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Dissertation
Grocery retailing: can the past reflect the future of grocery retailing?
Doctor of Business Administration (D.B.A.), Drexel University
Jun 2024
DOI:
https://doi.org/10.17918/00010617
Abstract
The grocery industry has seen significant changes in the competitive landscape since the 1970s. This research aims to review the history of the industry from the 1970s and identify the factors that enabled some grocery retailers to survive and maintain a competitive advantage over time relative to others who did not. What were the innovations in product offerings, services, pricing, store layouts, convenience, and technologies that have differentiated grocery retailers? The third research question involves analyzing what future innovations that can disrupt the industry. To explore these questions, I used a case study methodology. My data sources included archival information from numerous sources including the Joint Economic Committee of The United States Congress, periodicals in the grocery industry such as Progressive Grocer and Supermarket News, and books about the grocery industry including The Great A&P, Becoming Trader Joe's, and Winner Sells All: Amazon, Walmart and the Battle for our Wallet. I also used the results of a survey I conducted with two hundred participants that provided valuable insights. I reviewed this information using the extensive research literature on population ecology, dynamic capabilities, and the resource-based view of firms' innovation and disruptive innovation. My analysis shows that new forms of grocery retailing have taken a leadership position in the industry. Walmart, initially with its supercenter and now with its store pickup and online options, is the number one grocery retailer in the US. Walmart learned from its acquisition of Jet.com how to compete with Amazon for online grocery sales. Amazon, initially an online bookseller in 1994 that allowed customers to order online and ship their purchases to their homes, is the number two US grocery retailer today. Although Amazon owns brick-and-mortar locations such as Whole Foods and its "To Go" stores, most of its sales are online. Costco opened for business in 1983. It required a membership fee from its customers to access its bulk pack merchandising. Today, it is the number three US grocery retailer. Instacart, with its technology platform that uses existing brick-and-mortar grocery stores, and a gig workforce is another new format in the industry. Other new formats that I explored include Aldi, Trader Joe's, and Gopuff. All of them have introduced unique innovations to the industry. I also examined the role of regional supermarket chains and the value they bring to the consumer. Based on my study, I conclude that competition for mergers and acquisitions will continue, and the pace will quicken if the Kroger and Albertsons merger is finalized. Ahold has already stated that it is looking for additional retail grocery chains to purchase in the US. Mergers and acquisitions help companies reduce their expenses and offer lower prices. They also give the acquiring companies the opportunities to gain experience new skills and techniques that they can incorporate into their existing strategies. It is the ability to develop successful innovations that meet the changing tastes of consumers that determine the winners and losers in the retail grocery industry.
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Details
- Title
- Grocery retailing
- Creators
- Bernard Socha
- Contributors
- Daniel Tzabbar (Advisor)David Gefen (Advisor)
- Awarding Institution
- Drexel University
- Degree Awarded
- Doctor of Business Administration (D.B.A.)
- Publisher
- Drexel University; Philadelphia, Pennsylvania
- Number of pages
- xv, 205 pages
- Resource Type
- Dissertation
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business; Drexel University
- Other Identifier
- 991021890311304721