Challenge: A grocery chain serving 50+ million monthly customers faced a significant challenge: high labor costs associated with manual shelf pricing updates. With over 2,300 stores in the US, the need for a scalable, efficient solution was paramount. The primary challenge was the high labor cost incurred due to manually updating shelf prices. In the grocery industry, which operates on thin margins—averaging just 1.5% net profit per year—labor costs are a critical factor. It was essential to find a solution that could reduce manpower requirements while maintaining accuracy and efficiency.
Solution: Connext, with a proven track record and expertise in similar projects, stepped in to provide a comprehensive solution, leveraging electronic shelf label (ESL) technology to transform the retailer’s pricing management process. As a preferred vendor, Connext had successfully completed various projects for the retailer, including the installation of self-checkout systems across the retailer's entire store footprint.
Connext installed Cat 6 cables and mounted ESL controllers, with four controllers per store. The installations were meticulously planned and executed overnight to avoid disrupting store operations and customer experiences. Following their detailed success playbook, the Connext team accommodated store variations to ensure seamless integration.
Results:
- Project Completion: 100% on-time completion
- Budget: $0 budget overrun
- Reduced Labor Costs
- Improved operational efficiency
“This has been one of the smoothest, best running projects that I’ve been a part of”
Grocery Chain, Project Manager
The success of the year-long project was made possible by Connext’s dedication, proven success playbook, and the expertise of key team members. Their leadership and commitment, backed by their extensive experience, ensured the project stayed on track and met all objectives, instilling confidence in the project's success.
