The retail landscape is undergoing rapid change. Electronic shelf labels (ESLs) are used in retail to label items and prices and display product information on the shelves.
These electronic shelf labels are increasingly being used instead of conventional, less flexible paper labels. These ESLs are fast becoming the next big thing in effective price communication and inventory management. HL Display, a leading provider of merchandising solutions, continues to drive efficiency in retail with its ESL holder solutions.
ESLs are setting a new standard for retail price communication by displaying centralised updates in the shortest possible time without the need for a single drop of ink – and adoption rates are increasing. A study* conducted by Fortune Business Insights predicts that the ESL market will reach US$2.85 billion by 2027, with Europe still currently dominating the ESL market in terms of size. But also in Australia, the demand for ESLs is growing, driven by large-scale retailers and independent grocers aiming to modernise their operations.
Tony Hall, HL Display commercial director Australia, highlights the advantages for Australian retailers: “ESLs are not just a technology trend; they are a response to the challenges faced by retail staff in managing dynamic pricing and high customer expectations. Especially in Australia, where labour costs are significant, ESLs help optimise operations by reducing repetitive tasks and freeing up staff for customer-facing activities.”
Advantages of ESLs in daily business
One of the most significant advantages of ESLs is the time they save for store staff. In traditional setups, employees spend considerable time manually replacing paper labels whenever prices change, a task that is both labour-intensive and prone to errors. With ESLs, price updates are automated, eliminating the need for manual adjustments. This not only ensures accuracy but also allows staff to redirect their efforts toward more value-added tasks such as restocking shelves, assisting customers, and maintaining store presentation.
The ability to make instant updates is particularly valuable in the fast-paced environment of food retail, where prices often fluctuate due to promotions, supply chain adjustments, or expiring products. ESLs enable dynamic pricing, such as applying end-of-day discounts to perishable goods, which can reduce food waste and improve profitability. The streamlined process also enhances the overall shopping experience by ensuring that customers see accurate and up-to-date pricing, minimising confusion and fostering trust in the store’s operations.
How to make your ESLs long-lasting
“HL Display is not an ESL producer, we produce the holders for ESLs, which keep the latter ones secure on the supermarket shelves”, Tony Hall explains. Since the early days of the ESL industry, HL Display has supplied safe ESL fixtures to over 10,000 stores worldwide. HL has learnt some valuable lessons over the years that enable HL to help its customers quickly avoid some of the most common mistakes.
Hall emphasises the importance of choosing the right ESL holders: “If you want to switch to an ESL solution, the choice of holders is crucial. They must be made of durable material suitable for retail – because we work in an environment where the shelves and labels are exposed to a high level of physical stress every day. Even the best ESL is useless if it falls off the shelf.”
The right choice for your various shelves
Another challenge that retailers face when switching to ESL is finding the right solution for the – often different – shelving set-ups. Hall explains: “In a regular store, you will find many different shelving solutions, which means you will need different ESL holder solutions – this doesn’t have to be a problem if you make sure your supplier has a wide range and can advise you on the right choice.”
The extensive HL range of ESL holders has been specifically designed to withstand the physical rigours of the retail environment and provides a reliable solution for clear and consistent price labelling.
Additional options for communication
A good supplier of ESL holders also offers additional opportunities to improve POS communication in the store. With HL’s ESL shelf stoppers and click-on covers, it is easier to reach customers where they are most likely to look – at the edge of the shelf, looking for the price. So, depending on current needs, additional communication material can help to spotlight certain products, emphasise promotions or simply attract attention to boost sales. And whether they are on the shelf for a short or long period of time, both the shelf stoppers or wobblers and the click-on covers are easy to attach and remove and can be customized for the respective purpose. “Very few ESLs have several colours, so the additional labelling of offers, new items, organic products, etc on the ESLs is extremely important,” says Hall.
A more sustainable solution for ESLs
In addition to operational efficiency, ESLs contribute to sustainability by reducing the need for paper labels, aligning with eco-friendly practices that are increasingly valued by consumers and businesses alike. HL is also committed to sustainability in the retail trade.
Hall emphasises the environmental benefits of switching to ESLs: “At HL, we are determined to achieve our sustainability goals and help our customers achieve their sustainability goals too. When switching from traditional paper labels to ESLs, we can offer an additional way to reduce waste through our HL Circular offering. We facilitate the recycling of datastrips into new products, supporting efforts to close the loop on plastic waste and minimise environmental impact.”
HL Display celebrates its 70th anniversary
From a humble basement workshop in 1950s Sweden to a global leader in retail merchandising and display solutions, HL Display’s history is a testament to innovation and entrepreneurial spirit. In 1954, a travelling salesman named Harry Lundvall (hence the name HL) in Sweden, noticed a major problem in supermarkets: The products were poorly presented and the price tags were very difficult to find. At a time when the retail trade was switching to self-service, Lundvall decided to take matters into his own hands. With an iron and pure enthusiasm, he created the first price datastrip in his cellar.
Guided by the same mission, even today
As HL grew, so did his influence. In the 1990s, Lundvall’s family business went global when his granddaughter Lis and her husband Anders took over the company. Anders, Lis and their team expanded the company by acquiring new customers and establishing a global presence. HL’s commitment to innovation continues today, fuelled by the same mission that Lundvall had: to create a better shopping experience for customers and make work easier for store staff.
Diverse approaches to product development
Innovation at HL is not a one-size-fits-all process; HL uses four different development paths: New products, product range extensions, customer requests and regulatory innovations. Hall emphasises: “Every product development is unique; sometimes it’s a new development, sometimes it’s about refining existing solutions. This flexibility ensures we fulfil different customer needs and always strive for sustainable and cost-efficient results.”
Cooperation and personal responsibility
At HL, innovation is a collaborative endeavour. “When we identify a market opportunity or a “white spot”, we form cross-functional project groups involving product managers, sales teams and plant experts,” says Hall. This approach not only brings in different perspectives, but also promotes the personal responsibility of everyone involved. “Everyone involved is responsible,” says Tony Hall, emphasising the importance of internal collaboration in the innovation process.
Sustainability as a core principle
Sustainability is not just an add-on at HL, but it is anchored in the philosophy of product development. “With every product development, we think about how sustainable we can make it,” explains Hall. “This means that we favour materials that can be recycled or reused, that we design products that are durable and that we consider the entire product life cycle. These are the basics, this is our mission,” he adds, emphasising that sustainability is an essential part of HL’s identity.
A broad and constantly growing range
Today, the datastrip is still one of HL’s best-selling products – but it has adapted to the future and is now part of the HL Sustainable Choice range and is available in partially recycled plastic or even bioplastic. Longevity is, of course, also an important part of sustainability because the longer a product lasts, the less you have to replace it.
“HL’s long history has given us the expertise to ensure efficient production of datastrips that can withstand the demands of everyday retail,” says Hall. To prevent ageing, all datastrips are provided with UV protection, which protects the material from discolouration over a longer period of time. “I am convinced that our extensive range, combined with our relentless pursuit of innovation, sets us apart from other companies. Innovation evolves and moves with the times,” Hall concludes.
Conclusion
In Australia, the integration of ESLs is transforming the retail landscape by saving time for store staff, enabling dynamic pricing, and supporting sustainability efforts. With leading companies like HL Display driving adoption, ESLs are set to play a pivotal role in the modernisation of Australian retail. This technology not only addresses operational challenges but also aligns with the environmental priorities of a nation committed to a sustainable future.
Source: * “Electronic Shelf Label Market Size, Share & Covid-19 Impact Analysis, By Type (LCD based and E-paper based), By Technology (Vendor Facing Technology and Consumer Facing Technology), By End-use Industry (Hypermarket/ Supermarket, Non-food Retail Stores, Specialty Stores, and Others), and Regional Forecast, 2020-2027”, Fortune Business Insights.
