Last-Mile Capacity Constraints in Online Grocery Fulfilment in Great Britain

Forecast growth in e-commerce home-delivery demand provides retailers with opportunities for expansion and increased levels of investment. To maximise these opportunities, face operational logistical challenges related to order fulfilment the last mile. In contrast other sectors, many grocers operate a store-based delivery model rather than separate distribution channel. Under this model, orders are picked from store shelves fleets vehicles used last-mile (delivery consumers’ home). With very rare access commercial data Sainsbury’s, second largest grocer Great Britain, we analyse geographical variations online groceries capacity at store, region, rural–urban geography levels, exploring interrelated impact constraints storage limiting further services. The spatial extent service areas found considerably vary between stores existing network presents barriers some regions. We argue factors associated mile an important constraint/enabler e-groceries sector suggest that effective services requires research into area delineation efficiency capacity. approach here is readily transferable providers both GB elsewhere.