A new study has found that retailers spent a combined $104 billion on manually changing price tags in-store.
The study, by Planet Retail RNG and Displaydata, also found that inaccurate, inconsistent pricing – and a lack of digital technology in-store – is costing retailers in lost sales and consumer trust, as price-conscious shoppers seek out the best deal and better experiences online.
The report, Analogue to Automated: Retail in the Connected Age, surveyed around 1,000 retailers and 5,000 consumers, and found that retailers, by and large, are failing to keep up with shifting consumer attitudes towards price and promotions.
Shopper Engagement
In addition, most are unable to engage with shoppers digitally, in real-time, when they are on the shop floor.
The study indicated a growing hunger for more ‘dynamic pricing’, with two thirds (65%) of consumers would welcome price changes throughout the day if a product is approaching its sell-by date.
At the same time, with price and promotion labelling mostly managed manually, 65% of retailers are unable to make the amount of pricing changes they would like to.
In addition, 67% of retailers spend up to 4.99% of average monthly store turnover making price and promotional changes.
In terms of integrating more technology into the store environment, 33% of consumers would like promotions sent direct to their mobile devices; 31% want Electronic Shelf Labels (ESLs) to show accurate, real-time prices, promotions, and detailed product information; and 27% want to be identified as a loyal customer by in-house technology systems.
Price Sensitivity
“Consumers today are digitally empowered with access to real time information on products, and they are more price sensitive than ever,” said Sarah Herrlein, senior retail analyst, Planet Retail.
“Our research shows they expect a more consistent, automated experience, but their trust and faith in the store is lessening due to basic technological inefficiencies.”
To download a copy of the full report, visit www.displaydata.com/planet-retail
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
