EURO 2025 Leeds
Abstract Submission

1720. Do omnichannel grocery customers add value?

Invited abstract in session MD-47: Retail Supply Chain Management, stream Retail Operations.

Monday, 14:30-16:00
Room: Parkinson B08

Authors (first author is the speaker)

1. Marjolein Buisman
Operations & Technology, Technische Universität München
2. Sander De Leeuw
Wageningen University & Research
3. Arnd Huchzermeier
Production Management, WHU - Otto Beisheim School of Management

Abstract

Prior research in non-grocery retail suggests that omnichannel customers are more valuable than single-channel customers. However, the impact of the adoption of a second (online) channel on customer purchasing behavior in the grocery sector remains unclear. We examine how customers' overall weekly purchases change when they start using the online channel of a grocery retailer. Using a two-way fixed effects model, we compare online adopters to customers who remain in-store only showing that grocery omnichannel customers indeed spend more than single-channel customers. We show that in the week of the first online purchase, total spending, purchase quantity, and the number of distinct categories and items significantly increase, particularly in food products. However, this increase is temporary, with online adopters' purchasing levels eventually converging with those of in-store-only customers. Also, the overall share of online grocery purchases per customer decreases. We further analyze purchasing behavior during the COVID-19 pandemic and find similar trends. Though non-food categories play a more pronounced role, and the effect persists slightly longer, the declining trend is still observed. These insights suggest that while omnichannel customers initially show higher value, their value declines over time, even in times of crisis. Sustaining omnichannel customer engagement over time is thus critical for long-term profitability in grocery retail.

Keywords

Status: accepted

Back to the list of papers