Tesco has partnered with Adobe to expand its use of AI in analysing customer data, with the aim of improving marketing targeting and increasing sales, the companies said.
The collaboration will combine Adobe’s AI technologies with data from Tesco’s Clubcard loyalty programme, which covers more than 24 million households in the United Kingdom. The scheme provides members with offers, product recommendations, and discounts. Tesco’s Clubcard programme already uses purchase data to deliver these offers, and the partnership extends how that data is applied across digital channels. Tesco said the system will use Clubcard data within its existing customer data framework and no changes to data terms or consent mechanisms were outlined.
Tesco said the integration will support more precise targeting across its website, mobile application, and marketing communications. The system will deliver messages and offers based on individual shopping behaviour and preferences. The companies said this includes aligning offers, messaging, and content with individual customer behaviour across channels.
The retailer holds a 28% share of the UK grocery market. It has identified digital engagement, online services, rapid delivery through Whoosh, its Marketplace platform, and retail media as key areas of focus. Tesco reported group sales of £16.4 billion for the 13 weeks to May 2025, with like-for-like growth of 4.6%.
The partnership will also involve a co-development model through the Tesco x Adobe Innovation Lab. Adobe engineers will work directly with Tesco’s personalisation and AI teams to build and test applications using customer data and Adobe’s AI tools.
The system will use technologies such as agentic AI and Adobe Firefly to generate marketing content, including images and copy. It combines transaction data and customer interaction signals to generate and deliver content, with agentic AI used to automate decisions on content delivery.
The companies said the system is designed to adjust content and offers in near real time as customer interactions change.
Tesco AI initiatives beyond the Adobe partnership
Tesco’s retail media platform uses Clubcard data to deliver advertising and measure campaign performance based on customer purchases. It links marketing activity with transaction data across online and in-store channels, and allows brands to run campaigns using first-party customer data.
Tesco is testing an AI-powered assistant within its mobile application that can support meal planning and build shopping baskets based on customer preferences and purchase history. The assistant is being trialled with around 280,000 employees before a wider rollout.
In a separate initiative, Tesco has entered a three-year agreement with AI firm Mistral to develop tools for internal workflows, data analysis, and content generation. The partnership includes a joint AI lab where both companies’ teams collaborate on development.
Tesco already applies AI in areas such as demand forecasting, delivery routing, and customer engagement through its loyalty programme. The company has expanded its technology workforce over the past five years to support these efforts.
The retailer is continuing to invest in its physical and digital infrastructure. Tesco plans to open more than 70 new convenience stores across the UK, including sites previously operated by Amazon Fresh, alongside further expansion of its Tesco Express network.
Tesco operates the Clubcard programme, while Sainsbury’s runs Nectar and Morrisons operates its More loyalty scheme. Amazon uses customer data across its grocery and wider retail platform.
Becky Brock, Tesco’s group customer digital transformation director, said the partnership would allow the retailer to deliver more timely engagement with customers. “Working with Adobe, we can be even more responsive to the needs of shoppers,” she said, adding that the company aims to deliver messages, savings, and ideas to customers at relevant moments.
Nathan Hancock, vice president and managing director for the UK, Ireland, Middle East, and Africa at Adobe, said the collaboration combines Tesco’s customer data with Adobe’s AI capabilities to support customer engagement across its channels.
(Photo by Samuel Regan-Asante)
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