E-Grocery as New Innovative Distribution Channel in the German Food Retailing

Over the past decade the Internet has changed our today’s society more than any other medium since the invention of television. The recent evolvement of the Internet as a new major distribution channel has obtained much attention, as the online channel calls the viability of traditional stationary retailing into question. Today, since innovation is a key factor in the Digital Age, the presence in the digital marketplace is essential for retailers, also in the food retailing. In the UK and other European economies e-grocery continues to grow, while in Germany the e-grocery business lags behind the European average, which points to reasonable growth potential here. Online food retailing, however, poses several challenges. There is a general lack of reality proven business models and of practical experience in consumer’s needs and demands, which renders the development of a successful e-grocery strategy difficult. In order to live up to the customers’ expectations and develop a profitable business model, the e-grocer has to know about the customers’ demands on online food retailing. The main objective of this paper is to understand customers’ motives behind grocery shopping online and offline. The paper first researches into the German food retailing with its market characteristics and the Status Quo of e-grocery in Germany by researching data from market research institutes and official bodies. The paper then examines the customers’ perceptions of grocery shopping online as well as offline in a survey. Finally, a conclusion on the prospects for an e-grocery business strategy to successfully meet the consumer’s needs and demands is drawn.