“Pricer’s system is a foundational element in the development of Smart Retail market and the move to cloud-based and differentiated business models. The ever-increasing level of integration between the various systems is also enabling dramatic changes in the applications to which ESLs and other shelf-edge devices such as cameras can be applied”, says Helena Holmgren, Pricer’s CEO in an interview with Der Aktionär, a German shareholder magazine targeting private investors, executives at listed companies, financial institutions and asset managers.
Read an English translation of the German article below.
What are the unique characteristics of the Pricer technology?
To understand Pricer’s technology advantages one must first explain the main components of the Pricer Price Management system. It is made up of three different areas: Cloud-based management infrastructure (known as Pricer Plaza), communication infrastructure based on Infrared communication and shelf edge devices – mainly Electronic Shelf Labels (ESLs) as well as additional products such as shelf based cameras and sensors.
Firstly, Pricer’s cloud-based technology provides a centralized full function price management and system monitoring capability that incorporates all the capabilities required to manage, maintain and optimize both the store efficiency as well as the consumer enhancement capabilities of the Pricer system. Pricer Plaza also acts as the single integration point for all other retail systems with which the Pricer system must interact and the central collection and distribution point of all data and analytics. Based on a SaaS model, Pricer Plaza offers a flexible business model for implementing and scaling a price management system, with rapid deployment, changes and new function implementation being controlled centrally.
Secondly, Pricer’s communication infrastructure provides an interference-free ultra-low energy environment for efficient and secure communications between (typically) ceiling-mounted optical access points and shelf edge.
Thirdly, Pricer provides a wide range of ESLs with the longest useful battery life in the industry – enabled by the ultra-low-power requirements and inherent interference-free communications. This enables sophisticated applications such as product finding, store navigation, Click & Collect and advanced replenishment to be used without the battery life concerns associated with radio-based solutions.
Can Pricer benefit from temporary tax reductions?
Pricer benefits from temporary tax reductions primarily because of the need to manage the price changes associated with temporary tax reductions and the associated consumer interaction that retail stores need to be able to support.
This has heightened the awareness of the complexity of price changes and their impact and has also opened additional conversations around dynamic pricing which clearly cannot reach its potential without correct pricing being displayed at the shelf edge.
Which markets does Pricer serve? What are the main customers?
Pricer’s systems and products can be used in most retail environments but Pricer has typically focused on four main markets: Grocery, DIY, Pharmacy and Consumer Electronics.
Where is the biggest potential?
All of these markets have great potential. Even today within markets that have traditionally been strong for ESL deployment, the penetration is fairly low – 20-30% and the biggest competitor is still the paper label.
However, the Smart Retail market is expected to grow from approximately $20Bn in 2020 to around $65Bn in 2025. Pricer’s system is a foundational element in the development of this market and the move to cloud-based and differentiated business models.
The ever-increasing level of integration between the various systems is also enabling dramatic changes in the applications to which ESLs and other shelf-edge devices such as cameras can be applied.
What overriding growth trends do you see?
In the past ESLs were seen as a separate part of the retail technology ecosystem but are now being seen as a foundational element enabling a whole host of new applications. COVID-19 has actually accelerated many of the applications and retail organizations are moving rapidly to accelerate and deploy new systems focused on cost optimization and consumer interaction.
This is playing out across all segments of the retail industry as organizations accelerate the integration of online and traditional retail such as flexible pricing deployment. Pricer’s system is essential to the success of these initiatives.
Which potential has the German market?
The German market has very significant potential for the future as it is underpenetrated as yet. Germany’s labor costs are typically at the mid-higher end of European countries, the pricing environment is becoming more flexible driven by online as is the need to drive efficiency within German traditional store retail environments.
Germany has some specific requirements that need to be met such as the use of single pin holders for packaged goods especially within DIY and consumer electronics but these are the types of requirements that Pricer has a long history of addressing as a very strong European based manufacturer and developer of retail solutions.
Why should investors look at the shares of Pricer?
First of all, Pricer is a well-established company with a global footprint that serves a market with great growth potential. Our system has been deployed in more than 15 000 stores around the world, and the paper label remains our largest competitor.
Secondly, Pricer is a profitable and healthy company with a strong balance sheet and a solid track record of bringing ground-breaking innovation to the market.
Text: Michel Doepke, Der Aktionär
Photo: Maria Cruseman
Published: October 13, 2020