Abstract Urbanisation is increasing at a rapid pace and one of the consequences of this trend is that more people live in cities, more people demand more products, and above all, more food needs to be transported to and distributed within the cities. With the advancement of new technologies and widespread use of mobile devices in the population, more and more people prefer to shop online, not just books, electronics, or fashion products, but food products as well, in particular the groceries. In this work, we focus on this growing challenge of food distribution in the cities, from the viewpoint of this emerging channel: home deliveries of online food purchases. Especially in the UK which is the second biggest online grocery market over the …show more content…
The negative consequences are more intense, especially in urban areas. In Europe, around 75% of the population lives in urban areas and it is foreseen to increase up to 80% by 2020 (EEA, 2010). Moreover, food products are among the most frequently delivered items to retail shops in city centres. They also require special distribution conditions owing to their perishable nature and quality requirements (Gebresenbet et al. 2011). In this work, we investigate the transport of food in urban areas, and especially in the area of London to identify possibilities for: i) CO2 and emission factors such as CO, NOx and Hydro Carbons reduction, ii) better and efficient fuel consumption, iii) reduction on the operational cost for the transportation of food products, and iv) mitigation the traffic nuisance. The improvements would be arising from different logistics sharing practices; such as transport pooling and collaboration among retailers and 3PLs. The market in the grocery retail sector in the UK is very competitive with major retailers such as Tesco, ASDA, Ocado, Sainsbury’s. According to the IGD (2015), the total grocery market size in the UK was £174.5 billion in 2014 and estimated to be approximately £177.5 billion in 2015 and more than £200 billion in 2019. There is a continuous growth in the grocery market; however, the rate of growth is declining, leading to higher levels of competition among retailers.
The grocery industry has a relatively high market commonality; a lot of grocery stores are somewhat related in terms of technologies used, labor force and the products or services offered in the stores. Differentiation with other competitors is key for survival in this highly competitive industry.
Rapid urbanisation has caused a variety of problems, including transport congestion, lack of sufficient homes and living conditions, sanitary and health care issues, and crime. For all these problems, city planners have attempted potential solutions, each with varying degrees of success. Cities including London, Manila and Mumbai have several of the aforementioned problems, and have each tried their own potential solutions. This essay will discuss how successful these schemes have been in resolving these issues.
1. The grocery industry is a commoditized industry, which makes it difficult for grocers to sustain through differentiation. Buyer power is high and thus, cost leadership and operational efficiencies are critical. There is fierce competition amongst various grocery stores, with the main players such as Loblaw and A&P holding multi-banner stores in various market segments. Traditional grocery stores also lose some of their market share to drug stores, convenience stores and other retailers who have entered the industry. Threat of substitutes from fast-food and take- away outlets is not as prevalent, since many grocery stores have started stocking ready-to-eat meals and have deli services available for consumers. Competitive
Product offerings by these contenders are similar as Tesco’s to a huge degree. This procedure helps Tesco to ensure its commercial center by expanding competition. A large portion of the contenders of the Tesco have an equivalent or a bigger market share in the store business. By industry investigators, Tesco PLC has a twenty nine per cent of shares the grocery store industry.
Enter supermarket boosters like the Detroit Grocery Incubator Project. Part of Michigan’s Fair Food Network, the incubator aims to combat food deserts by increasing the number of supermarkets in Detroit neighborhoods. The initiative provides local entrepreneurs with on-the-job training and coursework on how to open and operate a successful grocery store. The incubator project also helps secure investors to allow entrepreneurs to open supermarkets in food deserts. Added bonuses: job creation, business development, and expanded food access in economically depressed Detroit.
About fifty million Americans are not certain when their next meal will be and in a society filled with food insecurities, the fact there this so much food waste is perplexing (King, 2015). Around the world, about two billion tons of food is wasted through production, transportation, distribution and retail, and post consumer (Glickman 2013). This amount of food
The food industry has a large impact on individuals and will affect wider communities in the future. The rush of today’s society has pushed food production to become more commercialized with prepackaged/premade based foods. For numerous reasons such as time, work and costs of living, people are wanting meals that are cheap, fast, easy and don’t require much effort. This is due to many obligations and priorities in life that are put above
Grocery industry is a highly competitive market with thin profit margins. Super markets are dominant players in the grocery industry. They use grocery offerings to drive traffic to their higher profit margin retail items. With its operations efficiency, Walmart, the largest grocery retailer has been able to offer significant price drops. This also forces other grocery stores to drop prices which keeps the profit margin thin. Even with all the advantages of operational efficiency and economies of scale, Walmart’s share in grocery sales was down at 51% in 2011.
The Australian Supermarket Industry is the very hot topic that’s why very interesting topic now days. The Australian supermarket and grocery stores have a very severe competition in Australia mainly because of organizations competing in this mature industry are going towards cost reduction initiatives with competing advantage rather than product differentiation strategies, In other words business in this industry increase market share by charging lower prices while making reasonably fair profit. The growing popularity of ALDI – German based company of introducing its own label goods (products manufactured and sold under the retailers own brand) with low cost has forced the two giants –Woolworths and Coles to cut price
The main substitute to buying your food from a grocer is going out to eat. A 2002 Gallop poll shows that Americans eating more meals outside of the home than ever before. When examining today’s changing supermarket consumer in Progressive Grocer, Buck Jones made this observation: “To get the total picture we need to look outside the supermarket arena at how customers are using other retail outlets to satisfy the needs that we could be addressing.” The success
The UK supermarket industry resembles an oligopolistic industry, with several characteristics. Oligopolistic markets tend to be characterised by high concentration ratios, barriers to entry and…Since the turn of the century, the industry has been scrutinised by both the Office of Fair Trading and has been referred to the Competition Commission on two occasions. (Seely, 2012)
1. The changes in transportation of fruits and vegetables such as cardboard crates being used in place of wooden crates, etc. Reasons for above changes.
There are 92,796 grocery stores in the UK and the market value increase by 19.5% in the last 5 years and according to IGD forecast the UK grocery market should reach £203bn by 2019. But what we can see in the figure 1 that from 2009 to 2014 annual grow in the grocery market start decreasing from 4.9% in 2009 to 2.8% in 2014. One of the reason for this is difficult economic conditions which had an effect for consumer spending. Consumers choose to spend less money on food by buying less food or by looking for cheaper places. Retail market is diversified into three main sectors: Hypermarket and superstores which accounts for 42.3% of retail market, convenience stores 21.4% and small supermarkets 20.3% (Figure 3). So about 84% of sales are done in these three sectors. The biggest 4 retail chains in UK are: Tesco which takes 28.7% market share, Asda has 17.3%, Sainsbury’s 16.6% and Morrison’s 11%. (Figure 2) So, if we will sum up 4 biggest retail market chains we will have about ¾ of market share. Finally, a strong characteristic of this sector is competition with price wars and a
The process of people moving into cities, which is called urbanisation, was happening around the world in past decades. It causes cities to have more labourers and resources than before. This makes a big contribution to the social development of cities. Thanks to these social developments, public services are becoming better in these areas. Citizens can enjoy a better life by access these public services such as better medical care, more education resources and well-built transport. It means an equitable society can be created. An equitable society means citizens can have more opportunities to access social resources and to live a better life. This essay will argue that
Customers now love shopping online from their mobile phones more than ever, because they can do it whether they’re at home on the couch, on the train on the way to work. It is a long process to get out for shopping, you have to drive or take public transportations. Then you have to roam around the shop moreover there are particular level for each category and at the end you also have to wait in the line to pay. But m-commerce made it so ease that everything is now in the hand phone, you don’t have to go physically or wait in the line to pay moreover there is home delivery service through which your goods will come to your door. There are lots of catering service now a day though m-commerce for example Pizza Inn they have their own application and website where you can make your pizza the way you want through the certain option in their app and website then place the order long with the payment. So, after few minutes the pizza will be in your