Smart Pricing in a Changing Market: How Electronic Shelf Labels Help Consumers Navigate Tariff-Affected Products

The Shift in Consumer Habits

The current and ongoing threat of tariffs between the USA and Canada has led to a significant cultural shift in the buying habits of consumers. With growing economic tensions, Canadian consumers are making a conscious effort to support local businesses and products. This shift is not just a reaction to economic policies but also a reflection of national pride, as more consumers actively seek out Canadian-made goods.

Retailers Identifying Locally Made Products

As consumer preferences evolve, retailers are working to identify and promote Canadian-made products more effectively within their stores. To address this need, JRTech Solutions and the non-profit organization Well-Made-Here/Bien-Fait-Ici have partnered to integrate the Well-Made-Here/Bien-Fait-Ici certification into JRTech’s electronic shelf labels (ESLs) in hardware stores across Canada. This initiative ensures that products meeting the organization’s criteria are clearly marked, making it easier for shoppers to identify and choose locally produced goods which comply with Canadian building codes and standards (source).

Similarly, Laferté Hardware was the first Hardware store to leverage JRTech Solutions’ ESLs to highlight Quebec-made products with a fleur-de-lis icon and Canadian-made products with a maple leaf icon. These dynamic labels provide a seamless way for retailers to support and promote domestic goods while aligning with consumer demand.

Tariff Identification on Store Labels

Recently, Loblaws, a major Canadian supermarket chain announced a new initiative to help customers navigate the impact of tariffs. The retailer is incorporating a “T” symbol on price labels to indicate products that have increased in cost due to tariffs (source). This move echoes the importance of transparency in pricing, allowing consumers to make more informed purchasing decisions in response to external economic pressures.

The Role of ESLs During Crisis Periods

The COVID-19 pandemic provided a clear demonstration of the importance of adaptable pricing technology in retail during challenging times. During the pandemic, retailers faced an exponential increase in supplier-driven price changes, often with fewer employees available to manually update pricing. JRTech Solutions’ ESLs allowed retailers to instantly update prices across stores with minimal effort, ensuring accuracy and operational efficiency. This was a welcome relief to retailers who were burdened by doing more with less staff while also implementing COVID-related health measures within their stores. Following the pandemic, JRTech conducted a study to assess retailers’ perceptions of ESLs after having dealt with the first wave of the pandemic. The findings revealed that 92% of retailers viewed electronic shelf labels as essential to their operations, particularly in addressing challenges imposed by crises like COVID-19.

ESLs: A Solution for Price Volatility and Trade Uncertainty

Today, the ongoing trade tensions between the U.S. and Canada present new challenges for both retailers and consumers on both sides of the border. Fluctuating currency values and tariff-related price increases create uncertainty, making it more difficult for retailers to maintain stable pricing strategies. ESL technology provides a powerful solution by allowing stores to dynamically adjust prices in response to economic changes while simultaneously identifying product provenance through national symbols or tariff indicators.

This real-time adaptability of electronic shelf labels ensures that customers are always informed about pricing changes while enabling retailers to remain competitive in an unpredictable economic climate.

ESLs are proving to be more than just pricing tools; they are becoming critical assets for retail adaptability. Whether addressing shifts in consumer preference, responding to supply chain disruptions, or navigating international trade tensions, ESLs provide retailers with the agility they need to stay ahead. By embracing this technology, retailers can not only meet evolving market demands but also prepare for unforeseen challenges in an increasingly unpredictable future.

As the retail landscape continues to evolve, businesses must evaluate how ESLs can enhance their operations—not just for current market conditions but for whatever challenges may arise next.

Supermarket Technology Trends: From Smart Carts to AI

Grocery stores, once simple spaces for food procurement, are now transforming into high-tech hubs. From self-checkout lanes to smart carts, technology is revolutionizing the way we shop. Join us as we explore the latest trends in grocery store technology and how they’re shaping the future of supermarket retail.

Smart carts for seamless in-store shopping

Smart carts are gaining significant traction in supermarkets around the world. Large retailers like Amazon Whole Foods are implementing smart carts that use AI and computer vision to automatically track items as they are placed in carts. The technology of real-time inventory tracking instantly identifies items removed from shelves, allowing retailers to quickly and effectively manage stock levels in warehouses, dark stores and store outlets.

Smart carts also eliminate the need for traditional checkout lines by allowing customers to scan and pay for items directly through their cart. Some carts also offer store navigation features, helping shoppers find what they are looking for quickly and easily.

Personalization can lead to increased sales for retailers and savings for customers, and smart carts present huge potential for facilitating custom shopping experiences on a large scale. Built-in screens provide product information, pricing details, and personalized recommendations as customers shop, including targeted promotions and coupons based on their shopping history and current cart contents.

In addition, if customers can complete their purchase and leave the store without unloading items at a checkout counter, it saves time and reduces frustration. Smart carts cater to convenience-seeking shoppers, particularly millennials and centennials who prefer self-service options and are accustomed to omnichannel shopping. The technology aligns with the expectations of digital-savvy consumers who have become used to seamless online shopping experiences and expect a comparably easy and fast in-store shopping experience.

Electronic shelf labels: fast, efficient, eco-friendly data communication

Electronic shelf labels are a key technological component of any advanced grocery retail system, both in-store and in warehouses. While computer vision and AI combine to offer an unprecedented level of support, both of these examples of IoT in retail require the right tools so that they can work. Enter Electronic Shelf Labels, the small tags that identify the price and code of each item on a shelf.

Digital price tags are the backbone of any effective grocery store retail outlet, as they provide the basis for integrating more advanced technology into a store’s processes and systems.

In short, these paperless, wireless tags do much more than just display the price of an item. They can be integrated with sales management software to track inventory, provide additional product information and more.

Pricer ESLs from JRTech feature Instant Flash LED lights that illuminate when a product is scanned or a button is pressed. Combined with geolocation technology, these lights can guide store employees to products with low or out-of-stock levels, making “click and collect” fulfillment simple and fast. Additionally, Instant Flash helps prevent restocking errors by visually highlighting the correct product placement.

Pricer’s digital labels can display detailed information like last order dates, quantities, planned deliveries, sales averages, and more. This data can be accessed on-demand or at specific times using a handheld device. By providing additional insights and guidance, Pricer ESLs streamline grocery store inventory management, enhance data accuracy, and minimize human error.

AI-powered, data-driven insights for reduced supply-chain costs

Smart carts are only one example of how grocery retail is being transformed by AI. Artificial intelligence can be used to create unprecedented data-driven insights for the grocery retail industry based on everything from shopping patterns and behaviors to inventory and trends. Retailers can use these insights to optimize store layouts and product offerings for improved customer experience and more efficient store operations, which can in turn lead to an increase in profits.

In warehouses, robotics that rely on AI can be used to improve fulfillment processes through picking, dynamic slotting and path planning, marking an important advance in an area that 89% of grocers believe is vital to improving profitability. A report from data analytics firm Grocery Doppio predicts that AI will create $113 billion in operational efficiency and new revenue in the grocery retail industry in 2025. It also reports that nearly three-quarters of grocery technology executives believe AI will be incorporated into most of their software by 2025, highlighting the significant impact artificial intelligence is having on the grocery retail industry.

Retail AI is making it possible for retailers of all sizes to implement predictive inventory management, automated restocking alerts, pricing optimization and efficient and cost-effective event-driven marketing thanks to demand forecasting. In larger grocery retail outlets, AI can also be used for fraud detection, in particular when implemented in tandem with computer vision.

Computer vision for items and shopper ID

Computer vision refers to computers’ ability to interpret and understand visual information from the world. It involves methods for acquiring, processing, analyzing, and extracting meaningful information from digital images and videos.

For example, computer vision can be used to recognize fruits and vegetables at a self-checkout station. Accurate produce ID can then be displayed on the screen so that shoppers are guided to use the correct PLU (Price Look-Up) codes when checking out.

Computer vision tools are what make it possible for smart carts to automatically identify and count items in the cart. They are a key component of the shelf-scanning robots used for inventory management, and can also play a key role in detecting theft and suspicious behavior in-store by analyzing customer behavior and dwell times, which helps reduce shrinkage without profiling customers.

Advanced computer vision technology allows images to be interpreted at a high level by computers, and can even be used to automatically inspect produce and other perishables, or to identify damaged goods. Currently, only a few larger chains are currently implementing robotics on the floor, such as Walmart’s Alphabot, however this particular implementation of computer vision could have a big impact the future, as robots can pick and pack orders up to 10 times faster than humans.

Overall, computer vision is key to the future of grocery technology, in particular as the shopping experience becomes increasingly autonomous.

Autonomous shopping: self-checkout & Just Walk Out supermarket technology

Today’s consumers expect shopping to be easy and quick, and they anticipate a very high level of accuracy and service at every stage of their grocery shopping journey. In response, retailers are relying on technology to provide the fastest, most efficient checkout experience possible. Enter the technologies of self-checkout kiosks and Just Walk Out (JWO) checkout-free shopping.

Self-checkout

Self-checkout kiosks are now established as a normal feature of most larger supermarkets. While the basic features of scanning and tallying items remain more or less the same, advanced features and more refined capabilities are continually being added to these already efficient, cost-effective checkout stations. Improved barcode scanning capabilities, integration with mobile payment systems and, in some cases, AI-assisted item recognition are speeding up the process even further, making these kiosks invaluable tools for any large grocery retailer who wishes to remain competitive.

Just Walk Out

The Just Walk Out technology represents a “grab and go” approach to shopping that aims to eliminate traditional checkout lines. This approach relies on frictionless checkout technologies, which involve the implementation of systems that use computer vision and sensors to track items and automatically charge customers so they don’t have to scan their items themselves.

According to Amazon, who is pioneering the technology that makes JWO shopping possible, there are over 170 third-party locations using Just Walk Out technology in the US, UK, Australia, and Canada in 2024. It is an approach to retail shopping that is gaining traction and could be the future of grocery retail shopping.

JRTech is your partner for digital retail pricing solutions

By leveraging technology across various areas of grocery store operations, grocery retailers can significantly improve operational efficiency, reduce costs, gain valuable data-driven insights and create a better customer experience.

At the heart of enhanced operations are the tools that link products, consumer experience and data: Electronic Shelf Labels. For solutions that make it possible for you to incorporate the most advanced technologies in your retail outlet, trust the world’s most reliable electronic shelf labels system, Pricer.

Based in Canada, JRTech is the leading provider of Pricer Electronic Shelf Labels in North America. We provide supermarkets and other retailers with top-quality digital retail pricing solutions so businesses can streamline their operations, reduce waste, improve the customer experience and more. Contact us to learn more.

What Is On-Shelf Availability (OSA) and How Can You Improve It

What Is On-Shelf Availability (OSA) and How Can You Improve It?

On-shelf availability (OSA) is a critical metric in retail management that measures whether items are available for sale where and when customers expect to find them. By focusing on OSA, retailers can improve the in-store experience, minimize waste, and boost their bottom line. On-shelf availability is vital to succeeding in today’s competitive retail landscape.

How is on-shelf availability calculated?

OSA is calculated as the percentage of products readily available for customers to purchase in a store. For example, if a brand wants ten of its best-selling Stock Keeping Units (SKUs) to be present in a store, but only five are available on the shelf, the OSA for that particular product assortment would be 50%.

How OSA impacts retail success

Retailers can drive sales, improve customer satisfaction levels, optimize inventory management, and maintain a strong competitive position in the market, all by improving on-shelf availability. Here are several ways in which OSA significantly impacts retail success:

Sales and revenue

High OSA directly increases sales and revenue. According to research by McKinsey & Company, improving OSA by just 1% can boost sales by 20 to 35 basis points. Additionally, an IHL study estimates that retailers globally lose $1.77 trillion annually due to inventory distortion.

Customer satisfaction and loyalty

Consistent product availability improves customer satisfaction and encourages repeat business. When products are unavailable, customers may turn to competitors, potentially damaging customer trust and loyalty.

Inventory management

According to a global study on out-of-stocks by Corsten and Gruen, when shoppers encounter out-of-stock items, 36% either buy the item at another store (27%) or do not make a purchase at all (9%). Improved inventory accuracy means lower risk of understocking or overstocking, which reduces additional costs and lost sales opportunities.

Employee productivity

Poor OSA negatively impacts employee productivity. Employees spend an average of 12.5 hours per week on restocking activities, diverting them from other tasks and increasing labor costs. Improved OSA can make this task more efficient and cost-effective.

Demand forecasting

Focusing on on-shelf availability also supports accurate demand forecasting. By examining sales data and inventory levels, brands can more effectively anticipate future demand for their products, and adapt production and supply chain processes.

Competitive advantage

Retailers maintaining high OSA gain a competitive edge in the market by providing a reliable shopping experience and meeting customer demand. It can also improve brand image, as brands that consistently ensure product availability are perceived as reliable and trustworthy by consumers.

Inventory turnover

Improved OSA leads to better inventory turnover, reducing the risk of overstocking and minimizing holding costs.

On-shelf availability and inventory management

Inventory management and on-shelf availability are inextricably linked. Stockouts and excess inventory can lead to lost sales revenue and increased storage costs. By optimizing their inventory management practices, retailers can reap the rewards and benefit from improved on-shelf availability as well.

Let’s take a look at approaches that can benefit both on-shelf availability (OSA) management and overall inventory management:

Real-time inventory tracking: Implement systems that provide accurate, up-to-date information on stock levels both on shelves and in backrooms. JRTech plays a role in bringing intelligent and interconnected inventory management solutions to retailers by integrating inventory scanning robots developed by our recent acquisition BrainCorp, ESL technology, and AI. These technologies make it possible for retailers to rely on a seamless solution that elevates inventory tracking, analysis, and management. Groundbreaking solutions like ours allow retailers to achieve higher levels of speed and accuracy in ensuring shelves are always stocked and products are correctly priced.
Demand forecasting: Use historical sales data, market trends, and predictive analytics to anticipate customer demand and optimize stock levels.
Automated ordering systems: Employ technology to trigger reorders when inventory reaches predetermined thresholds, so it can be replenished in time.
Regular cycle counting: Conduct frequent inventory checks to maintain accuracy and identify discrepancies between system data and actual stock.
Planogram compliance: Verify that products are placed correctly on shelves according to store layout guidelines, which improves visibility and accessibility.
Supply chain coordination: Collaborate closely with suppliers to minimize lead times and maintain consistent product flow.
Store-level forecasting: Monitor and adjust inventory levels based on individual store performance and local demand patterns.
Integrated retail management systems: Use platforms that combine inventory management, sales tracking, and customer relationship management for a holistic view of operations.
Task management for frontline employees: Assign and track restocking and inventory check tasks to confirm that tasks are completed on time, to prevent stockouts.
Alert systems for low stock: Implement automated notifications to prompt quick action when products are running low.

Practical strategies to reduce stockouts: technology is key

Today’s retailers know that technology plays an important role in managing inventory and preventing stockouts for better OSA. With the right digital infrastructure, your store can benefit from a significant increase in efficiency and therefore profit. By strategically combining advanced technologies with well-planned initiatives, retailers can significantly improve on-shelf availability.

In-store OSA strategies

Barcode scanners or RFID systems: Tracking inventory in real-time significantly improves accuracy. By using the right technology to verify that stock levels in the system match what’s actually on the shelves, you can reduce discrepancies that can lead to stockouts.
Electronic Shelf Labels (ESLs): These are digital displays attached to store shelves that show product information and prices. ESLs can be updated remotely and in real-time. RFID scanners and ESLs can work together in retail environments for highly efficient inventory management, and can even be integrated into warehouse environments via IoT for state-of-the-art stocking and supply chain management.
Automated inventory management: Using software that tracks stock levels in real-time and automates reordering processes helps optimize stock levels. Products are replenished before they run out.

Supply Chain Strategies

Set reorder points: Calculating and setting reorder points for each product is one way to make sure new stock is ordered before existing inventory is depleted.
Reduce lead times: Working to minimize the time between placing an order and receiving stock allows for more responsive inventory management and improved on-shelf availability.
Supplier relationships: Developing strong relationships with suppliers can lead to more reliable deliveries and better communication about potential supply issues.

Data-Driven Approaches

Identify stockout patterns: Regularly auditing and monitoring stock to identify days and times when stockouts tend to peak is a target approach that allows for adjustments in replenishment schedules, improving overall on-shelf availability.
Analyze customer trends: Studying market trends and customer behavior helps in forecasting demand more accurately.

JRTech is a leading provider of technology solutions for on-shelf availability

JRTech is the leading provider of Pricer Electronic Shelf Labels in North America. We are proud to provide supermarkets, pharmacies and other major retailers with top-quality digital signage and ESL solutions that help retailers prevent stockouts and guarantee consistent product availability on shelves.

With the right solution, you can streamline your operations, reduce waste, improve customer experience and more all by implementing successful on-shelf availability strategies. Contact us to learn more.

smartlabels

Smart Shelf Tags: Bridging the Gap Between Digital and Physical

Modern-aisle-in-store-with-smart-shelf-tags

Smart shelf tags, also known as electronic shelf labels (ESLs) or digital price tags, are a modern retail technology that offers numerous advantages over traditional paper price labels. They are a key element of smart shelves, and a required tool for implementing AI-driven omnichannel shopping features and data-driven marketing strategies.

In short, smart shelf tags are a simple, efficient technology that gives retailers the ability to manage pricing and in-store communication by making fast and coherent changes to labels while effectively minimizing costs related to staffing and logistics.

Numerous major retailers across North America, including Metro and Rona have already implemented smart shelf tags, and many more are in the process of doing so. From convenience stores to large grocers, pharmacies and liquor stores, retailers of all sizes can benefit from this advanced technology to manage inventory, improve the customer experience and increase profits.

Smart shelf tags: a digital solution for brick-and-mortar retail

Electronic Shelf Labels are digital displays that replace traditional paper price labels on store shelves. They use electronic paper or LCD screens to show product information, prices, and other details in real-time. These tags can be updated remotely through a central server, allowing for quick and accurate price changes across an entire store.

This technology complements the evolving trend of phygital retail, where the physical and digital aspects of a shopping experience are intertwined so that both consumers and retailers benefit from streamlined pricing and product information.

Today’s consumers expect a fluid interaction between online and in-person shopping. When prices are updated to reflect a promotion or seasonal adjustment, smart shelf tags can reflect these changes instantly, so that prices in your online store match those in your brick-and-mortar location. This means there is less chance of error, and more likelihood that consumers will be satisfied by coherent and consistent pricing information.

Key features of smart shelf tags

The benefits of smart shelf tags extend beyond the in-store experience. When implemented correctly, they contribute to improved inventory management, reduced labour costs, and even the environmental sustainability of your operations.

Real-time pricing updates

Smart shelf tags allow retailers to adjust prices instantly across their stores. This makes it possible to implement dynamic pricing strategies and pricing automation with complete pricing accuracy.

Improved inventory management

By integrating with inventory systems, smart tags can help track stock levels and alert staff when restocking is needed. They can also be used in warehouses to facilitate management of stock and ordering.

Enhanced customer experience

Digital tags can display additional product information, promotions, and even personalized offers to shoppers. The customization of the shopping experience is a highly relevant factor in customer retention and consumer satisfaction.

Reduced labor costs

Automating price updates eliminates the need for manual relabeling, freeing up staff for other tasks.

Environmental sustainability

By eliminating paper waste from frequent price changes, smart tags contribute to more eco-friendly retail operations.

How smart shelf tags work

Smart shelf tags use wireless technology to digitally display and update product information on retail shelves. Each digital display is connected to a central management system, which processes and packages product data and prices into information packets, which are then sent to communication stations. These stations relay the information to individual smart shelf tags throughout the store. They can also be integrated with point-of-sale and inventory management systems.

Read our full breakdown on how digital price tags work for a deeper dive.

What smart shelf tags look like

Smart shelf tags are made from either electronic paper or LCD (liquid crystal display) screens, but they look just like traditional paper shelf tags. Some models do allow for a more complex, multicoloured display, such as the SmartTAG™ line, a next-generation smart shelf label offered by JRTech.

Smart shelf tags present crisp text and images, and can be used to display more than just prices. Stock availability, promotions, nutritional data, and QR codes can all be added to specific labels or groups of labels, as you prefer. Labels from JRTech can even be integrated with low-power flash notification systems to help store staff locate products for online orders or restocking.

Types of retailers using smart shelf tags

Smart shelf tags are currently being used by a wide variety of retailers for their efficiency and enhanced functionalities.

They are particularly useful in:

Any retail environment with frequent price changes or large product catalogs can benefit from the implementation of smart shelf tags.

Smart shelf tags from JRTech

There is a clear trend of increasing interest in smart shelf tags among major retailers in North America. Many retailers are researching and starting to invest in this technology due to its potential benefits for operations and customer experience.

By implementing smart shelf tags, retailers can modernize their operations, improve efficiency, and provide a more engaging shopping experience for customers. As retail continues to evolve, these digital solutions are becoming increasingly important for staying competitive in the market.

JRTech is a leading provider of enterprise-grade Pricer Electronic Shelf Labels, the most reliable smart shelf tag system available. Contact us to find out how smart shelf tags can streamline your retail pricing operations.

smartlabels

How AI Is Transforming the Grocery Stores of Tomorrow

Supermarkets around the world are already actively using AI to improve grocery shopping processes. From smart shopping carts to predictive inventory management, AI is ushering in a new era of convenience, efficiency, and personalization.

This technological revolution promises to redefine the shopping experience, streamline operations, and even tackle pressing issues like food waste.

AI is personalizing your grocery shopping experience

Artificial Intelligence is currently revolutionizing the supermarket industry by facilitating the creation of highly personalized shopping experiences. AI can analyze vast amounts of customer data to predict and personalize customer needs and preferences, offering smart product recommendations in real-time. This includes suggesting products based on dietary preferences, past purchases, current cart contents, and other individual factors.

AI can even offer personalized nutritional advice and product suggestions based on health data and dietary needs. Future integrations may be able to incorporate data from fitness trackers to suggest products aligning with specific health goals.

These types of personalized recommendations are being presented to individual shoppers via AI-powered smart carts. Interactive displays on the carts present users with custom offers and promotions as they move through the store. Smart carts guide shoppers to the products they want much more efficiently and improve the shopping experience – all while collecting valuable data on consumer behavior.

AI also improves in-store search and discovery capabilities, which is a huge advantage for supermarkets that are struggling to find ways to compete with the convenience and ease of online shopping and the omnichannel approach to retail.

Conversational search allows customers to search for products in a more natural, conversation-like way, which is especially effective when navigating through complex food categories like cheese. Thanks to the incredible amounts of data AI can process and use in real-time, search results can be tailored to individual tastes and past behaviors to maximize grocery shopping ease.

AI can also take personalization one step further to generate predictive shopping lists. By analyzing past purchases, AI can predict what items a customer might need and suggest pre-populated shopping lists. Additionally, systems can remind customers when they’re likely to run out of frequently purchased items.

Some retailers are even exploring individualized AI-driven dynamic pricing, the ultimate example of AI-driven shopping personalization. In this model, prices vary based on consumer data related to individual shopping habits and loyalty.

AI in supermarket inventory management and stock optimization

AI is also making waves in grocery store inventory management, an area that is notoriously difficult to control because it requires the processing of massive quantities of data into actionable insights in record time.

AI tools make it possible to crunch vast amounts of data at unbelievable speeds, allowing retailers to implement predictive analytics and anticipate stock demand. This allows supermarkets to significantly reduce overstocking and avoid stock-outs.

With smart carts, inventory levels are integrated into databases in real time, making it possible to respond to demand and adjust with minimal delay. And smart carts are not the only way to implement data-analytics using AI: supermarkets can also rely on robots equipped with cameras and sensors (computer vision) to monitor inventory levels and alert staff to restock items before they run out. This technology improves accuracy in inventory management and makes it possible to control product availability and predict needs much more accurately.

Technologies like Electronic Shelf Labels facilitate the implementation of AI solutions for inventory management. Electronic shelf labels are the small tags that identify the price and code of each item on a shelf, and they are one of the fundamental tools that supermarkets are implementing in tandem with advanced AI functionalities to upgrade grocery store processes and systems.

These paperless, wireless digital price tags do much more than just display the price of an item. They can be integrated with sales management software to track inventory levels, provide additional product information, and more.

Last, AI algorithms can predict inventory needs based on consumer behavior and external elements. This means that items leaving the shelves is not the only factor that will be taken into consideration when demand is calculated. Demand forecasting is reaching a whole new level of accuracy and speed thanks to artificial intelligence in supermarkets.

Supermarket AI and food waste reduction

Food waste management is a priority for consumers and retailers alike, and AI is helping to solve the problem. By accurately predicting demand, supermarkets can better manage inventory levels, helping to reduce food waste.

In fact, the more efficiently inventory of perishables and fresh goods is managed, the more effectively grocery stores can minimize food waste across the board. This applies to AI-driven solutions implemented on both a large and small scale.

For example, AI can be used to manage mass ordering, and AI-driven recommendations can even encourage customers to buy relevant products. Product availability, consumer demand and the minimization of food waste go hand in hand.

AI is also being used to impact energy management. AI systems optimize energy consumption in supermarkets by managing heating, ventilation, and air conditioning (HVAC) systems hyper-efficiently. By micro-managing energy consumption, AI contributes to large facilities’ capacity to support retail sustainability goals and minimize the impact of retail operations on the environment.

Self-checkout systems

AI enables cashier-less transactions of various types. In its most advanced format, retailers are experimenting with completely frictionless payments where customers can simply walk out with their groceries after smart carts or the Just Walk Out technologies automatically scan their items for them. This reduces wait times and streamlines the checkout process.

Less advanced self-checkout systems with some level of customer and staff involvement have become a standard feature in most large supermarkets. While the core functions of scanning and totaling items have stayed consistent in this format, new advanced features and capabilities are being continually added to make the process smoother and easier.

Upgraded barcode scanning, integration with mobile payment options, and even AI-assisted item recognition using computer vision are further accelerating the checkout process, making cashier less transactions the new normal.

Supply chain optimization

As in-store inventory management attains a whole new level of efficiency, AI is also being used to support warehouse inventory management and to control every step in the supply chain.

By predicting fluctuations in demand and improving supplier management, AI is improving grocery store logistics, leading to timely deliveries and reduced stockouts.

In warehouses, robotics that rely on AI can be used to improve fulfillment processes. Picking, dynamic slotting and path planning are only three of many functions AI-driven robotics can perform. Brain Corp’s BrainOS® Sense Suite exemplifies this through autonomous inventory scanning robots that analyze product availability, pricing accuracy, and item locations, enabling retailers to identify operational inefficiencies and capitalize on sales opportunities.

Supply chain optimization is being transformed by the advanced capabilities of AI, and it’s already proving to be a game changer.

Loss and theft prevention

According to Time Magazine, retailers lose an estimated $1.75 trillion a year globally due to out-of-stock, mispriced or misplaced items. AI-based solutions are helping to fix this problem.

Intelligent surveillance systems help prevent theft by monitoring customer behavior and identifying suspicious activities in real-time. AI-powered cameras can detect suspicious behaviors like concealing items or swapping barcodes, and potential theft behaviors such as loitering, unusual movements near high-value items, or unauthorized access to restricted areas. The system can alert staff in real-time, allowing for immediate intervention.

AI analyzes transactions at self-checkout kiosks to flag suspicious patterns, like entering cheaper items for expensive products. Some systems can even predict when and where theft is likely to occur based on past incidents. By analyzing historical data, AI can predict peak times and locations for theft attempts, allowing stores to allocate security resources more effectively.

Some advanced systems are exploring biometric payment options, like retinal scans, to reduce fraudulent transactions. AI systems continuously learn and adapt to new theft techniques, helping businesses stay ahead of evolving shoplifting methods.

Data-driven decision-making

Artificial intelligence continues to shape the supermarket retail environment by allowing businesses to more easily cater to customer preferences and shopping habits, assisting in their overall marketing strategies.

AI analyzes vast amounts of data to uncover insights about consumer preferences and shopping patterns, making it possible for supermarkets to tailor promotions and product placements more effectively. Data-driven decisions are only useful when the available data is processed and interpreted in a practical, actionable way, and AI offers a realistic approach for doing this.

For example, price automation and dynamic pricing strategies are made possible when AI processes vast amounts of data related to consumer preferences and shopping patterns. AI tools help retailers adjust prices based on market trends and consumer behavior, maximizing sales potential while remaining competitive.

AI also makes it possible for retailers to orchestrate targeted marketing campaigns using personalized emails and dynamic coupon galleries aimed at individual consumers, which has been proven to increase engagement.

Technology for tomorrow from JRTech

As we peer into the future, it’s clear that the grocery stores of tomorrow will be far more than just places to buy food; they’ll be hubs of innovation where AI and human needs intersect in surprising and delightful ways.

AI is transforming grocery shopping from the point of view of both the supermarket retailer and the consumer to create stores that are smarter, more responsive and more efficient in every way.

JRTech is a leading provider of enterprise-grade Pricer Electronic Shelf Labels, the most reliable digital price tag system in the world. Our cutting-edge solutions play a key role in providing the infrastructure required to implement more advanced AI capabilities in the supermarket environment.

Contact us to learn more about Electronic Shelf Labels, the data communication tool you need to embrace the technology of tomorrow.

What is Price Automation for Retail?

In an era of advanced digitization and communication, consumers expect accurate information at every stage of their customer journey. There is arguably no more important and visible piece of data than product price.

Retail price management is a challenge currently being met by an array of advanced AI-driven solutions. Among them, price automation has emerged as a ground-breaking solution that offers significant advantages to retailers in various sectors.

By leveraging advanced algorithms and data analysis, companies can adjust and optimize their pricing strategies in real-time to increase revenue and profitability. In this post, we’ll dive into the world of price automation, exploring its benefits and the technology and tools required to implement it successfully.

What is pricing automation?

Pricing automation is the use of software and algorithms to automatically determine the best pricing of goods or services. Based on various factors including market conditions, costs, customer behaviors, and competitive data, price automation software analyzes and calculates the optimal price for a given product at a given time. Using tools like Electronic Shelf Labels, retailers can then display these prices accurately, quickly and easily. Today’s businesses can optimize for profitability and customer satisfaction without relying on slow and costly manual processes.

How price automation works

There are six main steps involved in the process of price automation.

Step One: Data Integration

The price automation software gathers and integrates data from various sources, including product lists, current prices, competitor prices, customer segments, inventory levels, sales volumes, and e-commerce traffic. This data forms the foundation for the pricing strategy.

Step Two: Pricing Rules

Next, the software designs pricing rules using preset or custom logic aligned with your unique business objectives and relevant market dynamics. These rules guide how prices will be set and adjusted for different product segments.

Step Three: Data Analysis

The integrated data is analyzed using algorithms to identify patterns and determine optimal pricing strategies. All the above criteria are included in this analysis.

Step Four: Price Recommendations

The system generates pricing recommendations based on the analysis of the collected data and evolving, real-time factors. These recommendations are designed to maximize profits while remaining competitive.

Step Five: Continuous Monitoring

The system continuously monitors the market and competitors, and automatically adjusts prices in real-time or in batches as necessary.

Step Six: Implementation and Evaluation of Prices

Prices are continually updated and the business impact of each pricing scenario is repeatedly evaluated. This step may involve approving new prices, resolving alerts, and checking calculations.

Price automation technology

Price automation relies on advanced technology to collect, process and analyze data. An effective price automation strategy also requires state of the art digital and electronic display tools to communicate with consumers and staff in outlets and warehouses.

Price automation systems

Price automation systems use complex algorithms to analyze data and determine optimal pricing strategies. Many pricing automation solutions are cloud-based to offer scalability and flexibility. These platforms allow businesses to manage pricing across different products and channels and provide a unified approach to pricing management.

The most widely-used price automation systems are price optimization software, pricing analytics software, dynamic pricing tools, repricing software, and rule-based pricing systems.

Rule-based pricing systems

Setting predefined rules or constraints to guide the pricing process is a common tactic. These rules can be based on business objectives, market trends, or customer segments. For example, a rule-based system might use static pricing rules or “if-then” statements to manage prices. With an automatic pricing system, a retailer could implement a rule that always sets their product prices to be 3% lower than a specific competitor’s prices, or such that all prices end with “.99”, or to achieve a minimum profit margin of 10% on all products. Prices will be automatically adjusted to meet these criteria even if costs or competitor prices change.

Price automation tools

Price automation allows businesses to adjust prices in real-time. Retailers need the right software to do the analytics, but they also need the right tools to display prices quickly, consistently and clearly.

Electronic Shelf Labels (ESLs) are the transformative technology behind price automation within retail settings. They allow for instant and automated real-time updates of product prices across the store, which guarantees that prices are always up-to-date and accurate.

Prices can be adjusted via a central management system for digital price tags at any time. Store managers can control promotions and other product information from the same interface, which streamlines the management process and provides a coherent shopping experience for all consumers.

Benefits of price automation for retail

Pricing automation offers numerous benefits to a variety of businesses operating within the retail sector, including large grocery stores, pharmacies and liquor stores. Efficient and accurate price implementation makes it possible for retailers to adapt quickly and increase profits.

Efficiency

Price automation leverages advanced technology to implement complex pricing models tailored to specific business needs. Intricate modelling and data analysis offers a huge advantage over manual and human efforts to accomplish a comparable task.

Online and offline coherence

As phygital shopping continues to influence all retail strategies, brand and price consistency are key to retail success. Price automation makes it possible for retailers to display competitive, accurate prices across all channels simultaneously to create a coherent omnichannel shopping experience for their target consumers.

Real-time price updates

In retail and ecommerce, pricing automation allows businesses to set optimized prices based on real-time market data and consumer behavior. It would be impossible to implement price changes on such a large scale and in response to such a vast dataset without the use of artificial intelligence, specific software and digital price tags.

Price integrity

Price automation impacts the number of human hours required to do price research and other manual processes. It impacts both efficiency and accuracy by reducing errors and freeing staff to focus on other areas of the business.

Dynamic pricing

Pricing automation makes it possible for retailers to implement dynamic pricing to respond swiftly to market fluctuations and maintain a competitive edge. With transparent, competitive and flexible pricing, retailers can gain consumer trust and increase customer satisfaction.

Increased profits

Choosing prices that are not only competitive but also profitable is made possible by pricing software that takes into account numerous factors, including competition, demand, and inventory availability. This helps maximize profits through higher sales volumes at strategically set price points.

Higher customer satisfaction

By analyzing customer buying patterns and market trends, automated pricing tools help retailers understand consumer behavior and tailor their pricing strategies accordingly. This can lead to more effective retail promotions and discounts that align with customer preferences. The better the offer, the more likely it is to both satisfy the customer and bring profit to the retailer.

JRTech: price automation tools for major retailers

With the right systems and tools, retailers can leverage price automation as a competitive approach to effectively managing and optimizing their pricing strategies.

JRTech is a leading provider of enterprise-grade Pricer Electronic Shelf Labels, the most reliable price automation system in the world. We also offer other electronic and digital technology, including digital signage solutions. Contact us to find out how these tools can take your retail operations to the next level.

Electronic Shelf Labels for Pharmacies

Today’s pharmacies do much more than prepare and sell prescription and over-the-counter medications. With a varied selection of in-store products, in addition to order fulfillment and assisted shopping services, pharmacies represent an increasingly complex type of retail business.

The contemporary challenges of inventory management, customer satisfaction and omnichannel shopping are creating a demand for innovative solutions for all types of brick-and-mortar outlets. Fortunately, technological solutions such as electronic shelf labels (ESLs) are available to address the various difficulties that pharmacies face in this fast-evolving sector.

How ESLs can improve pharmacy inventory management

Electronic shelf labels can do much more than just display the price of an item. They can be integrated with sales management software to track inventory, provide additional product information and more.

Pricer ESLs are equipped with Instant Flash, LED lights that are designed to flash at the scan of a product or the press of a button. These can be used in conjunction with the brand’s geolocation technology to guide employees on the floor to products that are listed in the system as having low or negative stock levels. The flash-guided solution can also be used to prevent products from being restocked incorrectly (e.g. placed on shelves with similar but not identical products).

Pricer digital labels are also able to display additional pages with information such as the last order date and quantity, planned delivery dates, average quantities and sales, etc. These pages can be displayed at scheduled times or accessed in real-time via a handset.

The additional information and guidance provided by ESLs can streamline pharmacy inventory management, improve data accuracy and reduce human error.

Order and pricing accuracy in pharmacies

Consumers expect their orders to be fulfilled accurately, and prices to be fair and up-to-date. Digital price tags can help pharmacies accomplish both of these goals.

Streamlined order picking

The rise of online shopping and the pandemic have led to major shifts in consumer shopping habits. “Click and collect” ordering has become popular, even for essentials such as groceries and pharmacy items. The task of going through the store collecting items that was once done by the customers themselves is time-consuming for employees and costly for retailers.

Pricer ESLs can streamline the process considerably. Order pickers can use the Instant Flash lights and geolocation technology to navigate around the store and quickly find the required items, saving up to 10 seconds per pick.

Instant price updates and improved accuracy

While paper labels must be changed manually every time a price is updated, electronic shelf labels are automatically updated through a centralized system and can be changed in seconds at any time. This drastically lowers the labour costs associated with price changes, reduces human error and inconsistencies and improves customer satisfaction. It also helps pharmacies maintain a commitment to sustainability.

Improved efficiency within pharmacies

Digital price tags are proven to improve operational efficiency within a retail environment. Thanks to near-instant updates to information on labels, including pricing, promotions and inventory displays, ESLs make in-store management faster and easier. Gone are the struggles associated with manual errors and time-consuming label-printing. Thanks to the ability to implement dynamic pricing, pharmacies can present accurate price displays in real time, and keep their competitive edge.

Pharmacy customer experience

Thanks to the current digital transformation in retail, pharmacies can offer customers the best possible access to the products they need, and offer all types of customers the fast, simple shopping experience they value so highly.

When ESLs are updated via a central management system, customers can be confident that the price displayed on the shelf is accurate. If they are in search of a promotion, or prefer to make their purchase online thanks to a QR code, digital price tags can make it happen.

In the health industry, where users are potentially in a vulnerable condition, it is of paramount importance that their experience as customers is as comfortable and efficient as possible.

Transform your pharmacy with JRTech Solutions!

Particularly with both pharmaceutical and retail items to manage, inventory management software combined with Electronic Shelf Labels can give pharmacies a major advantage. Digital price tags are a great way to cut costs, improve the customer experience and optimize overall operational efficiency.

JRTech Solutions is North America’s leading supplier of digital pricing solutions from industry pioneer Pricer. We offer cutting-edge electronic shelf labels and other digital signage for retail—pharmacies, grocery stores and more. Contact us today to bring your pharmacy into the digital age!

How Do Digital Price Tags Work?

Digital price tag on grocery produce shelf

Electronic Shelf Labels (ESLs), otherwise known as digital price tags, are a key component of effective retail operations. Whether they’re put to use in small convenience stores, large grocery stores, pharmacies or warehouses, this environmentally-friendly solution for price updates and inventory management is widely accepted as the new standard for on-shelf communication.

When it comes to efficient retail operations, digital price tags work for you. But how do they actually work? Let’s take a closer look at how this paperless, wireless technology functions.

Display technology

Electronic Shelf Labels (ESLs) work by using wireless technology to display and update product information digitally on retail shelves. Each individual digital display screen is linked to a central management system (more about that below). Some models only require power during updates.

Even though they are paper-free, digital shelf labels look almost like regular paper shelf labels. They can be made from electronic paper (E-paper) or liquid crystal display (LCD) screens, both of which display crisp, clean letters and numbers. Some models can also incorporate colours and other types of visual information.

For example, the SmartTAG™ line, a new generation of ESL available through JRTech, offers total freedom of design via a customizable screen. The e-ink used for displaying information on these tags can display bright colours and sharp and attractive graphics.

Many types of product information can be displayed using digital price tags, including stock levels, promotions, nutritional information and QR codes. They can even be integrated with a low-power, flash notification system to facilitate product identification by store employees who are fulfilling online orders or restocking shelves.

Central management system

A central server or label management software controls the entire ESL system. This software processes and packages product data and prices into information packets, which are sent to communication stations.

These stations relay the information to individual digital price tags throughout the store. The ESL tags receive the transmitted data and displays are updated accordingly, showing new prices or other product information.

Central management means fast, efficient and cost-effective label updates, leading to the complete optimization of your in-store operations management. After the initial investment, retailers can save costs on labour and materials by doing label updates digitally, instead of manually by store staff. This also reduces the risk of error, as labels are controlled at a single source and can be updated in batches of any size.

Wireless communication

Wireless communication is what makes electronic price tags so efficient. A central server sends information to communication stations using wireless networks.

While some ESL systems rely on radio-frequency to do updates, this type of system can potentially involve delays to batch updates. Infrared electronic shelf labels, such as those sold by JRTech, have the advantage in terms of both speed and reliability. Visible light communication is also used, though less often.

All types of wireless communication means labels can be updated as often as necessary, with no paper waste or time-consuming printing operations.

ESLs can also be implemented in combination with advanced IoT technologies and systems that make the most of AI tools. As part of a larger strategy, digital labels can be used to enhance shopping personalization and perform advanced data collection and analysis, leading to greater profits and higher levels of consumer trust.

How electronic shelf labels could work for you

Electronic Shelf Labels facilitate supply chain management by making it possible to update and adjust pricing and other information across thousands of displays rapidly and efficiently. The ability to implement dynamic pricing strategies quickly and efficiently will give retailers a competitive edge in a fast-evolving market.

They also serve as more than simple display tags, enabling coordination with inventory management software, mobile payments using NFC technology, and other internet-based functions and solutions. Geolocation and Put-to-light technologies can also be integrated for even more advanced functionality.

ESLs are designed to be energy-efficient, with some models offering battery life of up to 10 years. As such, they are more than just a paper replacement: they are a practical, environmentally-responsible long-term solution for retail labeling that can save millions of tons of waste per year.

By automating the price update process, ESLs help retailers reduce labor costs and improve pricing accuracy. They can provide valuable data on customer behavior when integrated with other retail technologies.

JRTech supplies Electronic Shelf Labels to leading retailers

The electronic shelf labels sold by JRTech represent the most reliable price automation system in the world.

You can trust these solutions to provide high-performing results in a variety of retail environments.

5 Innovative Food Waste Management Technologies

Food waste is a global crisis with staggering proportions. According to the latest UN Food Waste Index Report, a shocking 1.05 billion tonnes of food were wasted in 2022, accounting for nearly one-fifth of all food available to consumers. In the United States, the problem is equally alarming, with 38% of the food supply—88.7 million tons—going unsold or uneaten in 2022. This waste carries a hefty price tag, costing the U.S. economy approximately $473 billion in the same year.

Retailers and supermarket chains play a significant role in this wasteful cycle. The retail sector alone was responsible for 131 million tonnes of food waste globally in 2022.

This immense amount of food waste has significant environmental, economic, and social impacts. However, with the rise of AI and IoT technologies, numerous innovations are emerging that can help retailers in the food industry contribute to the food waste solution, rather than the food waste problem.

How to tackle food waste in the big picture: measure, then act

The WRI Report on Reducing Food Loss and Waste puts an emphasis on measuring food waste. Data is essential when developing food waste management strategies, integrating solutions, and assessing the results of actions put in place.

As more and more European countries begin to measure food waste, with a declared target of reducing food waste by half between 2016 and 2030, retailers need to have the technology to support accurate evaluation of inventory and keep up with expected level of awareness.

Thanks to both global and local initiatives, grocery stores can measure food waste and take meaningful action to fight it. By facilitating food waste management at the micro level, retailers can begin to help solve the bigger issue.

Challenges retailers face when it comes to food waste

Grocery stores face several challenges when trying to reduce food waste.

Inefficient Supply Chain: The supply chain for grocery stores is often highly inefficient, leading to overstocking and waste. Common challenges include inaccurate demand forecasting, inadequate inventory management, and poor communication between suppliers and retailers.

Cosmetic Standards: Consumers often have high cosmetic standards for fresh produce, leading to the rejection of fruits and vegetables that are still edible but do not meet these standards.

Short Shelf Life: Perishable foods have a limited shelf life, making it challenging for grocery stores to sell them before they expire. This can lead to waste if not managed effectively.

Customer Awareness: Customers may not be aware of the impact of food waste or how to reduce it, unless they are educated via in-store promotions, recipe cards, and other initiatives that can encourage them to make informed purchasing decisions.

Limited Use of Technology: Grocery stores may not be utilizing technology such as digital smart labels, AI-powered dynamic pricing systems, and inventory management software to optimize their operations and reduce waste.

5 food waste management technologies

AI and IoT are being leveraged to help businesses participate in the creation of a Circular Food Economy, which the European Commission defines as “an economy where the value of products, materials, and resources is maintained for as long as possible, and the generation of waste is minimized”.

Following the model of “measure” then “act”, large retailers are beginning to use AI and IoT both in-store and behind the scenes to improve operational efficiency, collect and use data, and find new, innovative solutions to the problem of food waste in retail.

For example, AI-enhanced food storage solutions can actively monitor and control storage environments by adjusting factors like temperature and humidity to extend the shelf life of food. By predicting and automatically adjusting storage conditions for various food types, these AI systems can significantly reduce spoilage rates. This technology has the potential to be especially transformative in warehouses and refrigerated transport, improving food preservation and efficiency.

AI can also significantly enhance the efficiency of the food supply chain by analyzing large data sets related to food production, distribution, and consumption. This capability allows for the identification of inefficiencies and prediction of potential waste areas. Specifically, AI algorithms can accurately forecast food demand so that retailers can optimize their inventory levels and minimize overstock, thereby reducing waste.

Food waste management technologies for retail

Let’s take a look at four technologies that have been developed specifically to reduce foods waste in grocery stores:

1. OneThird

OneThird, a company named for the statistic that one-third of the world’s food is wasted, provides cloud-based software and handheld scanners to retailers and distributors, enabling them to predict the shelf life of produce with AI.

They also offer quality assessments to aid suppliers in making decisions that minimize waste. The company boasts high accuracy in its shelf-life predictions through data analysis and other methods, ensuring timely delivery from farm to fork.

2. JRTech

JRTech Solutions is the #1 supplier of Pricer Electronic Shelf Labels (ESLs) in North America, and has equipped major grocery chains such as Metro, Super C, Whole Foods, Avril Supermarché and more. They are a provider of next generation ESLs specifically designed to support even the most demanding activities in the new era of store floor automation and digitalization, SmartTAG Power & Power+.

ESLs can significantly contribute to reducing food waste in grocery stores by allowing retailers to:

Promote surplus inventory: ESLs can be used to promote surplus or near-expiry products through targeted discounts, encouraging customers to buy these items and reducing the likelihood of waste.
Improve inventory management: ESLs can help retailers track inventory levels more accurately, enabling them to better manage stock and reduce overstocking of perishable items that may go to waste.
Implement dynamic pricing: ESLs can be integrated with AI-powered dynamic pricing systems, which adjust prices based on real-time data and market conditions. This approach offers consumers competitive prices while supermarkets maximize their profits, reduce waste and maintain their commitment to sustainability.
Make real-time updates: ESLs allow for instant price changes and updates on product information, so retailers can dynamically adjust prices for items nearing their sell-by dates. This encourages customers to purchase products before they expire, reducing the likelihood of waste.

3. Apeel

Technologists are also addressing the challenge of extending the shelf life of perishable fruits and vegetables. Apeel Sciences has developed a product that coats fresh produce with a protective layer made from oils derived from the byproducts of other processed fruits and vegetables. While it has yet to be approved by health food advocates, this coating helps produce last longer, providing consumers more time to purchase and consume it, thereby reducing waste.

Food waste management technologies for food recovery

It doesn’t stop here. Food recovery technologies are also being developed at record speed to enhance the efficiency of food recovery and redistribution by real-time matching of surplus food with areas of need.

For instance, an AI system can process data from food banks, shelters, and excess food from restaurants and grocery stores to effectively direct donations to where they are most needed, so that surplus food is used to feed people instead of being wasted in landfills.

4. Spoiler Alert

Several tech startups are aiding food companies in managing data on unsold products. Spoiler Alert, founded by MIT graduates, utilizes analysis of unsold inventory from manufacturers and wholesale distributors to identify potential waste and recommend prevention strategies. Already adopted by major companies like Sysco and meal kit provider HelloFresh, Spoiler Alert has helped reduce food waste by 50% and double donations within a single year.

5. Flashfood

Flashfood, a company based in Toronto has created a platform that helps users find food items that are close to their best-before dates, purchase them at reduced prices, and pick them up in-store. This system not only allows consumers to save money but also helps grocery stores minimize losses and reduce their carbon footprint, creating a mutual benefit. The technology is particularly effective for larger chains, which tend to produce more waste.

JRTech is a trusted provider of Pricer Electronic Shelf Labels

Food waste is a major challenge faced by retailers and economies worldwide. By implementing the right technologies, grocery stores can make significant progress in reducing food waste, protecting their profit margins, and promoting a more sustainable food system.

JRTech has a proven track record in providing high-performing digital tools to retailers in the food industry. Digital technologies, including inventory management software and Electronic Shelf Labels, play a key role in effectively solving the food waste problem.

Contact us today to implement our technology and help your business embrace the future of sustainable, low-waste food sales.

Phygital Retail: Blending Physical and Digital Shopping

Shopper using phygital retail technology

The retail landscape has undergone a significant transformation in recent years and one trend that’s gaining traction is the phygital retail experience.

As shoppers increasingly demand a seamless interaction with brands across all touchpoints, phygital retail offers a way to bridge the gap between digital and physical spaces. This approach not only refines the shopping experience but also has the potential to drive sales, with 43% of shoppers indicating they’re likely to spend more with retailers that offer meaningful in-store experiences.

As e-commerce continues to grow, accounting for 24% of global retail sales by 2026, creating an effective phygital strategy will be important for retailers to win and retain customers in this new retail landscape.

What is phygital retail?

Phygital retail is a term that combines the words “physical” and “digital.” It refers to a retail experience that merges the best of both online and offline worlds to create a unique, integrated and seamless shopping experience.

This approach recognizes that today’s consumers want to move smoothly between physical and digital touchpoints. Phygital retail aims to bridge the gap between the two worlds so that customers can enjoy fluid, coherent shopping experiences within an omnichannel retail environment.

How does phygital retail work?

Phygital retail thrives on the integration of multiple touchpoints to create an omnichannel ecosystem where each platform complements the others.

In short, phygital retail works by integrating digital technologies such as augmented reality (AR), virtual reality (VR), in-store digital kiosks, mobile apps, QR codes and the Internet of Things (IoT) into physical stores to optimize the shopping experience.

Benefits of phygital retail

There are several factors that make phygital retail a perfect way to achieve the key elements of a successful shopping experience for all types of retail customers.

Consistent omnichannel shopping

In the core of phygital retail is the idea of creating seamlessness. This means retailers aim to give shoppers a unified and integrated journey across all the different touchpoints they interact with the brand, without any friction or disconnect.

High level of personalization

Post-pandemic, 71% of consumers expect companies to deliver personalized interactions and 76% get frustrated when this doesn’t happen. Personalization is a driving force in modern retail and phygital strategies take personalized experiences to new heights by leveraging customer data, artificial intelligence and machine learning algorithms to deliver tailored recommendations, offers, content and interactions to each individual shopper.

Seamless convenience

Retailers can successfully integrate digital elements into their physical stores and physical elements into their digital stores to combine the advantages of both physical and online shopping.

Live video shopping allows customers to interact with a live host or ask questions, see products in action and get as much of a physical experience as possible while shopping online. It’s convenient for avoiding crowds and line-ups during peak seasons and still includes that all-important element of customer engagement.

Enriched customer experience

Some customers want distinctive in-store experiences that cannot be replicated online while also enjoying the flexibility to shop, pay and fulfill orders from any location. Brands can create unforgettable, immersive in-store phygital experiences using technology, lighting, music, visual merchandising and more, while allowing consumers to finalize purchases online.

Others want the convenience and information-rich experience of online shopping while still being able to physically interact with products. Digital kiosks or mobile apps can provide in-depth product info, real customer feedback and personalized recommendations – all right there in the store! This empowers shoppers to make smarter choices with confidence.

Real-time availability updates

One common shopping frustration, especially during busy seasons, is the potential unavailability of popular items. Phygital retail alleviates this issue by offering real-time information on product availability. Customers can easily verify whether a product is in stock at their local store or ready for immediate online delivery, minimizing the likelihood of disappointment from finding items sold out during store visits.

In addition, as AI solutions find their way into the retail landscape, adjustable in-store product displays using digital signage make it possible to update important stock and promotional information almost instantaneously across multiple store locations.

Data-driven insights

The better you understand your customers, the better you can serve their needs. Phygital retail provides data-driven insights that enable businesses to understand customer behavior, preferences, pain points and shopping habits.

This data can be used to tailor marketing strategies, improve customer service and create targeted promotions. Informed decision-making is key to success in the retail industry, combined with effective marketing campaigns and optimized inventory management.

Loyalty

A positive customer experience is proven to yield higher customer-satisfaction rates and boost sales-conversion rates. By creating a phygital retail environment that successfully responds to consumer demand for an engaging, personalized omnichannel shopping experience, brands can dramatically increase individual customer loyalty and reap the many benefits of repeat purchasing.

When to implement phygital retail

Suppose you own both a physical retail store and an online shop, making 25 in-person sales and 200 online sales monthly. It might seem like your brick-and-mortar store isn’t performing well, but a portion of your online sales might actually come from customers who initially visited your physical store and later made their purchase online.

By developing an omnichannel shopping experience, you can maintain engagement with these customers across both platforms, thereby enhancing the potential for repeat business. Phygital retail works in every situation where consumers interact with your brand in both physical store locations and online.

How to implement phygital retail

By merging physical and digital storefronts, retailers can provide a holistic shopping experience that combines the best components of ecommerce and brick-and-mortar business models to boost sales revenue.

Phygital retail can be used on a grand scale, but many businesses can integrate elements of the trend with accessible technology like Electronic Shelf Labels to drive efficient use of data and effective in-store communication.

Here are 5 simple ways to begin implementing phygital retail:

Offer flexible fulfillment options: Allow customers to buy online and pick up in-store (BOPIS) or use curbside pickup, reducing shipping costs and increasing sales.
Streamline checkout: Implement self-checkout or no-checkout options, like Amazon Go’s “just walk out” experience, to digitize the checkout process and make things more convenient for customers.
Implement endless aisles: Offer buy-in-store, ship-to-home options to increase in-store sales and create a seamless customer experience, even when products are out of stock.
Use local push notifications: Communicate with customers through mobile notifications to alert them to new products, special offers and post-purchase follow-ups, building relationships and boosting engagement.
Host pop-up stores: Add a physical presence to online businesses with short-term pop-up shops, allowing customers to engage with products in person and testing the waters for a physical location.

Challenges of implementing phygital retail

Some common challenges of adopting a phygital approach include:

Implementing digital technologies
Ensuring data privacy and security
Overcoming the complexities of maintaining inventories across channels.

Retailers need to choose and invest in technology that supports their current business model and ecommerce tech stack and prioritize data security by implementing robust security measures and complying with data protection regulations.

As with any new strategy, start small, test and then scale.

Examples of phygital retail

Several well-known businesses have already embraced the phygital trend, including Harry Rosen. They have successfully created digital versions of their in-person services, combined the traditional in-store experience with the simplicity and convenience of online shopping and used digital technologies to elevate the physical shopping experience.

Here are three industries that are successfully using a phygital approach for retail success in 2024:

Pharmacies: Some pharmacies have introduced virtual consultations with pharmacists to allow customers to assess their needs at home and proceed to in-store pick-up or delivery at their convenience.
Liquor Stores: Many liquor stores have digital kiosks that allow customers to find information about their accounts digitally. Customers have the option to interact with digital channels while still visiting the physical location. If they have a concern, an actual human is close to assist if needed.
Clothing: Luxury brands are embracing the phygital in creative ways. Guggi uses innovative social media campaigns to catch millennials’ attention and was one of the first to design interactive in-store displays that let customers search through, rewind and pause content with hand gestures.

JRTech is a trusted provider of phygital retail solutions

While some sources, like the New York Times, claim that phygital and omnichannel retail are basically the same thing, there is no doubt that the trend – whatever you want to call it – is here to stay.

Phygital retail has the potential to offer retailers improved operational efficiency and higher profitability, but to make phygital integration a success, retailers need to know which digital technology to implement.

JRTech has a proven track record in providing high-performing digital tools to retailers in various industries.

Contact us today to learn how our digital signage and cutting-edge Electronic Shelf Label technology can help your business embrace the future of phygital retail.