To shoppers, digital smart labels appear to be a cool, high-tech way to display product prices on the edge of a grocer’s shelves. But to a savvy retailer, these little gadgets lower costs and improve efficiency in a different way, by cutting labour and material costs.
While the technology isn’t exactly new, it is still a relatively untapped area for retailers. Digital smart labels allow retailers to end the practice of manually changing out printed shelf labels, printing new ones, and replacing old ones each time prices need to be updated. Those activities are labor intensive and error prone, plus missing even a single change can cause headaches for checkers, stockers and shoppers alike.
With digital smart labels, there’s no more printing hundreds or even thousands of new tags each week, then scrambling to get them all switched out in a timely fashion. Retailers can change prices across an entire store within a matter of minutes—even if every single item were to have a new price at once. The store receives all the relevant price changes electronically, then at the appropriate time, a single click transmits them to the digital smart labels, which immediately update the prices displayed to shoppers.
What retailer wouldn’t want to save all that time and labour, not to mention increasing the accuracy of pricing for every item in the store? But as with any new technology, the inevitable question is how much will all this cost?
The actual of the digital smart labels and the supporting infrastructure depends on far too many variables to throw out a simple answer. For example, how large is your store—and how many locations? How many different items do you have shelf space for? Will you have digital smart labels for all items, or only those you deem have regular price changes? And there are many more.
Perhaps a better question is this: How much will it cost you to not install digital smart labels?
With retailers dealing with rising labour costs, the question shouldn’t be how much digital smart labels cost. The question is: Can you really afford not to consider digital signage to boost your margin?