Company Shop Partners with Pricer to Enhance Efficiency Using Electronic Shelf Labels Across UK Stores

Table of Contents

1. Key Highlights
2. Introduction
3. The Need for ESLs
4. The Partnership with Pricer
5. How ESLs Enhance Operational Efficiency
6. Environmental Implications
7. The Roll-Out of ESLs
8. Conclusion
9. FAQ

Key Highlights

• Partnership Announcement: Company Shop has partnered with Pricer to implement electronic shelf labels (ESLs) across its 13 UK supermarkets.
• Operational Efficiency: The integration aims to automate pricing adjustments in real-time, greatly alleviating the manual labor of store employees.
• Environmental Impact: The solution seeks to minimize food waste and streamline the sales of surplus items, underscoring Company Shop’s sustainability goals.

Introduction

Imagine walking into a supermarket where the prices of items change dynamically and instantly—without any human input. This technologically advanced scenario is becoming a reality at Company Shop, a unique discount supermarket specializing in surplus products. With the recent deployment of electronic shelf labels (ESLs) in a collaboration with Pricer, Company Shop is taking significant steps towards operational efficiency while striving to combat food waste in the UK. This partnership not only highlights the urgency of adapting to modern retail practices but also emphasizes the critical importance of sustainability and food redistribution in today’s economy.

To understand the significance of this initiative, one must first appreciate Company Shop’s unique business model. The supermarket focuses on selling surplus products from over 800 brands, retailers, and manufacturers, redistributing over 100 million items each year. This business not only provides access to discounted products for its members—who must meet specific criteria—but also plays a pivotal role in minimizing environmental impact by preventing 122,000 tonnes of CO2 emissions annually.

The Need for ESLs

The dynamics of inventory management in grocery stores are inherently complex, particularly for retailers like Company Shop where stock levels can fluctuate dramatically. Shorter shelf-life products arrive and sell at a rapid pace, necessitating frequent updates to product information and prices. This challenge becomes even more pronounced in discount retail formats where pricing plays a crucial role in attracting customers.

Prior to implementing ESLs, Company Shop employees had to manually update prices multiple times per day, consuming significant labor hours and creating potential opportunities for errors. Gemma Edlin, Head of Retail at Company Shop, explained, “The labour intensity of the traditional model not only drained productivity but also diverted attention from customer service, which is paramount for our members.”

The Partnership with Pricer

In response to these challenges, Company Shop’s collaboration with Pricer has brought forth a revolutionary solution to streamline operations. Pricer specializes in digital pricing technologies and their ESLs enable retailers to execute real-time pricing strategies efficiently.

By using centrally controlled ESLs, Company Shop is now capable of updating pricing at the shelf edge automatically. This means that the prices reflecting discounts or markdowns can be adjusted instantaneously across all products without requiring manual updates. The ESLs are particularly beneficial for sales on shorter shelf-life goods, ensuring that prices remain competitive and relevant.

Peter Ward, UK Country Manager at Pricer, stated, “With dynamic pricing capabilities, our ESLs mean more Company Shop members can access the best prices available, while store colleagues can control pricing efficiently while also focusing on those service delivery tasks that drive up customer experience and satisfaction.”

How ESLs Enhance Operational Efficiency

The operational efficiencies gained from Implementing ESLs are manifold:

1. Labour Productivity: Staff can focus on customer engagement and service, rather than spending time updating prices.
2. Real-time Pricing: This capability allows Company Shop to react immediately to changes in demand or supply, thereby optimizing inventory management.
3. Reducing Food Waste: Dynamic pricing encourages quicker sales of shorter shelf-life products, helping to ensure that less food goes to waste.

Edlin emphasizes that this innovation aligns with Company Shop's vision of reducing surplus product waste. By providing accurate, real-time pricing, customers can be assured they are receiving the best value, enhancing the likelihood of sell-through and minimizing unsold inventory.

Environmental Implications

The environmental implications of transforming operations through ESLs extend beyond just efficiency. The emphasis on reducing food waste is interwoven into the fabric of Company Shop’s mission. As Ward pointed out, the initiative not only benefits the supermarkets involved but also supports the FMCG sector by making quality food products accessible that might otherwise be discarded.

1. Climate Impact: Reducing food waste inevitably leads to fewer greenhouse gas emissions associated with food production and disposal.
2. Community Engagement: By connecting surplus goods with consumers in need, Company Shop fosters a sense of community and sustainability.
3. Supporting Local Economies: The competitive pricing enables more families to afford nutritious options, contributing to public health and community wellbeing.

The Roll-Out of ESLs

As of now, ESLs are operational in Company Shop’s St Helens and Long Eaton stores, with plans to complete implementation across all 13 locations by the end of March. The project is a collaboration with Renovotec, a specialist in retail technology solutions.

Next Steps for Company Shop

Looking ahead, the implementation of ESLs represents a major step forward not just for Company Shop but for the grocery retail landscape as a whole. The intention is to leverage this technology for greater insights into consumer behavior, allowing for enhanced product assortments and more targeted marketing.

Moreover, the alignment with sustainability goals exemplifies how modern retailers can adopt innovative technologies to not only boost their bottom lines but also contribute positively to the community and the environment.

Conclusion

The partnership between Company Shop and Pricer to deploy electronic shelf labels encapsulates a transformative moment in the retail sector. It demonstrates how intelligent use of technology can create a more efficient, customer-focused shopping experience while fulfilling broader environmental goals. As Company Shop moves forward with its roll-out of ESLs, it sets a compelling precedent for other retailers looking to modernize operations and enhance sustainability. The implications of this initiative extend far beyond individual stores, representing a movement towards a more sustainable and responsible approach to retail in the modern world.

FAQ

What are electronic shelf labels (ESLs)?

Electronic shelf labels (ESLs) are digital price tags that can be updated automatically or remotely to reflect current prices and promotions in real-time. This technology minimizes manual updates and errors in stores.

How will ESLs benefit Company Shop's members?

ESLs will provide Company Shop members with real-time pricing, ensuring they receive the best value on their purchases and allowing for faster turnover of perishable items.

What sustainability initiatives does Company Shop currently implement?

Company Shop aims to reduce food waste by redistributing surplus products, preventing significant CO2 emissions, and providing discounted products for those who qualify.

When will the ESLs be fully operational across all Company Shop locations?

The ESLs are expected to be fully operational in all 13 Company Shop locations by the end of March 2025.

Who is Renovotec and what role do they play in the ESL project?

Renovotec is a retail technology specialist partnered with Company Shop to assist in the implementation of ESL solutions, ensuring seamless integration across the company's store estate.

By harnessing technology and a commitment to sustainability, Company Shop not only thrives in a competitive market but also serves as a model for future-oriented retail practices.