Tesco, the world's second largest supermarket chain, is a leading innovator in the retail sector, being the first company to establish a system of rewards and benefits for its customers.
Leonardo Cruz, manager of Tesco in Latin America, reviewed six opportunities for retailers that his company is taking advantage of in the framework of PMA Fresh Connections in Brazil.
"Our customers in Europe know a lot about fruit, which gives our suppliers the opportunity to pay attention to the varieties," says Cruz. "They are increasingly interested in knowing what the variety of the products is," he adds.
Communication
QR codes are to be found on the packaging of most fruits and vegetables in Tesco.
"It is a great link between our suppliers and our customers; it gives them an excellent opportunity to explain the history of the company and its passion for the product," he says.
Additionally, Tesco organises country fairs at its supermarkets, which focus on delivering products from a particular country, last for four to six weeks and are supported by Governments and trade associations.
"Thanks to the World Cup, the sale of Brazilian products in Europe grew by 15%," he says.
Emerging markets
Most Brazilian fruit producers focus their efforts on the domestic market, and the small percentage of fruit exported goes mainly to Western Europe. However, as a result of the progress made in logistics technology, Tesco currently has providers in the north of the country which are exporting to Asian markets.
For this reason, Cruz calls "not to neglect competition with neighbouring countries and to share the risk of trying to export to other markets."
"Peru is reducing our market share in citrus, grapes and melons," he affirms.
Economy of scale
This large supermarket chain reduces inefficient costs by taking advantage of its size.
"We are also reducing the amounts of waste. Tesco was the first supermarket in the world to publish its levels of waste," he recalls.
"With bananas we are wasting less than 5%; we are collaborating with our producers in the production of juice and other derivatives in order to prevent as much waste as possible," he states.
Innovation
Leonardo stresses the importance of innovating in creative ways.
"Innovation is not just introducing new products; it may be a new variety, a new packaging format or a new harvest season."