Innovation at the shelf edge
Benefits versus cost
The use of eSELs is commonplace in mainland Europe, which is partly a reflection of punitive regulations around incorrect pricing. Retailers face fines if they do not provide transparent, accurate and consistent pricing information.
But in UK retail, their use has been piecemeal. Tesco and Sainsbury’s are among those to have trialled it, along with electricals retail group Dixons Carphone and the Spar and Nisa convenience chains.
The now-dissolved children and baby goods brand Kiddicare used eSELs throughout its stores when Morrisons owned and operated the business.
At present in UK retail it is a case of smaller success stories amid a wider resistance to make what is a significant investment in the technology.
Earlier this year, a Kent-based franchise of the convenience chain Costcutter integrated eSELs with its central price management system. It says the Panasonic-implemented technology has provided an 80% time saving on label updates.
Costcutter sends a pricing update to its stores every week, which typically results in between 30 and 100 price changes for this particular Culverstone Green store. This process typically took one staff member a full morning to update paper labels. On top of that, promotions are released every three weeks, adding to the price-change workload.
Centrally controlled from its in-store computer, Costcutter Culverstone Green can now complete this process much quicker. An added benefit, says store owner Peter Juty, is that staff are more confident working on the tills because they are less worried about discrepancies between the shop floor price and the till price.
“They can now spend additional time on the customers’ needs,” he adds. “The visual promotions have also influenced an increase in product purchases.”
On Valentine’s Day, for example, the electronic labels can display a photo of a love heart and a simple message to flag up the product as an ideal gift. “This was tested in another store and the result was an increase in turnover of up to 100% on such products,” Juty claims.
“The electronic shelf labels will provide us with a lot of flexibility and potential to market products around the year, and we look forward to seeing how this will impact our sales,” he adds.
Roy Horgan, UK and Ireland managing director of SES-imagotag, adds: “With hundreds of stores now fitted in the United Kingdom and Ireland, the time of electronic pricing and IoT [internet of things] for retail is finally coming.”
For Shopfloor Insights’ Roberts, although the benefits of eSELs are clear to see, there is still no incentive for wider roll-out any time soon.
“Without the massive stick hanging over you about incorrect pricing, the carrot is enhanced efficiency and the ability to react to competitors at the click of a switch,” he says. “Until the price of eSELs and back-office kit comes down significantly, it might not be that simple a choice.”
Despite 2020 having been a particularly challenging year for UK retail, the introduction of new technology continues – often in a test and learn capacity.
“For the first half of 2020, the grocers focused on availability and running the shop,” says Roberts. “But as we look at 2021, there might be a return to experimentation and exploration with in-store marketing and in-store efficiencies.”