BIG Y LOOKS TO SAVE WITH ELECTRONIC TAGS

DENISE ZIMMERMAN

3aSPRINGFIELD, Mass. -- Big Y Foods here will closely track store-level labor savings produced by electronic shelf labels when it launches a test system this fall.

The 31-store chain is currently expanding its market presence in Connecticut, the company said, and one of those new store openings will likely serve as a test site for the system.

Connecticut was chosen as a test location because that state waives its item-pricing requirement for retailers who install electronic shelf labeling systems, said Claire D'Amour, vice president of corporate affairs.

While she declined to specify the projected savings, "we have done our homework and, suffice it to say, [the potential savings] are sufficient enough to warrant a test," D'Amour said

"The labor savings is the biggest inducement to test the program," she added, noting that pricing integrity is a secondary benefit. Because price data programmed into the plastic tags is drawn from the same data base feeding the point of sale, prices should be consistent from shelf edge to checkout.

Late last month, Big Y committed to a one-store installation of labels from Electronic Retailing Systems International, Wilton, Conn., with an option on seven additional systems. D'Amour said Big Y had not yet selected a location or installation date for the electronic labels, "but we're very excited to test it."