Quotation Anderluh, Alexandra, Ivanova, Elena. 2016. Challenges, Opportunities and Logistics Practices of Delivering to High Frequency Stores. CERR, Toulouse, Frankreich, 02.06. - 04.06.


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Abstract

It is recognized by leading multinational manufacturers that a significant part of retail trade is realized not only in typical supermarket chains, but also in small independent stores, which are referred to as ‘High Frequency Stores’ (HFS). Such stores are usually stalls, kiosks, convenience or rural shops, usually family-owned and visited multiple times per day by their customers. The number of such stores is high due to typically low barriers of entry in this market – the required investment is low and in most countries there are no formal barriers to operate such a store. Many industry observers expected that HFS would lose their market share because of the competition of supermarket chains, but on the contrary, the traditional retail, represented by small independent stores, is still alive. While in developed countries the grocery and fast moving consumer goods (FMCG) retail market is dominated by super- and hypermarkets, in developing countries they still have smaller market share. It is estimated that there are about 20 million HFS worldwide, but only a small part of them have consumer packaged goods of the world leading brands in their assortment. This is identified by FMCG companies as an opportunity to increase their market share in this segment. In order to cooperate successfully with independent retailers, it is important for manufacturers to understand their specifics from an organizational, distribution and operational perspective. In order for international FMCG companies to expand their market share in the HFS segment, they need to adapt their business model to the specifics of this market. The objective of this work is to identify the current and future potential of the HFS market segment, what challenges suppliers face delivering to this segment and what are the main logistics concepts and best practices, which could be applied.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Challenges, Opportunities and Logistics Practices of Delivering to High Frequency Stores
Event CERR
Year 2016
Date 02.06. - 04.06
Country France
Location Toulouse

Associations

Projects
Consolidation and Coordination in Urban Areas
People
Anderluh, Alexandra (Former researcher)
Ivanova, Elena (Former researcher)
Organization
Institute for Transport and Logistics Management (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
1112 Logistics (Details)
5332 Transport economics (Details)
5347 Operations research (Details)
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