Study reveals 74% of UK SME retailers planning to invest in labeling technology

UK SME retailers are planning to invest in labelling technology to boost efficiency and minimise error, with nearly three quarters (74%) expecting to upgrade label systems in the next 12-months, according to new research by business technology solutions provider Brother UK

The study of 250 SME retailers and 2,000 consumers, which explored the frequency of in-store pricing errors, revealed how more than a third (38%) of retailers admit to mis-labelling prices on products at least once a day. More than a quarter (28%) said it happens multiple times per week, with only seven per cent saying they never mis-label prices.

Only half (51%) of retailers said they currently use a label printer linked to smart devices, according to the study.

Handwritten labels being illegible was the top reason cited by retailers for pricing errors (31%), followed by the technology not printing labels in the correct format (29%), and staff unintentionally rolling out the wrong pricing by mistake (28%).

The study found how consumers were cashing in on retailer’s price label blunders, with two in five (41%) consumers saving money on products that have been mis-labelled in-store, or know family and friends that have saved. Customers saved an average of £38 on a mispriced item, with a lucky five per cent saving as much as £500.

Brother UK completed the study as it launches a new partnership with technology reseller and software developer BarcodeGenie. The pair’s label printers and cloud-based labelling system links directly with a retailers’ product file to ensure store staff always print the right pricing to minimise costly mistakes. 

Simon Brennan, senior end user client manager, at Brother UK, said: “Pricing errors happen in retail for a multitude of reasons, from human error and miscommunication, to technology not working efficiently.

“Lucky consumers have cashed-in on such mistakes at a cost to retailers. But other shoppers are clashing with retailers over their refusal to honour pricing mistakes, or from clear price labelling errors forcing them to fetch store assistants for clarity.

“Minimising error is a big part of why retailers are turning to labelling technology. But many are also looking to boost efficiency, to save employees time, to have more visibility over pricing rollouts, and to be more reactive to margin opportunities.

“Our new partnership with BarcodeGenie aims to make shelf-edge ticketing, reduce to clear, mark-downs and shipping label printing faster, simpler and more accurate for retailers.”

Adam Corcoran, managing director at BarcodeGenie, said: “The cloud-based LabelGenie system enables head office to digitally issue labels for use in multiple stores, ensuring campaigns are rolled out effectively and accurately.

“Reporting tools also help managers to build accountability by understanding what’s being printed across multiple sites with greater visibility. This allows them to maximise revenue opportunities from price changes and sales discounting.”