01 February 1998

TESCO AND SAFEWAY have revealed plans to share live sales data with most of their suppliers, including information on stock levels, sales and promotions. Both chains have been trialling respective schemes for some months but participation has been limited to a handful of suppliers - now 'a majority' will be invited to share the data. The move signals a major change in the sensitive relationship between supermarkets and their suppliers. St Ivel, the dairy products manufacturer, estimates that its experiment with Tesco could achieve savings of up to 30% on promotions alone, while Tesco will use the information gained to target Clubcard holders with more relevant offers.