The shelf as a data goldmine: Leveraging shelf edge analytics for smarter merchandising

Imagine walking into a bustling supermarket, where every shelf is not just a display but a sophisticated data collection point. This is the reality that VusionGroup is bringing to life with cutting-edge shelf edge analytics technology. For retailers, this innovation is transforming the way they understand and respond to shopper behavior, ultimately optimizing merchandising strategies and enhancing the buying journey.

How Shelf-Edge Analytics Work

Consider a typical day at a typical retail store. Shoppers move through aisles, picking up products, examining them, and sometimes putting them back. Each of these interactions is a potential data point. Connected shelf edge technologies, such as electronic shelf labels (ESLs) and smart sensors, capture these interactions in real-time. They track metrics like product touches, dwell time, and shopper paths, providing a wealth of information about customer preferences and behaviors .

Benefits of Shelf-Edge Analytics

With this data, retailers can make informed decisions about store layouts. For instance, a major supermarket chain using VusionGroup’s technology discovered that certain high-traffic areas were underutilized. By strategically placing popular products in these zones, they saw a 15% increase in sales for promoted items . Understanding shopper flow patterns also allows for the creation of more efficient and engaging store designs, reducing congestion and enhancing the overall shopping experience.

Shelf edge analytics enable retailers to tailor promotions more effectively. Imagine discovering a particular product is frequently interacted with but rarely purchased. This insight can lead to targeted marketing campaigns, such as timely discounts or promotional offers, converting interest into sales. One retailer reported a 20% increase in conversion rates after implementing data-driven promotional strategies .

Accurate data collection at the shelf level helps retailers manage inventory more efficiently and more effectively. Near real-time insights into product availability and movement prevent stockout situations, ensuring that shelves are always optimally stocked. This not only improves customer satisfaction but also reduces waste and operational costs. According to a recent study by the IHL Group, retailers miss out on $1 trillion in sales annually due to out-of-stocks .

Data-Driven Success Stories

In one instance, a supermarket chain integrated VusionGroup’s IoT platform and electronic shelf labels with a third-party software to manage higher volumes of online orders. This integration enabled a “Pick to Light” system, where the corresponding shelf label flashes to help shoppers find products quickly. This resulted in a 1% sales lift, a reduction in product substitution by one item per order, and a time savings of 45 seconds per order .

Another retailer, focusing on managing 10,000 SKUs across multiple large-format stores, implemented a digital platform that included mini-cameras, electronic shelf labels, and dynamic Engage Rails. This platform improved on-shelf availability by 3% and increased sales of highlighted brands by 13% within two months .

A different retailer, with a promotion-heavy business strategy, faced challenges in ensuring pricing compliance across all stores. By implementing electronic shelf labels and dynamic Engage Rails, they reduced the time spent on pricing and promotion tasks from several hours to just 15 minutes, allowing more time for customer service and resulting in a sales lift for promoted products .

The integration of connected shelf edge technologies is transforming the retail industry, providing retailers with the tools to make data-driven decisions that enhance merchandising strategies and improve the shopping experience. As these technologies continue to evolve, the potential for smarter, more responsive retail environments will only grow, positioning companies like VusionGroup as leaders in this innovative and rapidly growing sector.