Two Food Chains Trial RFID-based Electronic Shelf Labels

With the system, Saxena says, a store can update the product information displayed on 10,000 labels in less than an hour. The stores piloting the system have typically installed two RFID readers to control 25,000 shelf labels deployed across a sales floor measuring 50,000 square feet in size.

In addition, store employees can use a handheld interrogator, also designed by Altierre, to cause the data displayed on the labels' LCD to switch from customer information (such as pricing) to data such as bar-coded SKU numbers that might be utilized to order additional inventory. The handheld can be used to "flip" that information on a particular aisle, or throughout the entire store.

The Altierre software also enables stores to facilitate recalls by sending them recall data associated with a particular product's SKU number. The specific labels for that recalled product will then flash a recall alert on the display in bold lettering, immediately warning customers to not purchase that item.

Sunit Saxena

The first store began piloting the system approximately nine months ago, Saxena says, and the rest have installed their systems during the past few months. "It seems to be working fine," he states. The labels, which cost about $5 apiece and need to be replaced every five years, should provide a 100 percent return on investment within one and a half to two years, Saxena says.

According to Saxena, the stores have been working closely with Altierre throughout the development stage, and the pilots will continue before any further deployments are planned. "We'll spend more time on piloting, and let the chains feel their comfort level," Saxena says, adding that he expects Altierre to market the system in North America, Europe and Japan.

Retailers, including those piloting Altierre's system, are currently studying the system at the company's retail technology center, which opened this month. The center consists of a replica of a 25,000-square-foot supermarket, as well as an adjacent 20,000-square-foot technology lab. The store is equipped with a server and RFID readers, in addition to more than 10,000 electronic shelf labels along the store aisles. The center also includes refrigerated and freezer sections for testing the labels in cold temperatures.

"We will use [the center] to test new technologies and applications under a real-world retail environment," Saxena says, "and we will invite other companies—our retail partners, other startups—to use it as a proving ground for testing and developing their products."