Tesco has announced plans to introduce digital shelf labels across thousands of stores in the UK, marking one of the biggest changes to its shop floors in decades.
The supermarket giant intends to replace traditional paper price tags with electronic shelf labels (ESLs), allowing prices to be updated instantly across stores through a centralised system.
The rollout will begin with four pilot locations, including one Tesco Express and three larger supermarkets, before expanding to around 3,000 stores nationwide over the next two years.
The move is expected to improve pricing accuracy, reduce administrative work for staff and support Tesco’s wider sustainability goals by cutting paper usage.
Electronic shelf labels display product prices digitally and can be updated remotely in real time. This means customers will always see the latest prices on shelves, while staff will no longer need to manually replace large numbers of paper labels whenever prices change.
Tesco said the technology will help improve efficiency in stores and allow employees to spend more time assisting shoppers.
The retailer is working with Chinese technology company Hanshow on the project after successful trials at stores in Royston and St Neots.
Announcing the partnership, Hanshow described the rollout as “a new milestone in digital store transformation”.
The company said: “Hanshow is proud to partner with Tesco on the rollout of electronic shelf labels across its large-format and convenience store network in the UK.”
It added: “By replacing paper labels with connected digital infrastructure, the project will help simplify daily store operations for associates, enable them to spend more time serving customers, and support Tesco’s sustainability ambitions.”
Hanshow also said it remains committed to delivering “long-term value” through technology that makes retail operations “more efficient, connected, and sustainable”.
The introduction of digital shelf labels is one of the most significant technology upgrades across Tesco’s store network in recent years.
The system has already gained popularity across the supermarket sector, with several major retailers adopting similar technology. Morrisons became the first UK supermarket to trial electronic shelf labels, while Lidl, Co-op, Waitrose, Asda and Sainsbury’s have also introduced digital pricing systems in some stores.
One of the key benefits of the technology is the ability to instantly update prices across the entire shop floor, reducing the risk of discrepancies between shelf prices and checkout prices.
Tesco believes the initiative will also play a role in reducing paper waste and helping the company meet its environmental targets.
Kevin Tindall, Tesco’s UK Operations Managing Director, said the technology would help modernise stores while allowing colleagues to focus more on customer service.
The rollout reflects a wider trend across the retail industry, with supermarkets investing heavily in digital technology to improve efficiency, reduce costs and enhance the shopping experience.
If the programme proceeds as planned, digital shelf labels will be installed in approximately 3,000 Tesco stores across the UK by 2028.