A Case For Electronic Shelf Labels

I recently visited a major pharmacy chain in my neighborhood to pick up a half-dozen items for an ailing family member.

I left with a compelling use case for Electronic Shelf Labels (ESLs).

My In-Store Experience

My visit started with the usual scavenger hunt to find the precise items on my list.  This foraging can be a bit frustrating and time consuming, as there are so many items on the shelves - each slightly different from its adjacent items.

Items gathered, the cashier began scanning the content of my basket.  To my dismay, three of the six items rung up incorrect prices - all higher than the prices displayed on the shelf.

It is not uncommon for item to be mislabelled at this pharmacy chain - or its competitors - but 50% is a bit hard to swallow.

I asked to speak with the manager, who was paged, and we waited…

My Conversation with Trevor

When the manager - Trevor - finally arrived, he seemed clearly frustrated.  I (unsuccessfully) did my best to match his frustration with a rant against their pricing ineptness.

“You don’t understand, Sir.”  Trevor frankly continued,  “I don’t have enough employees to keep up with all these price changes and when I finally get somebody trained - they quit a week later.  I come in early, stay late - fixing pricing - and I just can’t keep up.”

Poor Trevor.  I legitimately felt his pain.  He was doing his best to manage a understaffed store with high employee turnover.  Making matters worse, Pharmacy Chains - like Convenience Stores and some Retail Stores - have an incredibly high number of SKUs (retail speak for “Stock Keeping Unit”) on their shelves in a time of snowballing inflation.

If that’s not bad enough, he also needs to deal with irate customers.

A Case for Electronic Shelf Labels

Electronic Shelf Labels offer a solution for Trevor and tens-of-thousands of his peers.

This technology has been around since the mid-1990’s, when a Swedish technology manufacturer - Pricer - began deployments in Europe.  Over the years, the quality and cost of displays, improvements in battery life, networking technology, and CRM applications have improved the technology’s value proposition.

In today’s retail landscape - with its labor challenges, on-line shopping competition, and need for immediacy in a digital world - the case for ESLs is likely hitting a tipping point.

Not to be overlooked is the value to the customer.  A better experience noted by the improvements in pricing accuracy and competitiveness will certainly help retain customer loyalty.  

There are also the future enhancements, as rapidly-advancing improvements in the quality and cost of smaller profile LCD displays promise to extend the experience beyond the shelf rail and into the digital signage realm.

It is worth keeping an eye on this technology and how it can help your business.