EDWARDS TO USE ELECTRONIC SHELF LABELS

DENISE ZIMMERMAN

WINDSOR LOCKS, Conn. -- Edwards Food Stores here will embark on a widespread rollout of an electronic shelf-labeling system at its stores, according to industry sources.

The decision to install the technology follows a six-month comparative test of two electronic labeling systems at two store locations. Industry sources described the rollout as "sizable" and indicated that up to 25 of its 36 Connecticut stores may be involved.

Officials at Edwards declined to comment. But other sources close to the situation said the chain has decided to install electronic shelf labels manufactured by Telepanel Systems, Markham, Ontario.

Chris Skillen Jr., president of Telepanel, was reluctant to discuss the situation. But he did say, "We think this is a watershed decision. Other stores are watching the Edwards' decision closely."

He described the six-month test at the two Edwards' stores as "exhaustive," involving five categories and 85 subcategories of study ranging from system cost and flexibility to consumer attitudes. The other labeling manufacturer involved in the test was Electronic Retailing Systems International, Wilton, Conn.

The per-store cost for the Telepanel system can range from $80,000 to $110,000, with about 10,000 electronic labels typically installed in each location. Edwards' move would be only the latest in a flurry of activity involving retailer commitments to install electronic shelf-labeling systems at a large number of stores.

Other major players recently taking the plunge into the high-tech labeling area include Vons Cos., Arcadia, Calif., which will install electronic labels in 26 stores; H-E-B Grocery Co., San Antonio, which will put labels in up to 50 stores, and Loblaws Supermarkets, which is placing the labels in more than 60 stores.

Roundy's, Pewaukee, Wis., also will install electronic shelf labels in some of its stores, and Topco, the cooperative buying group, has signed an agreement to supply electronic labeling systems to its members at a reduced price.

Several reasons have been cited for retailers deciding now to make the considerable investment in the systems. Pricing accuracy at the shelf and front-end clearly is a prime consideration. Also, the systems help reduce the substantial labor costs involved in updating prices.

But pending government legislation in several states requiring supermarkets to price each item individually may also be having an impact. In the state of Connecticut, for example, where such legislation has already passed, supermarkets are required to price every item, unless the store is outfitted with electronic shelf labels. Other states considering similar legislation include California, New York and Massachusetts.