More retailers are adopting electronic shelf labels (ESLs) to enhance their efficiency and sales. These digital price tags enable real-time updates to prices and promotions across stores, cutting costs, improving operational efficiency, and ultimately boosting sales. By integrating QR (quick-response) codes, ESLs provide customers with additional information such as nutritional details, customer reviews, and promotions.
Leona Tan, manager of consumer industries and retail at consultancy Kearney, discussed the technology’s benefits at the Retail Asia Summit 2025 in Bangkok. Tan highlighted French retail chain Monoprix, which installed ESLs and in-store cameras across 97 locations. The cameras capture images every 30 minutes to spot stock shortages or disordered products, alerting store staff for quick restocking.
This technology identified the top 500 fastest-moving products, ensuring they were always available. As a result, on-shelf availability improved by 6%, and revenue saw a 1.2% increase. We see ESLs as not only a tool to save on operational costs but also a means to improve margins through dynamic pricing,” Tan said.
Retailers are implementing various automation technologies alongside ESLs. For example, Walmart is increasing automated processes and digital touchpoints, Sainsbury’s is using machine learning to optimize inventory, and Tesco is enhancing in-store digital screens to increase advertising revenue. The retail automation market is projected to grow at an annual rate of 14.7%, reaching $39.67 billion by 2030, up from $20.02 billion this year, according to Mordor Intelligence.
Enhancing stores with ESL technology
Tan also noted that modern shoppers expect a seamless experience across online and offline channels, real-time stock visibility, and consistent pricing. Stores now serve as interaction hubs and logistical nodes, not just purchasing locations.
Managing an expanding product range has become more complex, requiring greater pricing and inventory agility due to volatile macroeconomic conditions. Tan described a future shopping experience where a customer could use a robot assistant to locate an item, with digital screens showcasing new products and QR codes providing additional information. Meanwhile, store associates fulfilling online orders would receive alerts guiding them to the correct items via automated shelf lights.
A well-executed digital transformation strategy could improve operating margins by up to 2.5 percentage points, according to Kearney’s estimates. Larger stores gain more from operational efficiencies, while fast-moving product categories benefit most from inventory and shelf optimization. Tan emphasized that cross-functional coordination is vital for implementing digital initiatives like ESLs.
“These technologies can reduce costs and optimize prices, but require collaboration across departments,” she said. Digital transformation should be a CEO-level priority, demanding strong leadership and cultural change. Success depends on employees adopting a data-driven mindset, making real-time decisions, and refining their work processes through continual experimentation.
Tan concluded, “The technology is only as good as the people using it. Effective digital transformation is beyond installing hardware; it’s about fostering a culture that embraces and leverages data for better decision-making.”
