5 Strategies to Transform Grocery Store Operations and Increase Profitability in 2025

Grocery-store-checkout-station

Optimizing grocery store operations is an ongoing process. Retailers are facing a wave of changing consumer expectations and evolving AI-driven technologies. 

What are the most effective strategies for keeping up with trends and getting ahead of competitors?

From understanding your fundamental business model to implementing the latest in digital displays and robotics, we’ve outlined five key strategies for transforming your supermarket operations in 2025.

One: Understand the supermarket business model

KEY Takeaway: The modern supermarket business model evolved from early innovations into the modern supermarket model. This model features core components and processes that enhance customer experience and business performance.

The modern supermarket business model is so widespread that it is easy to forget that grocery stores as we know them were once an innovative solution.

Origins of the modern supermarket

Piggly Wiggly

The first self-service grocery store, Piggly Wiggly, was opened by Clarence Saunders in Memphis, Tennessee, on September 11, 1916. Piggly Wiggly introduced innovations such as shopping baskets, price-marked items, organized product categories, and uniformed employees. These changes reduced labor costs, increased efficiency, and gave customers more control over their shopping experience.

King Kullen

The first “true” supermarket was King Kullen, opened by Michael J. Cullen on August 4, 1930, in Jamaica, Queens, New York. King Kullen’s format fulfilled five defining criteria of a modern supermarket: self-service, separate departments, discount pricing, chain marketing, and volume dealing. Cullen’s approach leveraged technological advancements like refrigeration and cellophane packaging.

Supermarkets today: the supermarket model

The supermarket model quickly gained popularity during the mid-20th century due to its improved efficiency and alignment with emerging consumer lifestyles.

Today, all supermarkets share a set of fundamental functions and processes. The supermarket model, defined according to the Integrated Modeling Method (IMM), offers valuable insights into these intricate workings by clearly identifying the common, core functional elements of any grocery business.

The supermarket model consists of four key components:

  1. Customers: The end users who purchase products from the supermarket
  2. Retail outlets: The physical locations where customers can buy products
  3. Transportation systems: Used to move products from suppliers to retail outlets
  4. Warehouse distribution centers: Facilities used to store products before they are shipped to retail outlets

These components work together to create the foundation of the supermarket business model, enabling efficient operations and a seamless shopping experience for customers.

The supermarket model also comprises four main processes that are key to effective operations:

  1. Procurement: Acquiring products from suppliers.
  2. Storage: Storing merchandise in warehouse distribution centers.
  3. Distribution: Transporting products from warehouses to retail outlets.
  4. Sales: Selling products to customers.

By understanding the evolution and workings of their business, today’s managers can more easily identify areas of improvement and optimize their operations, leading to improved efficiency, reduced costs, and higher customer satisfaction.

Two: Implement cutting-edge technology to simplify grocery store operations

KEY Takeaway: Today’s supermarkets are again facing change, in the form of new shopping trends and advances in technology. By adopting key technologies like Electronic Shelf Labels (ESLs) and advanced inventory management software, grocery stores can maintain a competitive edge.

As seen above, what was once considered a remarkable advance in operational efficiency is now a widespread norm.

With the advent of omnichannel shopping and AI-driven marketing and data tracking capabilities, traditional supermarkets are facing another wave of changes. 

While not every business will be ready to completely overhaul their operations, there are two key technologies that have a massive impact on efficiency, cost-effectiveness and a store’s ability to maintain their competitive edge:

1. Electronic Shelf Labels (ESLs)

Electronic Shelf Labels are currently in use in many large retail outlets, including pharmacies, grocery stores and hardware stores. These paperless digital price tags use wireless technology to display and update product information digitally on retail shelves.

Controlled by a central management system so that a single employee can manage all price and product updates, including changes based on promotions or stock-out situations, these digital displays show clean, multi-coloured numbers and letters on a fully customizable screen. From QR codes to nutritional information, electronic shelf labels can show whatever is necessary.

Smart Shelf Tags look almost like regular paper shelf labels, making the transition from traditional paper labels seamless from a customer’s point of view. From a retail manager’s perspective, the tags usher in a new era of data collection, facilitated in-store communication and improved efficiency. 

Electronic Shelf Labels are a fundamental technology for implementing further advanced operational functionalities via IoT. 

2. Inventory management software

Another must-have for supermarkets in 2025 is inventory management software. This software assigns unique SKUs to identify each product in your store, and can be seamlessly integrated with electronic barcodes to accelerate data entry and reduce errors associated with manual processing.

Choosing the right inventory management system makes it possible to set optimal stock levels for every item in your catalog and implement a pricing automation strategy.

The software will send automated alerts when it is time to reorder and even identify what quantities are needed. It will also enable monitoring of supplier lead times.

When combined with Smart Carts, inventory management software takes inventory analytics and personalization to a new level.

Three: Integrate Self-Checkout stations to streamline payment

KEY Takeaway: Convenience is king. Self-checkout stations are leading the way to faster, more efficient and more beneficial point-of-sales experiences for both shoppers and store managers. 

Retail stores in 2025 are finding new ways to offer fast, efficient checkout services, and consumers are showing their appreciation with heightened loyalty. Driven in part by the need for a solution to widespread labour shortages, self-checkout kiosks are proving to be more than just a temporary fix.

In addition, advanced contactless payment methods are key to attracting younger shoppers, and with security measures like scanner scales and security doors, you can be sure these fast checkout methods will lead to improved customer service for all.

Four: Unlock insights with Point-Of-Sale (POS) data and advanced analytics

KEY Takeaway: Actionable Point-Of-Sale data can be used to reveal essential insights and drive decision-making and improvements to grocery store operations.  

Your point-of-sale (POS) data is highly valuable for acquiring key insights. Analyzing the shopping patterns captured by your POS system allows you to develop merchandising and promotional strategies based on actual customer purchasing behaviors.

By using AI-driven algorithms and data analytics, you can identify products frequently bought together, and optimize your grocery store layout accordingly for convenience and to drive impulse purchases.

Five: Save time and resources with automation and robotics

KEY Takeaway: Grocery store robots are infiltrating core operations, leading to new and improved methods and opportunities for diversifying employee profiles.

It’s one thing to simply keep up with trends. It’s another to go one step further and embrace the future of grocery store operations. 

Labour shortages and changes in employee expectations are challenging the retail landscape. The solution involves reassessing your approach to staffing.

Robotics

Autonomous robots are one of the most significant innovations currently affecting the supermarket retail landscape. Capable of everything from analytics to inventory management and floor cleaning, robots are empowering grocery stores to automate core operations in new and exciting ways. They can even facilitate remote site management. 

Cross-training

As some employee functions are replaced by automation and robotics, remaining human workers can benefit from cross-training that enables them to play multiple roles within the retail outlet. This not only allows managers to make the most of the available workforce, it often results in more stimulating and satisfying jobs.

Employees equipped with varied skills can provide the necessary person-to-person assistance that some shoppers need, while fulfilling other duties during times of lower demand. Competent multi-tasking employees are also potential candidates for promotion to management positions, facilitating succession planning and employee motivation. 

JRTech is a leading provider of Electronic Shelf Labels and Digital Signage

The grocery store landscape is undergoing rapid change as new technologies present unique opportunities for improved operations and accelerated data insights. 

Better inventory management, improved OSA, less food waste and happier customers: all this and more is possible by implementing digital solutions to solve age-old problems of supply, demand and service.

JRTech is the leading provider of Pricer Electronic Shelf Labels in North America. We are proud to provide supermarkets with top-quality digital signage and ESL solutions. Contact us to learn more.

5 Inflation Pricing Strategies for Retail | JRTech Solutions

As a retailer, dealing with inflation is a balancing act – raising prices too much could result in the loss of important customers, but not increasing them could negatively affect your bottom line.

In this article, we provide you with the best inflation pricing strategies to ensure your business finds the perfect balance between cost and profitability. With our expert advice, you will have the tools that your business needs to remain competitive and profitable in the ever-changing economic climate.

Inflation trends in 2025

Inflationary trends in Canada in 2025 are proving to be a significant factor influencing the retail sector, with rising costs and shifting consumer behaviors shaping the industry’s outlook. The year has seen inflation climb to notable levels, driven by policy changes and external economic pressures, which are impacting retail sales, pricing strategies, and supply chains.

The Consumer Price Index (CPI) is the Bank of Canada’s preferred indicator of Canadian inflation, measuring how the cost of goods and services changes over time. CPI data released in February 2025 by Statistics Canada showed that Canada’s inflation rate jumped to 2.6% in that month, marking an eight-month high and exceeding market expectations of 2.2%. This surge was primarily attributed to the expiration of goods and services tax (GST) and harmonized sales tax (HST) breaks, which led to sharp price increases across various categories. Food prices rebounded by 1.3%, while clothing and footwear saw a 1.4% increase. Transportation costs rose by 3%, and shelter expenses climbed by 4.2%, underscoring broad-based inflationary pressures. Without the sales tax exemptions, inflation would have been even higher—estimated at 3% for February (Source: Reuters).

External factors such as U.S.-Canada trade tensions are also exacerbating inflation. The imposition of tariffs by the U.S., coupled with Canada’s retaliatory measures, is expected to further elevate prices in the coming months. Economists predict that inflation will remain above the Bank of Canada’s target range of 1%-3%, complicating monetary policy decisions.

Impact on Retail Sector

The retail industry is grappling with these inflationary pressures, which are affecting both operational costs and consumer spending patterns. Retail sales declined by 0.6% month-over-month in January 2025, with inflation-adjusted sales volumes dropping by 1.1%. Categories such as motor vehicle and parts dealers experienced significant declines (-2.6%), while food and beverage stores saw a notable drop (-2.5%). Although certain segments like furniture and home furnishings (+3.9%) showed resilience, overall retail performance remains subdued.

Higher prices for imported goods due to tariffs are raising costs for retailers, particularly those reliant on cross-border supply chains. This has led to increased prices for consumers, reducing demand for discretionary items. Additionally, supply chain disruptions caused by tariffs are creating inventory challenges, further straining retailers’ ability to maintain stable pricing and availability. (Source: Arcus) 

Consumer Behavior Amid Inflation

Inflation is reshaping consumer behavior in Canada as households prioritize essential purchases over discretionary spending. Rising costs for shelter and transportation—key components of the Consumer Price Index (CPI)—are leaving less room for non-essential expenditures. Retailers are responding by emphasizing value-driven offerings and promotions to attract cost-conscious shoppers. 

E-commerce sales have also been impacted, declining by 0.9% month-over-month in January after a strong performance in December. This suggests that even online retail is not immune to inflationary pressures, as higher shipping costs and reduced consumer spending weigh on growth. 

Outlook for Retail in Canada

The outlook for Canada’s retail sector in 2025 remains uncertain but not entirely bleak. Real GDP growth is projected to reach 1.8%, up from 1.6% in 2024, providing some stability for retail expansion. However, persistent inflationary pressures could lead to further declines in consumer confidence and spending if prices continue to rise. 

Retailers will need to adapt strategically to navigate this challenging environment. Emphasizing omnichannel integration, leveraging technology in the grocery, pharmacy and other retail sectors for efficiency, and focusing on affordability will be critical for maintaining competitiveness. While inflation remains a headwind, the sector’s resilience will depend on its ability to innovate and respond effectively to evolving consumer needs.

The 5 best retail pricing strategies during high inflation

With careful planning and adaptation, retailers can mitigate the impact of rising costs while positioning themselves for long-term growth amidst economic uncertainty. Here are some effective strategies to consider during periods of inflation. 

Revaluate your budget to absorb costs

There are ways to keep your profit margin intact without simply passing price increases along to the customer. Absorbing costs and adjusting your budget as a consequence may be an option to help battle inflation, rather than solely relying on price increases. 

Revisit your budget and identify areas where costs can be reduced temporarily to avoid increasing prices too high, which will help counter the decrease in consumer buying power. 

Consider consumer demand and price elasticity

Gaining insight into your company’s position within the market is key. Factors such as consumer demand can have a large impact on pricing strategies.  

If your goods or services are in high demand, it is more likely that increasing prices will be successful. In these cases, products have a strong price elasticity, which allows prices to be raised without impacting sales. However, this is not always true. 

Your pricing strategy should also take seasonal demand into consideration. During times of year when consumers are financially constrained, raising prices may lead to more consumer resistance. 

Adopt digital technologies for long-term resiliency

On the other side of the coin, you may want to consider investing in technology to become more resilient to inflation in the long run. In the short-term, it may therefore be necessary to rely on price increases for this strategy. 

According to recent research by Forrester, retailers in 2025 are leveraging technology to better reach and engage customers in novel ways during inflation. The logic here is partly due to the realities of deflationary technology, the idea that the cost of technology decreases in proportion to its usage. 

One such technology that retailers are adopting is smart shelf tags. This electronic shelf label technologyseamlessly provides consumers with real-time access to price comparisons and available promotions, giving retailers a real edge when it comes to meeting today’s demands for accurate and effective pricing information across multiple locations and channels amidst an ever-changing price landscape.   

Monitor your competitors’ pricing

Competitive pricing helps ensure that you always offer the best value for your customers. Monitoring your competitors’ pricing strategies will help inform your own decision-making process.  

Knowing when competitors are likely to increase or lower their prices can be beneficial when setting your own prices. When inflation is high and competitors are changing their prices, you should be keeping an eye on their pricing strategies and making informed adjustments. 

Implement a dynamic pricing model

A dynamic pricing model can be a great choice for companies during times of inflation. This model can help businesses maintain their profitability by automatically adjusting prices in real-time according to changes in different factors, such as supply chain costs and, as outlined above, market demand and competition. It is most effective when implemented in tandem with a pricing automation strategy, which relies on technology such as digital displays to implement the dynamic pricing model. This approach reduces the manual effort required for price adjustments while ensuring accuracy and competitiveness.

Tips for making price adjustments during inflation

Here are some tips to simplify making price changes during times of inflation: 

  • Monitor the inflation rate: Review the inflation rate regularly and make sure you are aware of any changes that may affect the cost of goods and services.
  • Set pricing thresholds: Define thresholds for when prices should be adjusted to counteract the effects of inflation.
  • Consider the impact of price changes: Consider the potential impact of price changes on current and potential customers.
  • Communicate pricing changes: Let customers know about any pricing changes and explain why the changes are necessary.
  • Use discounts or promotions: Offer discounts or promotions to offset the effects of inflation on prices. Share promotions with customers on social media and in-store using digital signage or point-of-purchase displays. 

JRTech Solutions can help you become resilient during inflation

Retailers can face tough challenges when inflation rates are high, due to increased production costs and reduced consumer spending. For continued profitability, it’s always a good idea to revaluate and optimize your pricing strategies. 

JRTech’s electronic shelf labels (ESLs) provide an optimal solution for retailers to become more resilient in the face of inflation. Automating pricing with ESLs not only eliminates the need for manual price changes, but also provides valuable product data to your employees and consumers.

Contact us now to learn more about our products and start optimizing your pricing strategy today.

4 Key Drivers of Grocery Retail Competition in 2025

Mobile-phone-with-mini-food-cart-in-grocery-store

The grocery retail landscape is undergoing a rapid transformation, driven by evolving consumer expectations and technological advancements. Understanding the key forces shaping competition is crucial for retailers aiming to thrive in the dynamic 2025 market. 

This article delves into the four pivotal drivers that will dictate success in the grocery sector, examining how value-driven consumer behavior, the rise of omnichannel retail, the impact of technological innovations, and the growing focus on sustainability and health consciousness, are reshaping the competitive playing field.

1. Value-Driven Consumer Behavior

Faced with a variety of economic pressures, North American consumers are increasingly focused on affordability and value. In the grocery sector alone, food-at-home (grocery) prices in the U.S. are forecast to increase by 3.3% in 2025, according to the USDA Economic Research Service. In Canada, the Food Price Report 2025 predicts that overall food prices will increase by 3% to 5%. As of February 2025, Canada’s Consumer Price Index already showed a 2.8% increase in food purchased from stores over a 12-month period.

As a result of the steady rise in the cost of living, today’s consumers are increasingly prioritizing value, seeking out deals, and opting for private-label brands. Economic uncertainties and changing spending habits are driving this trend, and it means that retailers must put even more focus on tactics that these hard-pressed buyers will value:

Competitive pricing

Competitive pricing is a vital tactic in grocery retail because it directly addresses the price-sensitive nature of consumer behavior in this sector. Groceries are essential goods, and shoppers are often comparing prices across multiple stores to maximize their purchasing power.

By offering competitive prices, retailers can attract and retain customers, drive increased foot traffic, and boost sales volumes. In a market where margins can be tight, strategically managing pricing to remain competitive is crucial for maintaining a strong market position and ensuring long-term profitability.

Adopting approaches such as pricing automation is becoming more and more important, in order to respond to fast shifts in the market and maintain a competitive edge.

Promotions

In the 2025 grocery landscape, promotions remain a powerful tactic due to their ability to drive immediate sales and enhance customer engagement. With increasingly price-conscious consumers and a plethora of shopping options, well-executed promotions, such as targeted discounts, loyalty rewards, and bundled deals, can incentivize purchases and foster brand loyalty.

These promotions, particularly when integrated with omnichannel strategies, not only attract new customers but also encourage existing ones to increase their basket size and frequency of visits. In a market saturated with choices, promotions provide a compelling reason for consumers to choose a particular retailer, boosting market share and optimizing inventory turnover.

Offering high-quality private-label options

Offering high-quality private-label options in 2025 is a strategic imperative for grocery retailers. In a market where consumers are increasingly value-driven and seeking unique experiences, private-label brands provide a way to differentiate from competitors.

By investing in product development and quality control, retailers can offer exclusive, premium alternatives to national brands at competitive prices. This not only boosts profit margins but also cultivates customer loyalty, as shoppers perceive the retailer as a source of trusted, high-value products.

In an era of heightened brand awareness and digital transparency, well-executed private-label strategies can enhance a retailer’s reputation and create a distinctive brand identity, driving long-term customer engagement and market share.

2. The Rise of Omnichannel Retail

In 2025, the integration of online and offline shopping experiences is crucial. Consumers expect seamless transitions between digital and physical channels.

This involves optimizing online ordering, delivery services, in-store pickup, and leveraging technology to enhance the in-store shopping experience.

Online grocery shopping is growing rapidly, projected by Forrester to reach $334 billion globally by 2025. Retailers will need to optimize their e-commerce capabilities, including seamless delivery and inventory management systems, to compete effectively with digital-first competitors.

3. Technological Advancements 

Technology is transforming grocery retail in various ways, including: 

Retailers need to invest in technology to improve efficiency by investing in digital platforms and automation to enhance customer convenience and engagement, and to personalize the customer experience, in order to stay competitive.

4. Sustainability and Health Consciousness

Consumers are increasingly concerned about sustainability and health. They are seeking products that are environmentally friendly and promote well-being.

Supermarkets can respond to this increased preoccupation with wellness in the food industry by offering sustainable packaging, locally sourced products, and healthy food options.

Retailers can also focus on reducing food waste and improving energy efficiency.

Overall, retailers are innovating store formats and product offerings to cater to a variety of new customer expectations, including promoting health-conscious items, sustainable packaging, and ready-to-eat options. Differentiation through unique and healthy experiences and merchandise will be key to maintaining competitiveness.

JRTech provides the digital tools supermarkets need to stay competitive

The forces listed above are creating a dynamic and competitive landscape for grocery retailers in 2025. Adapting to these trends is essential for success in this landscape of economic uncertainty and evolving consumer preferences.

JRTech provides retailers with the digital display technology required to implement the rapid changes and personalized experiences that today’s consumers demand.

As the leading provider of Pricer Electronic Shelf Labels in North America, we provide digital interfaces that can display promotions, nutritional information, and more. As prices fluctuate, the information on ESLs can be changed rapidly, allowing for a successful dynamic pricing strategy that responds to the economic reality of the times. 

The Electronic Shelf Labels offered by JRTech are a practical, environmentally-responsible, proven long-term solution for grocery store labeling. Contact us to learn more.

What is a Dynamic Pricing Strategy and How Does It Work?

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Dynamic pricing is a game-changing strategy that’s revolutionizing how companies set prices for their products and services. This sophisticated approach uses real-time data and advanced algorithms to adjust prices on the fly, responding to market demand, competitor actions, consumer behavior, and specific business goals.

Although it has been used for decades in some industries, such as public transportation, electricity, entertainment, leisure, hospitality and travel, technological innovations and the integration of AI capabilities are now making dynamic pricing both possible and practical in retail and ecommerce environments.

This flexible price strategy – also called surge pricing, demand pricing or variable pricing – has become a powerful tool for optimizing sales and profitability.

What is dynamic pricing?

Dynamic pricing is a sophisticated pricing strategy that relies on advanced algorithms and artificial intelligence to adjust product or service prices in real-time based on various factors, including demand, inventory levels, consumer behavior, market trends and competitor pricing. It can be implemented in various retail and ecommerce environments.

Examples of dynamic pricing

In the grocery sector, for example, a variable pricing strategy can help manage supply and demand by changing prices to incentivize purchases, reduce waste, and optimize profit margins. This approach can be particularly effective for perishable items, where prices can be lowered to encourage sales before products expire.

In the pharmaceutical industry, adjusting medication prices in real-time can help manage supply chain challenges, prevent drug shortages, and maintain a balance between profitability and accessibility. For instance, prices might be adjusted during winter months to meet increased demand for respiratory medications, or during monsoon seasons for medicines addressing waterborne illnesses.

How does dynamic pricing work?

KEY Takeaway: An effective dynamic pricing strategy relies on data collection and analysis, algorithm processing, real-time price adjustments, balancing of objectives and continuous optimizing.

There are five main components to an effective dynamic pricing strategy:

Components-of-a-dynamic-pricing-strategy-graphic-JRTech

1. Data collection and analysis

First, dynamic pricing algorithms collect and analyze vast amounts of data, including:

  • Historical sales data, including promotions
  • Current market demand
  • Competitor pricing
  • Inventory levels
  • Customer behavior
  • Seasonal trends
  • External factors (e.g., weather, events) 

The data collected will depend on the type of retail environment, the sector of activity, and the unique priorities and objectives of the business.

2. Algorithm processing

Advanced algorithms, often powered by artificial intelligence and machine learning, process this data to determine optimal pricing. These algorithms can:

  • Identify significant parameters affecting price,
  • Generate mathematical models based on these parameters,
  • Learn and adapt over time to improve accuracy.

3. Real-time price adjustments

Based on the algorithm’s output, prices are adjusted in real-time to reflect current market conditions and maximize profits. This can involve:

  • Increasing prices during high demand periods,
  • Lowering prices to attract customers during off-peak times,
  • Matching or undercutting competitor prices.

4. Balancing of objectives

Dynamic pricing aims to find the optimal price point that balances multiple objectives, such as:

  • Maximizing revenue and profit margins
  • Maintaining customer satisfaction
  • Optimizing inventory management
  • Responding to market changes quickly.

5. Continuous optimization

The process is ongoing, with algorithms continuously learning from new data and adjusting pricing strategies accordingly.

Dynamic pricing technology: what retailers need to make variable pricing a reality

KEY Takeaway: Dynamic pricing technology implements advanced data collection and analysis capabilities via AI and ML to integrate systems and predict outcomes. An effective strategy also requires price automation software and connected digital displays.

To implement dynamic pricing effectively, businesses need to leverage several key technologies:

  1. Data collection and analysis infrastructure: Robust systems are required to gather and process large volumes of data from various sources, including real-time data, historical sales data, market trends, competitor pricing, and customer behavior. Cloud-based solutions provide the necessary scalability and processing power to handle complex pricing algorithms and large datasets.
  2. Artificial Intelligence (AI) and Machine Learning (ML): These are the core technologies powering modern dynamic pricing systems. AI and ML algorithms analyze the vast amounts of data gathered in order to predict demand, understand customer behavior, and determine optimal pricing in real-time.
  3. Integration systems and predictive analytics tools: These tools allow seamless integration with existing e-commerce platforms, inventory management systems, and other relevant business software. They are used in combination with predictive analytics tools to forecast demand, identify pricing trends, and optimize strategies based on historical and current data.
  4. Price automation software: Businesses will also need software that can automatically adjust prices based on the insights generated by AI algorithms without constant human intervention.

Digital interfaces: In retail environments, Electronic Shelf Labels provide the required digital interface for displaying changing prices in a practical manner on a large scale. Digital price tags make it possible to adjust prices on multiple products as many times as necessary from a central management system. This wireless technology is key to implementing a dynamic price strategy in one or more brick-and-mortar retail outlets.

Dynamic Pricing Technologies

Dynamic pricing methods: choose the best approach for your business

There are many types of dynamic pricing models, and businesses must choose the most appropriate and relevant approach based on their sector and goals. Here are a few examples of dynamic pricing methods that are relevant to ecommerce and retail:

Time-Based Pricing

This method adjusts prices based on specific time periods, such as peak hours, seasons, or weekdays versus weekends. It can also reflect business goals related to inventory management. For example, retailers often adjust the price of older collections when new products arrive in-store. Delivery services can also be adjusted based on time, with same-day delivery costing more than next-day delivery.

Segmented Pricing

This strategy involves charging different prices to different customer groups based on their characteristics or behaviors. For instance, high-value customers might be offered higher prices if they prioritize service speed and quality over price. Senior citizens may be offered lower prices based on their age and status.

Demand-Based Pricing

This approach adjusts prices in real-time based on current market demand. Prices are raised during periods of high demand and lowered during periods of low demand. Airlines and hotels have been implementing this form of dynamic pricing for many years, but the advanced capabilities of AI are making it possible to implement this type of pricing strategy with more precision in retail environments like grocery stores. Whereas pricing adjustments made according to season or festival have always been the norm, today’s prices can also reflect global market trends and predicted fluctuations in stock. This method is sometimes referred to as inventory-based pricing.

Benefits of dynamic pricing

There are several significant advantages to using a dynamic pricing strategy in retail. While the overall result will be maximized revenue and profit margins, a flexible price strategy will also impact inventory, competitiveness, the ability to adjust in changing market conditions, cash flow, and the practical use of data.

Improved inventory management: By adjusting prices based on stock levels, retailers can better manage their inventory, promoting sales of slow-moving items and maximizing profits on high-demand products.

Flexibility and competitiveness in various market conditions: Adapting to changing market conditions in real time, including during times of economic uncertainty or disruption, allows retailers to stay competitive in a fast-moving market.

Better customer insights: The process as a whole allows retailers to gain an improved understanding of customer preferences, buying habits, and price sensitivity. It’s all about enhanced data collection as well as more focused use of data-driven insights.

Optimized cash flow: Dynamic pricing allows retailers to optimize their pricing based on real-time demand, inventory levels, and market trends, leading to increased revenue and profitability. Even during periods of lower demand, it can help you maintain revenue streams by adjusting prices to stimulate sales.

The future of retail is flexibility

The key to an effective dynamic pricing strategy is to remain flexible. By leveraging sophisticated algorithms and real-time data analysis, businesses can make informed pricing decisions that respond quickly to market changes and consumer behavior, ultimately aiming to maximize profitability and competitiveness.

There is no better time to create a dynamic pricing system that is responsive, accurate, and founded on proven technology.

As the leading provider of Pricer Electronic Shelf Labels in North America, JRTech provides retailers with the digital display technology they need to implement an effective dynamic pricing strategy. Our labels can display stock levels, promotions, nutritional information and QR codes. They are a practical, environmentally-responsible long-term solution for retail labeling that has already taken numerous large-scale retailers to the next level. Contact us to learn more.

Grocery Store Layout Strategies: From Entry to Checkout

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From the strategic placement of fresh produce at the entrance to the subtle positioning of impulse-buy items near the checkout, every aspect of a grocery store’s design must be meticulously planned. In this blog post, we will explore how grocery store layout strategies influence consumer behavior and sales.

Whether you’re looking to refresh your store’s design or refine your merchandising approach, this exploration will equip you with actionable insights to elevate your retail strategy. Embrace the power of strategic store layout design, and watch as it transforms your business, one aisle at a time.

Why does grocery store layout matter?

A strategic grocery store layout directly drives sales and shapes the customer journey. Beyond simply organizing products, an optimized layout creates an intuitive shopping flow that guides customers to what they need while maximizing exposure to high-margin items. When customers can navigate easily and discover products naturally, they spend more time in store and increase their basket size.

To illustrate the impact that strategic store layouts can have on consumer purchasing behavior and overall sales, a study conducted by the University of Southampton found that altering supermarket layouts to place healthier items like fruits and vegetables near store entrances can lead to nearly 10,000 additional portions of these items being sold weekly per store. Simultaneously, sales of confectionery items decreased by approximately 1,500 portions weekly when these were moved away from high-traffic areas such as checkouts and aisle ends.

With 8,850 grocery businesses in Canada, a good layout strategy is especially important to stay competitive, as rising consumer expectations around personalization and seamless shopping experiences demand thoughtful store design. By combining smart layout strategies with emerging digital tools, retailers can create an environment that not only delights customers but also drives profitability.

Main benefits of a grocery store layout strategy

To fully capitalize on strategic store design, modern retailers are increasingly turning to advanced technology. Through AI and IoT solutions like Electronic Shelf Labels and digital signage, stores can now collect and analyze granular data about customer behavior, sales patterns, and traffic flow. 

This integration of digital infrastructure with physical layout (referred to as phygital retail) enables real-time optimization and delivers several key advantages:

Sales Performance Benefits

  • Strategic customer flow patterns increase exposure to products and encourage impulse purchases
  • Larger basket sizes and higher overall sales reduce food waste
  • Clear sightlines and strategic placement of high-margin items boost key product sales
  • Prominent brand placement improves recognition and drives sales of branded products

Customer Experience Optimization

  • Intuitive layout enables efficient product discovery
  • Reduced congestion through well-planned traffic flow
  • Comfortable pathways between departments enhance browsing
  • Improved navigation increases customer satisfaction and loyalty

Operational Efficiency Benefits

  • Integration with Electronic Shelf Labels streamlines inventory management
  • Data-driven layout reduces stockouts
  • Efficient space utilization minimizes operational costs
  • Continuous analysis enables proactive layout refinement

The key to maximizing these benefits lies in ongoing analysis and optimization. By implementing the right digital infrastructure and analytics tools, retailers can create dynamic store environments that adapt to changing customer needs while driving sustainable business growth.

Grocery store layout best practices

When it comes to supermarket layout, there are several best practices that can help optimize sales, improve customer experience, and refine overall store efficiency. These approaches are time-tested and proven to work. Here are some key strategies to consider:

Strategic Product Placement

  1. Produce at the entrance: Place fresh produce near the store entrance. This creates a positive first impression and sets a healthy, fresh tone for the shopping experience.
  2. Staples at the back: Place common staple items like milk, eggs, and bread towards the back of the store. This encourages customers to walk through more aisles, increasing exposure to other products.
  3. Group related items together: Make the most of cross-selling opportunities by grouping related items together. For example, place salsa and dips near chips, or coffee filters near coffee grounds to inspire additional purchases.

Customer Flow and Navigation

  1. Intuitive organization: Design your floor plan in a logical, predictable manner that aligns with how customers typically shop. Group similar items together and create a natural flow through the store.
  2. Clear signage: Use large, easily readable signs throughout the store to guide customers to different departments and aisles. Digital signage is an environmentally-friendly tool for improving in-store communication, that also allows for easy updates to accommodate promotions, real-time marketing and omnichannel approaches. Studies have shown that 32.8% of customers who have seen digital signage in a store will become repeat buyers, and that implementing digital displays can increase foot traffic by 24%.
  3. Wide aisles: Make sure aisles are wide enough to accommodate shopping carts and prevent congestion, especially in high-traffic areas.

Maximizing Sales Opportunities

  1. Impulse purchase zones: Create attractive displays near checkout counters featuring grab-and-go items like snacks, drinks, and candy to encourage last-minute purchases.
  2. Make the most of endcaps: Place top-selling items or promotional products in these highly visible locations.
  3. Eye-level placement: Position high-margin or popular items at eye level to increase their visibility and likelihood of purchase.

Sales-impact-according-to-product-placement-graph-JRTech

Adaptability and Freshness

  1. Regular layout updates: Refresh your supermarket layout periodically to reflect new arrivals, promotions, and seasonal trends. This keeps the shopping experience interesting for repeat customers.
  2. Flexible fixtures: Use movable shelving and display units to easily adapt your layout for different seasons or promotions.

Customer Comfort and Experience

  1. Decompression zone: Create a welcoming entrance area that allows customers to transition into shopping mode. This might include floral displays or a coffee shop that wakes up their senses and prepares shoppers for further engagement in the shopping experience as they continue through the store.
  2. Consider line of sight: Plan your layout with customer sightlines in mind, and confirm that key products and departments are visible from various points in the store.

By implementing these best practices, grocery retailers can create an environment that not only meets customer needs but also drives profitability and fosters long-term business growth. Remember to continually analyze customer behavior, sales data, and traffic patterns to refine and optimize your store layout over time.

JRTech-grocery-store-layout-strategies-impact-on-sales

 

Optimize your grocery store with the right digital tools from JRTech

The importance of an efficient grocery store layout cannot be overstated for retailers looking to thrive in today’s competitive market. Thoughtful design strategies create a shopping environment that not only delivers an appealing customer experience but also significantly boosts your bottom line.

As you move forward, consider regularly reviewing and refining your layout based on customer feedback, sales data, and emerging retail trends. Use the right digital tools to collect valuable information about how well your store is functioning, and make informed decisions so that your layout remains fresh, engaging, and primed for success in the ever-evolving world of grocery retail.

JRTech is the leading provider of Pricer Electronic Shelf Labels in North America. We provide supermarkets and other retailers with leading-edge digital retail solutions and are proud to have helped numerous major retailers streamline their operations, reduce waste, improve their customer experience and more thanks to our innovative technologies. Contact us to learn more.

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

image-of-fully-stocked-shelves-JRTech

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:

  1. 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.
  2. Demand forecasting: Use historical sales data, market trends, and predictive analytics to anticipate customer demand and optimize stock levels.
  3. Automated ordering systems: Employ technology to trigger reorders when inventory reaches predetermined thresholds, so it can be replenished in time.
  4. Regular cycle counting: Conduct frequent inventory checks to maintain accuracy and identify discrepancies between system data and actual stock.
  5. Planogram compliance: Verify that products are placed correctly on shelves according to store layout guidelines, which improves visibility and accessibility.
  6. Supply chain coordination: Collaborate closely with suppliers to minimize lead times and maintain consistent product flow.
  7. Store-level forecasting: Monitor and adjust inventory levels based on individual store performance and local demand patterns.
  8. Integrated retail management systems: Use platforms that combine inventory management, sales tracking, and customer relationship management for a holistic view of operations.
  9. Task management for frontline employees: Assign and track restocking and inventory check tasks to confirm that tasks are completed on time, to prevent stockouts.
  10. 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.

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

JRTech-Electronic-Shelf-Labels

 

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.

How AI Is Transforming the Grocery Stores of Tomorrow

AI technology in a grocery store

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.