Walmart "became the latest retailer to announce it's replacing the price stickers in its aisles with electronic shelf labels," reports NPR.
"The new labels allow employees to change prices as often as every ten seconds."
"If it's hot outside, we can raise the price of water and ice cream. If there's something that's close to the expiration date, we can lower the price — that's the good news," said Phil Lempert, a grocery industry analyst...
The ability to easily change prices wasn't mentioned in Walmart's announcement that 2,300 stores will have the digitized shelf labels by 2026. Daniela Boscan, who participated in Walmart's pilot of the labels in Texas, said the label's key benefits are "increased productivity and reduced walking time," plus quicker restocking of shelves...
As higher wages make labor more expensive, retailers big and small can benefit from the increased productivity that digitized shelf labels enable, said Santiago Gallino, a professor specializing in retail management at the University of Pennsylvania's Wharton School. "The bottom line, at least when I talk to retailers, is the calculation of the amount of labor that they're going to save by incorporating this. And in that sense, I don't think that this is something that only large corporations like Walmart or Target can benefit from," Gallino said. "I think that smaller chains can also see the potential benefit of it."
Indeed, Walmart's announcement calls the tech "a win" for both customers and their workers, arguing that updating prices with a mobile app means "reducing the need to walk around the store to change paper tags by hand and giving us more time to support customers in the store." Professor Gallino tells NPR he doesn't think Walmart will suddenly change prices — though he does think Walmart will use it to keep their offline and online prices identical.
The article also points out you can already find electronic shelf labels at other major grocers inlcuding Amazon Fresh stores and Whole Foods — and that digitized shelf labels "are even more common in stores across Europe."
Another feature of electronic shelf labels is their product descriptions. [Grocery analyst] Lempert notes that barcodes on the new labels can provide useful details other than the price. "They can actually be used where you take your mobile device and you scan it and it can give you more information about the product — whether it's the sourcing of the product, whether it's gluten free, whether it's keto friendly. That's really the promise of what these shelf tags can do," Lempert said.
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