Abstract
This article aims to analyze innovation barriers and drivers in the retail sector and report on a successful product innovation case study of a leading grocery retailing firm in Spain. The firm, Mercadona, successfully launched an original co-innovation initiative with its customers consisting of bringing consumers to co-innovation labs set up by the company, having them analyze, in a home environment setting, how they use the firm's products and what suggestions they have for alternative methods, improvements, or completely new developments. The research findings were conclusive that a combination of customer focus culture, brand development, and cooperation with suppliers was crucial for the success of the project. Technology contributed as well as a supportive tool of the communication with consumers. The method followed a new and unique ethnographic approach.
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