Cyprus is just getting used to self-service checkouts, and now pricing is getting technical.

Several Cypriot supermarkets have recently pushed ahead with the introduction of electronic price tags (ESL), replacing traditional paper price tags.

The supermarkets explain that this move is part of continuous modernization efforts to improve the shopping experience in the modern age and ultimately benefit consumers, employees and the environment.

But is that really the case? Before giving in to the tech hype – or the hysteria of those who fear that this will lead to hidden price increases – it's worth taking a closer look at what the introduction of these digital price tags actually means in practice.

Electronic price tags, also known as electronic price labels, are small digital displays that are attached to the shelves in the store and display product prices and information.

They are connected to the central system of the supermarket and allow prices to be updated electronically and instantly on all shelves. This makes promotions, discounts and price corrections much more efficient and saves supermarket employees the work of manually replacing paper labels.

However, some fear that this possibility could also be used to change prices, making it more difficult for consumers to keep track of them.

Electronic screen readers (ESLs) eliminate the need for paper and are seen as a way to reduce waste. They are often powered by small batteries, which of course have their own environmental disadvantages. However, new, battery-free ESL models are currently coming onto the market.

"Prices are updated automatically and offers are applied with absolute precision. [The launch of ESLs] significantly improves the customer shopping experience, increases the productivity of our employees, and saves time and resources while providing an innovative shopping experience," retail giant Alphamega said in late August when announcing the switch to ESLs in all its markets.

George Touloupis, IT project manager at Alphamega, added that the introduction of ESLs also allowed the chain to reduce its paper consumption, thus minimizing its overall environmental footprint.

Touloupis also highlighted another important advantage of the supermarket chain, which currently operates 19 stores across the island.

"The launch of the 'Electronic Shelf Labels' project strengthens the technological superiority of Alphamega hypermarkets and improves our daily operations," he said.

Discount chain Lidl, which has also banned paper labels from its stores, received three Cyprus Retail and Sales Awards for launching ESLs in 2024.

However, the adoption of ESLs extends far beyond supermarkets.

As Marios Droushiotis, head of the Cyprus Consumer Association, told the Cyprus Mail, retail chains such as Public, JD Sports and H&M have already introduced electronic price tags.

However, he adds that the number of supermarkets in Cyprus that have introduced EPTs is still small.

"[ESLs] are a useful tool. However, as they require specialized technology and additional costs, their implementation is difficult for all Cypriot companies," he adds.

The decision on whether or not to introduce electronic price tags is currently still up to supermarkets, and Droushiotis stresses that this is unlikely to change until the EU wants to enforce legislation at a later date.

"I don't think this [the introduction of ESLs] will lead to price increases. On the contrary, I believe it helps consumers to know market prices at all times, and that promotes healthy competition," says Droushiotis.

He adds that the only disadvantage he can think of at the moment is the "relative uncertainty" that he believes exists in all electronic systems, as they are susceptible to electronic attacks and data falsification.

"Consumers should pay attention to the electronically displayed price, any hidden fees, the exact product description and, above all, the final price they will pay at the checkout," he says.

Regarding the e-karathi app, which the government launched in July to make it easier for consumers to compare the prices of essential goods in large supermarkets, Droushiotis says that the ESLs would not have a significant impact on the app.

"The prices in the E-Karathi app are already online and can be changed immediately at any time. I don't think this will significantly affect the E-Kalathi app," he says.

At a time when society has long since switched to e-mails instead of letters and card payments instead of cash, paper has long since been replaced by more practical alternatives. Therefore, the advancing digitization in retail seems only logical.

After the introduction of apps that offer discounts, self-checkouts, or radio frequency identification (RFID) that allows for the automated scanning of hundreds of items at once – if you've ever seen an employee waving a strange-looking remote control between shelves and wondering what they're doing, it's RFID – ESLs are another step in that direction.

What supermarkets refer to as the "increase in employee productivity" that comes with automation also raises the question of whether fewer people will ultimately be needed to do the same work.

The U.S. Bureau of Labor Statistics warned in 2023 that technological improvements in retail, such as self-checkouts and online sales, were a major reason for the decline in cashier jobs in the U.S. — 1.2 million in 2023 versus 1.4 million in 2019 — and that a further 10 percent decline was expected by 2033.

While the introduction of the new shelf labels is already making a significant difference for supermarket employees, it remains to be seen to what extent Cypriot consumers will benefit from the introduction of the new shelf labels in the long term.













MFRadio.de
Source: CyprusMail.com
Author: Johanna Pauls