Tesco has signed a multi-year contract with Hanshow for the supply of electronic shelf labels, according to Retail Week. Within two years, the British market leader plans to roll out the Chinese supplier’s labels to all of its approximately 3,000 UK stores – across all retail formats. The rollout is set to begin at a Tesco Express convenience store and three hypermarkets.
By opting for a single ESL supplier, Tesco – much like Aldi Süd – is not following the usual path of a two-manufacturer strategy. Unlike competitor Lidl, which has opted for labels from SoluM and Vusion, Aldi Süd had also chosen Hanshow as its exclusive ESL supplier. The Retail Optimiser reported. However, reliance on a single manufacturer carries risks, both in terms of potential price developments and possible supply bottlenecks.
Tesco had been exploring electronic shelf labels for three decades and had tested solutions from various manufacturers. However, it was not until spring 2025 that the company began seriously considering the deployment of the technology in a proof-of-concept project. In selected Tesco Extra hypermarkets and Tesco Express convenience stores, the retailer evaluated labels from both Vusion and Hanshow. The Retail Optimiser reported.
Technology lays the foundation for digital twins
As The Retail Optimiser learnt, Tesco will be using Hanshow’s new Nebular Ultra product range, which the supplier unveiled in Europe for the first time at this year’s Euroshop. By deploying this new platform, Tesco is also laying the groundwork for precise product tracking and the further digitalisation of its stores.
According to Hanshow, the new Nebular Ultra product range is designed to enable an Internet of Things (IoT) network with centimetre-accurate positioning. Shelves and products are intended to serve as spatial reference points and – combined with computer vision – generate a dynamic, granular digital map of the store. This means the technology can assist in monitoring planogram compliance and creating digital twins in the future. Hanshow promises an accuracy of 95 per cent. The system also aims to be able to detect missing or misplaced products.
No decision yet on vision recognition with Hanshow
According to information of The Retail Optimiser, Tesco has not yet made a decision on the use of Hanshow’s computer vision technology. The current contract with the Chinese supplier so far covers only the digital labels.
Toby Pickard, Retail Futures Senior Partner at the British retail industry institute IGD, emphasises in an interview with The Retail Optimiser the importance of current ESL projects for the future viability of the retail sector: “Retailers adopting ESLs as part of a strategically executed, integrated system are building the foundations for the hyper-connected store of the future,” says Toby Pickard: “Retailers still using printed shelf labels must take note or they will be left behind as industry leaders transform their real estate into adaptive, insight-led, autonomous ecosystems.”
