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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:

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:

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.
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.
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.
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 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.

dynamic pricing

Grocery Store Layout Strategies: From Entry to Checkout

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

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.
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.
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

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.
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%.
Wide aisles: Make sure aisles are wide enough to accommodate shopping carts and prevent congestion, especially in high-traffic areas.

Maximizing Sales Opportunities

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

Adaptability and Freshness

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.
Flexible fixtures: Use movable shelving and display units to easily adapt your layout for different seasons or promotions.

Customer Comfort and Experience

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.
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.

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

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.

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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.