Tesco shoppers will see a change in-store as the supermarket giant rolls out new digital shelf labels across thousands of locations. The retailer will introduce electronic shelf labels (ESLs) throughout its UK estate over the next two years, replacing traditional paper price tags with digital screens.
Rollout Details
The move will begin in four stores – including one Tesco Express and three larger supermarkets – before eventually expanding to around 3,000 sites nationwide. The labels will display prices electronically and can be updated instantly from Tesco's central systems.
That means customers will be able to see the latest prices while shopping, and staff will no longer need to manually replace large numbers of paper shelf-edge labels.
Technology Partnership
Tesco said the technology is designed to improve pricing accuracy and make stores more efficient. The supermarket is partnering with Chinese technology company Hanshow for the rollout, following successful trials at its Royston and St Neots stores.
Announcing the partnership on LinkedIn, Hanshow described the rollout as "a new milestone in digital store transformation". The company wrote: "Hanshow is proud to partner with Tesco on the rollout of electronic shelf labels across its large-format and convenience store network in the UK."
It added: "By replacing paper labels with connected digital infrastructure, the project will help simplify daily store operations for associates, enable them to spend more time serving customers, and support Tesco's sustainability ambitions." Hanshow said it was committed to creating "long-term value" through digital store solutions that make retail "more efficient, connected, and sustainable".
Industry Context
The introduction of the digital labels marks one of the biggest technology upgrades to Tesco's stores in recent years. Electronic shelf labels have become increasingly common across the supermarket sector as retailers look to modernise stores and reduce paper usage.
Morrisons became the first UK supermarket to trial the technology last year, while Lidl, Co-op, Waitrose, Asda and Sainsbury's have also introduced digital pricing systems in stores. The labels work by receiving updates remotely, allowing price changes to be made instantly across the shop floor.
Benefits
As well as helping shoppers keep track of the latest prices, the system is expected to reduce the risk of discrepancies between shelf-edge labels and checkout prices. Tesco says the rollout will also support its sustainability goals by significantly cutting paper use across its estate.
Kevin Tindall, Tesco's UK operations managing director, said the technology would help modernise stores while allowing colleagues to spend more time assisting customers. This follows a wider trend across the retail industry as supermarkets increasingly invest in digital technology to streamline operations and improve the shopping experience.
