The 6 Major Benefits of Electronic Shelf Labels - 2025 Update
The benefits of Electronic Shelf Labels (ESLs) are a topic we’ve covered before, but here is an up-to-date recap of the main advantages of this transformative technology.
Real-Time Pricing Updates
Compliance & Pricing Accuracy
Improved Customer Experience
Operational Efficiency
Sustainability and Waste Reduction
Cost Savings & Revenue Generation
Real-Time Pricing Updates
This is undoubtedly the standout advantage of ESL technology. Gone are the days of printing and manually updating paper price tickets throughout the store. ESLs empower retailers to update prices remotely, even across multiple locations. Here’s how it impacts daily operations:
Monthly promotions calendar: Updates are implemented storewide within minutes.
Currency fluctuations: Specific product prices can be adjusted with just a few clicks.
Last-minute promotions: Whether countering a competitor’s offer or launching a seasonal campaign, updates are instant. Bespoke screen templates can also be created easily to highlight seasonal themes.
Legislative changes: Mandatory information updates can be rolled out across all relevant products in minutes.
Compliance & Pricing Accuracy
Although unintentional, inaccuracies between the shelf and checkout can be very damaging for the retailer, whether through fines or by losing the trust of their customers.
By integrating ESLs with the POS system, pricing synchronisation is ensured, guaranteeing that the price displayed on the shelf matches what customers pay at the till.
Improved Customer Experience
Accurate pricing is key to maintaining trust and goodwill with customers. ESLs eliminate the risk of customers feeling misled.
In addition, ESLs can bring a range of new in-store customer experiences. Such as providing additional, useful product information through NFC (Near Field Communication – the technology used when you pay via your phone) or QR codes. For supermarkets and grocers, this might look like, personalised allergy alerts or cross-sell offers. For DIY and hardware stores, it may be, installation videos, detailed product information or a product compatibility check.
Increase In-Store Sales
ESLs have the potential to boost in-store sales through:
Clearer promotional signage: Showing the offer and exact discount amount on every product on promotion, in bright red or yellow colours.
Customer reviews: Up-to-date ratings on labels build trust and drive sales, mimicking online retail strategies.
Price validation: Implementing programs like “Lowest Price Guaranteed” by matching competitor prices multiple times a day.
Competitor pricing visibility: Another strategy is to show competitor pricing on the screen, this counters the concept that prices are lower online and reduces ‘showrooming’ (browsing products in-store to buy later online). This can be an important strategy for electronics and appliance retailers, and even supermarkets. Waitrose in the UK used this strategy to change the customer perception that their prices were higher than their competitors.
Dynamic promotions: Retailers can run more frequent promotions, driving sales without being limited by time-intensive manual updates.
Operational Efficiency
ESLs streamline other operational tasks like restocking, order picking, and inventory management, by utilising the flashing LED Light function on the labels to guide staff to the correct products, creating up to 50% efficiency gains. This can significantly reduce staffing requirements.
Sustainability and Waste Reduction
Adopting ESLs is an environmentally friendly choice. By eliminating paper tags and reducing printed materials, retailers cut down on paper waste.
Additionally, ESLs can reduce product waste. For instance, supermarkets can dynamically lower prices for perishable goods nearing their expiry dates, boosting sales while minimising product spoilage.
Profitability
Each benefit discussed also contributes to cost efficiencies or revenue growth for retailers. More efficient operations, lower waste levels, increased in-store sales, and improved customer perception collectively drive higher operational profitability.
An Electronic Shelf Label project typically pays for itself within one to two years, with some cases seeing returns in as little as six months.
For more information on our ESL Solutions please contact us or download our brochure.
