Physical spaces are increasingly becoming digitized spaces. Sure, we all still appreciate that shopping for something online is a different experience to shopping in a store. Just as we know and feel the difference between wearing a VR headset versus taking a walk in an actual park.

But for all those differences, in some respects the lines between digital and physical are becoming blurred. In retail, stores are making more and more use of digital technology to create the kind of flexible, convenient, personalized experiences people appreciate online. We call this blending ‘phygital’.

Phygital can apply to everything from encouraging shoppers to use their smartphones with in-store QR codes that serve as gateways to extra product and pricing information etc, to using AR to create immersive experiences, such as virtual changing rooms in fashion boutiques.

One increasingly popular way for retail stores to get ‘phygital’ is by adding what are known as digital shelves to their set-up. In this article, we’ll take a look at what digital shelves are, how they work, and what the benefits of introducing them to your business might be.

What Is Digital Shelving?

Digital shelving refers to different ways that ordinary shelving can be enhanced with digital technology. The most basic example is Electronic Shelf Labels (ESLs), the kind of small pricing displays that have widely replaced traditional paper price tags. Digital labels can be updated much more efficiently to show new pricing, promotional, or product information in real time. They eliminate the need for manual changes and open the door to information being shared in a more dynamic and agile way.

Another common example is sometimes referred to as the infinite shelf – the idea of using digital displays to remove the limitations on how many items you can have on a physical shelf at any one time.  By connecting a product information management (PIM) system to an interactive touchscreen, you can allow customers to explore your full product catalogue, and all the information you have on every product, as an extension of the in-person experience of seeing, touching and trying out items in a store.

Finally, some of the most cutting-edge examples of digital shelving use combinations of on-shelf sensors, cameras and AI to gather data on how customers interact with physical displays. These kinds of ‘smart’ shelving systems can be put to a large range of uses, from analyzing customer behavior to inform inventory management and merchandising to targeting promotions and offers based on what items a customer has browsed. It’s also the core technology behind the development of no-checkout stores, with bills calculated automatically based on what’s taken off a shelf.

Benefits of Digital Shelving

Digital shelving in its various guises offers many benefits to store owners and their customers. Interactive displays and real-time pricing and product updates ensure shoppers have instant access to detailed product information, offers, and comparisons, making their purchase decisions easier and more informed and helping to boost overall satisfaction with the experience.

Automated stock tracking and pricing updates help to reduce labor costs and eliminate human error, which again contributes to a better experience for customers. And the data gathered from smart shelving systems helps operators understand customer behavior and preferences, making merchandising and marketing better informed and better matched to customer needs.

In summary, as consumer expectations evolve, so must the retail environment. Digital shelving is more than just a tech trend. It’s a strategic investment that blends the convenience of online shopping with the immediacy of in-store experiences. For retailers looking to stay competitive, embracing digital shelving is a smart move toward a more efficient and engaging future.