We know that tobacco (much like fuel) is historically a driving factor in customer traffic and loyalty for convenience stores. Typically, customers who enter the store for cigarettes are more likely to spend additional dollars on food, snacks and alcohol. But, costs per pack have gone up over the past year, and rebates, inventory management and resource allotment can often seem unsuccessful and result in tight margins.
You probably already know the benefits of Electronic Shelf Labels (ESL). In a few seconds, you can remotely change pricing on an item throughout a single store – or all your stores. You can introduce a promotion, modify it or end it. And you can display stock and merchandising messages to help your team more efficiently manage in-store processes.
Every grocer – from a giant chain to a small corner shop, faces the same challenge: how to change prices quickly to respond to fluctuations in demand, local conditions (such as a heatwave or a sporting event) and competitors’ moves. And, in the drive to protect margins and reduce food wastage it’s critical too to continually graduate the pricing of time sensitive goods – e.g. fruit / vegetables, flowers, the deli counter and more.
What can Bluetooth do for your stores? For a quick view – watch our animation – or read on. It’s a question that’s been discussed in retail forums for a while now. But, before I look at that, let me explain why I think Bluetooth should play a role in your marketing strategy.
The prospect of a new IT project can make the heart sink: day-to-day operations have to be put on hold as the system is installed, teething problems invariably arise, and IT’s time is taken up with working out how to manage a new infrastructure.
Coop Denmark, a giant of the Danish retail industry, operates in the competitive and fast-moving convenience sector. It has revenues of approximately DKK 50 billion (US $9.2 billion), employs 35,000 people, has more than 1.7 million members and operates through several brands including Kvickly, SuperBrugsen, Dagli’Brugsen and coop.dk.
As is common with many retailers, store staff were tied up in time-consuming and
expensive processes to manually manage shelf-edge pricing and promotions. To reduce this time and cost, and improve pricing accuracy, Coop Denmark looked for a more efficient way to manage these processes. It ultimately decided to deploy our Electronic Shelf Labels (ESLs).
Andrew Dark, CEO, Displaydata
At Displaydata, we are encouraged by the new standard leading
grocery retailers worldwide continue to set for the rest of the industry. And, as we blogged about last October, tecnology’s role in the effort to reduce food wastage globally is continually growing. In retail, dynamic pricing is being implemented by grocers to strategically price perishable items throughout the day, to encourage shoppers to purchase those items. In our experience, we’ve found retailers that decrease pricing by 1% throughout the day, see an increase in sales of 2.62% on average. To further reduce their environmental impact, retailers are using digital signage like ESLs to display the pricing changes instead of traditional paper tags, allowing for a more flexible pricing strategy without excess waste.