Walmart is accelerating the digitalisation of its stores, with plans to install Electronic Shelf Labels (ESLs) from VusionGroup in 2,300 stores by 2026. The move, described by Walmart as “game changing”, aims to boost staff productivity, increase stock accuracy and improve the customer experience.
Walmart first took the decision last May to roll out ESL technology to 500 stores by the end of 2023, following a successful trial. Now the world’s largest retailer will install ESLs across nearly half of its 4,700 US stores over the next 12 to 18 months.
A typical Walmart store stocks more than 120,000 items and switching from traditional paper price tags to ESLs saves huge amounts of time for store associates, boosting efficiency and freeing them up to assist customers. Price changes which previously took up to a couple of days to implement can now be made in minutes.
Rapid pricing updates to support Rollbacks and markdowns
Using the store-based Me@Walmart app on their work phone, it takes store associates just a few clicks to process price updates sent from Walmart’s merchant team to the store. In addition to the time efficiencies of automating pricing and promotion displays, accuracy is also improved as this new process reduces the errors often made when updating prices manually.
Despite ESLs giving retailers the ability to introduce ‘dynamic pricing’ or surge pricing based on demand, Greg Cathey, senior VP of transformation and innovation at Walmart, said that the retailer had no plans to do so. “It is absolutely not going to be one hour it is this price and the next hour it is not,” Cathey told Walmart’s annual shareholder meeting in Bentonville, Arkansas.
Accurate replenishment and online order picking
A further benefit of the rollout of VusionGroup’s technology is that it is allowing Walmart to simplify stock replenishment. The blinking LED Stock to Light feature flashes a tag to signal to store associates locations that require attention. When restocking shelves the flashing LED can guide associates, making it easier to locate and place items in exactly the right location.
Similarly, when picking online orders in store, the Pick to Light feature improves speed and accuracy by flashing a tag to help associates identify the exact product required and highlight its location. This not only speeds up the process to make associates more efficient, but also leads to greater customer satisfaction by reducing errors and product substitutions.
Battery-less and sustainable
The environmental impact is a key consideration for Walmart, which is on a path to reach its sustainability goals by 2040. The latest ESLs and VusionGroup platform complement this journey with several efficient innovations to significantly reduce the environmental impact usually associated with the rollout of new technology.
Walmart uses battery-less ESLs in its stores, based on colour e-paper technology. These are connected to smart rails, which combine connectivity and energy to power the system using a new ultra-low-power Bluetooth standard. This innovative new transmission protocol was jointly developed with Qualcomm and the Bluetooth Special Interest Group, which significantly reduces the environmental impact when compared to other ESL solutions.
