Efficient Consumer Response has helped Tesco to gain a larger share of product launches, according to chief executive Sir Terry Leahy.
Speaking at last week's ECR Europe Conference in Berlin, Sir Terry said that by embracing ECR the retailer now had a more professional and better relationship with manufacturers. This had encouraged suppliers to work with Tesco on new launches.
"This alone has increased sales," he said.
While initiatives such as roll cages had helped to reduce stockholding and saved labour, the main advantage of ECR had been knowledge, he added.
"Retailers and manufacturers face the same questions, yet we often look for answers on our own. As retailers we think we can work out what to do and then tell the manufacturer. My message to retailers is that we need to do more.
"At Tesco ECR made us stop talking and listen. The return on investment is huge."
>>Analysis page 29
Looking to the future he said the industry needed to do more to give customers a reason to spend. "We need fresh thinking, research and new managers to provide new answers."
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Speaking at last week's ECR Europe Conference in Berlin, Sir Terry said that by embracing ECR the retailer now had a more professional and better relationship with manufacturers. This had encouraged suppliers to work with Tesco on new launches.
"This alone has increased sales," he said.
While initiatives such as roll cages had helped to reduce stockholding and saved labour, the main advantage of ECR had been knowledge, he added.
"Retailers and manufacturers face the same questions, yet we often look for answers on our own. As retailers we think we can work out what to do and then tell the manufacturer. My message to retailers is that we need to do more.
"At Tesco ECR made us stop talking and listen. The return on investment is huge."
>>Analysis page 29
Looking to the future he said the industry needed to do more to give customers a reason to spend. "We need fresh thinking, research and new managers to provide new answers."
{{NEWS }}
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