The power of electronic price tags

We’re seeing some transformative changes on the retail floor, but few will have as big an impact as electronic shelf labels (ESL). They introduce a digital transformation to a physical setting that benefits both consumers and retailers. Their clarity and flexibility signify that physical retailers are finally ready to take on their online competitors.

Why consumers love ESLs

One of the challenges consumers have to navigate when shopping in a store is finding the price. Price tags fall off, and physical signs get moved or fall down. Sometimes, there are multiple prices on a single item or different price tags on the different items on the shelf.

ESLs remove that confusion, by clearly displaying the price on an electronic screen. ESLs can display prices, bar codes, and additional information that helps guide a consumer towards a purchase. It can also include a list of related items or include a scannable QR code with more information that can be used while purchasing.

ESLs also enable stores to easily reduce prices as products near their sell by or expiration date. This can help reduce a shopper’s overall grocery bill while allowing them to purchase quality grocery products.

The ESL, which can be connected to the same pricing engine as a store’s online presence, helps consumers feel at ease that the store has a single price point across all its channels.

In addition, a study by KPMG found that 64% of consumers believed that stores with ESL displays had better customer service than stores that utilized paper price tags. The presence of digital tools seemingly reassures consumers that the store they are shopping in cares deeply about the shopping experience.

We’re seeing some transformative changes on the retail floor, but few will have as big an impact as electronic shelf labels (ESL). They introduce a digital transformation to a physical setting that benefits both consumers and retailers. Their clarity and flexibility signify that physical retailers are finally ready to take on their online competitors.

Physical stores are also embracing ESLs

Physical store retailers have recognized the benefits of dynamic pricing but didn’t have an effective way to implement price changes. ESLs enable rapid price changes through a centralized pricing system and in-store connectivity, resulting in what we call next-gen pricing.

Retailers can factor in competitor pricing, environmental data, inventory levels, and other key data points to provide compelling price offers that are designed to move products off the shelf while increasing profit margins by up to 10%. They have the agility they need to match market prices quickly and easily.

ESLs offer a number of other benefits to retailers. They help make stores run more efficiently, with prices changing at a click of the button rather than an employee with a pricing gun. By improving the price update process, retailers can deploy their employees in other ways to engage and serve customers.

ESLs also have the potential to improve checkout lines. With paper price tags, consumers frequently get to the cashier and find out that the price is wrong. This contributes to delays, as they return to the store aisle to replace or exchange an item, leaving a long line of customers waiting for them to return. The digital price tag eliminates that inconvenience and makes for a smoother checkout experience for all customers.

ESL adoption is picking up

The ESL market is growing substantially. In 2018 it was a $624 million dollar market. The number is expected to grow by 2027 to $2.4 billion. While Asia leads the way and Europe is a close second, North American retailers are slowly starting to adopt electronic prices. As each market adds ESLs to their aisles, their ability to use dynamic pricing to increase revenue and profits is enhanced.

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