Digitalization of Tesco can be described in many different ways, as it includes transformation on multiple levels of their business. The first step Tesco took at the beginning of the 2000s was implementing the brick-and-click business model. Already having a solid IT infrastructure to manage internal processes, Tesco launched online platforms that allowed customers to browse and shop online. Then a person could pick ordered items at warehouses dedicated to online purchases.

As technologies opened advanced options, Tesco took the initiative to improve their in-store organization. Customers were armed with scanning devices to do a manual check-out. The whole process was named scan as you shop, and it can also be done with smartphones today. It’s available only for Clubcard users, who are allowed to pack scanned items right in the store and pay for them with the help of a digital cart or an e-wallet. Customers can also scan discount coupons and vouchers to store bonus points on their device to spend them from the device. This helped to make the purchase process easier, boosting overall operation speed for brick-and-mortar stores.

So-called broccoli cameras were installed to keep track of empty trays, while electronic price labels helped reduce employee manual operations. Employees, in their turn, are using smart badges. Those badges allow for checking item availability by scanning its bar-code.

These in-store optimizations are enhanced by a data-driven personalization approach. Tesco Clubcard allows customers to receive offline and online discounts on their preferred products. The data is received using a card for Tesco purchases, giving a unique ID to every purchase. Armed with all that data, Tesco generates a personalized discount offering, sending these deals to customer mobile devices or Clubcard accounts.

Tesco also uses its mobile app to suggest a better in-store experience, allowing customers to browse product store location. The further development of Tesco’s digital transformation continued with the app using AR to show product location in the store for visitors and employees. Supporting brand recognition and application usage, smart devices sold by Tesco are offered with Tesco apps preinstalled.


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