Electronic Shelf Label Pilot Announced for Major U.S. Chain

Discussion
Oct 20, 2004
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By Stuart Silverman

Pricer recently announced that “one of the largest retail chains in the U.S.,” as yet to be named, has decided to pilot Pricer’s ESL (Electronic Shelf Labels) system for a supermarket and a pharmacy.

Based on studies at installed retailers in Sweden and Germany, Pricer claims an ROI of under two years. While there is value in insuring that the same price is on both the shelf and POS, measurable benefits are probably being achieved by reducing the manual labor involved in executing price changes at store level.

However, the opportunities to be more dynamic with pricing are compelling. Today, because the process of executing price changes is so laborious, it’s done once, maybe twice a week. The ability for a retailer to change prices for any item at any store with the press of a button promises to provide these new price optimization applications new immediacy and competitive value. In addition, both grocery and c-store retailers should be able to manage time-of-day price changes to encourage shoppers to come in at different times of the day.

Moderator’s Comments: Why do you think that the adoption of ESL’s have been so slow? Do you think that the ability
to manage pricing more dynamically will draw more retailers to ESL’s?

According to Jan Forssjö, president and CEO of Pricer AB. “As we continue to experience, it is in a committed instore pilot program that a retailer
can see the true benefits of an ESL system and in particular the unique advantages of the Pricer system.”

Stuart Silverman – Moderator

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