Don’t Ignore Furr’s ESL Achievements
In the constantly changing world of retail, the phrase ‘out of sight, out of mind’ has particular resonance. As chains disappear in mergers or Chapter 11 filings, they are quickly forgotten.
However, even though supermarket chain Furr’s has been absorbed into the Fleming food retailing/distribution conglomerate, the industry would be wise to remember the retailer’s accomplishments in the area of ESL technology.
Furr’s was one of the first retailers to pilot the Display Edge Technology ESL system. Utilizing a remote tag store controller device, Display Edge labels can be manipulated and updated from a master file without attachment to a shelf or battery power.
This allowed Furr's to install the labels with minimal new wiring and to avoid battery interference with other in-store systems. In addition, the Display Edge labels permitted the retailer to instantly toggle between regular and frequent shopper prices, or display both where mandated by law. The company was also able to present flashing red sales prices.
Along with obtaining significant time and labor savings in marking prices on its 16,000-plus-SKU product assortment, Furr’s discovered that customers trusted the Display Edge tags more than conventional labels, resulting in fewer complaints and returns. In addition, the retailer had an easier time introducing new goods.
Unfortunately, the down economy of 2001 hit Furr’s especially hard, and the retailer was forced to declare bankruptcy and sell out to Fleming in Q3. Fleming is still running a Display Edge pilot in one former Furr’s location, but it is unclear whether the company will pursue ESL any further.
Regardless, other retailers should consider Furr’s experience when evaluating product labeling strategies. After all, department store pioneer Woolworth’s failed to survive in the US, but that hasn’t stopped other chains from successfully employing retail strategies initially developed by Woolworth’s. Similarly, nothing should prevent other retailers from prosperously copying Furr’s ESL tactics, except baseless fears.
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(Top of the Net, November 2001)
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