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						<h1 itemprop="headline">Business Analytics (BA) Seminar: Fredrik Eng Larsson, Stokholm University</h1>
						
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							<p class="text--intro" itemprop="description">Title: The introduction of online operations to brick-and-mortar grocery stores and its impact on shrink</p>
						
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														Wednesday 28  May 2025,
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														&nbsp;at 13:00 -  14:00
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														<p>Fuglesangs Allé 4, Building 2632(L), Room 242</p>
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									<p>Speaker: Fredrik Eng Larsson, Stokholm University</p>
<p>Title: The introduction of online operations to brick-and-mortar grocery stores and its impact on shrink</p>
<p>Abstract:<br> Omnichannel grocery retailers often use stores to fulfill online orders for a variety of reasons (e.g., faster deliveries, labor availability).&nbsp; This strategy influences inventory management, particularly the shrink ratio (defined as the ratio of loss to sales) in two opposing ways.&nbsp; Fulfilling online orders has the potential to increase the sales-to-stock ratio thereby improving turnover and, consequently, the shrink ratio (i.e., food waste).&nbsp; However, the last-expired-first-out picking policies used by store employees to serve online customers may generate higher levels of shrink in the store.&nbsp; Using granular data from a grocery retailer, we study the impact that introducing online fulfillment to existing stores has on shrink.&nbsp; We rely on a staggered difference-in-difference approach to account for the way in which online fulfillment was adopted throughout the chain.&nbsp; We find the shrink ratio to increase, on average, with the introduction of online fulfillment at brick-and-mortar stores.&nbsp; However, substantial heterogeneity in this increase exists across product categories and stores.&nbsp; We exploit this heterogeneity to understand more about the dynamics of online order fulfillment and to caution retailers about several unforeseen performance impacts of online operations.&nbsp;</p>
<p>Website:&nbsp;<a href="https://www.su.se/profiles/fengl-1.218674" target="_self">https://www.su.se/profiles/fengl-1.218674</a></p>
<p>Host: Christian Larsen</p>
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<p>Organisers: <a href="https://econ.au.dk/contact/show/person/e4c3b325-8cc6-416b-ac13-967200deb32d" target="_self">Surabhi Verma</a> and <a href="https://econ.au.dk/contact/show/person/cd33995c-c845-4bee-ba12-2f0e19f2a789" target="_self">Hartanto Wong</a></p><div><p>See all <a href="https://econ.au.dk/research/econometrics-and-business-analytics/seminars/business-analytics-seminars" target="_self">Business Analytics Seminars</a></p></div>
								
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