What are the benefits of electronic shelf labelling systems for liquor retail?

Yesterday, Endeavour Group announced that it will be introducing electronic shelf labels (ESL) in all 273 Dan Murphy’s stores by the end of the month.

The move follows on from the beginnings of similar transitions towards ESL digital price ticketing systems in other retail settings, including across major supermarkets. These trials have received mixed feedback from both consumers and experts, with some issuing concerns in relation to price changes between adding to cart and purchase.

According to Dan Murphy’s Managing Director, the nationwide introduction of the ESL digital shelf displays will bring in direct benefits both to the end-consumer and to the efficiency of store operation. 

“This is a great example of how technology can solve tangible business problems,” said Agi Pfeiffer Smith, Dan Murphy’s MD. 

This is especially relevant to a store such as Dan Murphy’s due to its lowest price guarantee which means price tickets typically have a higher turnover. 

Pfeiffer Smith said, “price beats happen with the press of a button now in every one of our stores, and we are confident based on our trials of ESLs to date that the technology mix we have in place is delivering for customers.”

The move is also being pitched as a way of saving an estimated 37,000 pieces of paper per store each year, or approximately 10 million sheets across the business' 273 stores. In addition to this, Dan Murphy's says ESLs will also remove the need for staff to manually update shelf price labels, meaning increased team efficiency and a deduction in human error.

As it stands, Endeavour Group estimates that each Dan Murphy’s store typically spends 12 hours worth of weekly staff hours on updating shelf price tickets.

“ESLs are also resulting in some positive sustainability outcomes while generating considerable cost savings right across the business,” said Pfeiffer Smith. 

Dan Murphy's also cites the added benefit of ESLs in that they can facilitate other store operation opportunities such as smartphone connection that allows customers to access tasting notes and reviews and handheld radio frequency compatibility to assist staff members during stock control and retrieval.

Yesterday's announcement also follows on from Endeavour Group launching AI technology designed to ensure that Dan Murphy's maintains the lowest price across its entire range. As a result of this technology, conversions have increased up to 30% once customers see the verified this morning LLPG banner online next to their desired beverage option.