Retail chains that utilize digital aisle displays, such as the Andorinha supermarket in São Paulo, illustrate how technology is optimizing everything from order picking for delivery to emotional customer engagement. However, there are limitations imposed by the Consumer Protection Code.
Global retail giants like Walmart and Kroger are already signaling that paper price labels may be numbered on supermarket shelves. In an official statement released a few months ago, Walmart says it has been testing Electronic Shelf Labels (ESLs) and that "the technology improves how the company makes price changes in stores, making the process faster and improving the customer experience.".
In the same announcement, the company says it aims to install the new system in 2,300 stores by the end of 2026. In a somewhat more discreet manner, Kroger, another major supermarket chain in the United States, has adopted the new system in some stores. Without revealing in which regions or how many stores the technology has been implemented, the company only reveals that it is moving forward with electronic price tags.
According to Wagner Bernardes, an executive at Seal Tecnologia, a supplier of electronic labels, moves like those of Walmart and Kroger materialize what might previously have been seen as a status symbol or a "sophisticated substitute for paper." Today, he says, this innovation can be considered a well-established strategic tool for operational efficiency.
In Bernardes' words, the benefits go beyond automation, since organizing the gondolas with electronic labels makes the environment cleaner and more attractive to customers, in addition to reducing the chances of stockouts and saving paper, helping the supermarket maintain a more sustainable operation.
In São Paulo, the Andorinha hypermarket invested in the tool and, through a pilot project in 2023, installed 250 electronic labels in the beverage area. After six months, the hypermarket extended the adoption of the technology to the entire store area. The implementation, carried out throughout the first half of 2024, also involved three 49-inch digital signs integrated with the ESLs, in addition to eight radio frequency antennas.
According to Flávio Boer, senior IT manager at Andorinha, the main advantage was the complete automation of the price change process, which previously required one to two hours daily and up to one hundred employees. Today, updates are automatic and take only a few seconds via Wi-Fi, with integration into the price management system that the store already used.
For consumers, Boer says that, in addition to displaying product prices and descriptions, the ESLs automatically change color – to red in the case of promotions. For store managers, the tags allow them to quickly identify which aisle the corresponding product is located in. The digital posters display food and beverage offers in real time, reinforcing visual communication and giving an extra boost to store revenue.
Furthermore, according to Boer, the technology allowed for the reallocation of employees to more strategic areas, reducing overtime, and eliminated operational errors caused by the need to manually change printed labels – especially price discrepancies, avoiding surprises when the customer makes the payment at the checkout.
Over time, new avenues for innovation were explored, such as the adoption of retail media, the expansion of the number of digital posters, and the integration of new data into digital labels – such as product expiration dates.
Route taken in Brazil
Fifteen years ago, when Seal brought the technology to Brazil, Wagner says that the labels were monochromatic and the investment in dollars was prohibitive for many businesses. Even with the fluctuating dollar, the executive indicates that the technological cost is still significant; however, today, the company already offers new business models, such as rental (HaaS – Hardware as a Service) and monetization of digital merchandising spaces for suppliers, who end up paying for the investment.
“"Today, the solution is mature and well-established. It's no longer a matter of luxury or aesthetics; it solves real challenges within the store," he states.
In addition to the democratization of technology, the last decade has also brought a drastic technical evolution. He explains that while in 2010 screens were limited and monochromatic, current labels are colorful, graphic, and equipped with NFC (Near Field Communication) – a short-range wireless communication solution – and Wi-Fi.
Beyond the costs, Wagner argues that the "greatest return" lies in the invisible operation. The use of colored LEDs on labels has revolutionized the picking process (order separation) for services like iFood. In addition to speed, the technology reduces the flow of employees in the aisles, improving the end customer's shopping experience by avoiding crowds.
“The product that the operator needs to pick up is already flashing. This generates an operational gain of around 35%. It's a multidisciplinary project that brings benefits to all areas,” he says.
He also points out that, for the consumer, the digital label has ceased to be a static display and has become a point of interaction. Stores that already use NFC allow consumers to receive information by bringing their cell phone close to the label. In a wine shop, for example, this interaction allows the consumer to receive pairing tips and purchase coupons. There is also the possibility of integration with social networks to display, in real time, the rating (stars) and reviews of those who have already purchased the product, nutritional information, and technical composition. In other words, an abundance of data that tends to influence the purchase decision.
Looking ahead to the coming years, the next technological leap, in Wagner's opinion, will be in integrated computer vision. He says that Seal is preparing to launch smart cameras that run on the same platform as the labels. Installed on the gondola rails, these cameras photograph the opposite side to detect ruptures in real time.
The shift to digital is also gaining momentum with the development of battery-free rail systems, eliminating the need for replacement every five years and reinforcing the commitment to global ESG (Environmental, Social, and Governance) practices of large networks. The reduction in graphic inputs and logistical processes signals a real commitment to sustainability, something increasingly demanded by investors and young people.
Dynamic pricing and the Consumer Protection Code
All this market activity raises the challenges of adopting this technology on a large scale and also brings with it some legal and behavioral questions, which, according to Nicoly Crepaldi Minchuerri, a lawyer at Mazzucco&Mello, require transparency in order not to violate the Consumer Protection Code.
While acknowledging that this technology introduces the concept of "dynamic pricing" to physical stores, Nicoly points out that although consumers seem to be accustomed to this practice in e-commerce, it still presents challenges when applied in supermarket aisles, and therefore this transition requires caution.
In practice, the new labels allow employees to change prices every ten seconds. Therefore, if there is higher demand for a particular product, the store can increase the price of that item. Similarly, if a product is nearing its expiration date, the price can be reduced.
Apps like Uber already use dynamic pricing, where higher demand leads to higher prices in real time. Prices tend to increase significantly during rush hour, when demand is higher, but also during events or even during periods of rain, when traffic is disrupted.
Two years ago, the fast-food chain Wendy's announced plans for dynamic pricing via artificial intelligence (AI) based on demand, causing controversy. The chain's argument was that the tool would enable increased order volume during periods of low demand, when prices are lower, and this would "relieve" the kitchen during peak periods with higher prices. However, with each new statement, Wendy's executives maintained that it was a future project.
“Price is the central element in the purchase decision. Any abrupt fluctuation can generate insecurity,” warns Nicoly.
In retail, the concept seems no different from services – and it also causes strangeness, according to the lawyer. She explains that the possibility of a product's price changing in real time, while the customer is still in the store, is one of the most sensitive points of this transition. From a legal standpoint, she says that the Code is clear: articles 6, 30, and 31 require that the information be clear, correct, and precise. If a consumer notices that the price has increased between the shelf and the checkout without prior notice, the consumer relationship suffers a setback.
If the price increases between the shelf and the checkout without warning, the store could be accused of abusive practices, she explains, and therefore, this innovation could mean a profound change in consumer dynamics. For Nicoly, the more informed the consumer feels, the lower the perceived risk and the greater the confidence in their choice.
Although still surrounded by debates about consumer rights, Wagner sees dynamic pricing as a beneficial tool, especially in the Fruits, Vegetables and Greens (FVG) sector, where aggressive promotions throughout the day can prevent waste.
Although technology allows for reactions to competitor promotions almost in real time, full automation via artificial intelligence is not yet the norm. Most retailers adopt a semi-automated model in which AI suggests adjustments based on demand and competition algorithms, but final validation still goes through human review.
“Ultimately, technology, when used transparently and with respect for the duty to inform, not only modernizes the store, but strengthens the most important link in the market: consumer trust,” says Nicoly.