Whole Foods expands ESL use in Southwest

AUSTIN, Texas Whole Foods has expanded its use of electronic shelf labeling throughout its Southwest division, according to reports.

The switch from paper to digital labels occurred three years ago, which Whole Foods claims is environmentally friendly as it reduces the amount of paper and plastic used when prices are changed. Its success has led to all stores in Texas and Louisiana to make the switch.

"It saves us a lot of labor and materials," said Michael Maynard, head of Whole Foods Southwest Regional Information Technology. "We used to use a little vinyl shelf tag that we put on a plastic chip and put that on the shelf. You can imagine how much labor (switching) saved us."

Maynard added that electronic shelf labeling allows Whole Foods to react more quickly to changes in competitor prices.

"If somebody has lower prices down the street, we can change the whole category down to the price as well," he said.

The company uses thousands of digital shelf tags, which cost about $5 each.