Online Grocery Retail Logistic Advantages

Abstract

The goal of the paper is to prove that under certain conditions online grocery retail may have less costs than grocery chains. To reach this goal it’s required to: - demonstrate prospects of online grocery retail based on western grocery retail experience - compare logistic costs of grocery chains and online grocery retail using methods of mathematical modeling - justify prospects of online grocery retail in the “average region in Russia” As a result of the paper we found the most crucial factors like family size and oil prices, etc. that determine the cost advantage of online grocery retail and justified that in the average region in Russia with 1,5 mln people we could save around 0,4 bln rub annually or 4% of the revenues.