From Paper to Pixels. Why Major Retailers Are Investing in Digital Price Tags.
A few years ago, Electronic Shelf Labels (ESL), also known as Digital Shelf Labels (DSL), were retail novelties—at least in North America.
In Europe, it’s a different story. Over 60% of grocery retailers have already deployed ESL systems, driven by high labour costs and strict regulations on pricing accuracy. So if you visited a grocery store in, say, Germany over the past few years, between cans of Mildessa’s Sauerkraut and packages of Dr. Oetker’s Götterspeise you may have noticed ESLs with all of the price and product information.
In 2025, it’s no longer a European novelty. Implementing ESL Systems is gaining traction across North America.
Just last year, Walmart (US) announced plans to expand its ESL pilot program to 2,300 stores by 2026. This expansion is part of its broader automation strategy, having completed the automation of its Texas Distribution and Fulfillment Centers in 2021. Two years later, Walmart announced its intention to automate 65% of its retail locations by the end of 2026. A clear signal that this technology is moving from “innovative” to “essential.”
But what about Canada?
- Loblaws, Metro, and Sobeys have all tested and implemented ESLs, in some capacity, in markets across Canada.
- Sobeys recently announced an expected deployment of 5 million ESLs across its Canadian stores, with an expected completion by April 2026.
Canadian retailers are taking notice, and for good reason.
Consider how much time staff spends managing price labels. Now, imagine instantly updating prices across every store with just a few clicks.
That’s just the beginning of what ESLs can do. With retailers testing dynamic pricing (and potentially surge pricing), ESL systems are becoming critical infrastructure.
What Are Electronic Shelf Labels?
Think of ESLs as small digital displays that replace traditional paper price tags. But they’re more than just digital price tags – they’re connected devices that can display everything from pricing and promotions to inventory levels and product information.
The technology typically includes:
- High-resolution displays (often using e-paper technology for clear visibility)
- Wireless connectivity for real-time updates
- Long-lasting battery life (often 5+ years)
- Integration capabilities with existing retail management systems
Why Retailers Are Making the Switch
The numbers tell an interesting story. According to a Deloitte study, retailers using ESLs have seen up to a 70% reduction in pricing discrepancies. But the benefits go beyond accuracy:
Dynamic Pricing and Content – Implement dynamic pricing strategies based on demand, inventory levels, or competitor pricing
Operational Efficiency – Eliminate manual price changes and associated labour costs, and update prices across multiple locations instantly
Customer Experience – Display real-time product information and availability
Beyond these immediate benefits, the integration of ESLs with other retail technologies, such as RFID and IoT, is driving the development of smart retail solutions. This connectivity creates a foundation for future operational and CX innovations.
Is Your Business Ready for ESLs?
Before jumping in, consider these key factors:
Initial Investment – while ESLs require upfront capital, retailers often see ROI through:
- Reduced labour costs
- Decreased pricing errors
- Improved inventory management
- Enhanced customer experience
Infrastructure Requirements – success depends on having:
- Reliable network coverage
- Integration capabilities with existing systems
- Staff training and change management
- Clear implementation strategy
The Bottom Line
Electronic Shelf Labels (ESLs), also called Digital Shelf Labels (DSL), represent more than just a technology upgrade – they’re a step toward automation.
While Europe leads in adoption and the U.S. market is catching up, Canadian retailers have an opportunity to learn from the established players and choose a solution that best fits their needs.
Whether you’re actively planning an ESL implementation or starting to explore the possibilities, our team of Retail Fixture and Display experts can help you plan your next project. Let’s talk about your specific needs.
Join 400+ retail professionals who read our email newsletter that’s full of practical advice and design ideas. Sign up here –> https://mailchi.mp/8a889d2ab116/v2
