Last mile consumer steering in omni-channel retailing: an integrated delivery channel, mode, and partner steering study in Sweden

Omni-channel retailing integrates physical and online shopping experiences, allowing retailers to overcome geographical limitations and serve consumers with varying preferences. The study examines and explains last mile consumer steering (LMCS) in omni-channel retailing from an omni-channel retailer perspective by identifying the most important retailer consumer steering objectives and logistics levers used to steer consumers, and LMCS influence on last mile distribution (LMDist). The sector-wide quantitative empirical study, combining Resource-Based View (RBV) and Transaction Cost Economics (TCE) lenses, covers 70 large and small and medium-sized enterprise (SME) retailers selling physical products in Sweden with various sales channel mixes. A uniqueness of this study is its integrated approach to delivery channel, mode, and partner steering. An extensive literature review identifies objectives, levers, and LMCS influences on LMDist resources. The study reveals that LMCS is widely adopted among omni-channel retailers aiming, overall, for financial performance with good logistics service. Retailers use various logistics levers to influence consumer choices, with delivery fees being the most significant factor across all types of steering. LMCS has the biggest influence on the logistics role of the store and the warehouse size. The study offers unique SME insights, a retailer group largely overlooked in existing omni-channel retail literature. Non-grocery omni-channel retailers are more advanced in LMCS practice and have more mature LMDist resources in Sweden, especially non-store dominant retailers. A novelty is that the empirical study shows that retailers who steer consumers with financial performance objectives attain significantly higher profitability in a competitive market context. Retailers should, hence, develop an integrated marketing and logistics strategy to steer consumers in the desired way, and secure appropriate LMDist resources. The study reveals the importance of delivery partner steering, a neglected research area.