Walmart is hoping its new technology investment will help make its operations more efficient.
The retail giant said it plans to use digital shelf labels (DSLs) at 2,300 of its stores nationwide by 2026.
Walmart said the change is a “significant shift” in how it plans to manage pricing, inventory, order fulfillment, and customer interactions. It had been pilot testing the technology at a store in Grapevine, Texas.
With the tool, Walmart said it will be able to update prices on its shelves through a mobile app, reducing the need for employees to walk around and individually adjust tag prices for the more than 120,000 items. That task typically took an employee about two days to complete, it added. DSLs will also give employees more time to help shoppers.
Walmart said DSLs will be equipped with a “Stock to Light” feature that alerts employees when an item needs to be restocked, as well as a “Pick to Light” feature that guides employees on which items an online order requires.
Matthew Pavich, senior director of strategy & innovation at software company Revionics, said that Walmart’s recent move to use digital shelf labels has raised the stakes significantly for every retailer trying to match, index, or beat them on prices and promotions.
“Once this new technology is rolled out, Walmart can move as quickly as it wants on prices and do it cheaper and with higher compliance than their competition,” Pavich said.
The strategy could also stand to boost Walmart’s revenue as it can quickly mark down a price on an item that another retailer, such as Target and Amazon, is also offering. Though much smaller in size, Aldi already uses digital labels, dubbed “electronic shelf labels.”
Pavich said that in this new reality where technology is king, retailers vying for share “will need to price more dynamically to compete,” and those that fall behind on sophisticated pricing technology “will be at a significant disadvantage moving forward.”
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