Introduction: The developments of the Internet and E-commerce have changed many aspects of traditional business. The grocery retail market is also affected as consumers can choose from which channel to buy groceries: online or offline. Grocery retail is a specific market where the consumers have different needs and attributes when buying groceries in online and offline channels as both of them have various advantages and disadvantages. Hence, the research of which channel of grocery retail consumers perceive as more efficient is needed to be done.

Purpose: The purpose of this thesis is to study customers` perception of channel efficiency of grocery retailing online and offline.

Methodology: This thesis employs a qualitative research method where the primary data is collected through four focus groups and a questionnaire of 183 respondents who currently live and study in Växjö city.

Conclusion: The conclusion was done after the analysis of grocery shopping different aspects such as quickness, better accessibility, convenience, price, search, payment procedures, enjoyment, and website or store design. Although there is an increase in internet users and significant influence of E-commerce but grocery items are still mostly distributed through offline traditional grocery stores because consumer is more comfortable and perceive offline grocery shopping as more efficient compared to online grocery shopping.