Performance of last-mile delivery: a comparison between different e-grocery players

In recent years, e-commerce has been increasing worldwide, reaching a penetration rate (ratio between online retail sales and total retail sales) of 20% in 2024, which is expected to grow up to 23% by 2028. This growth has particularly impacted the grocery market, thus increasing also logistics challenges faced by operators in the field. In this context, last-mile delivery is generally considered one of the most impactful activities both from an economic and an environmental perspective. The grocery retail sector includes a wide variety of retailers, spanning from large operators of mass distribution, such as hypermarkets and supermarket chains, to smaller-scale supermarkets, and extending to specialized local stores, including greengrocers, butcher shops, and fishmongers, among others. Despite this diverse array of retailers catering to various consumer needs, there is still a conspicuous gap in the existing literature regarding comparative analyses of the logistical performance across these various types of players. This paper proposes a simulation model to quantify the delivery performances considering different types of operators, from both an economic and an environmental perspective. The methodology adopted is a multi-method approach combining quantitative modelling with an analysis of existing literature and secondary sources. The main outcomes of this work are twofold. Firstly, a comparison among the main types of grocery retailers in terms of efficiency (costs); secondly, an estimation of the differences in terms of emissions. The combination of these allows for driving directions for future research, and also lays the groundwork for identifying potential strategic decisions for managers working in the sector.