As connected technologies take over brick-and-mortar stores, convenience retailers are increasingly seeing smart shelf tags as key to providing a positive shopper experience.
The report “Big Retail’s Innovation Mandate: Convenience And Personalization,” a PYMNTS Intelligence and ACI Worldwide collaboration, drew from a survey of 300 U.S. and U.K. retailers with at least 50 store locations and with annual revenues of at least $1 billion for U.S.-based companies or 100 million pounds ($127 million USD) for those based in the U.K.
The study found that among convenience stores and pharmacies, 30% think consumers would be very or extremely likely to switch merchants if they were not provided with digital price tags or smart shelf tags.
One key player in the smart shelf tag space is Instacart, which announced in 2022 the addition of shelf tags, called Carrot Tags, that retailers can connect to the platform to help shoppers find items in the store. These also enable retailers to offer consumers access to information regarding products’ eligibility for Supplemental Nutrition Assistance Program (SNAP), Electronic Benefits Transfer (EBT) or their compliance with certain dietary restrictions, such as gluten free, organic or kosher.
Overall, convenience stores are increasingly looking to digital technologies to drive customer loyalty. For instance, major convenience retail chain Casey’s General Stores shared in an earnings presentation last month that its loyalty program membership has increased to 7.3 million, up from 7 million the previous quarter and 5.8 million last year.
The company noted that the program yields “higher transaction value” and “more frequent visits,” as well as enabling the retailer to deploy “personalized marketing to influence guest behavior.”
The retail landscape is rapidly evolving, and convenience stores are embracing connected technologies to provide an enhanced shopping experience. The survey results highlight the growing importance of smart shelf tags, with a significant percentage of convenience stores and pharmacies acknowledging their impact on consumer loyalty.