SHAW'S CONNECTICUT UNIT TO TEST ELECTRONIC TAGS

DENISE ZIMMERMAN

EAST BRIDGEWATER, Mass. -- Shaw's Supermarkets here will begin testing electronic shelf labels in a new store opening this fall in Connecticut, marking the chain's entry to that state.

Following a one-store test, Shaw's intends to outfit subsequent Connecticut stores with the technology, said Bernard Rogan, spokesman. While he declined to specify how many stores Shaw's will open, he said, "We'll have a major introduction in Connecticut."

According to a letter of intent signed with the electronic shelf label vendor, Electronic Retailing Systems, Wilton, Conn., Shaw's has committed to one store installation and may exercise an option on systems in four additional stores.

The electronic shelf labels will lend enhanced price integrity, because information programmed into the shelf tags is drawn from the same data base used by the point of sale, Rogan said.

Further driving price accuracy -- and some labor savings -- will be the elimination of the time-consuming, error-prone task of item pricing. Connecticut is the only item-pricing state to waive that requirement for retailers with electronic shelf labeling systems installed.

The 87-store chain also operates stores in Massachusetts and Rhode Island, which require item pricing, and in Maine and New Hampshire, which do not require products to carry individual price tags.

Shaw's also hopes to explore promotional and shelf management functions of the electronic shelf label system, he noted.

"Clearly, it's a merchandising tool," Rogan said. "Labels are programmable to alternate price information with messages so you can use it for some point-of-purchase programs. There's a great promotional element that's there."

In addition, he called the system a "customer information tool" because the labels feature buttons that shoppers can press to display additional product information, such as price per ounce.

"Everything we do is driven by that customer demand and I think [electronic labels] is one more way for us to provide that information to the consumer," he said.

The number of retailers testing ESL systems is continuing to grow rapidly. Just last month, K.V. Mart, Long Beach, Calif., announced plans to install solar-powered labels in its stores. Fiesta Mart last week said it will also test an ESL system.