Retail’s next phase is about leverage, not expansion
With 2026 now upon us, the retail industry finds itself at a nexus moment. The last few years have been marked by rapid transformation through technology investments to better streamline operations and gain insights in store. However, retailers are now facing headwinds as consumer spending has softened and cost pressures remain elevated due to tariff and supply chain uncertainty.
As a result, retailers are adjusting their technology investments. Stores that have smartly modernized their operations with electronic shelf labels (ESLs) are now seeing significant efficiency gains supported by both data and employee feedback. These same retailers are realizing they now have a robust, low power, centrally controlled infrastructure deployed across all their stores. Rather than chasing the next technology trend, they can use this infrastructure to better connect with the shoppers and generate additional profits. This infrastructure is the key to enabling in store retail media.
Retailers that digitize the shelf edge aren’t just improving pricing accuracy they’re building a scalable in store media platform that unlocks new revenue sharper analytics and faster response to changing shopper demand.
The shelf edge is evolving from price tag to revenue engine
ESL adoption is growing exponentially. Almost every major retailer has adopted or plans to adopt this technology, given the proven benefits. An emerging trend among retailers is to leverage the same networks of ESLs to distribute content and information beyond pricing.
With the introduction of full color ePaper displays, digital signage can be deployed in locations where LCD panels are challenging to deploy. These displays share the same benefits as shelf tags, low power consumption, a paper like look and feel, and battery operation. Digitization of point of purchase promotions, end caps, and ceiling banners are now possible. The technology that powers the shelf edge now enables a new source of revenue.
AI amplifies benefits of digitization
As retailers become more disciplined about where they invest their capital, they are using AI to analyze in store performance metrics. In practice, many retailers find that ESL investments pay for themselves quickly. For example, Forrester found that an ESL solution delivered a 277 percent ROI over five years and recouped its cost in approximately 18 months through operational efficiency gains. With the move to digitizing store operations, AI is optimizing inventory management, forecasting, personalization, and more. Digital shelf edges allow for rapid adjustments to market forces and ensure products are on the shelf when shoppers need them.
Similarly, AI will enable retailers to run campaigns on retail media displays that are relevant and effective, thereby maximizing sales uplift and ROAS. Marketers will be able to tune campaigns based on analytics, and the possibility of programmatic advertising opens up, boosting the retailer’s bottom line.
In 2026 physical stores will play an ever more important role
Looking ahead, the physical retail will become more consumer focused, a place where consumers will not only shop, but be able to interact with brands and products. Retailers will continue to focus internally on streamlining operations and improving execution through ESL deployment, laying the groundwork for a retail media driven future.
