The retail landscape is rapidly evolving, with e-commerce growing in popularity thanks to its convenience and personalized shopping experiences. But physical stores aren’t being left behind—they’re transforming by embracing digitalization and strategic technologies. One of the most impactful changes is replacing traditional printed shelf labels with Electronic Shelf Edge Labels (ESELs).
So, why should you consider making the switch to ESELs? Let’s explore five compelling reasons.
1. Display More Information
Traditional shelf labels are limited to displaying basic information like the product name and price. However, ESELs offer a digital upgrade that allows for much more. Imagine walking down an aisle and, with just a glance, getting details such as nutritional facts, size, unit price, and even remaining stock levels.
According to a study by Retail Systems Research, 67% of retailers found that providing more product information directly at the shelf led to increased customer satisfaction. With ESELs, you can also display QR codes, enabling shoppers to access additional details through your store’s app or website—an excellent tool for promotions and driving sales.
2. Dynamic Pricing for Better Margins
One of the most significant advantages of ESELs is the ability to implement dynamic pricing. This means prices can be adjusted in real-time based on market demand, competitor pricing, or even time of day. For instance, a study by Deloitte found that dynamic pricing can increase profit margins by up to 25%.
Think about it—if a competitor slashes prices, you can instantly match or beat them without the need to manually update each label. Or, during peak shopping hours, you can raise prices on popular items to maximize profits. ESELs give you the flexibility to adapt and thrive in a competitive market.
3. Optimize Your Inventory Management
Inventory management is a challenge that every retailer faces. Out-of-stock items can frustrate customers and result in lost sales. ESELs, however, offer a solution through integration with shelf-monitoring systems. These systems use cameras and APIs to track inventory levels in real-time.
For example, when stock levels are low, an alert can be sent directly to store staff or even suppliers, ensuring that shelves are always stocked. Research from IHL Group shows that better inventory management through technology can reduce stock outs by up to 30%, enhancing both efficiency and customer satisfaction.
4. Enhance Your Omnichannel Presence
Today’s shoppers expect a seamless experience across all channels—whether they’re shopping in-store, online, or on their mobile devices. A report by Planet Retail found that 56% of consumers believe technology improves their shopping experience. ESELs play a crucial role in this by bridging the gap between physical and digital shopping.
With ESELs, you can display stock levels, offer QR codes for easy online ordering, and even show customer reviews right on the shelf. This not only enhances the in-store experience but also strengthens your omnichannel presence, ensuring you meet customers wherever they are.
5. Reduce Operational Costs
Switching to ESELs isn’t just about improving the customer experience—it’s also a smart financial move. Traditional paper labels require frequent updates, which involve printing costs, ink, and labor. Over time, these costs add up. In contrast, ESELs allow for instant updates from a central system, drastically reducing the need for manual labor and materials.
A study by the University of Parma found that retailers who adopted ESELs saw a 20% reduction in operational costs within the first year. Plus, the ability to instantly update prices across all stores ensures consistency and accuracy, further saving time and money.
Integrating MPOS For Your Convenience
For convenience store owners, integrating ESELs with MPOS systems can further streamline operations. MPOS allows for easy updates and management of ESELs directly from the sales floor, offering even greater flexibility. Whether you’re adjusting prices or managing stock levels, the combination of ESELs and MPOS ensures your store is always ahead of the curve.
By switching to Electronic Shelf Edge Labels, you’re not just keeping up with the times—you’re setting your store up for future success. From dynamic pricing to better inventory management and cost savings, ESELs offer numerous benefits that make them a smart investment for any retailer.
Are you ready to take your store to the next level? Explore how MPOS can enhance your ESEL strategy.
