UK supermarket chain Tesco is set to roll out electronic labels for its products across its entire store estate.

The labels, manufacture by digital store solutions provider Hanshow, will hit the shelves in two stages over the next two years.

Tesco said in a statement that the labels support the chain’s sustainability agenda by replacing paper labels in-store, eliminating millions a year. They will also simplify daily routines for shop employees by saving them from having to manually update labels when prices or promotions change, it added.

The labels also include LED technology, which the supermarket said will help colleagues identify the right products when picking online orders and the ability to display colours, which it may use in future to provide additional information for customers.

The phased rollout will begin with three large stores and one small format Express store, following an earlier pilot. Following this, a full rollout will take place over the next two years.

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.”

Several other UK supermarkets have installed electronic shelf labels over the past 12 months, including Morrisons which announced in October that it would roll out the technology across its entire estate of 497 stores.

During the same month Asda installed ESL across all 250 of its express stores, while Currys announced in September it would install them in all stores.

---