5 ways Tesco uses Big data Analytics

  • Neelam Tyagi
  • Jun 20, 2020
  • Big Data
  • Business Analytics
5 ways Tesco uses Big data Analytics title banner


Data and information, inside any business, are expanding at exponential rates, generated by social media, sensors, connected-devices, smartphones, and other sources. 


Various organizations are continuously looking to adopt the potential of these fast-moving, enormous, and convoluted streams of data in order to attain the turnaround enhancement in the achievement. You can have a glance at top 10 big data technologies in 2020.


“Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.”  -Geoffrey Moore, author and consultant


Moreover, business executives should be wise to account whether the information they accumulate could do extra than improving performance. Indeed, big data can deliver billions of amounts of revenue that serve as fuel in growth. (Related blog: Top Business Intelligence Tools and Techniques in 2020)


During this blog tour, you will know how “Tesco”, UK’s largest food retailer, utilizes big data and analytics to boost its performance and augment services.


How Tesco uses Big Data and Analytics in practice?


The famous supermarket faces many difficulties initially, sweeping from maturing customer behavior and management to requirement of reducing food waste and compensating to modern rivals. ( Dive into, for additional information, the role of big data for the food industry).


Most of the Tesco rebuttal falls in cutting-edge strategies, up-to-date data and its real time analytics.


For instance, organizations specifically use sensor data for regulating the temperature of refrigerators and fridges crossover the entire network of stores. 


Each device is supervised centrally, and predictive algorithms are being used for identifying  when to service a particular unit.


Below are the specific services Tesco uses Big Data efficiently;


  1. For controlling lighting and heating costs


Tesco is harnessing data to cut down heat and light costs, the retailers could work with their suppliers to connect heating and lighting regulators from its multiple stores to data warehouses through the internet. 


Tesco can figure out the energy performance of each store through Google map and can observe which stores are running absolutely coolly, which stores are being overheated or under-heated. 


During a project Tesco found, it can turn on the heating three hours later and yet the stores have the suitable temperature for opener time. It leads to saving energy and costs. 


  1. For improving value chain


From supply chain to sales and service, Tesco uses data-driven strength in every terms of its value chain. Data updates in real-time analytics, like “Broccoli Cam”, could be accumulated with predictive analytics  to convey the reorder cautionary priorly via supply chain and logistics thread. 


Tesco considers Big data technology as a multi-channel strategy to acquire the future trends in the consumer retailing behaviour that addresses the demands of users for using physical stores, mobiles and desktop devices combinedly. 


For instance,  a user is able to implement an internet kiosk at any outlet for ordering products to collect in the store, use a mobile phone to order groceries that are being delivered at home. Combined retailing mode needs the company to understand the purchasing pattern of each customer and their preferences of mode and logistics requirements. (Don’t you want to learn more about customer behaviour analytics).

Showing the 5 ways by which Tesco uses Big Data and analytics.

5 ways Tesco uses Big Data Analytics 

  1. Appending channels


Another yet exceptional example, the Big data multi-mode approach of Tesco is the Blinkbox, an on-demand video service provider. Blinkbox is tailored for Clubcard holders who subscribed to ad-free supported movies and TV streaming. 


Tesco is leading the ways in technology and big data, but its achievements are not restrained in data accumulation and decipher.  


Tesco observes that processes execution are envisaged via data analytics are key success factors, and these processes are steadily formulated, introduced and tested out. These processes are not prefabricated solutions, instead they are pioneering in nature. 


That’s why Tesco gets that the data, the systems and processes are dynamic. They demand to drive and transform regularly. For this, while more data is not enough, customer relationship channels are also paramount.  



  1. Anticipating the future trends


With the huge usage of connected-devices that generate data at a high scale, each organization uses these sensors and hence Tesco, these are used for various purposes like monitoring temperatures of freezers and refrigerators. 


Developers, data scientists in the company are encouraged to deploy open source technology to sense the future trends, wherever possible give support to the open-source team where technologies are emerging. 


Tesco also uses Github code to support the research team, by keeping use of the prominence technological augmentation, Tesco hopes to maintain market value against more agile and technology-driven initiatives.  


By utilizing the advantages of this fascinating Big data technology and real-time analytics and with the Tesco technical system as in its global network of stores and distribution infrastructure, can bring the huge possibilities of achievements for Tesco.  



  1. Estimating sales


The essence area of research and operation where Tesco makes use of data at forefront is sales anticipating. Data modeling of customer data throws some interferences such as “how people purchase in a store around a week?” even more, “how they shop for every item?”. By applying data analytics and model clustering, it is also found that “the way items are bought together is not really the way the items behave.” 


Across thousands of stores that stock thousands of products yield out over 100 billion data points when tracking those products at once. This is where in-database analytics comes into picture ,i.e, deploying distinct analytics technologies in databases where data is stockpiled. It prevents moving data in batches for external analytics.  


Moreover, a clustering method is implemented to ensure items are anticipated and act in the proper way, when to order items and they will always remain in stock and not going to waste items.


What are the key challenges for Tesco?


  • Consistency in obtaining a clear considerate of the dynamic nature of customer behavior,

  • Making proficiencies in Tesco logistics and circulation series, to maintain costs down, and curtail environmental influences. 

  • Confronting the denounces of evolving business models that compete with their own, and 

  • Decreasing the quantity of waste food from any stores.




Tesco is the  biggest food retailer in the UK  that becomes avant-garde while picturezing data and technology. It is among the one of the early supermarket chains that started tracking customer activity via its loyalty card system and strongly controlled the transition to online retailing. But, from facing key challenges to boosting performance through newest technologies, big data and analytics is possible answers to make efficiencies plausible.


"Big Data will spell the death of customer segmentation and force the marketer to understand each customer as an individual within 18 months or risk being left in the dust.” --Ginni Rometty, CEO, IBM


In this blog article, we learned, identical to other companies, Tesco is leveraging Big Data and analytics for boosting its performance and serving customers worldwide. Stay tuned with us for more learning and connect at Facebook, Twitter, and LinkedIn for getting latest updates.