ROI of electronic shelf labeling

ROI of electronic shelf labeling: 0.5% to 1% of sales

When measuring the Return On Investment of replacing paper labels with electronic shelf labels (ESLs), two easily quantifiable advantages emerge:

 

1. Cost reduction  

  • Labour costs: creation of labels, price changes (often several thousand per week, inc. promotions), price checks at the shelf edge and the management of complaints due to price discrepancies.
  • Cost of paper and of printing the labels. Electronic shelf labeling cuts these costs by more than 80%
  • Cost of the ESL solution (repayment or rental + maintenance) 
  • Overall, SES's customers save over 60% by replacing their paper labels with electronic shelf labels. 

2. Profit optimization

  • The increasing frequency of price changes is a significant trend in the retail sector worldwide (it has doubled over the last 5 years). This has led to a growing number of pricing errors, which in turn has had numerous consequences: falling profits (pricing errors, delays in displaying price rises or delays in returning to pre-promotion prices), financial penalties/fines, gestures of goodwill to appease complaining customers, etc.).
  • The use of electronic shelf labels dramatically reduces this fall in profits (by around 90%). 
  • In-store studies have shown that they have a similar impact on the trading account and on cost reduction.

How the ROI can go up to 1% of sales

 

These quantifiable advantages come with a number of other benefits, which are more difficult to measure but which weigh just as heavily in a retailer's decision to invest:

  • More dynamic and responsive pricing policy
  • Optimization of margins
  • Client satisfaction and brand loyalty
  • Image of modernity

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