Dive Brief:
- Hy-Vee is rolling out electronic shelf labels from VusionGroup, according to a Wednesday announcement.
- The tags, which the grocer is bringing to more than 230 of its stores, allow Hy-Vee to set up automated promotions as well as use flashing lights on the tags for in-store fulfillment, VusionGroup said.
- The announcement comes at a time when the grocery industry is warming up to using digital tags for benefits, such as real-time pricing and eliminating paper tags.
Dive Insight:
VusionGroup said the addition of its digital shelf tags will help streamline shopping for Hy-Vee customers and improve the labor-intensive process of printing and hanging paper tags.
With the digital labels, Hy-Vee can update prices and product information in real-time. The grocer’s workers will have more time to focus on other tasks like replenishment, merchandising and customer service, the announcement noted.
Hy-Vee will be able to use “intra-day promotions” to reduce waste on perishable items by lowering prices automatically on products with a shorter shelf life. Flashing lights on the tags can support in-store fulfillment by guiding pickers as they prepare orders, VusionGroup noted.
Hy-Vee operates more than 570 business units across nine Midwestern states.
The announcement comes a few weeks after Walmart unveiled plans to bring electronic shelf labels to 2,300 locations by 2026. Walmart said its rollout aims to improve efficiency and customer service.
Schnuck Markets, Whole Foods Market and Good Food Holdings also have added digital shelf labels recently.
While digital shelf tags can provide pricing, sustainability, retail media and fulfillment benefits, adoption of the technology has not become widespread yet among U.S. food retailers.