Sainsbury’s ramps up electronic shelf labels in trial signalling retail tech shift

Sainsbury’s ramps up electronic shelf labels in trial signalling retail tech shift

Industry News
Technology Sainsbury's Grocery Retail

Sainsbury’s is testing electronic shelf-edge labels in its Witney and Epsom stores, joining a growing number of UK retailers adopting digital price tags to improve efficiency and sustainability, potentially marking the end of paper labelling in supermarkets.

Sainsbury’s has embarked on a notable initiative as it tests a range of electronic shelf-edge labels (ESLs) in select stores, signalling a potential shift away from traditional paper labels that have been a staple in supermarkets for decades. This technological upgrade aligns with a broader trend within the retail industry, where several stores are embracing digital solutions to enhance efficiency and improve customer experience.

The ESLs allow prices to be updated remotely, thereby eliminating the need for staff to manually replace paper labels each time there is a change in price. According to reports, the trial currently underway in Sainsbury’s Witney store in Oxfordshire reflects the company’s commitment to innovation, as Witney is designated as one of Sainsbury's 'Future Stores'—locations meant for testing new retail formats. The Epsom location, known as a ‘Destination Plus’ store, also exemplifies this trial. Renovated in late 2024, it features a comprehensive range of products, attracting customers from afar.

While Sainsbury’s is one of the latest retailers to implement ESLs, it is not alone in this endeavour. Other major UK grocery chains, including Asda and Co-op, have also been exploring the benefits of electronic pricing systems. In fact, Southern Co-op has already completed a full rollout of ESLs across its stores, aiming to not only enhance customer experiences but also promote sustainability through reduced paper usage. Their initiative is projected to save approximately £220,000 annually on printing costs, thereby streamlining operations and bolstering store staff morale.

The push towards electronic labels is not a new phenomenon; ESL technology has been around for over three decades. Previous attempts to integrate this technology into supermarkets have faltered, with Sainsbury’s itself experimenting with digital pricing displays as far back as 2015. The recent trials appear to be informed by past experiences, with heightened optimism from executives who believe that the modernisation will yield tangible benefits.

Another contrasting change expected across retail spaces is the gradual phasing out of barcodes in favour of pixel-based QR codes. This transition, advocated by GS1—a leader in managing retail identification systems—suggests a significant evolution in supermarket interoperability and customer interactions. Nearly half of British retailers are already making the technological shift to prepare for QR code implementation at checkout.

As the retail landscape continues to evolve, the potential widespread adoption of ESLs and QR codes may well mark the end of an era for classic supermarket features. While customer reactions to such shifts remain varied—with some expressing discomfort over the increased monitoring and surveillance—there appears to be a growing acceptance of technology as a means to improve shopping experiences.

In summary, Sainsbury's move to trial electronic shelf labels signifies a critical juncture for the supermarket, reflecting broader industry changes while potentially challenging traditional norms. The outcome of this experiment may redefine not just pricing strategies but also how shoppers interact with products and technology in their everyday lives.