Although the idea of digital label tags isn't new, its application is quite widespread across Europe. However, U.S. grocers have been slow to the uptake for a variety of reasons, such as a perception of low return on investments. However, this is likely to change as ESLs have the ability to do tasks that are not limited to price changes.

ESLs are discovering new efficiencies that allow them to reduce expenses for labor, manage stock, streamline their e-commerce, and communicate with customers in new ways.

Grocery stores can now expect an average payback time of 18 months to 2 years, if they choose the right features. ESL companies have made huge advances and are poised break this open.

What is the significance of price changes?

Even though digital label tags the new features, price adjustments remain an advantage to be considered. Stores that spend over 10 million dollars a year for price adjustments are not unusual. For a better understanding the staff who are responsible for changing price tags are usually at the more senior level, making them some of the most costly workers at the shop. If retailers are changing between 5,000 and 12,000 tags every week, the cost of labor is a significant amount.

Optimizing Inventory Administration

ESLs offer a number of benefits, including managing inventory and labor costs. Retailers have faced out-of-stocks since the beginning of grocery stores. There is no simple solutions.

In this age of e-commerce out-of-stocks are especially detrimental as they cause customers to be unhappy when even one item out of 30 in an online purchase isn't readily available. Certain ESL systems come with digital tags and electronic shelf tags technology, that utilizes cameras and new interface platforms for application programming.

E-Commerce Programs

Since e-commerce customers are able to hunt for food items and sift through cheese selections the grocery stores are becoming more crowded. This relatively new system can complicate things, particularly when there is more than one or two personal shoppers working a store at once. Find more details on how to digital labels work at our website.

The models that have flashing lights can be useful in e-commerce. Individual shoppers will receive a digital map that tells them which aisle they should go to; and the cost of the product will be displayed when they reach that aisle. The flashing lights could also be colored for each personal shopper. Someone could choose red, blue and green.

Reduce the amount of waste

ESLs allow retailers to price perishable products in a way that is consistent throughout the day. This reduces energy usage and encourages consumers to buy the items before they spoil. This flexibility lets retailers adjust pricing based upon the pace of sales and levels of inventory. Planet Retail's insight shows that 65 percent of buyers are happy to see price adjustments throughout the day when a product is nearing its sell-by date.