What Are Digital Shelf Labels?
When it comes to retail, up-to-date and correct pricing is everything. Paper or plastic price labels simply won’t do, whether it’s staff time wasted changing labels, human pricing errors, or shelf-to-till discrepancies. This is where digital shelf edge labels come into play.
Digital shelf edge labels (or electronic shelf labels/ESLs) are compact screens that replace traditional labels. They’re attached to the front of shelving, showing live product information such as price, promotions, and even stock levels.
To retailers, the labels provide greater benefits than just convenience. They reduce the need for manual updating, cut down on paper waste, and get all products displaying the correct price in real-time. To consumers, electronic shelf edge labels provide a smoother shopping experience by eliminating confusion and building greater trust in pricing accuracy.
As retailers compete on both efficiency and customer experience, digital shelf labels are becoming a smarter, future-ready alternative to paper tags.
How They Function
If you’re asking yourself, “How do digital labels work in practice?” the technology behind them is surprisingly simple. Digital shelf edge labels operate as part of a connected retail system, combining wireless technology, software, and store infrastructure to keep information consistent and up to date.
Wireless Communication
Most digital shelf edge labels use low-power wireless communication protocols (such as Wi-Fi). Via these protocols, a central content management system can send updates to thousands of labels across a store at once.
Wireless updates enable retailers to change prices, promotions, or product information across an entire store in seconds, without requiring any individual employee to manually swap out paper tickets.
Sync with POS
Electronic shelf labels are linked directly to a retailer’s point-of-sale (POS) system or central pricing database. This means that the price on the shelf always matches the price at the checkout.
For example, when a supermarket alters the price of a cereal brand in its central system, the change is reflected instantly both at the checkout and on the electronic shelf edge label. This eliminates one of retail’s biggest frustrations: price mismatches.
Beyond pricing, labels can be integrated with inventory management software, showing real-time availability or even notifying staff when shelves need to be restocked. This helps to add another layer of operational efficiency and customer satisfaction.
Retail Use Cases
Electronic shelf edge labels are more than electronic price tags; they’re multi-purpose tools with the potential to transform day-to-day retail operations. Here are some of the most common and impactful applications in real-world stores:
Dynamic Pricing
Prices can be adjusted in real-time based on demand, competitor activity, or time of day. For instance, fresh food approaching its best-before date can be reduced in price instantly to minimise wastage.
Promotional Campaigns
One-off promotions can be highlighted to make them stand out with flashing icons, QR codes, or colour highlights on the labels. This is more promotional than with static paper labels.
Omnichannel Consistency
As online and offline retail converge, digital shelf edge labels ensure in-store prices match online listings, reducing customer confusion and complaints.
Operational Efficiency
Staff save hours per week from not needing to change paper labels physically. This frees them up for higher-value tasks such as customer service or merchandising.
Improved Customer Experience
Labels can also display other product information, e.g., nutritional data, allergen warnings, or sustainability credentials. Customers gain more transparency and confidence in their purchases.
Inventory Management
Advanced systems integrate with inventory information, so workers can instantly see what products need to be restocked. Some setups even use tags with built-in LEDs that light up to guide workers along during replenishment.
Final Thoughts
So, how do digital labels work in real-world retail? In short, through a clever combination of wireless communication, POS integration, and e-ink displays that update automatically. The result is a highly efficient system that benefits both retailers and customers.
Digital shelf edge labels aren’t just about replacing paper; they’re about future-proofing retail operations. They cut waste, save staff time, ensure accuracy, and create a seamless experience for shoppers.
As more stores embrace automation and smarter in-store technology, expect to see digital shelf edge labels become the norm rather than the exception. For retailers, investing in this technology now means staying ahead in efficiency, sustainability, and customer trust.
