Grocer Tesco has agreed a “landmark” partnership with the world’s biggest media-buying business as it ramps up its retail media business.

Tesco Chester

Tesco has partnered with leading brand network GroupM

Food market leader Tesco said the tie-up with GroupM represents “the most significant single agreement” for its Dunnhumby data business-supported media and insight platform.

The deal comes as retailers, in particular food groups, seek to build substantial media businesses of their own as new revenue and profit streams, drawing upon the customer exposure and insight they can provide.

The partnership is anticipated to “drive best-in-class delivery of data-led solutions, education and innovation across all facets of retail media”  through “on-site, off-site, and connected store offerings”.

Tesco Media and Insight Platform client development director Nick Ashley said: “This is a major landmark for us in developing a large-scale strategic partnership with one of the world’s leading networks, representing so many exciting brands.

“Through the arrangements, GroupM will benefit in numerous key areas in retail media across data, insights, and strategic planning, which will enable its clients to truly harness the power of retail media – in all its forms – for measurable commercial advantage.”

GroupM head of commerce David Fieldhouse said: “With data becoming ever more important in the planning and buying process on behalf of our clients, this was a determined effort to align with one of the largest retailers in this space and help advance conversations around positioning our clients and brands in an environment that benefit brand, client and agency.”