Tesco is rolling out electronic shelf labels (ESLs) across 3,000 of its large-format and convenience stores, in what is understood to be the biggest ESL project in Europe.
The supermarket has signed a multi-year deal with Chinese ESL manufacturer Hanshow, which will see the devices rolled out to stores over the next two years.
Only Walmart in the US has plans to roll out ESLs to a larger number of stores (around 5,000), with Tesco’s being the biggest roll-out by store count in Europe, ahead of Co-op (2,400 stores), Carrefour (1,800 stores) and Ahold Delhaize (1,600 stores.)
Both Aldi and Lidl already have ESLs in more than 7,000 stores each globally.
Tesco said the ESLs will support its sustainability agenda by replacing paper labels as well as “simplify daily routines for colleagues, saving them from manually replacing labels when prices or promotions change”.
The phased rollout will start with four stores – one Express store and three large stores.
The ESLs will also provide Tesco stores with “a range of features that could improve operational routines in future”, including LEDs that will light up to help colleagues identify the right products when picking online orders.
The labels, which have been customised for Tesco, are also capable of displaying colours, “unlocking future opportunities to display retail media or additional information for customers”.
“The rollout of digital shelf labels marks an important step in the modernisation of our stores, delivering benefits for both customers and colleagues,” said Kevin Tindall, Tesco UK operations MD.
“Moving to a digital system will not only support our sustainability ambitions by significantly reducing paper use across the Tesco estate, but it will also mean our colleagues can focus on what matters most – serving our customers,” he added.
The deal follows a proof-of-concept trial in selected Tesco Extra and Tesco Express stores last year which evaluated Hanshow devices and those from rival VusionGroup.
“This collaboration reflects a shared commitment to improving store efficiency, enhancing the customer experience, and building a more sustainable retail environment through digital innovation,” said Liangyan Li, SVP and head of global sales at Hanshow.
“We look forward to working closely with Tesco to deliver a scalable and future-ready foundation for smarter store operations,” he added.
Late last year, Morrisons announced it was to roll out electronic shelf labels across all of its 497 supermarkets in partnership with French tech firm VusionGroup, a project which began earlier this year.
While it was the latest grocer to announce a full rollout with Vusion, following the Co-op and Asda Express, it is the first of the traditional big four UK to announce plans to install the tech in all of its supermarkets.
Aldi and Lidl have rolled out ESLs across their store estates; Aldi with Hanshow and Lidl with VusionGroup.
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