In response to the global shift towards smart retailing, major retailers in both Taiwan and the US are rapidly installing Electronic Shelf Labels (ESL), with the trend gaining significant momentum. According to Feng-Yuan Kan, president of E Ink, Walmart plans to install 400 to 500 million ESL units across its U.S. stores over the next three years. Meanwhile, in Taiwan, Simple Mart has initiated a similar rollout across its 800+ stores, with installations expected to continue through mid-2025.
Kan revealed that Walmart began deploying ESL in the second half of 2023, with projections indicating further growth in 2024, and installations will likely continue into 2025. The ESLs being installed at Walmart are about two inches in size — smaller than average — due to the high number of products on display. Larger labels would be impractical for the available shelf space.
Although Walmart had considered implementing ESL technology a decade ago, it was not until now that the company began installation. Kan explained that recent price reductions in ESL units, coupled with advancements in electronic paper technology and supply chain maturity, have created an ideal environment for Walmart to move forward.
Over the past seven years, more than one billion ESL units have been installed worldwide. Large retailers that initially installed ESLs in limited areas to evaluate their return on investment (ROI) have now begun full-scale rollouts, particularly in regions like the US and Europe, where labor shortages are severe. The accelerated pace of installations translates into quicker paybacks, further fueling the ESL adoption surge.
This wave of installations has also reached Taiwan, where E Ink has partnered with M2COMM and Simple Mart to roll out ESL technology across Simple Mart's 800+ stores. This makes Simple Mart the first major retailer in Taiwan to fully adopt ESL technology. The total investment is expected to exceed NT$450 million (approx. US$14.2 million), positioning Simple Mart as the retailer with the largest number of ESL-equipped stores in Taiwan.
Kuang-Lung Chiu, president of Simple Mart, noted that the decision to adopt ESL was motivated not only by ESG (Environmental, Social, and Governance) goals aimed at reducing carbon emissions but also by the need to address labor shortages due to an aging workforce. ESL systems offer several benefits, including reducing the cost of printing paper price tags and cutting logistics expenses. Early estimates show that each store can save more than one hour of labor per day, allowing employees to focus on providing more personalized services to customers.
Furthermore, each ESL has a lifespan of 7 to 10 years. By switching to 2.2-inch ESLs, Simple Mart is expected to reduce its carbon emissions by nearly 7,000 tons annually, bringing the chain closer to its goal of fully paperless, low-carbon stores.
Chiu also emphasized the long-term sustainability planning behind this initiative, stating that the partnership with E Ink and Cloud Communication is part of a broader ESG strategy. Simple Mart began pilot testing ESLs in select stores in the second quarter of 2023 and launched a nationwide installation project in the fourth quarter of 2023. The rollout is expected to be completed by mid-2025. Simple Mart is also exploring the use of larger electronic paper displays for in-store advertising and may expand the technology into its logistics centers as part of its long-term ESG goals for the retail industry.
Derrick Wei, president of M2COMM, highlighted that this partnership with Simple Mart and E Ink combines E Ink's electronic paper technology with Cloud Communication's Sub-1GHz communication technology to develop the ELSA solution. This system features an ultra-long transmission range, ensuring data transmission is both stable and accurate.
Unlike traditional ESL setups that require additional hardware such as computers, ELSA leverages cloud-based deployment, enabling a "plug and play" approach that significantly reduces the cost and complexity of installation for each store.
