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How ESL Devices Transform into Connected Label Solutions: A Perspective of Actor Interaction and
Information Rebundling

suppliers implement ESL in retail. ESL technology suppliers do not involve the retail
ecosystem further at this stage, since they only implement the ESL, as shown in Figure 5.

4.1.1 Actor Interactions

Modernization is the first step of digital transformation, involving switching from
manual to digital operation (Bonnet, 2022). In the early development stage, retailers adopt
ESL to change the existing procedure for price label changes. Before implementing ESL,

staff have to spend more hours printing price tags, replacing the old paper price tags by
sticking the new ones on shelves for each product and stock-keeping unit (SKU); changing
price tags on shelves costs resources including time, money, and labor. The first generation
of ESL has made this process become more efficient. ESL can provide real-time on-shelf
information display and better control over product information management.

In this early stage, retailers work with ESL technology providers to offer technical
support for adopting and implementing ESL for each physical shop. Suppliers of ESL
technology provide retailers with ESL technology, including technology infrastructure, on-

shelf devices, and handhelds for in-store employees. Businesses frequently worry about
the operational value and return on investment when investing in new technologies. At this
point, retailers have analyzed certain benefits and reactions from customers and employees
due to the implementation and deployment of ESL as a new technology. ESL technology
providers are not further involved as a third party, since they only implement and deploy

ESL systems for retailers.
Retailers gain enormously from ESL, which also piques their interest in expanding
its capabilities through joint innovation with other parties. ESL uptake, though, remains

uneven at this point. Our research shows that while some retailers are still not interested
in adopting ESL, others have begun to advance the usage of ESL for later applications.
Nonetheless, ESL technology providers keep on developing new ESL features in response
to store requests with the help of research and development.
Innovating ESL features extends the functionality of ESL, from price display to

managing tools. ESL can help retailers manage inventory and alleviate rising operational
costs. According to Auchan, France’s second-largest retail group, this innovation can
extend the retailers’ benefits by offering real-time price management and information on

the state of stocks (Wynne-Jones, 2017). This statement is supported by another French

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