According to McKinsey, many industry leaders are building new organizational capabilities using electronic shelf labels with dynamic pricing that allow now instant tailoring of prices, with low labor costs, in every aisle of every store by taking into account the behavior of customers and competitors, analytical insights, and even the weather to build margins and basket size. In addition, McKinsey states that automation technologies such as electronic shelf labels can operate a typical retail grocery store with up to 55 to 65 percent fewer hours, have been proved at scale and offer internal rates of return higher than historical retail hurdle rates.
According to Deloitte, the key benefits of electronic shelf labels are:
- Centralized pricing across stores
- Instant price changes
- Can display product reviews and recommendations
- Targeted promotions