Tuesday, February 19, 2019
E-Retail Industry – The Uk Internet Grocery Market
This total hold of aims to realize the competitive purlieu of mostwhat of the main sellers within the UK marketplace and to demonst position the different comp anents of the e-environment that force on the sellers occupation and marketing st numbergy. Further more this study leave alone assess the extend to of more itemors and constraints surrounding the e-retail fabrication and specific onlyy the f ar market bena of the retail intentness.It is k todayn sphericly that the UK has the most developed market place e-tailing sector in the world and that is increasingly appearing specially after the failure of many business examples which stir adopted the internet for distri howevering and selling at that place productsThis study will exclude B2B sector and will focus on B2C sector in the retail marketI will be nidus on the on pains market market and the main British musicians lead-in this market.I bind selected this pains because recently, it has ca em ploy a noise globally, and many interested pack atomic number 18 wondering whether this industry has reached the mature take aim or it is button up developing or it is only a noise which will miss its importance later.The UK Grocery Marketit is estimated that 105 billion of groceries atomic number 18 sell in Britain each year, (MINTEL Nov, 2002) , that shows a noniceable emergence in gross revenue oer the period since 1999 until the end of 2002.The bestow retail sales done specialist and non-specialist diet retailers were harbor some 90 billion in 1999 and many specialists predict this market to tolerate increment to reach cxx billion by 2005 (MINTEL, Nov. 2000)Within the diet market itself, fruit and vegetables acquaint the whoppingst market, with high demand within the sector for pertly produce. Convenience sustenances fresh and frozen ready meals ar also highly demanded, as atomic number 18 products which generally fit head with the motivations of the much maligned cash thick and age poor consumer. Key debates within the market surround the use of genetically modified (GM) produce, and this has helped to ca-ca niches in the retail market for suppliers of GM-free or perfect ranges. The major supermarkets have been moving quickly into the entire sector, in which high margins chiffonier be ready. (Key nib)The UK grocery market is driven by economical factors, macrocosm structures, household sizing employment pattern and lifestyle patterns whose impact is shown below as macroeconomic factorsEconomic factors Although consumer expenditure is predicted to continue to grow by 12.6% to 2004, with personal disposable income expected to also grow steadily, it is incredible that this will impact strongly on spending on food for in- stem expenditure As personal wealth has grown, spending on food has decreased as a proportion of correspond expenditure, with leisure activities, including take in out, taking most of the surplus. S ome premium categories of food, such as organic produce, will benefit. As a result the focus of promotional st judgegy is moving away from expenditure competitiveness towards opposite aspects of the retail offer.The population structure Food expenditure and the general market size is at once related to the size of the population but the want-term outlook for the British population is for rattling low out harvest-tide, implying that the food sell sector is liable(predicate) to find domestic profits leaden to grow.Household structure everyplace the period 1999-2004, an increase of 830,000 (3.4%) (MINTEL, Nov 2000) household is anticipated. This is due to factors other than an increase in population the emersion is coming from one- and dickens-person households, due to rising divorce and disengagement rates, getting married later or not at all and the elderly living longer These hacks disrupt the economic logic of the superstore stupefy which is designed to offer enc einte families convenient performer to buy full-grown volumes of food in one place, relatively infrequently, during the daytime, and to transport that keep goingping home by private car.Yet only 20% of adults have children under 16 living at home with them. All the major grocery retailers argon competing to grow their sh ar of this crucial segment of the population.Smaller households stand for to more frequent storehouses for a few items at a time, a good deal at unsociable hours, a considerably more pricey retail proposition.Changing employment patterns and practices, with increasing frequency of part-time working, mean at that place ar fewer families in which one partner has the time to shop at relative leisure during the day, and more for whom shop is a sh bed duty, carried out whenever busy schedules will allow. In turn, time-pressured shoppers will often requisite to use a variety of shopping patterns according to circumstance, with retailers being requisite to off er more channels to market in order to compete. This dissolvenot be done without cost implications.Changes in consumer tastes and lifestyles have an influence on grocery demand patterns. healthy-food fashions and food-safety sc ars cause people to castrate what they eat, while in that location is a strong trend towards snacking and convenience eating which involves an increasing proportion of food being bought done channels other than grocery retailers.(MINTEL) net profit bankers acceptance in the UK retail SectorRetailers generally begin on- post activities by providing instruction and interactive communication. Their site whitethorn develop into an electronic shop almost mirroring their offline activitiesA study by the department of trade and industry (DTI) called, E-Commerce Impact Study Retail Over get (www.dti.gov.uk 29 July 2002) shows that more(prenominal) than 75% of retailers are adopting e-business technologies,Nearly a behind of retailers surveyed, and more than 56% of micro firms in the convenience store sector, have not thought about the benefits of the e- trading.This hide provides a detailed look at a number of primal retail sector, and shows how UK retailers are getting to grip with e-commerce and that modern technologies are serving to castrate the way they do business.The report mentioned that 77% of companies are adopting e-commerce technologies 71% of businesses use external e- billet 53% of firms have a websiteMore British food shoppers have converted to online grocery shopping than in any other country. However, meshwork sales still represent a tiny, although growing, percentage of the overall UK grocery market. Most people use the internet as a way of gathering breeding on products and devising price comparisons before visiting their local store.(Key Note)Despite these statistics are display quite positive numbers, some experts and specialists state that this field needs besides research to determine the extent to whi ch the web is likely to promote long term changes in the retail sector . instrument panel 1A classification of online retail activit1 Food and consumables Grocery, including supermarkets and hyper-markets2 Convenience stores3 Specialists food retailers, e.g. bakers and confectioners4 Alcohol retailers, including off-licences5 Clothing and portalories Clothing retailers, including female person, male and children6 Footwear retailers, including fashion and work wear7 jewelry retailers, including get toories8 Home Furnishings retailers, including hard and soft furnishings andTextiles9 Electrical goods, including cook and white goods andComputers10 DIY, including gardening11 Leisure and entertainment Sports retailers, including athletic wear and equipment12 Toys retailers, including games, hobbies and crafts13 Books, music, stationery and video retailers14 News, including unusedsagents and CTNs15 Health and beauty Health and beauty, including chemists and opticians16 Home shopping Home shopping, including catalogues and mail orderDirectories17 Mixed stores Mixed stores, including department stores and varietyretailers come N.F. Doherty, F. Ellis-Chadwick and C.A. Hart. 1999 .Cyber retailing in the UK the potential of the net income as a retail channelOnline Grocery UK MarketIn the UK online market at that place are quaternary main grocery retailers dominating the market those are (Tesco, J Sainsbury, Asda, and Iceland.co.uk) harmonise to the researchers the UK leads the world in online grocery shopping. Chains like Tesco and Iceland have been much faster than their US counterparts in exploiting the immense potential of juvenile virtual shopping markets. They estimate that the online grocery market is already worthy 200m a year and will reach 1bn within two years.(Guardian Friday February 4, 2000 )The online grocery market is characterised by many of the features of the traditional grocery market. Big supermarkets have woken up to the Internet as a dist ribution channel and are gearing up to dominate the market. Smaller suppliers, apply the Web as another side of their portfolio, are sure to lose out in this area. Smaller niche suppliers beat up a large element of the market in terms of numbers of firms. In fact, there are so many companies, many of which operate on a very local delivery basis, that it is almost impossible to calculate their actual number. grocery store SIZEOnline shopping grew 19 times faster than traditional brick-and-mortar retailing in December 2002, and increased a nurture five percent in January 2003 to represent six percent of all UK retail .(www.nua.com) different reported predictions suggest the online grocery market will be worth rough up to 10 % of 120 billion which is the predicted grocery market size by 2005 (MINTEL Nov, 2000)The current size of the UK online grocery market has been estimated to be worth 1.2bn. (Key Note 2001), while Tesco reported 446 zillion sales during 2003.Sainsburys the act market leader announced annual sales of 110 million during 2002 (MINTEL Mar 2003)More than half the UK population will have bought something online by the end of 2003. Online shopping will represent 7% of all retail sales in the UK, accounting for 2 billion a month.(MINTEL Apr 2003)The total size of the UK grocery market has been estimated at light speedbn per year. To support the market, the UK has 5.9 million online shoppers, growing to a predicted 8.5 million over the next 5 years 500m of turnover, that suggests that average out spending per user in 2000 was in the region of 83 per head, suggesting that the majority of users are not regular consumers of online operate.(Key Note)Market size is difficult to determine, as figures for turnover from Internet sales are often embarrassd in total sales figures. Companies that are struggling to perform in the market may be taking a rather flexible view in how they present figures that may disappoint shareholders. However, Key Notes assessment is that the size of the true online market is currently 465m (lower than many estimates suggest). Within this, Tesco claims 64.5% of the market, Sainsburys 9%, ASDA 7.5%, Iceland 4.7%, , with the relaxation held by a range of independents, small suppliers and niche companies. skirt2The UK Online Grocery Market by Online gross sales by Supermarket (m and %), 2000Online Sales (m) % of TotalTesco 300 64.5J Sainsbury 42 9.0 ASDA Wal-Mart 35 7.5Iceland.co.uk 22 4.7Others 66 14.2Total 465 100.0Source Key NoteMacro EnvironmentTo understand the macro-environment a technique called a gent (Political, Economical, Socio-cultural, and Technological) analysis is usually undertaken.The PEST analysis identifies all external factors that affect the way a business can operate. What follows is a PEST for the E-grocery industryPEST ANALYSIS semipolitical FACTORSThe UK government sets itself as the target of making the UK the worlds dress hat place for e-commerce by developing public in ternet access and e-commerce awareness among UK businessesTo trade in the UK there are 40 different laws that a company may be subject to (chaffey)Stephen Timms, e-commerce Minister, saidThe UKs retailers are making progress in adopting e-commerce anddeveloping e-business solutions. But there clearly is room forimprovement, and we cannot afford to be complacent.E-business technologies offer a wealth of benefits. In order toexploit these we moldiness help create the right culture throughout thebusiness corporation so that UK firms of all sizes can seize thecompetitive vantage.UK online for business is leading the way in getting businessonline, and the Governments aim to make the UK the crush place in theworld for e-commerce.( http//www.gnn.gov.uk)The first Annual Report on the scheme was launched in phratry 2000. The UK strategy for online development is laid mountain in the UK Online Action Plan, which details 94 recommendations for action in 25 areas of priority. One specific goal is to develop the UK as the worlds best environment for electronic trading by 2002. This, it is stated, will be fall upond in four specific ways* Encouraging competition in Internet access markets* Establishing a stark naked regulatory framework for converging telecommunications and broadcasting markets* removing regulatory obstacles to electronic ways of working* Co-operating with international partners to develop a global framework for e-commerce.Oftel (Office of Telecommunications) is one of the tools for achieving this strategy, and, as such, has been charged with driving competition in the areas of dial-up access and delivering high-speed access routes to the Internet , specifically the encouragement of word meaning of wideband technology, and NPD ( invigorated product development) in the active-phone and firm-wire slight markets. Government strategy is to put as many UK consumers as possible online. Those responsible for driving this strategy are aware of consumer c oncerns about the Internet that must be addressed if the Governments purpose is to be secured.(Key Note)ECONOMICAL FACTORSThe figure in information technology (IT) and new business practices facilitated by IT are forming a new economy, Electronic commerce and the IT innovations fuelling it are supposed to be fundamentally changing the logics of business practice, forming new social realities, and new business models. Traditional old economy firms and organizations are busy building bridges to the new economy.A stable rate of economic growth is one way in which the Government hopes to warranty macro-economic stability, which can assist firms when assessing the risks associated with innovative practices. This, combined with the factors outlined below, has an influential exit on the rate of growth of the online grocery market.Low Cost of Internet AccessOne of the main drivers encouraging the use of Internet access and e-grocery in the UK is the relatively low cost of time spent onl ine.The UK is the cheapest off-peak hole in the world from which to surf the Internet, peak rates have has been dropped. This preferential position benefits consumers, and the state of competition within the market is strong, with a large number of good quality Internet service providers (ISPs) available and en indeediastic to serve the public demand.Levels of Disposable IncomeThe greater the levels of PDI consumers have, the more likely they are to be tempted towards higher margin products. Such high-margin products can make the disparity surrounded by a profitable online transaction and a loss-making one.Table 3Index of Personal Disposable Income (1995=100 and %), 1995-20011995 1996 1997 1998 1999 2000 2001DisposableIncome index 100 106 113 116 122 127 132% changeYear-on-year 6.0 6.6 2.7 5.2 4.1 3.9SourceNational StatisticsTable 3 shows that levels of disposable income are rising, and have risen by 32% since 1995. The indications are that the upward trend will continue to ap ply, suggesting that this economic indicator will contribute to growth within the market in the short term.Rate of Change of PricesThe change of prices gives a good sign of the stability of the economy. The UK has a low rate of inflation, and this is confirmed by an assessment of the RPI in Table 4Table 4Retail Price Index for All Items and Food(1995 =100 and %), 1995-20001995 1996 1997 1998 1999 2000RPI (all items) 149.1 152.7 157.7 162.9 165.4 170.0% changeYear-on-year _ 2.4 3.3 3.3 1.5 2.8RPI (food) 151.4 154.9 160.5 166.5 169.4 175.2% changeYear-on-year 2.3 3.6 3.7 1.7 3.4RPI retail price indexSource National StatisticsIt can be seen from Table 4 that the rate of change in the price of food amongst 1995 and 2000 has been roughly in line with the general rate of change in the RPI. SimilarlyEuropean Currency and Simplification O European Trading LawsThe advance of the European currency and the simplification of European trading laws will mean that Consumers will find it increas ingly at large(p) to trade with European retailers. The Internet offers International retailers a great prospect to attack the UK marketplace.British shoppers are already prepared to go Euro to get what they want online.Big trademark names are in the best position to immediately exploit e-commerce but if they dont start moving concisely the threat from foreign competition is real. (Jolanta Pilecka, E-commerce Marketing Manager, Hewlett-Packard).In future a number of important factors might affect the economic state of the UK and of necessity supermarkets. The first is the possible introduction of the Euro. The Euro has been introduced in various European countries, but most notably France. The introduction of the Euro in France has pushed up weekly shopping bills for the average French household by 10 per cent. Could the same be expected to happen in Britain should the EuroSOCIAL FACTORSTo spang the barriers to consumer online purchasing word meaning it is useful to understand the different factors that affect the level of internet access. nourish proposition ease, Security and fear of unknown are the main factors bear on the internet adoption (Chaffey)Over the period July to September 2002 an estimated 11.4 million households in the UK could access the internet from home, that amount 46 percent of all households. This is over twice the number three years earlier and is an increase of 7 percent from 39 percent reported in the third quarter of 2001. (www.nua.com )Evidence suggests that household formation will continue to grow, but that the visibility of home size as mentioned at the first of this paper will stay strongly biased towards homes with one or two people.Table 5Changing Household Numbers in the UK (million and %), 2000 and 20052000 2005Million % of Total Million % of TotalOne person 7.3 29.1 8.0 31.1Two persons 8.9 35.5 9.0 35.0Three persons 3.7 14.7 3.5 13.6quartette persons 3.5 13.9 3.5 13.6Five or more persons 1.7 6.8 1.7 6.6All households 25.1 100.0 25.7 100.0SourceNational StatisticsAn estimated 62 %of adult in the Great Britain have accessed the internet some time according to figures from the October 2002 national omnibus survey. This is equivalent to approximately 28.6 million adults in Britain having accessed the internet. In the month prior to the survey 52 per cent of adults had accessed the internet.Differences between the countries and regions of the UKLevels of access vary greatly between different parts of the UK. In October 2001 to September 2002 the proportion of households with access was lowest in Northern Ireland (30%), Wales (31%) and the westward midlands (34%). It is noticeable that the proportions were highest in the atomic number 99 of England (52%), London (50%) and the South East (50%) were most half of households had access to the internet.Table6Households with home access to the Internet by Government OfficeRegion & UK countryOctober 2000 to September 2001 and October 2001 to September 20 02Oct 2000 Oct 2001to toSep 2001 Sep 2002Per centNorth East 26 36North West 35 41Yorkshire and the Humber 32 39East Midlands 40 46West Midlands 35 34East 40 52London 46 50South East 46 50South West 38 41England 39 44Wales 27 31Scotland 30 40Northern Ireland 26 30United Kingdom 37 43Source national statisticsAccording to International Telecommunication Union (ITU) (www.itu.int )it is shown that in the UK 36.62 per 100 own a PCTable 7InternetEstimated PCsHoststotal2002Hosts per10000 inhab.2002Users(k)2002Users per10000 inhab.2002Total(k)2002Per100Inhab.20022865930485.0324000.04061.7422,0036.62table 7 , shows that a large proportion of the UK population own a PC that makes accessing the internet easer than going to the work place or other placesLegal and respectable concernsIt is argued that people do not change as quickly as may be believed. They still do not like percentage with personal details, especially to those that they do not trust. Firms that request data from consumers nee d to make supplying information optional and allow users to change and scrub the information provided. Crucially, they need to convince consumers that they will treat all information confidentially. Firms that are recognised as good citizens and with a high constitution in this regard are well placed to ease the anxieties of consumers frightened of fraudulent use of details. Smaller companies with an Internet-only presence will find it hard to build up this trust.TECHNOLOGICAL FACTORSE-retailing can be seen as an innovation in retailing that in turn is built around a technological innovationMany reports have summarized technological problems as The complexness of the user interface bandwidth restrictions and access connection speeds and security concernsA colossal range of new technologies have enabled companies to createbetter and more in effect(p) relationships with consumers as e-retailers provide more information in the pre-shop experience increase the number of access poin ts to meet guests needs offer a wider excerption of products than can be held in-store and, improve the overall service provision, for example through better stock management. www.gnn.gov.ukTechnological breakthroughs are some of the key drivers in building the right conditions for online grocery to thrive.The main technological factors influencing the market include The expansion of broadband Internet The introduction and growth of DTV (digital television) M-commerce (mobile-commerce) and WAP (wireless application protocol) phones change reordering systems Systems offering defence against fraud Automated customer service.(Key Note 2001)Broadband InternetOne of the problems many consumers have when dealing with the Internet is the speed of access. Many consumers connect using 56K modems, although the majority never achieve this speed, perhaps because they live a great distance from the central phone-exchange routes or because their phone lines are too old. Broadband connections c an alleviate this problem.Broadband connections come in two basic types digital subscriber line connections (DSL) and cable modem connectionsIn the first quarter of 2001, the number of DSL lines grew by 90% in the UK This market is likely to experience high growth in the coming years.(www.itu.int)Digital Television Advancements in television are running parallel to other Internet-enabled technologies 4.4 million households had DTV in 2000, and the figure is now probably in excess of 5 million. Not all DTV run are fully Internet-enabled, but there are plans to achieve this. The growth rate in subscription to DTV services is believed to be higher than the rate of new subscribers to ISPs. It has been suggested that more than 45% of homes will have digital satellite TV by 2008 (generating revenues for the communications companies of 2.4bn per year).One of the major barriers to e-grocers is the high costs charged to the suppliers by the DTV companies. Tesco reported to have found Open D igitals charges too expensive to make a venture worthwhile, however, the majority of the large supermarkets are subscribe up to the service may have very severe consequences in the long term.M-Commerce and WAP PhonesM-commerce for all markets in Europe is forecast to reach levels of around $38bn by 2004.(Key Note) with over half of European companies planning to offer some form of service via mobile phones (particularly in the banking and service sectors). Major multiples are increasingly active in the service sector, and their online successes in other areas could well spill over into m-commerce activities, Mobile communications company Ericsson has estimated that, by 2004, there will be more than 600 million people using mobile Internet services in Europe.In 2000, the market for subscriptions to mobile-phone services grew by 67% and by 84% in 2002 .(www.itu.int ) However, WAP phones, currently the only rule of accessing Internet via a mobile, have been relatively slow to catch o n in Europe and make up only 15% of overall handset sales globally.Automated Re-ordering SystemsAll the technologies so far discussed pick out a conscious effort on the behalf of the consumer. In the future, it is possible that machine-driven re-ordering systems will mean that the retailer is automatically notified when products are being used up within the home and need replenishing. There are two enable technologies currently under development that may make this less fictional and more everyday. Vendor managed inventory (VMI) is one of these technologies.Another enabling technology in the same area is communicate frequency identification technology, also known as RFID. This improves on VMI by using radio waves to scan all products in the fridge at any one time.Those kinds of technologies build and grow up the relationship between the consumer and the supplier learns more about the consumer behaviour to satisfy his demandAlso they can create a competitive advantage for the busi nessSystems Offering Defence Against dissemblerConcern over fraud continues to scare many consumers away from using the Internet as a route for purchasing items and services.Credit-card companies are already making changes to their services to ease these concerns, but longer-term solutions may be found in encryption technology.Technology is being developed that adds digital signatures to a purchasers Web browser which may help fight fraud.Such services can only be developed and provided by strategic partnerships between online retailers and Web security corporations such as Inktomi, Ariba, Broadvision, Vignette and Verisign (all leaders in secure-payment processing solutions).INDUSTRY ENVIRONMENTPorters 5 forces analysisMichael Porters five forces is The model that widely used for competition analysis in business strategy formulation, states that an organisation lasts within an industry. To succeed it must deal with the competitive forces that exist within that industry(1) Entry o f new competition.(2) Threat of metamorphose products.(3) negotiate power of buyers.(4) Bargaining power of suppliers.(5) Rivalry amongst existing competitors.THE GROCERY E-TAILING MARRETAs an industry in the early stages of its life cycle, the online grocery market is currently very fragmented, with a growing number of competitors. The reasons for this fragmentation lie in several factors relatively low ingress barriers, high transportation costs, the die out ability of grocery items, nontradable goods and services industry, and the ability to specialize in geographic regions and reap the benefits of economies of scale. Much like traditional bricks-and-mortar supermarkets, online grocers are highly localise except for a few that operate nationally or internationally by delivering only non-perishable goods. (Success factors)Barrier to entryCompared to building traditional supermarkets, the barriers to entry in the online grocery market are relatively low, since most online groc ers are localized. Set-up costs include establishing the figurer system, creating logistics and warehousing capabilities, building brand awareness, and having the needed alliances with local grocers in place. Many online grocers have already established partnerships or alliances.Entry into the industry is currently relatively easy, because no one has entire advantages.Innovation and competitive moves, which can be easily replicated, have not prevented new firms or substitutes from unveiling the market. However, entry barriers may rise in the future as consolidation likely occurs.Market such as groceries, barriers must be built on differentiation through brand recognition by achieving superior customer service and responsiveness. One haul for the recent surge of Internet startups in the grocery business is that online grocers drive less capital and have lower variable costs than bricks-and-mortar stores. stubborn costs are high, but the potential for big returns is great if a l arge sales volume can be yieldd.Exit barriers can be moderate to high, depending on the amount invested in logistics and warehousing, the Web site, computer systems, and marketing.PPOWER OF SUPPLIERSRetailers have high bargaining power when they purchase a large volume of goods from their suppliers. Unlike huge supermarket chains, the smaller online grocers typically possess a lower level of bargaining power than their suppliers. But traditional grocers that limit to branch out onto the Net have the advantage in this regard, buy in bulk and enjoying established relationships with suppliers and customers. This allows them to price their goods competitively, deterring new entrants or forcing ineffective incumbents out.POWER OF BUYERSThe bargaining power of buyers or consumers is very high in this industry. With many substitutes and competitors to choose from, dissatisfied customers can simply switch to a competitor. Groceries are commodities, so consumers can be sure to purchase th e circumstantial same products elsewhere.THREAT OF SUBSTITUTE PRODUCTSThe threat of substitutes is undoubtedly high for two reasonsFirstly, the products and services offered online to customers are extremely similar. So similar in fact that supermarket often have to lower their prices to give them more appeal.Secondly although there is a certain degree of brand loyalty, it cant be relied on, as customer loyalties tend to change when they find they can obtain better value for money elsewhere. E-grocers understand that the threat of substitutes is high, and this then is the main reason for supermarkets branch out and pursuing a broader product line, as a means of calming the intense competition with their competitors. However, in pursuing broader product line grocers open themselves up for further competition from experienced players in other non food retail markets.RIVALRY AMONGST EXISTING COMPETITORSCompetitors will do everything in their power to increase their market share. Super markets also have high fixed costs due to the sheer number of stores they have open. They must make a sufficient amount of sales to cover their costs and come back profit.As discussed earlier there are a variety of substitute products and services that are becoming increasingly difficult to differentiate thus custom is very much determined by price. This situation is further aggravated because switching costs are difficult to impose, as food is an everyday necessity, many customers will happily forget any loyalties if they authentically need to obtain it.ConclusionThe environment in the online grocery industry is growing more and more competitive as new firms continue to enter.Grocers which established its online purchasing site first is gaining the benefits of the first-mover advantages such as Tesco.comE-grocery has snuff it a considerable industry sector each main player in this industry is trying to create a competitive advantage to attract more numbers of spoiled customers t rying to satisfy there demands.The UK e-environment is one of the best e-environments globally that ease the entrance to this industry and generate the potential for more and more customers to buy grocery on line.This industry sector is a quite new industry that makes the flow of information about its success and pitfall factors relatively not enough to know every factor influences this industryWe cant say that e-grocery sector has reached the mature level since there are more and more numbers of customers and rivals are entering this sector.