ISN believes electronic shelf labels will be one of the leading retail technology investments of 2027, as supermarkets look for better ways to manage prices, promotions, stock and the customer experience.
There is a good chance that electronic shelf labels (ESLs) will become one of the biggest retail technology success stories of 2027. What started as a way to replace paper price tickets is developing into something much more important for supermarket operators. At ISN, we think ESL technology will move further up the shopping industry’s investment agenda, with more retailers looking at it as a practical necessity rather than an optional upgrade.
The reason is straightforward. Supermarkets manage thousands of products, frequent promotions and constant changes to prices and availability. Across a large store estate, keeping every shelf label accurate takes time and requires considerable coordination. When prices change, the work must be carried out across the business, and mistakes at the shelf edge can create problems for both customers and store staff.
Electronic shelf labels offer a way to simplify that operation. Prices and product information can be updated through connected systems, reducing the need for staff to replace paper tickets manually. For retailers operating hundreds of stores, the potential savings in time and the improvement in consistency are difficult to ignore.
From price tags to supermarket management
The real story for 2027 is not the label itself. It is what the technology can do when connected to the wider supermarket operation.
Retailers are under pressure to improve efficiency without making the shopping experience more complicated. ESLs can help coordinate promotions, communicate loyalty-card offers and support more accurate shelf information. When integrated with inventory and store-management systems, they can also contribute to better visibility of product availability and replenishment.
This is where the technology becomes more interesting for supermarket management. The shelf edge is one of the few places where pricing, merchandising, stock and the customer meet. A digital label can become part of a wider system that helps retailers manage what is happening in the store, rather than simply display a price.
For customers, clear pricing and correctly displayed promotions matter. Shoppers want to know what a product costs and whether an offer is available to them. Retailers that can maintain accurate information across thousands of products have an opportunity to build confidence at the point of purchase.
Why 2027 could be a turning point
Large supermarket programmes are already helping to change perceptions of ESL technology. Morrisons’ partnership with VusionGroup covers its entire estate of 497 supermarkets, while Tesco’s programme with Hanshow demonstrates the scale of interest in digital shelf-edge systems in the UK.
These developments send a message to the wider market. When major grocery retailers commit to technology across large store networks, other operators inevitably start asking whether they can afford to remain dependent on manual processes.
We expect this question to become more common in 2027. Retailers that have postponed investment may begin reassessing the cost of doing nothing, particularly where staff time, promotional accuracy and the management of multiple stores are concerned.
ESLs will not be the right investment for every retailer at the same time. Installation costs, system integration and the return on investment still need careful consideration. Smaller operators may move more slowly, while larger chains are better positioned to spread the cost across their networks.
Customer management will be part of the next phase
Another development to watch is the relationship between ESLs and customer management. Digital labels alone will not transform customer service, but their connection to loyalty systems, promotions and product information could give supermarkets more ways to communicate relevant offers at the shelf.
The opportunity is to make shopping easier, not simply to introduce more technology. Retailers will need to ensure that promotions are clear, prices remain consistent with checkout systems and customers understand the offers presented to them.
There is also a responsibility to maintain consumer confidence. Digital labels should not be confused with permission to change prices unpredictably. Supermarkets will need transparent pricing policies and reliable systems that protect trust.
ISN’s prediction for 2027
Our view is that electronic shelf labels will be among the most important supermarket technology investment categories in 2027. We expect further large-scale deployments, greater integration with store-management systems and a stronger focus on the business benefits beyond replacing paper tickets.
The winners will not necessarily be the retailers with the newest screens. They will be the businesses that use the technology to improve everyday operations, keep shelf information accurate and give customers a more reliable shopping experience.
For supermarket decision-makers, the question is changing. It is no longer simply whether digital labels are an interesting innovation. It is whether manual shelf-edge management will remain a sensible long-term approach as retail operations become more connected.
At ISN, we think ESLs are moving towards must-have status for an increasing number of supermarkets. In our 2027 retail technology outlook, electronic shelf labels are one of the categories to watch most closely.