The Co-op is in the midst of a major rollout of electronic shelf labels, with the aim of adding the technology to all 2,400 of its convenience stores within the next year.
The Grocer has learned that the retailer began working with French retail tech company VusionGroup earlier this year to replace paper labels, with electronic ones. It has so far reached around 340 stores, with the aim of converting around 40 a week going forward.
The Co-op confirmed the move, which it said would “improve customer experience”, enhance transparency and cut paper waste from its stores. It hopes to have installed ESLs in 1,500 stores by the end of the year, with the tech live across its entire estate by 2026.
While a number of major supermarkets, including Asda, Waitrose and Lidl, have all trialled ESLs in a limited number of stores, Co-op is the first major UK retailer to announce a full rollout.
VusionGroup works with a number of UK convenience retailers including Morrisons, as part of more than 350 grocery companies globally. In December it signed a partnership with the world’s biggest retailer Walmart to add its tech to 4,600 stores in the US.
The SESimagotag system works on the model of a “fully connected store” with shelf labels linked to inventory management systems and in-store systems. The labels installed in existing Co-op stores enable the retailer to quickly update promotions, like its member savings. They can also display vital information about different products, for example allergens, nutritional information, country of origin or whether an item is produced locally.
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Future iterations of the system will use help store staff find or restock items by “flashing” to indicate where an item should be stocked. The system could also help Co-op staff fulfil on demand orders, the retailer said.
“With convenience at the heart of everything we do, Co-op is committed to continually exploring innovative technology that can improve how we operate,” said Steven Logue, Co-op’s head of operations.
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“The electronic labels have the potential to enhance product information and transparency, avoid paper waste, and make everyday tasks like picking online orders easier – improving ways of working, supporting our growth ambitions and enhancing the shopping experience for our members and customers.”
While the technology relies on backend computer systems, The Grocer understands it has not been affected by the recent data hack on the Co-op, which crippled its supply chain, leaving shelves in some stores empty.
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