Supermarkets have been making some big changes lately – from AI cameras being added to self-checkouts, to a SmartShop trial that allows customers to avoid the tills altogether.
Customers have been pretty vocal about their dislike of some of the new technology, with many wishing we could go back to a simpler time and some even protesting the changes.
But there’s still more change set to come, however, experts claim the latest one supermarkets are adopting is ‘exciting’.
Earlier this year, Co-op started rolling out electronic shelf labels (ESLs) in its stores, which you might have seen in other retailers like Sainsbury’s, Asda and Waitrose.
The devices themselves are nothing new as they launched more than 30 years ago, but Co-op is the first major supermarket to utilise them for customer engagement, inviting shoppers to tap their phone on them in order to sign up to become Co-op members.
These shelf labels contain what is known as an NFC, a built-in near-field communication chip, which can be read by most smartphones.
According to global semiconductor company, ST, an NFC chip ‘enables short-range, wireless communication between two devices, such as a smartphone and a consumer product.’
In this instance, you wave or tap your phone near the NFC and your phone will automatically load Co-op’s membership page, so you can sign up.
David Tyas, Co-op’s operations innovation lead, said of the new labels: ‘Co-op is committed to continually exploring innovative technology that can improve how we operate – with ease, convenience and the customer experience at the heart of everything we do.
‘The electronic labels not only have the potential to enhance product information and transparency, avoid paper waste, and improve ways of working, they can also enhance the shopping experience and make it easier for customers to become a Co-op member and start to benefit from member price savings, promotions and deals, and save on a wide range of everyday essentials.’
While this change might not seem like a huge deal on the surface, retail experts claim it’s a very ‘interesting’ move that’s never been seen before in the UK – and it could drive more innovation in supermarkets.
Toby Pickard, a retail futures senior partner from the Institute of Grocery Distribution, tells Metro: ‘We have not seen ESL technology in the UK utilising NFC technology before for customer engagement.
‘This is an exciting and forward-thinking move by Co-op. It offers customers the opportunity to benefit from membership pricing at the shelf edge, and removes a number of physical barriers to signing up to membership schemes.
‘It is a really interesting example of how the physical store is utilising technology to become more efficient.’
Toby continues to say that using ESLs in this way could help ‘free up’ supermarket employees from tasks so that they can spend more time on the shop floor helping customers.
And it’s likely we’ll start to see many other retailers utilising ESL technology to help them ‘better run their stores’.
‘This technology has many benefits, for example, it can be used to help store staff know where products go on the shelf, and the device can flash a light to indicate where to place the product,’ the expert explains.
‘This flashing light technology can also be used to help store associates pick online orders faster on the shop floors.
‘In some markets, we have even seen this technology being offered to shoppers to help them find products that they are looking for, especially in parts of the store where there can be a lot of similar looking products like the wine aisle.’
Toby claims that as well as this, there are ‘huge’ opportunities for both brands and retailers to start using ESLs to ‘bring products to life’ on shelves.
They could be used to inform customers about ingredients in products, communicate brand values or share sustainability credits with shoppers.
He adds: ‘We believe that retailers will continue to push ahead with ESL technology and other in store technology, as there are numerous benefits that digitalising the physical store can offer to them as well as brands and consumers.’
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