Electronic Shelf Labels: Tesco Leads the Charge in Retail’s Digital Overhaul

Electronic Shelf Labels: Tesco Leads the Charge in Retail’s Digital Overhaul 

Electronic Shelf Labels (ESLs) are rapidly transforming the way supermarkets operate, bringing automation, real-time pricing, and greater efficiency to the shop floor. These small, smart digital price tags are replacing traditional paper labels at pace, allowing retailers to stay competitive in a fast-evolving market. Now, Tesco is stepping firmly into the spotlight, accelerating its adoption of ESL technology as part of a broader digital push.

Tesco Embraces ESLs to Modernise In-Store Operations

Once cautious about rolling out ESLs on a national scale, Tesco is now expanding its trials of the technology across several Tesco Extra and Tesco Express stores. Building on earlier pilot programmes dating back to the 2000s, the British retail giant is partnering with global ESL providers including Hanshow and VusionGroup to digitise shelf-edge pricing.

With ESLs in place, Tesco can update prices across all shelves within seconds from a central system—eliminating the need for staff to manually change tags and ensuring perfect pricing accuracy between shelf and checkout. The move is aimed at improving operational efficiency, reducing labour costs, and enabling staff to focus more on customer service and restocking.

The shift also supports Tesco’s environmental goals. By replacing paper tags with energy-efficient digital displays, the retailer is cutting waste and advancing its sustainability agenda.

A Global Trend Gathering Speed

Tesco’s renewed focus mirrors a broader trend across the global retail industry. As supermarkets adapt to changing consumer behaviour, rising operational costs, and pressure from e-commerce, ESLs are proving to be a smart investment.

French company SES-imagotag is leading the way in ESL innovation with its VUSION platform, which integrates digital pricing with real-time shelf analytics and shopper behaviour data. Retailers using this system gain insights into stock availability, planogram compliance, and shelf performance.

Meanwhile, UK-based Displaydata offers high-resolution, full-colour ESLs that enhance branding and promotional messaging. Their cloud-based system supports fast deployment and seamless integration across multi-store operations, making it easier for retailers to scale.

The Digital Shelf Edge of the Future

The benefits of ESLs go beyond pricing updates. With integration into wider store systems, ESLs can support dynamic promotions, highlight low-stock alerts, and even interact with shoppers via QR codes or mobile apps. For supermarkets, this means smarter merchandising and more responsive store environments.

Customers also benefit from clearer, more consistent pricing and a modernised shopping experience. Gone are the days of confusing price mismatches or outdated shelf tags—ESLs bring clarity and trust to the point of sale.

Tesco’s commitment to ESLs signals a turning point in UK retail, proving that even legacy chains are ready to embrace the tools that will shape the supermarket of the future.