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Project

Kh5 Group sets electronic price tags in 100 Perekrestok supermarkets

Customers: X5 Group

Moscow; Trade

Product: SES-imagotag G2 Vusion

Project date: 2019/09

2024: Installation of electronic price tags in 100 Perekrestok supermarkets

X5 Group sets electronic price tags in 100 supermarkets Intersection"" throughout the geography of the chain's presence trade. 2 million electronic price tags as a digital element of the customer path will improve the shopping experience and increase the operating efficiency of the supermarket. X5 Group announced this on March 12, 2024.

Electronic price tags allow you to free up a significant amount of working time for store employees to interact with customers and solve other important tasks. In March 2024, on average, one Perekrestok supermarket spends about 12 hours of working time a day to completely replace paper price tags and 4 hours to verify them.

The update information on electronic price tags takes place automatically without the participation of the store staff - the price information and about the product change online through a connection to the internal network. Software electronic devices are built into the current architectural solution of IT the store, which allows you to completely update data in just a few seconds.

Electronic analogues of price tags also exclude the possibility of non-compliance of these prices for goods, including within the framework of promotions, which reduces financial losses due to incorrectly displayed information, and also increases the customer satisfaction index of stores. This technology, among other things, leads to a decrease in the cost of printing paper price tags.

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Digitalization of purchasing experience and increased efficiency of operations due to automation and technological innovations are the strategic priorities of the Kh5 Group and the Perekrestok trading network. By reducing the complexity of the process of changing price tags manually by even 10%, we get 5% of the saved net staff time, which can be used with great effect. This time we invest in improving the customer experience - working in the hall, displaying goods, communication with customers. The introduction of technology on the scale of 100 supermarkets will help Perekrestok to achieve the ambitious financial goals of 2024. A survey of our clients showed that poorly designed price tags are the main factor that affects their loyalty. If the price tag is incorrect, then the buyer will probably be dissatisfied with the store. A quarter of people will not take the goods from the shelf at all if there is no price tag, or will pass by the goods if it does not indicate a promo price. Electronic price tags help us avoid such situations, - commented Alexander Chukhontsev, director of business support and efficiency at the Perekrestok retail chain.
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Digital price tags look like small displays with three color electronic inks - white, black (for regular price tags) and red (for promotions). On displays, due to the large font, information will be available even to people with visual characteristics. Electronic price tags installed in supermarkets - developed by a Chinese vendor. They are low power consumption and can work for 5 years without replacing the battery.

2019

Plans for a complete transition to electronic price tags

On December 16, 2019, it became known about the plans of X5 Retail Group to equip all stores of the Pyaterochka, Perekrestok and Karusel chains with electronic price tags. This is not the only digital project in the grocery retailer.

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We plan to introduce electronic price tags everywhere. Now we are doing this as a pilot, but we plan to introduce electronic price tags in most stores from next year, "Igor Shekhterman, Chief Executive Officer of X5, told reporters (quoted by Prime agency).
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X5 Retail Group plans to equip all stores of the Pyaterochka, Perekrestok and Karusel chains with electronic price tags

According to him, without this automation, employees of retail outlets put price tags manually - using a portable scanner and printer. And this takes about 6% of the total working time of the staff.

Electronic price tags will help reduce human errors and free up time for employees to communicate with the buyer and use various services. The human factor, which manifests itself when an employee forgets to replace the old price tag with the current one, affects the loyalty of customers: they lose confidence in the store if they see that one price is indicated on the shelf, and another is punched at the checkout, Shechterman explained.

On December 15, 2019, two Pyaterochki of a new format opened in Krasnodar, which use electronic price tags and self-service ticket offices. By the end of the year, it is planned to open another 30 such stores, including in Yekaterinburg, Nizhny Novgorod and Kazan.

The company will be able to draw conclusions about the effectiveness of the new format based on the results of the activities of 100 stores after six months of their work, the chief executive officer of X5 said.

In addition to electronic price tags and electronic cash registers, the company is mastering a number of other technologies, including video analytics, which allows you to timely put the finished product on the shelves, Igor Shekhterman said.[1]

Start using electronic price tags

September 1, 2019 X5 Retail Group launched a pilot project to equip stores with electronic price tags. Pyaterochka According to the company, only Pyaterochki, located in the city of Dolgoprudny, participate in the first stage of the pilot. Seven stores are equipped with 58 thousand electronic price tags, which cover almost 100% of the assortment, with the exception of isolated cases of promotional products located not on the store shelves.

At the heart of the "digital" price tags is electronic paper, acting as a device display, with three color inks - white, black and red. The latter are used for promotions. Updating the data on the price tag takes place automatically without the participation of the store staff: the price and information about the product changes online using a radio channel.

X5 expects that electronic price tags will eliminate the likelihood of non-compliance of these prices for goods and increase customer satisfaction "(photo - X5)"

X5 told TAdviser that the company's electronic price tags are used for the pilot project. SES-imagotag Its solutions To Europe were implemented by large retail chains, including,, Billa Carrefour Colruyt, Media Markt, Spar and others. Investment in the X5 project does not disclose.

According to X5 representatives, these price tags are low in power consumption and can work for 5 years without replacing the battery. Electronic device software is built into the store's current architectural IT solution and allows you to completely update your data in a few minutes.

X5 expects that new technologies will eliminate the likelihood of non-compliance of these prices for goods and increase the NPS ("satisfaction") of buyers.

Updating the data on the price tags is automatic "(photo - X5)"

In addition, automation of the process allows you to optimize labor costs and free up time for employees to interact with buyers and solve other tasks. The company told TAdviser that the use of electronic price tags allows you to automate part of the work of staff, but the reduction of employees does not occur.

In addition, the new technology also leads to a decrease in the cost of printing paper price tags and a reduction in losses due to incorrect information on them.

Earlier, Kh5 began piloting electronic price tags in three "Crossroads" large-format supermarkets located in St. Petersburg Stary Oskol and. They To Moscow use more than 65 thousand electronic price tags.

Kh5 is considering expanding the reach of stores involved in the pilot project "(photo - X5)"

By the end of 2019, the Kh5 will consider the possibility of introducing electronic price tags in 15 more Pyaterochka stores and 10 Perekrestok supermarkets. Based on the results of the pilot and the refinement of the economic model of the project, a decision will be made to deploy the project to a larger number of Kh5 chain stores.

Information Technology at X5 Retail Group

Main article: Information Technology at X5 Retail Group