Reducing Costs and Boosting Efficiency with Electronic Shelf Labels (ESLs)

Every day, seemingly minor issues (like wrong prices, slow updates, and wasted time) quietly drag stores down. Alone, they’re small. But together? They chip away at profit, disrupt the floor, and erode customer trust.

This is where a better system makes a difference. Electronic Shelf Labels (ESLs) offer a sharp, scalable alternative. They’re battery-powered, digital price tags that sync with a store’s backend systems. Instead of relying on paper updates, ESLs make pricing automatic, accurate, and fast, often cutting hours of labor per week.

If you’re in operations, IT, or procurement, the benefits are clear: lower costs, better accuracy, and more agility. That’s why in this post, we’ll break down how ESLs reduce waste, increase efficiency, and help teams focus on what actually drives results.

Key Takeaways

  • Manual labeling incurs hidden costs: It takes time, creates pricing errors, and results in mismatched inventory and frustrated customers.
  • ESLs simplify cost control: Digital updates reduce labor, minimize waste, and ensure accurate pricing—even in fast-paced settings.
  • Efficiency spreads across the store: Teams save time, inventory stays aligned, and price changes happen quickly with fewer materials.
  • The ROI builds over time: ESLs lower ongoing costs while improving consistency and speed across multiple locations, resulting in an improved ROI.
  • Rollout strategy matters: Planning, testing, training, and ongoing data use are key to making ESLs work long-term.

1. The Hidden Costs of Traditional Shelf Labeling

To appreciate the value ESLs bring, it is helpful to first consider what they replace. At a glance, shelf labeling seems simple, but behind each tag is a surprisingly complex—and expensive—manual process. Staff must print, sort, and physically attach updated price tags across thousands of SKUs, often under tight deadlines.

Consider this: how much time does that really take? For example, a mid-sized grocery store may handle over 10,000 price changes per week. Clearly, this isn’t just a minor inconvenience—it demands significant labor hours that could be better spent on sales floor support, merchandising, or customer service.

Where Things Go Wrong

If even one tag is misplaced or delayed, a ripple effect is created. A misprinted label, placed in the wrong spot, or rolled out too late can create pricing inconsistencies that frustrate shoppers and damage trust. Picture a customer finding a product marked $4.99 on the shelf but charged $6.49 at checkout. These errors don’t just result in complaints—they lead to lost sales, refund processing, and potentially even regulatory fines.

Plus, there’s the backend fallout. When shelf prices fall out of sync with inventory systems, it disrupts forecasting, skews sales data, and triggers inaccurate reordering. In fast-moving categories like dairy or seasonal goods, this can result in stockouts or overstock that hits both customer satisfaction and profit margins.

2. Understanding ESL Technology: How it Reduces Costs

So, how exactly do ESLs fix all this? To put it simply, Electronic Shelf Labels replace paper tags with small, digital displays that sync with backend pricing systems. Unlike manual processes, these digital labels update in real-time or on a schedule, ensuring accurate pricing across every location. Most units utilize low-power technology, offering a battery life of up to five years and providing years of hands-free operation.

As a result, pricing tasks become faster, cleaner, and more dependable.

Where the Savings Add Up

You might be wondering where the biggest gains are. ESLs unlock cost savings in more ways than one:

  • Labor: Pricing updates can be scheduled or pushed remotely, reducing hours of manual work each week—especially during high-volume changes like sales or holidays.
  • Accuracy: With fewer human errors, retailers face fewer complaints, fewer refunds, and a better overall shopper experience.
  • Inventory & Waste: Faster updates improve inventory alignment and reduce waste, especially in grocery stores where markdowns on perishables often come too late.

For example, let’s say a supermarket wants to roll out same-day discounts on nearly expired products. ESLs can instantly reflect price changes without printing a single label. That means recaptured margin and reduced food waste, with no extra labor required.

Taken together, these gains make ESL not just a tool, but a smarter, more adaptive way to run retail.

3. Boosting Retail Efficiency with ESL

If ESLs reduce cost, do they also improve performance? The answer is yes, and here’s why.

With ESLs, pricing changes happen instantly—no printing, no walking the floor, no relabeling by hand. A large supermarket chain might shift hundreds of prices for a one-day promotion across dozens of stores in minutes, rather than hours.

These digital tags integrate directly with backend systems, keeping shelf prices synced with POS and inventory in real-time. This reduces mismatches that often lead to stockouts, incorrect reorders, or checkout conflicts. For high-volume categories like dairy or snacks, even a slight pricing lag can disrupt inventory flow.

Staff Efficiency and Floor Impact

And think about this: when staff don’t need to update tags manually, they can focus on higher-value work. In-store teams shift from labeling to helping—resolving customer issues, managing displays, and improving the floor experience. With ESLs handling the repetitive tasks, more time is devoted to what actually drives results.

Long-Term and Environmental Gains

Even better, this agility scales. Retailers responding to competitor moves or seasonal surges can push updates chain-wide with a few clicks, ensuring price relevance across all touchpoints without the usual delays. Promotions can now be launched in real time—no bottlenecks, no print queues.

And what most people don’t know is that ESLs improve sustainability. Thousands of shelf tags aren’t printed or discarded weekly, thereby reducing paper, ink, and packaging waste. Across 100 stores, that adds up, potentially saving millions of sheets annually while lowering logistics costs.

And that’s just the beginning. ESLs unlock forms of operational efficiency that paper-based systems simply can’t match, such as:

  • Flash-sale pricing without friction: Electronics retailers can sync real-time price drops across all displays, eliminating checkout confusion.
  • Dynamic markdowns based on inventory: Grocers can reduce spoilage by automatically discounting perishables nearing expiration.
  • Coordinated rollouts at scale: Seasonal promos (like back-to-school or holiday discounts) can go live across all stores in under an hour, with no in-store relabeling.

Note that these aren’t just edge cases. They’re everyday opportunities to move faster, waste less, and work smarter.

Remember, retail efficiency isn’t just about speed—it’s about alignment. ESLs synchronize pricing, staffing, inventory, and sustainability into one system. And for retailers who want to modernize without increasing headcount, ESLs offer real-time control, scalable execution, and operational clarity.

4. Calculating ROI: The Financial Case for ESL

You might be wondering—how does all this translate to the bottom line? Let’s take a basic scenario: a store managing 10,000 SKUs with weekly price changes. If each change takes 3 seconds, that adds up to over 8 labor hours per week, or around 433 hours a year.

At $15/hour, that’s roughly $6,500 in annual labor costs for pricing alone. ESLs eliminate most of this work, freeing up time and resources while reducing disruption.

Ongoing Cost Reductions

Labor savings are just the start. ESL units typically last up to five years with little upkeep. That longevity eliminates the constant drain of costs associated with paper-based systems, such as toner, reprints, and equipment wear and tear. 

Over time, those small hits add up. However, ESLs take them off the table, making another strong case for financial savings and a better return on investment (ROI).

Strategic Impact for Multi-Store Retailers

If you manage dozens or even hundreds of locations, the impact multiplies. ESLs enable centralized pricing updates across all stores, whether for a flash sale, regional promotion, or corporate price adjustment. This consistency improves brand trust and customer experience, while simplifying execution at the store level.

Consider the potential long-term impact:

  • Reduced mispricing = fewer customer disputes and refunds
  • Faster promotions = higher conversion during time-sensitive campaigns
  • Lower materials and maintenance = cleaner budgets over time

Put another way, ESLs shift pricing from a manual, recurring cost into a strategic asset. Instead of just managing prices, retailers can now utilize pricing to drive faster rollouts, reduce errors, and respond to market changes in real-time.

5. Best Practices for ESL Implementation

So, how do you actually make ESL work across your stores? First, know that successful ESL rollouts begin with strong alignment across teams.

So before any hardware hits shelves, map out how ESLs will connect with your existing POS and inventory systems. This ensures that pricing updates are applied cleanly from the backend to the shelf (at ComQi, we use EnGage to make this integration smooth and reliable). Be sure to loop in your IT team early—they’ll play a key role in setup, testing, and ongoing support.

Pilot, Then Scale

Rather than starting with a full-scale deployment, test ESLs in a few representative locations. These pilot programs help identify workflow issues, edge cases, and team habits that may not be apparent on paper.

Use pilots to:

  • Test ESL responsiveness and integration across departments
  • Evaluate how different product categories handle updates
  • Gather real-world feedback from store managers and staff

Use the results to refine your playbook before rolling it out chain-wide.

Train for Daily Use, Not Just Launch Day

Once systems are in place, frontline staff require clear and practical training. Focus less on the technology itself and more on how ESLs fit into their daily routines. Make sure managers and floor teams understand how to verify changes, troubleshoot common issues, and report irregularities. Reinforce the time-saving upside—this helps encourage adoption.

Use Data to Optimize Over Time

The work doesn’t stop after deployment. ESL platforms generate data on pricing accuracy, label responsiveness, and update cycles. Use this to spot trends, resolve friction points, and refine standard practices. For example, you might identify specific categories where pricing sync lags behind inventory movements, giving you a clear opportunity to tighten operations.

That should be enough to get things moving. Because in the end, ESL success isn’t just about having the right tools—it’s about planning, testing, training, and ongoing refinement. The more feedback you build in, the more efficient and reliable your system becomes.

Conclusion: From Manual to Managed

ESLs turn price updates from a slow, manual task into a fast, scalable system. The result? Less waste, fewer errors, and more time for staff to focus on the floor, not the labels. They also create consistency across stores, reduce reliance on materials, and give retailers tighter control over pricing, especially during busy or promotional periods.

Want a closer look? Contact ComQi to learn what ESL can do for your operations, margins, and team efficiency today!