This week, we explore the rise of Electronic Shelf Labels (ESLs) at Tesco, WHSmith's strategic high street exit, and why great challenger brands often miss out on supermarket listings. We'll unpack the crucial factors retailers prioritize beyond just product quality.

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#1 Electronic Shelf Labels: The Next Digital Shelf Frontier Is In-Store

There’s a quiet revolution happening in supermarket aisles - and it’s not in the snacks or ready meals. It’s on the shelves themselves.

Electronic Shelf Labels (ESLs) are shaping up to be the next big battleground for digital shelf and retail media real estate and Tesco has just entered the game.

This is something I personally recommended to Tesco directly via LinkedIn back in Q3 last year, and it’s exciting to see signs of trial activity beginning to appear.

It’s about time.

Why ESLs are more than just Digital Price Tags

At first glance, ESLs are a logistics win:

• Reduce labour costs

• Sync pricing changes in real time

• Improve pricing accuracy and compliance

But the real power? It’s in the marketing potential.

These labels sit at eye level, directly at the point of decision. They’re persistent, contextual, and programmable. That makes them prime retail media inventory and underutilised real estate in most UK supermarkets.

From Pricing Tech to Retail Media Platform

We’re now entering a phase where ESLs can go beyond the number:

Dynamic Promotions
Trigger promotions based on time of day, weather, or stock levels. Afternoon discount on soft drinks? Auto-triggered.

Real-Time Brand Messaging
Rotate messages based on audience or product relevance: “Great with tonight’s dinner” or “Better value in the 6-pack”.

Cross-Promotion and Trade-Up Nudges
“Buy this? Get 20% off the companion item.”
Or better yet “Upgrade to the family pack and save 30p per 100g.”

Sustainability Messaging
Highlight lower-impact choices, eco-refills or packaging-free promos with live taglines and icons.

Tesco’s Move: A Smart Step Forward

Tesco’s entry into ESL trials shows they’re thinking beyond traditional pricing systems and toward digitally-enabled store experiences.

• The UK's largest grocer trialling ESLs is a strong signal

• The scale and frequency of their promotional cycles make Tesco the perfect candidate

• If used smartly, ESLs could bridge the online-offline shopper journey, reinforcing what you saw in an app or email, right there at the shelf

And let’s not forget the data upside, retailers can test and learn in real-time, tracking engagement, sales lift, and trade-up behaviour linked to ESL activity.

What comes next: Turning Shelf edge into Shelf Power

The ESL opportunity is about more than price.
It’s about influencing behaviour when it matters most; when a shopper is standing in front of the product, making a choice.

For supermarkets and CPG brands, ESLs offer:

• A scalable, flexible tool to test messages, value props, and product attributes

• A way to close the loop between online campaigns and in-store conversion

• A space to tell micro-stories at the most commercially relevant moment

The Takeaway

Retail media is no longer just about eye-level end caps and banner ads. The next wave lives in the digital shelf - both online and offline.

Electronic Shelf Labels are the physical extension of your digital shelf strategy.

Tesco is moving. Others will follow. The question is:
Are brands ready to turn this shelf-edge into a media channel with ROI - or will it just become another space filled with noise?

I know which side I’d bet on.

#2 Why WHSmith Selling Its High Street Stores is a Smart Strategic Pivot

WHSmith is making headlines again, this time, for signalling that it may exit the traditional high street. For some, that might feel like the end of an era. But for anyone watching closely, this is not retreat.

This is strategy.

The Shift: From Declining Footfall to Captive Audiences

High streets across the UK are becoming increasingly tough terrain for retailers:

• Declining footfall

• Rising rents

• Digital-first shopping habits

In contrast, WHSmith has quietly built a high-margin growth engine in places where people can’t avoid them:

✈️ Airports
🚆 Rail stations
🏥 Hospitals
🚢 Service stations & ferries

These are captive environments, where shoppers are time-sensitive, convenience-driven, and less price-sensitive.

A bottle of water, a snack, a last-minute travel plug - they’re all worth more when you’re already through security at Heathrow.

The Timpson Parallel: Right Place, Right Moment

Timpson, the humble shoe-repair and keycutting brand, did something very similar.

Once known for its high street presence, Timpson strategically repositioned itself by locating outlets inside Tesco, Sainsbury’s and other supermarket chains.

Why? Because these are high-footfall, habit-forming destinations. You go for your weekly shop - and oh, while you’re there, you get your watch battery replaced or a new house key cut.

It’s smart use of real estate

• Lower fixed costs

• Better alignment with convenience-led behaviour

• Built-in customer flow

WHSmith is doing the same thing - but at 30,000 feet.

WHSmith’s Travel Model: Higher Margins, Better Resilience

Travel retail has become WHSmith’s engine of growth, particularly post-pandemic:

• In 2023, global travel revenues outperformed high street sales, and the trend shows no signs of slowing.

• Their footprint spans major UK hubs plus overseas locations in airports across the US, Europe, and Asia.

• And let’s not forget their acquisition of Marshall Retail Group and InMotion in the US - bringing airport tech and gifting into the mix.

More locations, higher average basket sizes, and more loyal customers looking for familiarity and convenience.

So Why Sell the High Street Now?

This is a classic portfolio optimisation play.

WHSmith is:

• Divesting lower-performing assets (static, declining high street stores)

• Doubling down on verticals that scale

• Freeing up capital to invest in travel and digital infrastructure

Retailers often get stuck chasing legacy formats. WHSmith is showing it’s willing to cut loose and go where the consumer is going - not where they’ve been.

What Brands can learn from this move

Whether you’re a challenger brand or an established name, there’s a lesson here:

• Go where your customers already are and where your value increases in context.

• Convenience and context are worth more than shelf space.

• Rethink your real estate not as footprint, but as function.

Just like Timpson thrived by parking itself next to the milk aisle, WHSmith is thriving by owning the travel moment.

This isn’t WHSmith stepping back. It’s stepping up.

The high street might be fading - but the airport departure lounge, the train concourse, the hospital lobby? Those are the new high streets.

And WHSmith is already there, with the lights on and the tills open

#3 Not Just a Great Brand: Why Challenger Products Get Turned Down by Supermarkets Like Tesco

There’s a pattern playing out on LinkedIn this week: challenger brands sharing stories of being turned down by Tesco.

No names needed - if you’re plugged into the food & drink or FMCG space, you’ve probably seen the posts. Honest reflections, smart founders, great-looking products. But still… not getting the listing.

And here’s my take: too many brands are leading with product, pain point, and passion -but forgetting what supermarkets actually care about.

A great story might get you noticed. But it won’t get you shelf space.

Supermarkets aren’t looking for the best product. They’re looking for the best category performance.

🧩 The 4 Category Levers Retail Buyers Are Really Thinking About

When Tesco (or any major grocer) reviews your pitch, they’re asking:

How does this product help me grow the category?
Not just: “Does it taste great?” or “Is the founder passionate?”

Let’s break it down using the four levers that define category growth:

1️⃣ Increase Category Penetration (More Shoppers)

Does your product bring new people into the category?

• Are you solving for an unmet need or underserved demo?

• Are you reaching a new generation of shoppers or lapsed ones?

• Can you prove incrementality, not just cannibalisation?

💡 A new plant-based snack isn’t enough; it has to bring in shoppers who weren’t buying snacks at all or weren’t even in the aisle.

2️⃣ Increase Purchase Frequency (More Trips / Occasions)

Will people buy this more often - or for more occasions?

• Can you build a case for everyday use, not just novelty?

• Does it fit into breakfast and lunchboxes?

• Can you show repeat purchase data from DTC or independents?

💡 It’s not just about a great launch; it’s about sustained momentum.

3️⃣ Increase Basket Size (More Per Trip)

Does your product encourage shoppers to buy more per visit?

• Is it part of a multi-buy, bundle, or larger format strategy?

• Can it be paired with other products to grow the overall basket?

• Does it give shoppers a reason to stock up, not just try once?

💡 Think range-building, not single SKU stardom.

4️⃣ Increase Price per Unit (Trade Up / Premiumisation)

Can your brand trade shoppers up the category?

• Is it premium, but with clear justification?

• Do you offer margin growth and elevate the category image?

• Can you show willingness to pay at your current sales channels?

💡 Supermarkets love premium - but only when it drives value, not confusion.

💬 So What’s the Real Challenge?

Often, challenger brands fall into the trap of saying:

All great — but that’s not enough.

The commercial buyer doesn’t buy your mission. They buy outcomes.

You need to clearly, confidently show:

• How you’ll drive category value

• Where you fit within their existing range

• What your role is (penetration, frequency, trade up, basket)

• How you’ll deliver incremental volume—not shift it from someone else

🛒 Want to Win with Tesco (or Any Multiple)? Shift the Lens.

Ask yourself:

• “How does my brand make the category perform better?”

• “Where’s my proof?”

• “What lever(s) am I pulling - and how can I show that clearly?”

Great brands don’t just tell a story - they help the retailer tell a better story to their shoppers.

Solve for the category, and the shelf space may follow.

Solve just for the pain point, and you might end up back on LinkedIn… sharing another rejection post.

Free Tools to Help your Brand

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