SELF-CHECKOUT AND ESL ON THE RISE, STUDY SHOWS

PETER PERROTTA

BOYNTON BEACH, Fla. -- A just-released study reveals that the next 12 to 18 months will be a time of robust growth for self-checkout and electronic shelf-labeling systems in supermarkets.

"These technologies are coming of age at a time when many retailers in the grocery sector are looking to replace out-of-date systems in the store," said Greg Buzek, president of IHL Consulting Group here.

Buzek's firm completed a 104-page report on the technological challenges faced by supermarkets today.

"Grocers are facing increasing pressure from the Wal-Mart, Target and Kmart superstores and are looking to improve the customer experience while lowering inventory control and labor costs," Buzek said.

The report reasons that because the late 1990s was a period of great consolidation in the grocery business, resources will be spent in the next two years on in-store systems in an effort to standardize all of the new stores under one system.

"Kroger, Albertson's and A&P are already rolling out new systems. Others in the sector should be investing in new systems soon as well," Buzek said.

IHL's study includes technical profiles of the Top 20 North American supermarket chains, including the hardware and software systems they use.

"These reports will allow the retailers to review their competition and the results they are getting with those systems," Buzek said.

A free synopsis with a sample technology profile is available at www.ihlservices.com.