Over the next two years, Tesco will transition to electronic shelf labels (ESL) across all of its stores eliminating millions of paper labels.

The ESL switch will also simplify daily routines for colleagues, saving them from manually replacing labels when prices or promotions change.

Kevin Tindall, Tesco UK operations managing director, said: “The rollout of digital shelf labels marks an important step in the modernisation of our stores, delivering benefits for both customers and colleagues.

“Moving to a digital system will not only support our sustainability ambitions by significantly reducing paper use across the Tesco estate, but it will also mean that our colleagues can focus on what matters most – serving our customers.”

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Electronic shelf labels will also provide Tesco stores with a range of features that could improve operational routines in future. This includes new LED technology that will help colleagues identify the right products when picking online orders.

The labels, which are customised for Tesco, are also capable of displaying colours, unlocking future opportunities to display retail media or additional information for customers.

The phased rollout will start with four stores, one Express store and three large stores, following an earlier pilot. The ESL expansion will be completed in partnership with China-based digital store solutions firm Hanshow.

“Hanshow is proud to support Tesco’s digital transformation journey through the rollout of electronic shelf labels across its store network,” explained Liangyan Li, SVP and head of global sales at Hanshow.

“This collaboration reflects a shared commitment to improving store efficiency, enhancing the customer experience, and building a more sustainable retail environment through digital innovation.

“We look forward to working closely with Tesco to deliver a scalable and future-ready foundation for smarter store operations.”

Asda, Co-op and Morrisons are amongst the grocers trialling the technology, with WH Smith announcing last week that it will introduce ESLs to its travel network.