Mercadona Tests Electronic Shelf Labels: A Smart Move or Just a Trend?

Mercadona, Spain’s largest supermarket chain and a pioneer in retail innovation, has begun testing Electronic Shelf Labels (ESLs) in selected stores. This initiative is part of the company’s broader strategy to modernise operations, improve efficiency, and enhance the customer shopping experience.

Electronic Shelf Labels are digital price tags, typically powered by e-ink technology, used to display product prices on store shelves. Unlike paper labels, ESLs can be updated instantly from a centralised system, allowing for real-time changes, fewer pricing errors, and reduced manual labour. They also enable dynamic pricing and instant promotion updates.

Mercadona has started a quiet but strategic trial of ESLs in several stores across Spain. According to internal sources, the pilot began in late 2024 and is being carefully monitored by the company’s innovation team. The trial covers multiple product categories and aims to evaluate the technology’s performance in real-time retail conditions. A senior manager involved in the pilot told ISN, “We’re evaluating not just the functionality of ESLs, but also the operational efficiency they bring and how customers react to the new in-store experience.”

While no official supplier has been named, industry experts suggest Mercadona is working with SES-imagotag, one of Europe’s leading ESL providers. SES-imagotag is already active with Carrefour and other major retailers. Another name that has come up is Pricer, a Swedish ESL company known for its scalable systems. Neither party has confirmed involvement publicly.

The main goals of the project appear to be improving efficiency, ensuring price accuracy, cutting paper usage, and preparing for future pricing strategies. By replacing paper tags with ESLs, Mercadona is reducing waste and aligning with its sustainability goals. More importantly, the labels allow instant price changes across hundreds of SKUs, saving staff significant time every day.

Initial feedback suggests the pilot is a success. Employees in test stores, especially in Valencia, report that ESLs save hours of labour per week. “We no longer print hundreds of labels. We manage updates from a tablet and it’s done in seconds,” one staff member said. Customers are also reacting positively, though some older shoppers needed time to adjust.

The investment required for full implementation is significant. Outfitting a medium-sized store with ESLs can cost between €80,000 and €150,000, depending on the store size and technology provider. However, ESLs offer long-term returns through labour cost reductions, fewer pricing mistakes, and greater promotional agility. Retail studies suggest up to 60% less time spent on price changes, 90% fewer errors, and increased sales from better-managed promotions.

Mercadona has not made an official commitment to a full-scale rollout. A company spokesperson told ISN, “Mercadona continuously explores technologies that improve our service and operational standards. While we are testing several solutions, we have not made final decisions about wider implementation.” This cautious response reflects the company’s focus on measurable benefits before full deployment.

Elsewhere in Europe, ESLs are being adopted more widely. Carrefour has already installed ESLs in many stores across France and Belgium. Lidl and Aldi are also experimenting with the technology in Germany and the UK. Scandinavian chains like Coop Denmark and ICA Sweden have been using ESLs for several years and report strong results.

Mercadona’s ESL trial represents a forward-thinking approach in line with its reputation for innovation. If the results continue to be positive, the company could begin a full rollout in 2026. While the initial costs are high, the long-term benefits could reshape how stores operate, from staffing to promotion management. As competition grows, the adoption of smart technologies like ESLs may become essential for staying ahead in the retail race.