Why aren’t electronic shelf labels used in more stores in the UK? For more than two years we’ve been showing retailers how our NetTickIT software not only enables the printing of offers in-store but can also send the same information to electronic shelf labels. Retailers have seen for themselves how the electronic shelf labels supplied to us by ZBD and Pricer all update their prices via a touch of a button. After seeing this for themselves almost every retailer that we’ve shown them to were keen to know more about electronic shelf labels. In spite of this high level of interest and several retail trials electronic shelf labels are much rarer in the UK than many other countries including France, Sweden, Turkey, Poland and Germany.
Some retailers say they are not yet using electronic shelf labels because of the costs of installing and maintaining them. Others are concerned about ROI. Electronic shelf labels will take off in UK when retailers identify very specific needs. We think that they will be around certain types of promotions where we can see some significant benefits. Once electronic shelf labels justify the investment they will take off quickly across the UK. My prediction is that most major retailers will be deploying them, or planning to, within the next 12 months.
I have been talking to UK retailers about ESL on and off for over 10 years, and I installed the first segment systems here at Spar and ChevronTexaco (long before the NCR Safeway installation). While my company (then EKSI Limited ) always took a ROI-led approach, it was always clear that segment displays (which still need a piece of paper for the description and ordering & merchandising data) are only half a solution. There are other business drivers in France, Nordic, Japan etc. that have justified the investment, but not so in the UK. I expect the advent of fully graphic displays will unlock the business value in UK (and it is already accelerating ESL take-up elsewhere). Retailers can still use the system for competitive price matching and ‘Retail Revenue Management’ but can now communicate with consumers much more effectively and dynamically – even 1-to-1 with QR Codes or soon-to-come NFC. The capability alone for more scientific promotions can bring the ROI breakeven point within reach.