Electronic shelf labels (ESLs) allow retail stores to manage product prices using a single, centralized content management system (CMS).
The potential time and labor savings offered by ESLs are significant — as noted by Forbes, Walmart plans to roll out these digital shelf labels across all 4,600 of its U.S.-based locations by 2027.
But these labels also come with concerns around transparency and trust, as consumer protection groups worry about price gouging based on product-specific demand or store location.
Here’s what brick-and-mortar stores need to know about ESLs and the future of product pricing.
ESLs replace paper and plastic product price tags in retail stores.
An electronic price tag like this requires three components:
Tags themselves may be electronic paper displays (EPDs) or liquid crystal displays (LCDs). Both look like paper tags but can be updated remotely and without the need for staff to physically swap tags. Most newer tags are EPDs because they only require power when updating or changing content — displaying prices consumes no energy.
CMS tools allow companies to change prices as required and push updated pricing data to all relevant product tags. Businesses can update some or all of their tags at once, enabling them to set sale prices on some items without changing others.
Connections that enable communication between ESLs and CMS tools often rely on radio frequency (RF) in the 2.4 GHz, 1 GHz, or 433 MHz bands. Stable connections are typically supported by Bluetooth for smaller stores and Wi-Fi for larger retailers.
Companies may also use near-field communication (NFC), which allows users to change display labels at close proximity using a mobile device.
Paper tags are time-consuming to display and change. They may fall off shelves or become damaged as consumers search for products, requiring staff to spend more time and effort on repair and replacement.
These traditional tags can also lead to customer frustration if shelf and checkout prices don’t match. This may occur because staff forget to replace paper tags, or because legacy technologies fail to notify staff of new pricing.
Consider a consumer who picks up a bottle of ketchup with a paper price tag of $4.99. When they pay, however, the bottle scans at $5.75. At best, the customer is frustrated and pays the price. At worst, they leave the product behind and tell their friends and family that store pricing can’t be trusted.
ESLs help eliminate these issues with more efficient pricing processes, reduced revenue loss, and an increased opportunity for analytics and insight.
Using ESLs, prices can be updated store-wide in nearly real time. Administrative staff can push pricing updates as needed to some or all tags in the store.
This eliminates the need for employees to remove old tags, replace them with current ones, and double-check them against product lists.
Stores may choose to honor the price listed on the tag, or opt to make the register the sole source of pricing truth.
In both cases, they may lose revenue. In the first case, paper tags that list lower prices than those in the system mean businesses lose money with every sale until tags are updated.
In the second scenario, customers may choose not to purchase items if they arrive at the register and discover the price is higher than listed on the tag. ESLs ensure that tags and registers are always in agreement.
Businesses can also use digital pricing data to help ensure continuity across the commerce shelf triad: physical, digital, and agentic. Analysis of pricing trends can inform sales and promotions, and allow companies to craft personalized customer offers.
ESLs occupy a unique place in brick-and-mortar stores. While they offer significant advantages for businesses, they’re also raising concerns among consumers and watchdog groups.
According to the United Food and Commercial Workers (UFCW) International Union, 65% of American voters think that ESLs will cause grocery prices to increase. This belief is informed by the rise of “surge” pricing in industries such as ride-sharing — trips may double or triple in price depending on where users are going and how many vehicles are available.
Customers are concerned that stores will increase prices day-by-day or even hour-by-hour in response to outside events. Consider a summer heatwave. Customers worry that products such as ice cream or popsicles could experience a sudden price increase, not because of low supply or changes in supplier costs, but because stores know that buyers will pay more in the moment.
In response to these concerns, the U.S. government drafted the Stop Price Gouging in Grocery Stores Act of 2025. While the act is still under review, one of its main provisions is the prohibition of electronic shelf labels for any food store larger than 10,000 square feet.
Electronic labels aren’t going anywhere. While legislation is under review in Congress and some states have implemented their own ESL management policies, the benefits of electronic labels significantly outweigh the costs.
For businesses, however, it’s important to build an ESL strategy centered on consumer trust. This trust is hard to build but easy to lose — a single wrong price or any hint of price gouging can see customers taking their money elsewhere.
To gain the benefits of ESLs without damaging customer trust, brands need to start with transparency. This means notifying buyers of when, where, and how ESLs will be deployed, and how often prices will be changed. It’s also important to communicate that ESLs do not track customers and don’t collect personal data. This means clear collection and data governance policies are essential, especially as AI becomes table stakes for business success.
Next is accuracy. Companies must create clear policies around how and when prices are updated, and ensure schedules are followed. While CMS tools typically provide automated operations for price management, regular testing and evaluation are essential to verify that pricing tools are using relevant, timely, and reliable data.
Finally, brick-and-mortar stores need consistency by connecting prices across stores, advertisements, and product detail pages (PDPs). Key components of the digital shelf, PDPs can drive both online purchases and in-store visits. If customers arrive on-site and discover pricing mismatches, however, they may choose a competitor. Consistency from engagement to interest to purchase keeps buyers coming back.
According to the National Retail Federation (NRF), ESLs facilitate more accurate pricing and less waste, both of staff time and business resources. While concerns remain around the application of this technology, paper and plastic tags simply can’t compete with the efficiency and reliability of electronic shelf labels.
Bottom line? Electronic shelf labels are the future of brick-and-mortar pricing, but companies can’t afford to set and forget these digital tags. Effective use requires a combination of transparency, accuracy, and consistency.