Abstract
The remarkable global growth in the online retail market has resulted in many challenges for online grocery retailers. The emerging South African online grocery market is faced with unique last-mile logistical challenges. This article identifies the main service quality expectations of South African online grocery consumers and provides online grocery retailers with an improved understanding of their consumers’ service requirements and enables them to formulate and implement effective last-mile logistics strategies. This research utilises a quantitative research design and used primary data, obtained through self-administered online questionnaires. The research shows that attended home/work delivery was rated the consumers’ most preferred last-mile delivery option and that the delivery option does affect consumers’ final decision to purchase groceries online. Respondents clearly indicated delivery costs as the most important factor when selecting a delivery service. Although the research findings indicate that South African consumers are still not very confident about buying groceries online, the various factors identified provide opportunities for retailers to exploit possible market opportunities to build consumers’ confidence whilst increasing their market share.