Tesco is to share like-for-like product sales data with suppliers through an IT solution that will enable it to plan promotions more efficiently.
The system called Promotions Workbench, created by Dunnhumby – which designed and runs the retailer’s Clubcard loyalty programme – launched last week and was piloted with Coca Cola beforehand.
Tesco commercial director John Scouler said: “Better understanding of promotions means that we can better serve our customers.
“I want to work towards targeted and focused promotions and Promotions Workbench can help us do that.”
The Promotions Workbench system allows suppliers to look at the impact promotions have on sales data, allowing them and Tesco to create speedier, targeted bogof and multi-buy offers in-store.
It ensures both Tesco and its suppliers use the same metrics, including reporting periods.
The system formalises Tesco’s information sharing which had previously been done on an “ad hoc” basis.
Dunnhumby head of Tesco markets Mark Hinds said the initiative will help the grocer make “key business decisions”.
Tesco is reviewing its ranges in-store as it targets private-label growth.