Group for Research in Decision Analysis

Electronic Shelf Labels (ESL) in retail

Sourav Ray Research Director – Marketing Analytics, MiSCAN, Canada

In this paper we investigate the impact of Electronic Shelf Labels (ESL) on a retailer's business outcomes, and on consumer prices. On one hand, ESL could enhance retailer efficiency by reducing the lead time to price changes and the variable price adjustment costs (PAC). On the other hand, these may help the retailer realize greater value by enhancing their pricing capabilities. We analyze the point of sale (POS) data stream in a couple of supermarket chains that implemented ESL, to find that the impact on customers is contextual; and that there are potentially significant benefits accrued to retailers.

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