Home grocery deliveries and parcels rise in popularity

The Swedish Competition Authority has performed a survey of the number of players that provide home deliveries in various parts of Sweden in two different markets: the parcel deliveries market and the market for home deliveries of groceries. The results are presented in a report “Leveranser i hela Sverige” (“Deliveries across Sweden”).

Postnord  is the single largest player in the parcel delivery market, but there are other competing players that also offer nationwide deliveries. Today you can choose between two or more alternative suppliers that provide deliveries across most of Sweden including rural areas. 

“Purchasing goods online is a real option for most people and it helps stimulate competition in the whole of Sweden. This benefits the consumers,” says Dan Sjöblom, Director-General of the Swedish Competition Authority.  

When it comes to home deliveries of groceries, the picture is more disjointed. In urban areas, most consumers can choose from multiple suppliers. But in many rural areas there is usually only one store that provides home deliveries. One explanation is that rural deliveries impose a different set of logistical demands, including refrigerated storage and transportation, and lengthy transportation times to individual customers.

“Time will tell if innovation and development succeed in solving the logistical challenges for home deliveries of groceries, In that case, e-commerce with groceries that bypasses the need for local stores could be a possibility for consumers in rural areas.”

Read the report, 2016:6 (in Swedish)