Tesco customers can see how products will look in their homes as well as watch film trailers in store with new augmented reality technology online and in shops.

The technology allows customers to hold up Tesco catalogues to a webcam to see how products will look in their homes.

The grocer hopes it will reduce the number of returns from online customers as they will be able to see the actual size and proportions of the product before they buy.

Tesco has rolled out the technology online and in six trial stores across a range of categories, including toys, entertainment and TVs.

In store, customers can scan a Tesco product, such as a DVD or game, and image recognition technology will recognise the product and play the trailer on a screen.

The system also allows shoppers to browse a larger range of products, saving Tesco floorspace.

The software, developed by Kishino, is able to display more than 20,000 products. A Tesco spokesperson said the technology was an “untapped opportunity in the UK”.