Best practice report • 19.01.2017

POCO uses ESLs: digital price tags benefit customers and employees

"You can’t put a price tag on preventing long wait times at the checkout"

Over the past few years, digital price tag or electronic shelf label (ESL) technology has improved considerably, especially in the area of visual display. Recently furniture discounter Poco has started to use ESL systems at its store in Goch, Germany – much to the delight of its staff members.

“Lately, my employees are especially happy to see me when I visit our market in Goch,“ says Sebastian Schrader, Head of Organization at Poco. The reason for this: since September 2016, the ESL system installation has –among other things- made price changes of the roughly 7,000 products much easier. 

At the beginning of last year, Poco had decided to use digital price tags in a pilot project to simplify the numerous price changes – more than 10 million processes – it conducts each year. “Compared to manual paper labeling, this system has made our pricing and tagging processes much quicker and it allows us to change prices several times a day. It also adds a high degree of reliability, ensuring that the right prices are on the product at the right time since the process is fully automated, “ explains Schrader.

Sebastian Schrader, Head of Organization at POCO,  is already convinced of the...
Sebastian Schrader, Head of Organization at POCO, is already convinced of the benefits of ESL
Source: POCO

“It’s not about reducing labor costs with ESL“ (Kai-Uwe Jensen)

From his point of view, it’s not only the employees but also the customers who benefit from this streamlined process: the prices are always updated and the associates are able to devote more time to customer service. He adds, “It was important to us to communicate that the project is not intended to reduce labor costs.“

Kai-Uwe Jensen, Sales Manager Germany at Delfi Technologies, the ESL solution provider for Poco, explains, “It is a common misconception that ESL systems result in a reduction of manpower because this technology also takes work.“ Having said that, he sees the greatest advantages in the time flexibility because price changes can be scheduled and the transparency of this digital technology. “The system behind ESL generates error logs of incorrect prices. Meanwhile, with paper labels, you don’t notice that something went wrong until the customer is already at the checkout. You can’t put a price tag on preventing long wait times at the checkout,“ Jensen emphasizes.  

ESL is red hot – advantages thanks to ePaper technology

The latest development in the ESL sector makes it possible to display more than just the price. Next to black and white, red as well as simple graphics are now also available to accommodate visual display. This is made possible by ePaper technology. It eliminates some of the drawbacks of previous LCD displays. Here, visual contents look the same from every angle due to the short distance between the imaging elements and the surface. There is no flicker thanks to the static display.

Cross-selling campaigns can be highlighted with symbols like diamonds or stars for example. A red border around the price tag can alert sales floor associates about product availability at the warehouse or indicate increased sales. Kai-Uwe Jensen explains how this works. “An inventory management system should make it possible for retailers to display logos or to distinguish organic products by including product characteristics. An image that has been stored in templates can then be assigned to specific characteristics. The ESL provider’s system must also ensure access to this data.“

The system is easy to understand and can be used by every employee...
The system is easy to understand and can be used by every employee
Source: POCO

The challenge: attaching the labels to the display shelves

On the one hand, software that’s compatible with the inventory management system and the applicable characteristics need to be stored, while it is also necessary to determine the optimal way to attach the actual labels to the shelves. In the case of Poco, this presented the biggest challenge.

Sebastian Schrader explains, “After we selected the first 3,000 top items we wanted to tag – from the special items section and not the furniture selection – we took a look at the way we present our merchandise in the market together with our shelving supplier and the ESL service provider. This revealed how we wanted to position the labels on the products in an easy-to-read format for customers. Right now, special attachments are being made for us.“

During a second step, the best label sizes for each product, article, and marketing medium were selected. “At the moment, Poco uses five standard label sizes, ranging from small size Chroma 16 for fasteners that are displayed very closely together all the way to Chroma 74 for boxed items that are showcased in bulk, “ he adds.

Finally, the layout of the labels was created by associates in the organization department. They are also the contact persons if there are any issues at the store. “We provided in-depth training to three additional people on site at the store to handle details. For example, they know how to create labels and take care of defective ones,“ Schrader adds.

All sales floor associates who work in the areas that apply ESLs know the system and are able to assign the labels to an article using handheld devices; and they are not at all afraid to use them. According to Schrader, the costs of the ESL installation in Goch are in the six-figure range. And Poco’s confidence in technology goes even further. “Next year, we are going to equip two more stores with digital price tags – one new and one existing store,“ he says.

ESL in the little supermarket Frischemarkt am Blücherplatz in Kiel, Germany...
ESL in the little supermarket "Frischemarkt am Blücherplatz" in Kiel, Germany
Source: Jensen

Small businesses can also benefit from ESL

“ESL systems are not just suited for larger stores,“ says Kai-Uwe Jensen of Delfi. Small-sized retailers can also benefit. “After all, you don’t have to equip the entire product assortment all at once with electronic shelf labels.“ For example, the Frischemarkt (English: Fresh Market) at Blücherplatz in Kiel uses electronic shelf labels for fruits and vegetables, sweet goods and Maggi products. In addition, weekly deals in the produce department are showcased on a large screen via ESL software. “It’s important for retailers to understand what they generally would like to achieve with ESLs. Once that’s clear, the technology can be used to deliver the best results,“ concludes the software expert.       

 

Autor: Natascha Mörs, iXtenso

related articles:

popular articles:

Thumbnail-Photo: Secure networking for 8,800 locations
09.04.2019   #security #software developement

Secure networking for 8,800 locations

LANCOM and ecotel to build one of the largest SD-WANs in Europe

The German network infrastructure supplier LANCOM Systems and the Düsseldorf-based ICT company ecotel have concluded a far-reaching cooperation agreement to build one of the largest WAN projects featuring software-defined networking (SDN) in ...

Thumbnail-Photo: APG Cash Drawer: new SMARTtill business development manager...
15.05.2019   #cash management #cash handling systeme

APG Cash Drawer: new SMARTtill business development manager

APG Cash Drawer announces hire of SMARTtill business development manager

APG Cash Drawer, a fast-growing global manufacturer of cash management solutions, announced today the addition of Tony Pusateri as SMARTtill Business Development Manager. ...

Thumbnail-Photo: E-commerce: AI-powered translations revitalize business...
29.04.2019   #online trading #e-commerce

E-commerce: AI-powered translations revitalize business

Interview with Boris Zielonka, Director Marketing & Sales, Eurotext AG

Retailers who set up an online store can expand their business – especially if they create a multilingual content strategy.As a language and translation service, Eurotext AG supports retailers in this endeavor. From this conversation with ...

Thumbnail-Photo: LANCOM Systems expands its solution portfolio with a range of powerful...
19.03.2019   #security #software developement

LANCOM Systems expands its solution portfolio with a range of powerful firewalls

Machine learning protects against viruses and malware

German network infrastructure supplier LANCOM is expanding its range of solutions with a full lineup of firewalls for small and medium-sized enterprises. The LANCOM R&S®Unified Firewalls are powerful solutions for effective cybersecurity: ...

Thumbnail-Photo: Digital Signage Summit Europe - 30 % discount...
07.06.2019   #customer analysis #marketing

Digital Signage Summit Europe - 30 % discount

Many of the world’s foremost digital signage experts, thought leaders and leading technology and service suppliers will come together to present a unique mix of keynotes, conference channels, awards and exhibition showcase.

Now in its 14th year, DSS Europe is the leading European strategy event exploring the business and technology of Digital Signage and DooH - here is a 30% code for our readers – 415839The theme of this year’s conference is ‘Customer ...

Thumbnail-Photo: Pioneering spirit in online retail: participation is welcomed...
27.02.2019   #online trading #food delivery service

Pioneering spirit in online retail: participation is welcomed

The startup company myEnso from Bremen shows how an online supermarket can be successful

Modern pioneers: At myEnso, customers have a say in the store’s product selection. The online store continues to evolve with its customers and focuses on quality, sustainability and an innovative spirit.We spoke with Isabella Henrichs and ...

Thumbnail-Photo: Top 8 supply chain technology trends in 2019...
07.05.2019   #supply chain management (SCM) #artificial intelligence

Top 8 supply chain technology trends in 2019

Technologies that supply chain leaders simply cannot ignore

Gartner, Inc. has identified the top 8 supply chain technology trends in 2019.Gartner’s top strategic supply chain technology trends have broad industry impact, but have not yet been widely adopted. They might be experiencing significant ...

Thumbnail-Photo: Welcome to the tenth edition of the RetailShow Exhibition...
22.03.2019   #e-commerce #cashpoints, cash register, cash desk

Welcome to the tenth edition of the RetailShow Exhibition

Exhibition of Equipment, Technology and Services for Retail

We kindly invite you to participate in the biggest, annual, B2B retail event in Poland: Exhibition of Equipment, Technology and Services for Retail – RetailShow. The closest, tenth edition will be held on 20-21 November 2019 in Warsaw, ...

Thumbnail-Photo: Interactive networking for true sales success...
06.03.2019   #digital signage #pos marketing

Interactive networking for true sales success

Smart distribution of video content at the POS

Modern retail marketing is all about communicating the right offers to the customers at the right time and in the right place. “In order to ensure the greatest possible efficiency and sales speed, for example during campaigns and special ...

Thumbnail-Photo: Introducing a new, powerful mobile POS in Posiflex’s MT series...
25.06.2019   #epos systems #cashpoints, cash register, cash desk

Introducing a new, powerful mobile POS in Posiflex’s MT series

MT-5310W from Posiflex combines the mobility of a tablet with the functionality of a fixed POS terminal. .

Today’s customers have higher expectations than ever when it comes to service. To meet and exceed customers’ ever-growing expectations, Posiflex is pleased to present MT-5310W, the latest addition to the popular MT series: a hybrid ...

Supplier

LANCOM Systems GmbH
LANCOM Systems GmbH
Adenauerstraße 20 / B2
52146 Würselen
ROQQIO Commerce Solutions GmbH
ROQQIO Commerce Solutions GmbH
Harburger Schloßstraße 28
21079 Hamburg
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden