Assignment on Online Grocery Shopping and Delivery
Added on 2022-02-17
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Feasibility of Online Grocery Shopping and Delivery
in Manhattan:
A Geospatial Marketing Analysis
By
SARAH N. DOW
Binghamton University, Spring 2010
Geography: Urban: Economic/Retailing Emphasis
HONORS THESIS
in Manhattan:
A Geospatial Marketing Analysis
By
SARAH N. DOW
Binghamton University, Spring 2010
Geography: Urban: Economic/Retailing Emphasis
HONORS THESIS
Acknowledgements
I would like to express my acknowledgement to those who have guided me and
supported me throughout this research project.
I would like to convey my gratitude to my advisor, Professor Mark E. Reisinger,
Associate Professor/Undergraduate Director of the Geography Department, for his continuous
encouragement and faith in my work and my future endeavors. The graciousness and guidance
Professor Reisigner has shown me since the first of his many geography courses that I have had
the privilege of taking, makes him an amazing professor, mentor, and friend.
I could not have completed this thesis without the cooperation and advice from Dr. Norah
Henry and Professor Lucius Willis, who have helped me to complete a piece of work that I am
proud to present. I am also thankful for the support of the entire Geography Department at
Binghamton University.
Most importantly, I owe all of my gratitude to my Mother, Father and brothers who have
never doubted my ability to exceed in anything I pursue. Their absolute love, support, and
encouragement to be the best I could be have shaped me into the person I am today. I am truly
blessed.
I would like to express my acknowledgement to those who have guided me and
supported me throughout this research project.
I would like to convey my gratitude to my advisor, Professor Mark E. Reisinger,
Associate Professor/Undergraduate Director of the Geography Department, for his continuous
encouragement and faith in my work and my future endeavors. The graciousness and guidance
Professor Reisigner has shown me since the first of his many geography courses that I have had
the privilege of taking, makes him an amazing professor, mentor, and friend.
I could not have completed this thesis without the cooperation and advice from Dr. Norah
Henry and Professor Lucius Willis, who have helped me to complete a piece of work that I am
proud to present. I am also thankful for the support of the entire Geography Department at
Binghamton University.
Most importantly, I owe all of my gratitude to my Mother, Father and brothers who have
never doubted my ability to exceed in anything I pursue. Their absolute love, support, and
encouragement to be the best I could be have shaped me into the person I am today. I am truly
blessed.
Table of Contents
List of Tables...................................................................................4
List Figures......................................................................................4
Introduction................................................................................................................5
History of Grocery Stores....................................................................6
Variables that Affect Consumer Grocery Shopping Behavior and Experience.........9
Gender and Consumption in 19th Century New York City and Advancement in the
Internet.........................................................................................11
Retail Location is Not Relevant and Does Not Fit the Model of Electronic
Consumption at Home.......................................................................13
Evolution of Online Grocery Shopping and Delivery...................................15
Examples of Successful Online Grocer Companies.....................................18
Value Platform and Competition...........................................................19
Demographics of Online Shoppers........................................................22
Warehousing..................................................................................23
Truck Routing in New York City..........................................................24
Problem Statement...........................................................................27
Exploratory Research Problem on Location Analysis...................................28
Study Area....................................................................................29
Methodology..................................................................................31
Data.............................................................................................32
Analysis and Discussion of Results........................................................71
Conclusions...................................................................................73
Works Cited...................................................................................74
List of Tables...................................................................................4
List Figures......................................................................................4
Introduction................................................................................................................5
History of Grocery Stores....................................................................6
Variables that Affect Consumer Grocery Shopping Behavior and Experience.........9
Gender and Consumption in 19th Century New York City and Advancement in the
Internet.........................................................................................11
Retail Location is Not Relevant and Does Not Fit the Model of Electronic
Consumption at Home.......................................................................13
Evolution of Online Grocery Shopping and Delivery...................................15
Examples of Successful Online Grocer Companies.....................................18
Value Platform and Competition...........................................................19
Demographics of Online Shoppers........................................................22
Warehousing..................................................................................23
Truck Routing in New York City..........................................................24
Problem Statement...........................................................................27
Exploratory Research Problem on Location Analysis...................................28
Study Area....................................................................................29
Methodology..................................................................................31
Data.............................................................................................32
Analysis and Discussion of Results........................................................71
Conclusions...................................................................................73
Works Cited...................................................................................74
List of Tables
Table 1. A Profile of Online Shoppers...............................................22
Table 2. Census Variables Used in Data and Analysis............................32
List of Figures
Figure 1. Study Area...................................................................29
Figure 2. Female Population...........................................................33
Figure 3. Male Population..............................................................34
Figure 4. Female Population Age 22-59.............................................36
Figure 5.Female Population Age 60+................................................37
Figure 6. Male Population Age 60+ .................................................38
Figure 7. White Population...........................................................39
Figure 8. Black Population..............................................................40
Figure 9. Asian Population............................................................41
Figure 10. Latino Population.........................................................42
Figure 11. Did Not Graduate High School..........................................43
Figure 12. High School Graduates...................................................44
Figure 13. Associates Degree.........................................................45
Figure 14. Bachelors Degree and Higher...........................................46
Figure 15. Employed Population.....................................................47
Figure 16. Unemployed Population..................................................48
Figure 17. Median Household Income...............................................49
Figure 18. Household Income <$75,000............................................50
Figure 19. Household Income >$75,000............................................51
Figure 20. Annual Expenditures on Food At Home...............................52
Figure 21. Total Households.........................................................53
Figure 22. Married Couple Families.................................................54
Figure 23. Disabled Ages 16-64......................................................55
Figure 24. Disabled Ages 65+........................................................56
Figure 25. Vehicle Available..........................................................57
Figure 26. No Vehicle Available......................................................58
Figure 27. Distribution of Grocery stores........................................................60
Figure 28. Distribution of Grocery Stores: West Side and East Side of
Manhattan................................................................................61
Figure 29. Distribution of Grocery Stores: Central
Manhattan................................................................................62
Figure 30. Distribution of Grocery Stores: Southern
Manhattan................................................................................63
Figure 31. Cost Effective Route: Red Hook, Brooklyn, NY.....................65
Figure 32. Cost Effective Route: Mt. Vernon, NY.................................66
Figure 33. Cost Effective Route: Prospect Heights, Brooklyn, NY..............67
Figure 34. Cost Effective Route: Northeast Bronx, NY...........................68
Figure 35. Cost Effective Route: Astoria, Queens, NY...........................69
Table 1. A Profile of Online Shoppers...............................................22
Table 2. Census Variables Used in Data and Analysis............................32
List of Figures
Figure 1. Study Area...................................................................29
Figure 2. Female Population...........................................................33
Figure 3. Male Population..............................................................34
Figure 4. Female Population Age 22-59.............................................36
Figure 5.Female Population Age 60+................................................37
Figure 6. Male Population Age 60+ .................................................38
Figure 7. White Population...........................................................39
Figure 8. Black Population..............................................................40
Figure 9. Asian Population............................................................41
Figure 10. Latino Population.........................................................42
Figure 11. Did Not Graduate High School..........................................43
Figure 12. High School Graduates...................................................44
Figure 13. Associates Degree.........................................................45
Figure 14. Bachelors Degree and Higher...........................................46
Figure 15. Employed Population.....................................................47
Figure 16. Unemployed Population..................................................48
Figure 17. Median Household Income...............................................49
Figure 18. Household Income <$75,000............................................50
Figure 19. Household Income >$75,000............................................51
Figure 20. Annual Expenditures on Food At Home...............................52
Figure 21. Total Households.........................................................53
Figure 22. Married Couple Families.................................................54
Figure 23. Disabled Ages 16-64......................................................55
Figure 24. Disabled Ages 65+........................................................56
Figure 25. Vehicle Available..........................................................57
Figure 26. No Vehicle Available......................................................58
Figure 27. Distribution of Grocery stores........................................................60
Figure 28. Distribution of Grocery Stores: West Side and East Side of
Manhattan................................................................................61
Figure 29. Distribution of Grocery Stores: Central
Manhattan................................................................................62
Figure 30. Distribution of Grocery Stores: Southern
Manhattan................................................................................63
Figure 31. Cost Effective Route: Red Hook, Brooklyn, NY.....................65
Figure 32. Cost Effective Route: Mt. Vernon, NY.................................66
Figure 33. Cost Effective Route: Prospect Heights, Brooklyn, NY..............67
Figure 34. Cost Effective Route: Northeast Bronx, NY...........................68
Figure 35. Cost Effective Route: Astoria, Queens, NY...........................69
Introduction
Whether one enjoys it or not, shopping for food is a vital part of our lives. Going to the
supermarket whether to pick up the necessities such as bread, milk, and eggs, or pushing a
shopping cart through aisles containing a wide and overwhelming spectrum of produce and
goods, is a stressful task that takes preparation, planning, and time out of our busy schedules,
even if it is just once a week. The retailing of food has changed in many ways since the
early1800's, molded by the continuously changing lifestyles and the advancement of technology.
The most recent and growing trend is electronic commerce.
The internet has eliminated the need for consumers to travel to stores to purchase goods.
The food industry has embraced this movement and is taking advantage of this new concept of
online grocery shopping and delivery. Although everyone eats and almost everyone shops online,
this concept is most viable in an area containing a working population and families who earn
above the average income, the population that has ample expendable income allocated for food,
and those who value time and convenience. This method also appeals to consumers who have
difficulty traveling to a grocery store, or who face barriers such as lack of transportation or
difficulty carrying bags of groceries from the store to the home. Online grocery shopping
appeals to various market segments, but spatial factors such as warehousing and transportation
options influence specific adopter groups and the likelihood of innovation adoption.
Whether one enjoys it or not, shopping for food is a vital part of our lives. Going to the
supermarket whether to pick up the necessities such as bread, milk, and eggs, or pushing a
shopping cart through aisles containing a wide and overwhelming spectrum of produce and
goods, is a stressful task that takes preparation, planning, and time out of our busy schedules,
even if it is just once a week. The retailing of food has changed in many ways since the
early1800's, molded by the continuously changing lifestyles and the advancement of technology.
The most recent and growing trend is electronic commerce.
The internet has eliminated the need for consumers to travel to stores to purchase goods.
The food industry has embraced this movement and is taking advantage of this new concept of
online grocery shopping and delivery. Although everyone eats and almost everyone shops online,
this concept is most viable in an area containing a working population and families who earn
above the average income, the population that has ample expendable income allocated for food,
and those who value time and convenience. This method also appeals to consumers who have
difficulty traveling to a grocery store, or who face barriers such as lack of transportation or
difficulty carrying bags of groceries from the store to the home. Online grocery shopping
appeals to various market segments, but spatial factors such as warehousing and transportation
options influence specific adopter groups and the likelihood of innovation adoption.
History of Grocery Stores
By necessity, all household units shop for food to sustain themselves. Grocery shopping
has changed shape over time. With the emergence of new technology such as refrigeration,
registers, inventory equipment, and the internet, the ability to shop has become easier, faster, and
certainly more efficient. Lifestyles have dramatically changed as a result of the changes in
technology. The grocery store has a long history and is constantly changing as new forms of food
retailing appear and become part of everyday life. The earliest form of grocery shopping was the
public market. They were the main food markets for the nation, much longer than any other
establishment for food retailing in U.S. history. For about three hundred years, many cities and
towns depended on the public market as their main retail food source. Butcher, farmers and other
merchants sold their goods on the street without buildings. (Mayo)
For example, New York City's first marketplace was located near Broadway Street. In
1856, the city's first open public market was located near the shore in what is presently Battery
Park. Market houses were needed to replace the open market. Permanent structures enabled
butchers, farmers and customers to do business regularly in any type of weather. Modified
markets soon replaced market houses. The new market area was noticeably larger with floor
plans that could be rearranged as needed. The most important advancement in building
technology was refrigeration. Meat, fish, and dairy products needed to be refrigerated to prolong
freshness (Mayo). New York City's Grand Street Market contained an ice house as early as 1820,
yet, refrigeration in public markets was rare. By 1890, Mechanical refrigeration which used
chilled brine or liquid ammonia enabled all merchants who rented food stalls to keep their
products cold and to transport perishable foods over longer distances. By the mid 1800's, grocery
stores started to offer a wider variety of goods. Grocery stores were bigger, had larger inventory,
By necessity, all household units shop for food to sustain themselves. Grocery shopping
has changed shape over time. With the emergence of new technology such as refrigeration,
registers, inventory equipment, and the internet, the ability to shop has become easier, faster, and
certainly more efficient. Lifestyles have dramatically changed as a result of the changes in
technology. The grocery store has a long history and is constantly changing as new forms of food
retailing appear and become part of everyday life. The earliest form of grocery shopping was the
public market. They were the main food markets for the nation, much longer than any other
establishment for food retailing in U.S. history. For about three hundred years, many cities and
towns depended on the public market as their main retail food source. Butcher, farmers and other
merchants sold their goods on the street without buildings. (Mayo)
For example, New York City's first marketplace was located near Broadway Street. In
1856, the city's first open public market was located near the shore in what is presently Battery
Park. Market houses were needed to replace the open market. Permanent structures enabled
butchers, farmers and customers to do business regularly in any type of weather. Modified
markets soon replaced market houses. The new market area was noticeably larger with floor
plans that could be rearranged as needed. The most important advancement in building
technology was refrigeration. Meat, fish, and dairy products needed to be refrigerated to prolong
freshness (Mayo). New York City's Grand Street Market contained an ice house as early as 1820,
yet, refrigeration in public markets was rare. By 1890, Mechanical refrigeration which used
chilled brine or liquid ammonia enabled all merchants who rented food stalls to keep their
products cold and to transport perishable foods over longer distances. By the mid 1800's, grocery
stores started to offer a wider variety of goods. Grocery stores were bigger, had larger inventory,
and had higher rents with a larger floor area than market stalls. Grocery stores offered a new
service: home delivery. (Marion)
Site location became a vital issue. Market analysts recommended areas near department
stores where the target customer would benefit by reducing their shopping trips and save time.
Competition for urban land was increasing and suburban growth where public markets would not
be viable became a barrier. The transformation of general stores to grocery stores was a result of
changes in the economy and settlement patterns. (Mayo)
Grocery shopping is a tradition that began in the early 1900’s and became more
prominent in the 1900's as cities grew larger. Large grocery stores offered specialty items such as
sugar, chocolate, cheese, coffee, tea, olive oil, and wine, all non perishable and imported items.
In 1930, Michael Cullen introduced one stop shopping and opened the nation’s first self service
grocery store, Piggly Wiggly, in Memphis Tennessee. Shorty after Piggly Wiggly, The Great
Atlantic and Pacific Tea Company, more commonly known as A&P, was established in Queens,
New York, and spread Cullen's concept. A&P became the fifth largest corporation in America
(History of Grocer Stores, CBS). Supermarkets became an essential part of life for generations;
people could not imagine life without supermarkets. Times have changed; today, people shop at
discount grocery stores and low price mega stores such as Target, Costco, and Walmart. It has
become a growing trend that threatens the traditional grocery store. Over the last two decades,
about 10,000 supermarkets claimed bankruptcy. "Today’s customers aren’t satisfied with just the
convenience of one stop shopping, they demand super saving and super service” (Alfano).
Traditional grocery stores must create excitement and attract customers which Whole Foods
grocery store was able to accomplish. Whole Foods tries to re-educate people about the art of
cooking and preparing food. At Whole Foods, you get what you pay for; there is an astonishing
service: home delivery. (Marion)
Site location became a vital issue. Market analysts recommended areas near department
stores where the target customer would benefit by reducing their shopping trips and save time.
Competition for urban land was increasing and suburban growth where public markets would not
be viable became a barrier. The transformation of general stores to grocery stores was a result of
changes in the economy and settlement patterns. (Mayo)
Grocery shopping is a tradition that began in the early 1900’s and became more
prominent in the 1900's as cities grew larger. Large grocery stores offered specialty items such as
sugar, chocolate, cheese, coffee, tea, olive oil, and wine, all non perishable and imported items.
In 1930, Michael Cullen introduced one stop shopping and opened the nation’s first self service
grocery store, Piggly Wiggly, in Memphis Tennessee. Shorty after Piggly Wiggly, The Great
Atlantic and Pacific Tea Company, more commonly known as A&P, was established in Queens,
New York, and spread Cullen's concept. A&P became the fifth largest corporation in America
(History of Grocer Stores, CBS). Supermarkets became an essential part of life for generations;
people could not imagine life without supermarkets. Times have changed; today, people shop at
discount grocery stores and low price mega stores such as Target, Costco, and Walmart. It has
become a growing trend that threatens the traditional grocery store. Over the last two decades,
about 10,000 supermarkets claimed bankruptcy. "Today’s customers aren’t satisfied with just the
convenience of one stop shopping, they demand super saving and super service” (Alfano).
Traditional grocery stores must create excitement and attract customers which Whole Foods
grocery store was able to accomplish. Whole Foods tries to re-educate people about the art of
cooking and preparing food. At Whole Foods, you get what you pay for; there is an astonishing
selection but a bit on the pricey side (History of Grocery Stores, CBS). Surviving grocery chains
are taking notions from high and low end competitors. Money saving customers are attracted to
"big box" discounters. Mass in mass marketing is a thing of the past. "They are getting better
prices at Walmart, they are getting better offerings because of people like Whole Foods. The
world of retailing is always evolving (Alfano)". According to Alfano, Americans average 2.3
trips to the supermarket each week, spending $24.64 a visit.
are taking notions from high and low end competitors. Money saving customers are attracted to
"big box" discounters. Mass in mass marketing is a thing of the past. "They are getting better
prices at Walmart, they are getting better offerings because of people like Whole Foods. The
world of retailing is always evolving (Alfano)". According to Alfano, Americans average 2.3
trips to the supermarket each week, spending $24.64 a visit.
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