Unlocking the next phase in retail transformation

The wireless standard for Electronic Shelf Label can help retailers automate pricing, establish more efficient in-store operations, and higher shopper satisfaction

The Bluetooth Special Interest Group (SIG) has released a new wireless standard for the Electronic Shelf Label (ESL) market. Until now, ESL systems have relied on proprietary protocols for wireless communication, presenting a potential barrier to global adoption. To address this challenge, leaders from the ESL industry teamed with the Bluetooth SIG to create a scalable, ultra-low power, highly secure ESL wireless standard based on Bluetooth technology.

Retail shelf pricing traditionally relies on error-prone, labour-intensive paper price tags and manual processes that sometimes had to be performed several times in a typical day. Electronic shelf labels are small, battery-powered e-paper displays that replace paper labels to present product and pricing information at the shelf edge and use wireless technology to communicate with a central hub to create a dynamic pricing automation network. ESL systems offer retailers the ability to automate pricing, establish more efficient in-store operations, and increase shopper satisfaction.

Automated Pricing: Historically, retail shelf pricing has relied on error-prone, labour-intensive paper price tags and manual processes that sometimes had to be performed several times in a typical day. ESL solutions help brick-and-mortar stores fully automate pricing strategies to display the right price at the right moment and enable seamless omnichannel retailing.

Better in-store operations: Manual inventory management slows operations, and undetected stockouts bite away at profits. ESLs can ease and expedite picking and fulfilment for click-and-collect shoppers while accelerating shelf stocking and replenishment to optimise product availability on shelves and avoid missed sales opportunities.

Improved customer satisfaction: A shopper’s experience at the shelf edge is one of the most critical influences on a purchase decision. ESLs can provide always-accurate pricing, increased access to real-time promotions and product information, and a more gratifying omnichannel experience for customers.

“Retailers are increasingly looking towards Internet of Things (IoT) technologies to help them deliver operational efficiencies, increase conversion, and to encourage customers to return to stores,” said Andrew Zignani, Research Director, ABI Research. “However, some retailers have been hesitant to adopt ESL technologies due to concerns over vendor lock-in, interoperability, scalability, and the ability to extend this to other smart retail initiatives. The introduction of the Bluetooth ESL standard will help reduce potential obstacles for retailers looking to invest in IoT technologies and accelerate adoption and innovation.”

Establishing a true, global ESL standard gives retailers the freedom and confidence to source ESL components from multiple vendors knowing each will work with the others. Besides, the standardisation at the shelf edge using Bluetooth technology will also benefit ESL developers, including economies of scale and better allocation of development resources. Bluetooth ESL products will leverage new features released as part of the Bluetooth Core Specification Version 5.4 as well as an upcoming ESL Profile Specification that defines how to use these new features to create interoperable ESL systems.

With over five billion products shipping each year, Bluetooth technology is the global standard for simple, secure wireless device communications and positioning. Since its formation in 1998, the Bluetooth SIG community has continued to expand the capabilities of Bluetooth technology by powering innovation, creating new markets, and redefining communication worldwide. It has already emerged ad the wireless technology of choice for developers in solution areas like audio streaming, data transfer, location services, and large-scale device networks.

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