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How Tesco Uses Information Technology to Enhance Retail Operations and Sales

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Tesco is the leading food retail store in Great Britain according to with 27. 4% grocery market share (Kantarworldpanel. com, 2018). It operates internationally with 6,800 stores worldwide having store presence in India, Malaysia, Czech Republic, Hungary, Thailand, Poland, Ireland and Slovakia. The company was founded in 1919 and over the years, the company has evolved with the changes in the retail industry using technology to innovate its operations and maximise opportunities (Tesco plc, 2018). Information technologies (ITs) play a vital role in improving information sharing and collaboration in a supply chain (SC) (Simchi-Levi et al. , 2003).

Tesco depends to a large extent on information technology to serve its customers and to effectively enhance operations. The company has operated on the internet since 1994 and was the first retailer in the world to offer a robust home shopping service in 1996. Tesco. com was formally launched in 2000 (Kelly, 2009). Since 2006 Tesco has operated a number of dark stores dedicated to the fulfilment of online orders of groceries.

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Literature review

Analysis and Discussion

Tesco has embraced technology to optimise information management for effective decision making. It uses technology to track consumer activity to ensure it has useful information that can aid operations and sales. Dunnhumby, a wholly owned subsidiary of Tesco, is a world leader in uncovering and applying customer insight to create more personalised retail experiences.


Three primary technologies: our intranet, Cisco’s WebEx conferencing service and Cisco TelePresence. Its networks uses collaboration technologies, online and mobile technologies, RFID systems, CCTV surveillance, Financials, HR software e-commerce systems, order-processing systems, communications technology to connect stores, supply chain systems, food labelling system, stock control, sensor systems maintaining temperatures in fridges and freezers, electronic point of sale ( EPOS ) till, workforce scheduling system systems, hand-held devices, information systems (IS) to support their loyalty card, car insurance policy quoting system, etc. Tesco has also used electronic data interchange with its major suppliers, chip and PIN system, Tesco Personal Finance (TPF) for loan application handling, amongst other technologies. (Kelly, 2009)Tesco launched its customer loyalty scheme, the Tesco Clubcard, in 1995.

A Wall Street Journal article wrote about insight from Tesco’s Clubcard, claiming Tesco itself was cited in as used the intelligence from the Clubcard to effectively counter Wal-Mart’s entry in the UK retail market (Wall Street Journal Online, 2006). The Clubcard was also cited as a major contributor to Tesco’s progress towards becoming the UK’s largest supermarket chain and that Tesco’s card model changed the Great Britain’s supermarket business (BBC, 2013).


This year we achieved our UK target of diverting 100% of our waste from going directly to landfill. We also opened our first zero-carbon storeWe continued our programme of analysing the footprint of the products we sell and have now exceeded our target of footprinting 500 products.


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