By Randy Tucker
The Cincinnati Enquirer

Lauren Sanderson always double-checks her receipts to make sure the prices she paid at checkout matched the prices she saw on the store shelves.

Click here to view a detailed look at how electronic labeling works. (GIF image, 59k)

"There's always a sneaking suspicion in the back of your mind that the (bar code) scanners might ring up the wrong price,'' said the West Chester mother of four who was shopping recently at Kohl's on Tylersville Road. "It happened to me just the other day at the grocery store.''

Giving a nod to such customer concerns, Kohl's is one of the first major retailers in Greater Cincinnati to take steps that could help reduce the frequency of such pricing errors, while saving the company time and money.

Kohl's has replaced the paper shelf labels in all of its shoe departments with electronic modules that display prices on an LCD screen.

The electronic shelf labels are linked to a central computer that uses radio signals to transmit price changes over a wireless network inside the store. The bar code scanners are also connected to the central computer, which updates prices on the scanners and electronic shelf labels simultaneously - helping ensure that the prices at both ends match.

"Not only can the electronic labels be changed instantly, they can be changed simultaneously in several stores or companywide with a few keystrokes on the computer,'' said Robert Kramer, a spokesman for Dayton, Ohio-based NCR Corp., which supplies the electronic shelf labels through its Atlanta-based Retail Solutions division.

The company has also provided electronic shelf labels for tests at a 7-Eleven convenience store in Texas and at Albertson's grocery stores in Arizona and southern California.

Although Kohl's officials declined to comment, Kramer said the benefits of electronic shelf labels are clear.

Not only can the technology help stores reduce pricing errors; it can also help retailers respond quickly to price changes by competitors or other market conditions. And it can even help retailers keep tight control of their inventories by indicating how many units of a particular item are left in a storeroom.

But perhaps the biggest benefit for retailers is that electronic shelf labels eliminate the need for changing prices manually, an inefficient task that costs stores thousands of man-hours each year.

"Sending people out on the floor to change the paper labels every time you have a sale can be expensive,'' Kramer said. "With ESL (electronic shelf label) technology, you don't have to send people out on the floor every time you have a sale.''

Electronic shelf labels were developed more than 20 years ago. But in the past, the technology was too expensive to make it a cost-effective alternative to paper labels.

Costs have come down dramatically in recent years, and it's just a matter of time before electronic shelf labels go mainstream, Kramer said.

"Five years ago, ESL units cost about $12 each,'' he said. "Now, they're down to as low as $5.50.''

Electronic shelf labels are among a variety of new technologies that are changing the shopping experience for consumers.

Many retailers, including Cincinnati-based Federated Department Stores, have introduced such innovations as in-aisle price scanners, digital store directories on shopping carts and even plasma TV monitors that advertise merchandise and special sales.

And you can expect the investment in technology to continue at a rapid pace, as retailers push to differentiate themselves among consumers who have been weaned on self-service and electronic communication in stores, said Tracy Mullin, CEO of the National Retail Federation - the nation's largest retail trade group.

According to a recent federation study, 83 percent of retailers nationwide expect to replace or upgrade point-of-sale software systems this year.

"With continued momentum in the economy, now is the time for businesses to invest in new technology," Mullin said. "The retailers who choose to invest today will be rewarded tomorrow."

---

E-mail rtucker@enquirer.com