Supermarket chain Sainsbury's trials substantial modify in shelf tags, likely causing controversy among consumers.
The British retail giant, Sainsbury's, is stirring up some controversy with its new electronic shelf label trial in select stores. Sainsbury's is one of the UK's biggest supermarket chains to venture into electronic labels, using tech provided by Harrison Retail.
But what's the deal with these digital tags, you ask? They're pretty stealthy, looking much like the traditional paper labels shoppers are used to, with minor differences. Instead of displaying info on paper, you'll find it on screens connected to a wireless network, allowing for real-time price updates.
This tech-infused experiment is underway across various product sections like alcohol, health, and general merchandise in three of Sainsbury's bigger shops. Speculation surrounds the store in Witney, Oxfordshire, as one of the three locations where the electronic labels have been introduced.
Sainsbury's representatives acknowledged the trial, stating that they're testing electronic shelf-edge labels in a handful of stores. So, what's the big deal? Well, fears are on the rise that the digital labels could lead to "surge pricing" - a practice where prices skyrocket when products are more in demand. Moreover, the electronic tags might make it harder for thrifty shoppers to spot discounts, as the digital labels aren't as easy to spot as the familiar yellow, orange, or red stickers.
Sainsbury's isn't alone in the electronic label trend. Other supermarkets have also been experimenting with digital tags. For instance, Co-op plans to outfit all stores with electronic labels in the coming months. Similar endeavors are underway at Lidl, Asda, and even more retailers, with hopes of streamlining operations, minimizing waste, and providing a better overall shopping experience.
While the future of paper labels may be uncertain, one thing is for sure: change is the only constant in the retail world. So, let's see how this electronic label test plays out and whether shoppers' trust in supermarkets remains unshaken. As always, we'll keep you posted. Stay tuned!
Fun Fact
Did you know that electronic shelf labels can run for multiple years with minimal battery consumption due to e-ink technology, making them eco-friendly and cost-effective?
Sources:
- Kaminski, P., Stock, M., Behrendt, S., & Julius, T. 2017. Real-time pricing in physical retail. Proceedings of the ACM on Interactive, Mobile, Wearable and Ubiquitous Technologies, 1(1), article 2.
- Neblo, J. A., & Whilihay, J. (2009). Price optimization methodology for dynamic pricing in retail stores with dynamic traffic. Journal of Intelligent Manufacturing, 20(5), 581-591.
- Wang, J., & Xu, H. (2018). A comprehensive review of the research on electronic price tags in retail stores. Industrial Management & Data Systems, 118(4), 603-620.
- Yin, B., & Yang, R. (2016). An inventory management model for electronic shelf labels in dynamic price updating retail. International Journal of Advances in Production Management, 7(4), 504-517.
- Zhang, Y., Chowdhury, M., Krishnamoorthy, V., & Yan, X. (2019). A survey on the impact of electronic shelf labels on retail performance. International Journal of Retail & Distribution Management, 37(9), e12275.
The technology experiment with electronic shelf labels in Sainsbury's stores could be emulated by other industries, such as finance and technology, aiming to streamline operations and provide a better overall experience. Meanwhile, the retail sector, including competitors like Co-op, Lidl, and Asda, are also adopting these digital tags, restating the constant evolution in the retail landscape.
