Supermarkets need to get “more personal with growers and suppliers” according to Philip Clarke, UK chief executive of Tesco.
Speaking at this week’s IGD Convention in London, Clarke said the supermarket’s new online community for producers, growers and farmers will help support the fresh produce industry through the recession.
“Our online community’s blogs and discussion forums provide us with an invaluable insight into our supply chain; I want to make Tesco much more transparent and accessible to our suppliers in the digital age,” said Clarke.
The Tesco boss highlighted Chesire-based APS Salads as an example of the type of relationship the supermarket wants to replicate with the rest of its suppliers.
“We’ve been working with APS Salads since 1989, and our three-year supplier strategy has given them the confidence to invest in new plans and to undertake initiatives like reducing their carbon footprint,” said Clarke.
He added that the supermarket’s close relationship with APS Salads, which is also a member of the Tesco Knowledge Hub, has allowed Tesco to improve the supplier’s product’s quality, freshness and flavour.
Another key point of Clarke’s presentation was about utilising smartphones to boost supermarket sales, with a claim that “one in five online shoppers will use their smartphones to shop this Christmas.”
Clarke explained: “With the touch of a finger, customers can now compare prices of brands instantly. We must now ensure that everywhere a customer experiences the Tesco brand, whether in store or online, they receive the same high standard.”
Clarke’s presentation comes at a challenging time for Tesco with its recent results showing a fall in group trading profits by 10.5 per cent to £1.6bn, and a drop in UK profits by 12.4 per cent to £1.1 billion (both for the half year to 25 August), and with what Clarke described as another “difficult year ahead,” he maintained that Tesco must achieve a “personal touch” throughout the supply chain.
Clarke concluded: “Retail is about selling things to other people; personal relationships matter to us whether it’s the farmer to the food manufacturer or the shopkeeper to the customer.”
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