“Magnit” has begun testing electronic price tags

“Magnit” has begun testing electronic price tags

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That the retailer “Magnit” has launched a pilot project to implement in their hypermarkets electronic price tags, told financial Director of the company Khachatur Pombukhchan. In testing the new technology involves the hypermarket in Novorossiysk and three hypermarkets in Krasnodar. Now “the Magnet” testing equipment three producers, particularly South Korea’s Samsung, said Pombuhchan. In test mode, the company will use the new technology at least another six months. The amount of investment needed for hardware electronic price tags one store or the entire network, he did not disclose.

The price tags for a pilot project “Magnet” got for free, says Pombuhchan: the retailer can return the equipment after six months, if they decide to abandon it.

What is an electronic price tag

The electronic price tag is a small electronic module that displays the current price of the product and additional information about him. Most retailers use the device LCD or the screen technology “e-paper”. Managing price tags is happening over Wi-Fi from the back office of a retailer: the lump can change prices on all products.

In addition to the “Magnet” to experiment with electronic price tags will start German Metro C&C, occupying the sixth place in the rating of the largest retailers in Russia. E-labels will be installed in September 2016 in the hypermarket of the company in Lobnya, said the representative of the company Oksana Tokarev. According to her, they will react more quickly to the price changes: in every Metro C&C presents an average of 35 thousand items of goods, which is not always possible to change all the price tags on time.

Russia’s largest trader of household appliances and electronics “M. Video” have also recently launched the first pilot project with the introduction of electronic price tags: videotehniki (on screen display), said the representative of the company Olga Kobzareva. The second pilot with classic electronic price tags on the hard media will be launched in July 2016. “Retailers are always trying to pursue a flexible pricing policy, offering customers the most attractive prices. The introduction of electronic price tags may help to reduce the number of errors during the manual shift, when the seller may not have to change the price tag or made a factual error,” she explains. It also eliminates the current problem retailers: even if the price is changed to higher, according to the law on consumer protection the company is obliged to sell the goods at the price indicated on the price tag, adds Kobzarev. But the decision to use electronic price tags throughout the network “M. Video” has not yet been made.

Second, on the Russian retailer X5 Retail Group (operates a network “Pyaterochka”, “Perekrestok”, “Karusel”) is not going to move to the new technology, said the representative of the company Oleg Poletaev. “The transition to electronic price tags are interesting for us: they allow you to quickly change the prices during promotions, to optimize the work of personnel, to improve the image of shops in front of customers, he said. But the cost of import price taking into account currency exchange rates is very high”.

Photo: Anna Levinsky/

How much are the electronic price tags

The size of the investment is the main factor that most discourages retailers from using electronic price tags, says the CEO of the company Smart Price (distributor of electronic price tags) Vladimir Korolev. According to him, the cost per tag is small size (with a screen of 2.6 inches), which are commonly used food chain, is on average €16-18. The price for one shop of a format “Pyaterochka” or “Dixie” — around €100-150 thousand, he estimates. Based on the assortment of the “Magnit” hypermarket in 7-20 thousand positions, only the purchase of the actual electronic price tags for a single store would cost the company €120-340 thousand Pombuhchan calls these estimates are overstated.

Major grocery chain is “Correct” uses electronic price tags since the Foundation in 2012. Today the brand operates more than 400 stores, about 60% of them equipped with price tags, says the network CEO Oleg Vysotsky. But all new stores open with the traditional paper price tags, he says: “Despite the convenience of electronic price tags, they pay off longer than we expected: the payback period exceeds 1.5–2 years, we had hoped for”. If in the future the cost of the equipment, with the development of this technology will decline, the company may revert to its implementation, he said.