EDWARDS SET TO PLUG ESL INTO 30 UNITS IN NEW STATE

DENISE ZIMMERMAN

WINDSOR LOCKS, Conn. -- Having rolled out electronic shelf labels in Connecticut, Edwards Super Food Stores here will take the technology into another state with a minimum $3.3 million investment in 30 stores.

Eight stores outside Connecticut are due to install the systems soon, an Edwards spokeswoman told SN, but would not specify whether they were located in New York state or New Jersey. An industry observer speculated the chain may be guarding an upcoming marketing campaign involving the technology.

Regardless of their destination, the systems will not deliver all the benefits enjoyed in the state of Connecticut, namely labor savings. Connecticut is one of eight states requiring individual item pricing and the only state to waive that regulation for retailers with electronic shelf label systems.

Item pricing is required in New York, which has considered but not passed a waiver similar to Connecticut's; New Jersey does not require item pricing.

ESL systems communicate price changes and promotional messages to liquid crystal displays on the plastic tags via two-way radio frequency technology. Because the systems are integrated with price files in the point of sale, scanned prices match shelf prices and pricing integrity increases.

Edwards' spokeswoman Tonya Lyon confirmed Edwards would install electronic shelf labels from Telepanel Systems, Markham, Ontario, in 30 stores over the next three years. The agreement provides the option on an additional 40 installations that could occur in other stores operated by Edwards' parent company, Ahold USA, Atlanta.

The chain would not comment on why it chose to expand its commitment to electronic shelf labels at this time; however, in testimony before the Massachusetts Senate last year, an Edwards official underscored the price accuracy gains and positive consumer acceptance as key motivations.

Edwards' 36 Connecticut stores, 33 of which have ESL systems today, are scheduled to be divested as part of Ahold's purchase of Stop & Shop Cos., Quincy, Mass. Thirteen stores will remain within the Ahold USA organization through the newly acquired Stop & Shop and 23 stores will be sold to competing retailers, Lyon said.

Edwards began using the technology in 1993, when the systems cost about $150,000 each, including about 14,000 of the plastic shelf tags per store. In the new agreement for up to 70 new systems, the per-store cost is about $110,000.