In the ever-evolving landscape of the grocery industry, staying ahead of the curve is crucial for success. One technology that has been gaining widespread adoption across the U.S. and Canada is the digital price tag.
Electronic shelf labels (ESLs) are revolutionizing how grocery stores operate and interact with customers. In fact, the ESL market is expected to grow from a $1.5 billion to a $2.8 billion industry. And that’s in just the next five years!
Grocers are finding that ESLs can evolve to perform tasks that go beyond a quicker price change. This includes easily displaying product information, prices, discounts, and out-of-stock information, mitigating frustration, and offering better experiences. In this blog post, we’ll explore how ESL technology is reshaping the grocery industry, helping grocers streamline their operations, and enhancing the overall shopping experience.
Why Switch to Digital Price Tags?
The grocery industry has witnessed remarkable advancements in technology, delivering higher levels of efficiency. ESLs represent one of the latest innovations that can transform the way grocers do business. Here are some compelling benefits of using electronic price tags:
Reduce Labor Costs
Electronic price tags eliminate the need for manual price tag changes, reducing labor costs significantly. Traditional paper price tags are time-consuming to update and can lead to errors. With ESLs, you can change prices and update product information across your store instantly without staff physically adjusting tags.
Manage Stock Efficiently
Inventory management is a critical aspect of grocery store operations. ESLs provide real-time stock data, enabling grocers to keep track of product availability, location, and quantity. This real-time data helps reduce overstocking or understocking, ultimately optimizing inventory management.
Communicate With Shoppers
Electronic shelf labels open up new avenues for communication with shoppers. With digital price tags, you can easily convey product information, pricing, and promotions directly on the shelves. This dynamic interaction enhances the shopping experience and allows customers to make more informed decisions.
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There are two categories of grocery stores—those that embrace technology and those that don’t. Smart price tags and other grocery store software features can help put you above and beyond your competition.
Easily Communicate Product Information
ESLs make it a breeze to display crucial product information, including nutritional details, product ratings, or customer reviews. This technology ensures that customers can access all the information they need, including supporting multiple languages. Featuring labels in English, French, and Spanish can enhance accessibility and cater to a diverse customer base. Specialty retailers can showcase unique qualities such as place of origin, fair trade, organic, or vegan certifications.
Promotions and Discounts
In the highly competitive grocery industry, promotions and discounts can make a substantial difference. Digital price tags allow you to push promotions and discounts directly to the tags, creating an enticing shopping experience. Shoppers can access visually appealing content to match the engaging qualities of the online shopping experience.
Real-Time Price Changes
You know that market conditions and consumer preferences can change rapidly in the grocery industry. Electronic shelf labels provide the capability to update prices easily in real time. The ESL management platform collects data, such as which products are out of stock, their locations, and pricing information.
This data empowers you to make quick and dynamic price adjustments, ensuring you’re responsive to market changes and seasonal variations. Dynamic labeling is especially important when it comes to perishable items. When bananas are nearing expiration, you can mark them down quickly without printing and hanging new signage. Managing dates is crucial for the deli and meat departments, too.
Reduce the Burden of Stockouts
Out-of-stock items can be a significant frustration for customers. According to Supermarket News, stockouts cost U.S. and Canadian retailers an estimated $350 billion every year. Digital price tags help mitigate this issue by quickly communicating out-of-stock items to customers. They can also help staff identify out-of-stock or discontinued items that need to be replaced or reordered.
By adding a QR code to the digital price tag, shoppers can easily purchase the item online and have it shipped to them once it’s back in stock. Dynamic shelf tags are made possible by a ‘phase out’ functionality in Auto-Star’s Star-Plus POS.
Make the Switch to Digital Price Tags
Electronic shelf labels are not just about pricing. They represent a fundamental transformation in how grocery stores operate and interact with customers. By adopting ESL technology, grocers can streamline operations, enhance the shopping experience, and improve inventory management. As the ESL market grows, utilizing digital price tags can keep your food store ahead of the curve.
Looking to stay ahead of the competition by embracing the future of grocery store management? Contact us to learn about making the switch to electronic shelf labels.