A major expansion of data-driven retail strategy is underway as Tesco partners with U.S. software giant Adobe to enhance its use of artificial intelligence in analysing customer behaviour and delivering more personalised marketing across its digital and physical channels.
The collaboration is designed to combine Adobe’s AI and customer experience technologies with Tesco’s extensive first-party data from its Clubcard loyalty programme, one of the largest in the United Kingdom, covering more than 24 million households. The goal is to sharpen how the retailer targets promotions, recommends products, and engages shoppers in real time.
The move comes as retailers across the industry increasingly deploy artificial intelligence to drive revenue growth, improve operational efficiency, and refine customer engagement strategies. For Tesco, the partnership forms part of a wider digital transformation agenda that includes expanding rapid delivery services such as Whoosh, growing its online Marketplace platform, and scaling its retail media business.
By integrating AI tools with loyalty data, the retailer aims to strengthen its ability to anticipate customer needs and deliver more relevant offers and content across multiple touchpoints. The system is expected to enhance personalised recommendations, improve campaign precision, and deepen customer engagement across Tesco’s ecosystem.
Under the agreement, engineers from Adobe will work directly with Tesco’s personalisation and artificial intelligence teams to build and refine the new capabilities.
A Tesco executive involved in the initiative said the collaboration would allow the company to respond more effectively to shopper preferences and improve the relevance of its digital interactions, positioning personalisation as a core driver of future growth.
The partnership comes at a time when Tesco continues to hold a leading position in the UK grocery market, with a share of about 28%, as competition intensifies and consumer behaviour shifts further toward online and data-driven retail experiences.
With annual results expected later this week, the latest move signals a stronger emphasis on artificial intelligence as a central pillar of Tesco’s long-term strategy to modernise retail operations and strengthen customer loyalty in an increasingly competitive sector.