Online grocery has grown rapidly in different parts of the world over the last two decades. However, it is still not clear whether online grocery retailing can be profitable in the long run. Grocery retail is a low margin, high-cost business. Picking and delivering an online grocery order is labor intensive and costly. The delivery fee typically does not cover all the fulfilment costs. Many grocery retailers are making substantial investments to develop an online sales channel next to the traditional stores. With the emergence of omnichannel grocery retail, customers are provided with a seamless experience across online and offline channels. There are many synergies that exist between online and offline distribution, which if utilized properly can lead to significant cost savings to the retailer.