With technological advancements, all aspects of life have changed, which is true for the retail industry. Gone are the days of manually changing price labels on shelves every time there is a price change or a new product being introduced. Electronic Shelf Labels (ESLs) have changed the game.
If your store still uses traditional paper labels, it’s time to consider switching to ESL systems.
But what exactly are electronic shelf labels, and why does your store need them?
Let’s dive into the details.
What Are Electronic Shelf Labels?
Electronic Shelf Labels, or ESLs, are digital price tags attached to retail store shelves. These labelling systems use small screen devices that display product information, pricing, promotions and other relevant details.
ESLs are connected to a central server and can be updated remotely using wireless technology.
This means that retailers no longer need to manually change price tags when there is a price change or a new promotion.
The updates can be made in real time, ensuring accurate and consistent pricing across all products and stores.
How Do Electronic Shelf Labels Work?
ESL systems consist of three main components: the central server, the label management software, and the digital price tags.
The central server acts as the brain of the system and stores all product information and pricing data.
The label management software allows retailers to remotely update and manage product information on all ESLs in their stores.
The digital price tags or displays are attached to shelves and receive updates from the central server through wireless communication.
When a change is made in the central server, it is automatically reflected on all ESLs in real time.
Typical Functions Of Electronic Shelf Labels
Here are a few functions that ESL systems commonly offer:
- Automated and regular page and display transitions.
- Store-wide advertising for specific promotions.
- Real-time stock updates when integrated with an inventory system.
- Out-of-stock notifications using flashing LED lights.
Why Does Your Store Need It?
Implementing Electronic Shelf Labels (ESLs) brings a multitude of benefits to retail operations.
Here are a few reasons why your store should consider using an ESL system:
1. Time Efficient
Traditionally, store staff would spend countless hours manually updating paper price tags, a process fraught with potential errors and inconsistencies. With ESLs, this task is eliminated entirely.
These digital labels are centrally controlled and can be updated remotely and instantaneously, ensuring that price changes are reflected across the store in real time.
The time saved by using ESLs can be redirected towards more value-added activities, such as improving customer service. Employees are freed from the repetitive task of changing labels and can instead focus on engaging with customers, answering their queries, and enhancing the overall shopping experience.
Store managers rarely need to override transactions due to price discrepancies between shelf labels and the checkout system. This is because shelf price labels are promptly updated to align with the POS system, minimising such issues.
2. Greater Operational Efficiency
ESLs contribute to greater operational efficiency by streamlining store management processes.
They enable quick implementation of pricing strategies and promotions, which can be dynamically adjusted to meet market demands or clear inventory. This agility is particularly beneficial during peak shopping periods or when running time-sensitive campaigns.
3. Cost-Effective
Electronic Shelf Labels (ESLs) offer a compelling, cost-effective solution for retail stores, addressing some of the most significant operational expenses.
One of the primary ways ESLs reduce costs is by minimising the need for paper and printing supplies. Traditional price tags require regular updates, leading to substantial expenditures on paper, ink, and other printing materials.
In addition to material savings, ESLs significantly decrease labour costs associated with manual price updates. Store employees often dedicate extensive hours to the tedious task of changing and verifying price tags, time that could be better spent on activities that directly contribute to sales and customer satisfaction.
ESL’s long-term financial benefits and return on investment (ROI) are substantial. While the initial investment in ESL technology may seem considerable, the ongoing savings from reduced material and labour costs quickly outweigh the upfront expenditure.
4. Advantage Over Competitors
Customers love convenience, and ESLs are a perfect example of how technology can provide it. If your store hasn’t implemented ESLs yet, it risks falling behind its competitors.
Consider this: if a customer visits two stores with identical products, but one has traditional paper price tags while the other uses digital ESLs, which store do you think they’ll prefer? The answer is obvious – the store with ESLs.
In today’s fast-paced world, customers expect quick and efficient service. ESLs allow retailers to update prices in real time without any manual effort, making it easier for them to keep up with their competitors.
5. Improved Customer Experience
ESLs not only benefit retailers but also greatly enhance the shopping experience for customers.
With accurate and updated pricing, customers can trust that they are getting the best deal without double-checking prices at the register.
Customers who experience a great shopping experience are more likely to return and become loyal patrons.
Conclusion
Implementing ESLs is a forward-thinking solution that bridges the gap between modern technology and enhanced retail operations. By streamlining processes, reducing costs, and providing a superior customer experience, ESLs are a vital investment for any retailer looking to remain competitive in an ever-evolving market.
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