibility in the Suburbs of the Metropolitan City of Antwerp (Belgium): A Factor of Concern in Local Public Health and Active and Healthy Aging," IJERPH, MDPI, vol. 19(23), pages 1-13, November.
    9. Beckers, Joris & Cardenas, Ivan & Le Pira, Michela & Zhang, Jia, 2023. "Exploring Logistics-as-a-Service to integrate the consumer into urban freight," Research in Transportation Economics, Elsevier, vol. 101(C).
    10. Dominici, Andrea & Boncinelli, Fabio & Gerini, Francesca & Marone, Enrico, 2021. "Determinants of online food purchasing: The impact of socio-demographic and situational factors," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    11. Ana Marija Filipas & Nenad Vretenar & Ivan Prudky, 2023. "Decision trees do not lie: Curiosities in preferences of Croatian online consumers," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 41(1), pages 157-181.
    12. De Canio, Francesca & Fuentes-Blasco, Maria, 2021. "I need to touch it to buy it! How haptic information influences consumer shopping behavior across channels," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    13. Beckers, Joris & Cardenas, Ivan & Sanchez-Diaz, Ivan, 2022. "Managing household freight: The impact of online shopping on residential freight trips," Transport Policy, Elsevier, vol. 125(C), pages 299-311.
    14. Leo Van Hove, 2022. "Consumer characteristics and e-grocery services: the primacy of the primary shopper," Electronic Commerce Research, Springer, vol. 22(2), pages 241-266, June.
    15. Panduru Andrei-Dorian, 2021. "The Profile Of The European E-Buyer– The Dynamics And The Acquisition Criteria," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 246-249, October.

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