Skydirect, the exclusive African partner of Pricer, and a company in the XON group, is experiencing significant growth despite the economic downturn and tough times for the large hypers and retailers, its primary target market.
Skydirect last year installed its ESL (electronic shelf labelling) systems at a number of SPARs, will install Pricer at four Metro Hypers (Trade Centres), and has now surpassed 200 installations countrywide.
“Companies such as Metro Hyper clearly see the financial and operational benefits of deploying Pricer ESL,” says Hendrik Bredenkamp, MD of Skydirect.
“They know that, during these harsh times when the economy is tough, when competition is massively increased with the recent introduction of Walmart through Massmart and several wholesalers moving into the hyper arena, that they need every competitive edge they can obtain.”
ESL essentially replaces paper shelf prices or talkers with digital displays. Pricer’s labels are liquid crystal and linked by infrared to backend systems that contain price lists. Prices are updated once, on the computer, and then automatically communicated to the shelves.
It vastly improves accuracy, a dire concern for retailers, and massively reduces demand on labour to each day update hundreds if not thousands of prices. Pricer can update more than 80 000 prices every hour. Pricer ESL delivers a return on investment (ROI) between 18 and 24 months and local retailers have reported a 10% revenue improvement.
While Skydirect is experiencing growth in the retailer market it, is also gaining traction in non-food-related retail segments such as hardware (DIY) and growing interest from countries adjacent to South Africa.
“We are finalising our second installation in Mozambique, we are experiencing significant traction in the African market where there has been a growth in retail, and we will soon deploy teams to Botswana and Namibia to cater to growing interest there,” says Bredenkamp.
Retailers typically deploy Pricer’s solution to handle food/grocery and household items where there is significant turnover of goods, where prices may vary weekly or even daily, and where consumers seek the greatest value between retail brands. But many retailers and wholesalers are now gaining ESL benefit in the sale of alcohol and other goods.