OnDemand WTP Pricing Research

Retailers Should Pay Extra Special Attention To Kroger’s Shelf Labeling Plans With Microsoft | Forbes

While it is neat to see digital displays come to life within a store, and while the label shelving substrate alone is enough to make someone feel like they suddenly walked into an episode of Star Trek Next Generation, the “tech,” even with all its flashing fruit, should not overshadow why digital pricing displays are so important.

The real value in digital price signage lies somewhere else entirely, in that digital price signs finally level the playing field with e-commerce. The issue is not talked about enough, but legacy bricks-and-mortar retailers have a decided strategic disadvantage when it comes to price.

Pricing operations and practices within stores are archaic. Just take a look at the steps involved in changing prices at a physical store:

  • Weekly prices are set at a headquarters level (the degrees to which data science is involved here can vary greatly too)
  • Prices are then sent over to a label manufacturer for printing
  • The physical price labels are then sent out in large print batches to a retailer’s stores
  • Headquarters and store teams then assign payroll hours and schedule workers each week based on the size of the pricing label workload
  • Store level teams then unpack, unbox, and collate all said price labels at a store when they arrive (provided too that store workers can find the boxes of signs amid all the other boxes of mail they receive as well)
  • Store employees then place the price labels on products and shelves throughout the store
  • Finally, the unending loop of death begins again and again from the top, week after week.

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Retailers Should Pay Extra Special Attention To Kroger’s Shelf Labeling Plans With Microsoft.