X5 pilots electronic shelf labelling system in Pyaterochka stores

Moscow, 2 September 2019 – X5 Retail Group, a leading Russian food retailer, launched a pilot project to test electronic shelf labelling in Pyaterochka stores. The new technology aims to prevent erroneous labelling and boost NPS.

The current stage of the project has been rolled out in Dolgoprudny, where seven Pyaterochka stores were equipped with 58,000 electronic shelf labels covering nearly 100% of the assortment (with the exception of a small number of promo goods placed off the store shelves).

The electronic paper technology used for the labels is effectively a display with three colours: white, black, and red (used for promotions). The labels are updated automatically and autonomously, with price and product information adjusted online via a radio channel. The labels are energy efficient and can last up to five years on a single battery. The software solution is integrated in X5's existing store IT architecture and it is possible to update the entire data set in just a few minutes.

The electronic shelf labelling system is an advanced way to digitise retail and improve NPS and customer loyalty. The streamlining effect of this process automation will also give employees more time every day to interact with customers and to handle other tasks. The new technology also cuts label printing costs and reduces losses resulting from labelling errors.

X5 is already using over 65,000 electronic shelf labels in three large format Perekrestok supermarkets in St Petersburg, Stary Oskol, and Moscow. Before the year end, the Company will consider implementing this system in another 15 Pyaterochka stores and 10 Perekrestok supermarkets. Based on the pilot project results and fine-tuning of the economic model, a decision regarding the project roll-out across X5's other stores will be made.​

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