Omni-channel strategies for fresh produce with extra losses in-store

Omni-channel retailing has become increasingly popular among retailers. Thus, whether it is profitable to implement omni-channel operations is regarded as an important question for retailers. In this paper, omni-channel strategies for a fresh produce retailer is investigated in consideration of both fresh produce losses (natural losses and extra losses in-store) and customer types (traditional and online). The authors analyse the effectiveness of the omni-channel operation by comparing the equilibrium profits and consumer surpluses of three cases: store channel only, buy-online-deliver-to-home (BODH), and buy-online-pick-up-in-store (BOPS). The results show that omni-channel operation will be profitable and more effective when selling fresh produce with a higher loss rate. When the proportion of online customers is higher, omni-channel operation not only improves the retailer’s profits but also increases the consumer surplus. In addition, the BOPS mode can be more profitable than the BODH mode when the cost for home delivery is relatively high, and interestingly, the advantage of the BOPS mode will be smaller with a lower extra loss rate in-store.

Language

  • English

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Filing Info

  • Accession Number: 01770977
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Feb 10 2021 3:46PM