Tesco preps major Hanshow electronic shelf labels roll-out across store estate following 2025 pilot
Tesco is set to roll-out electronic shelf labels across its stores over the next two years. It is teaming with Chinese firm Hanshow on this.
This builds on a proof of concept in 2025 with VusionGroup and Hanshow to evaluate ESLs in select stores, with the aim of reducing labour costs and enhancing pricing accuracy.
The project will kick off in four stores - one Express and three supermarket locations - and will ultimately cover approximately 3,000 stores.
"The roll-out of digital shelf labels marks an important step in the modernisation of our stores, delivering benefits for both customers and colleagues," says Tesco UK Operations Managing Director Kevin Tindall.
xPilot
Hanshow has announced the launch of xPilot, a real-time store execution AI assistant powered by the company’s digital twin technology, in collaboration with Microsoft.
Built on Microsoft Azure, xPilot uses Microsoft Fabric to unify in-store sensing data with retailer business data, creating a connected data foundation for real-time retail operations. On top of that foundation, AI agents powered by Microsoft Foundry help translate live store signals into faster decisions and more consistent execution across store environments.
Designed as native AI agent for retail and intelligent execution assistant, xPilot combines real-time store sensing, AI driven decision-making, and automated workflows, integrating to a store digital twin by continuously integrating data from smart shelves, smart carts, in-store robotics, operational systems and other IoT touchpoints.
Store teams gain real-time visibility into shelf availability, planogram compliance and operational alerts, with the ability to trigger staff tasks or automated actions instantly with priority. Retailers benefit from live heatmaps covering sales, traffic, conversion, labour and energy usage, helping standardise execution, reduce lost sales, and improve operational efficiency across store networks. xPilot's open architecture also supports integration with ecosystem partner's applications across merchandising, supply chain, store operations and customer engagement.
Rainbow Department Store in China is among the first retailers to deploy xPilot in live store environments. It is using the solution to validate how digital twin technology can translate real-time store intelligence into consistent in-store execution at scale.
"Our collaboration with Microsoft and many partners established the foundation for store digital twin," says Relvin Sun, Dean of Hanshow Retail Research Institute. "xPilot is where that vision becomes a reality, turning insights into actions in real-time and enabling retailers and suppliers to move from reactive operations to proactive, intelligence led execution."
"Retailers don't need more tools in the store - they need more intelligence. A real-time store digital twin, paired with unified data and AI agents, helps teams move from seeing what's happening to acting on it in the moment - raising Store IQ and accelerating the journey toward a frontier store," says Christian O'Donohue, Sr. Industry Advisor, Retail and Consumer Goods, Microsoft.
