NCR Takes Electronic Shelf Labels from Novelty to Necessity
Monday June 25, 10:30 am Eastern Time
Press Release
SOURCE: NCR Corporation
NCR Breaks Cost Threshold with 12-18 month ROI, Enables Retailers to Meet Customer Demand for Clear, Accurate Pricing
ATLANTA, June 25 /PRNewswire/ -- NCR Corporation (NYSE: NCR - news), the first company to offer a wireless electronic shelf labeling system, today unveiled a solution that does far more than replace paper shelf labels and delivers return on investment in 12-18 months.
``No one has ever disputed the advantages of electronic shelf labels, rather, it was the cost that hampered widespread acceptance,'' said NCR General Manager of DecisioNet Pete Bartolotta. ``With our added functionality, lower cost, and attractive return on investment, retailers can't afford not to install NCR DecisioNet electronic shelf labels.''
Customer Demand
Beyond the attractive return on investment, research shows a probable yield in the customer service arena. Electronic shelf labels directly address five of the top ten things consumers indicated they want in a store, including clearly labeled items and accurate pricing, according to a 1999 Progressive Grocer study. Ensuring accuracy will also help protect retailers from being penalized for inconsistent pricing during regulatory shelf pricing audits.
KPMG and Indiana University conducted a similar study that revealed 64 percent of consumers felt a store with electronic shelf labels offered better customer service.
``Electronic shelf labels are a visual symbol of a retailer's commitment to its customers,'' said Jim Whittaker, director of management support services for New York-based Binghamton Giant Markets. ``Customers are reminded at each item that you're going to give them more information to make informed buying decisions, and you're going to protect them by ensuring they pay the correct price every time.''
Two of the top five U.S. retailers are currently piloting DecisioNet, and Giant has committed to roll out the NCR solution in all of its stores. Other stores using NCR DecisioNet include Festival Foods, Rainbow Foods, and Ireland's Superquinn.
``Part of European retailers' conversion to the euro will involve educating and reassuring their customers that a price stated in a new currency equals the same price in their local currency,'' said Bartolotta. DecisioNet can display the cost of the item in both euro and the national currency, helping customers make the value connection quickly and easily.
Key Business Drivers
Beyond the cost savings of eliminating paper labels, there are three critical benefit areas created for the retailer who implements the enhanced DecisioNet solution -- labor savings, operational efficiency and increased merchandising capability.
The ability to change prices storewide, even chain-wide, at the touch of a button eliminates the price-change threshold retailers face in weighing the cost of re-pricing an item against the labor cost associated in doing so. The information made available by the electronic tag can also help workers do their jobs more effectively. For example, the tags can display information indicating how many units of the item are in the stockroom, where they can easily be found, and how they should be displayed.
Ed Doud, MIS director for Minneapolis-based Festival Foods, has seen that savings first-hand. ``In 2000, our two stores with ESLs had 3400 fewer hours in the pricing department than the stores without ESLs,'' Doud said.
DecisioNet capabilities extend beyond expense management to revenue management and pricing optimization. The tags allow retailers to immediately respond to competitive pricing pressures by implementing more frequent and subtle price changes. Industry specific label and electronic sign formats are now available, and a better infrastructure and improved software make the entire system more flexible, enabling retailers to better execute loyalty programs and promotions.
``This is an opportunity for retailers to make a meaningful, relevant connection to the customer, and the resulting loyalty can yield returns for years to come,'' Bartolotta said.
About NCR Corporation
NCR Corporation (NYSE: NCR - news) is a leader in providing Relationship Technology(TM) solutions to customers worldwide. NCR's Relationship Technology solutions include the Teradata® database and analytical applications for customer relationship management (CRM) and business performance management, store automation systems and automated teller machines (ATMs). The company's business solutions are built on the foundation of its long-established industry knowledge and consulting expertise, value-adding software, global customer support services, a complete line of consumable and media products, and leading edge hardware technology. NCR employs 33,200 in more than 100 countries, and is a component stock of the Standard & Poor's 500 Index. More information about NCR and its solutions may be found at www.ncr.com .
NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries.
SOURCE: NCR Corporation |
