The benefits of Electronic Pricing - The Australian Retailer FEB '20

Article from The Australian Retailer FEB '20 edition

Paper pricing systems have been around for centuries. Globally, retailers are moving away from these antiquated systems towards their electronic alternatives.

Retailers who have done so have achieved a reduction in labour, paper and printing costs associated with price changes. Generally, supermarkets will change prices on 30 per cent of their stock each week, making it a cumbersome task for staff. Most grocers would prefer their staff focused on serving customers as opposed to changing pricing.

Electronic pricing allows retailers to have a more flexible pricing strategy than their competition, as pricing can be changed from a centralised location in minutes. This allows retailers to keep their margins consistent by acting quickly when wholesale prices change, or currencies fluctuate.

At most supermarkets, when perishable items approach expiry dates, further discounts are added to these items to reduce wastage. Luckily for retailers, this process can now be automated.

Often promotions, which are sponsored by suppliers, end before a grocer has the chance to change the price on the shelf. These pricing errors can lead to unhappy customers and eat into profit margins. Electronic pricing can help resolve these issues and ensure pricing compliance with head office.

Walking into a modern store, electronic labels greet customers with a more pleasing aesthetic and environmentally friendly ambiance as paper wastage is reduced. Particularly in the wake of the latest bushfire season, environmentally aware businesses are favoured by younger consumers.

From a back-office perspective, this technology has led to increased efficiencies in the click and collect, home delivery and re-stocking processes as pickers can be guided by LED lights which flash on the shelf labels.

Inspired by the benefits the solution has brought to global retailers, Australia is catching up with the rest of the world, with electronic pricing adoption tipped to increase by 300 per cent in 2020.