Simple Mart strives to be the smartest 'corner store,' Chiu Kuang-lung: AI is the decisive factor in retail
Simple Mart has invested NT$450 million to install electronic shelf labels across all its stores, aiming for an AI-centric retail transformation to enhance inventory management, dynamic pricing, and address labor shortages.
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- 📰 Published: May 4, 2026 at 11:49
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Taipei (CNA) — While other retail leaders were still watching, San Shang Gou had already invested NT$450 million to proactively deploy electronic shelf label (ESL) systems. In less than a year, over 800 Simple Mart stores across Taiwan had fully implemented approximately 3 million electronic shelf labels by July last year. This is not just an equipment upgrade, but the starting point of a retail transformation with 'AI at its core.'
'If you only see electronic shelf labels as a way to save labor and paper, you're completely underestimating them,' said Chiu Kuang-lung, General Manager of San Shang Gou, in an interview with CNA. He compared electronic shelf labels to the infrastructure of smart retail, noting that not only has Simple Mart adopted them, but there are also plans to fully implement them in acquired OK Mart locations in the future.
### Investing in Electronic Shelf Labels: The Key Is Not Cost, But a Ticket to Future Competition
San Shang Gou partnered with E Ink Holdings and Cloudcomm Technology to fully implement 3 million electronic shelf labels across its over 800 Simple Mart stores, costing approximately NT$450 million. Factoring in a five-year depreciation, this amounts to NT$90 million annually, a pressure Chiu Kuang-lung admitted was not small.
Why did Simple Mart dare to invest first while other retailers were still observing? The answer lies not in short-term costs but in a long-term ticket. Chiu Kuang-lung explained that most operators hesitated because, compared to countries like Germany and Singapore, Taiwan's labor costs are relatively low. Simply comparing the benefits against 'paper and manual labor,' investing in electronic shelf label systems didn't seem cost-effective.
However, in his view, the true value of the electronic shelf label system is to 'enable real-time data flow,' thereby changing the entire retail decision-making process. The board not only supported this investment but also invested in Cloudcomm Technology, precisely because this is not just an equipment upgrade, but paving the way for the future AI era. 'The decisive factor in future retail is intelligence, AI.'
### What if there are two for NT$50 but only one left? Electronic Shelf Labels Bring Prices to Life
In traditional retail, prices are static; at Simple Mart, prices have begun to 'come alive.' By connecting electronic shelf labels with POS (Point of Sale) and inventory systems, each Simple Mart store can instantly adjust prices for certain products based on actual sales and inventory status, forming 'dynamic pricing.'
'Two items for NT$50, but only one is left on site,' Chiu Kuang-lung gave an example. In this scenario, the electronic shelf label system can detect that only one item remains in stock and immediately change the price. Another example is that across 800-plus Simple Mart stores, when products are being phased out, they are cleared out in stores. Simple Mart can then transfer products to stores where they sell well. Products that might have previously been cleared at half price can now sell at 70% off, or even sell out quickly.
'A more direct benefit is improving the accuracy of inventory management.' Chiu Kuang-lung stated that through the electronic shelf label system, store sales and inventory data can be instantly integrated and connected with POS and the app.
Taking the recent milk shortage as an example, consumers can check the real-time inventory of nearby stores via the app, avoiding the situation of 'wanting to buy but unable to find.' The key behind this is the immediacy of data, with real-time updates of single-store inventory every 15 minutes via Wi-Fi transmission.
### Incorrect Prices Cause Outcry; Simple Mart Wants to Attach the 'Trustworthiness' Label
'What's the first impression Simple Mart gives people?' Chiu Kuang-lung smiled wryly. Many say 'cheap,' but this isn't a negative image; it makes him proud, as it's Simple Mart's core competitiveness. However, he also wants to attach a new label: 'trustworthiness.'
The issue of 'incorrect pricing' in retail channels often causes an uproar on social media. Chiu Kuang-lung believes, 'As long as there are people, mistakes will be made.' Especially with larger scales and more channels, relying on manual labor to change price tags makes it almost impossible to avoid errors.
'But price itself is part of trust,' Chiu Kuang-lung stated. Electronic shelf labels can significantly shorten the time required for price changes. Promotional labels that used to take two days to change manually can now be updated with a single click the moment the store opens, not only reducing error rates but also preventing implicit profit loss before promotions.
He believes that when prices are accurate, timely, and consistent, and products are not out of stock with transparent information, consumers will truly build long-term trust.
### Simple Mart's Solution to Labor Shortage: Intelligence Reduces Unnecessary Work
Furthermore, the retail industry has long faced labor shortages. Simple Mart's solution is not simply to increase staffing but to 'reduce unnecessary work.' Chiu Kuang-lung stated that after the implementation of electronic shelf labels, store staff no longer need to frequently change price tags, allowing them to dedicate their time to restocking and service. 'As long as shelves are fully stocked, sales will naturally increase.'
At the same time, Simple Mart launched the 'Golden Brick Store' model, streamlining product offerings to about 3,000 items, focusing on high-demand products, which significantly reduces the burden of restocking and inventory. Approximately 400 such stores already exist across Taiwan; coupled with electronic shelf labels and AI systems, this forms a 'low-labor, high-efficiency' operating structure.
Data shows that Simple Mart's staffing satisfaction has risen from 85% to a record high of 92%. It has also attracted franchisees, with the franchising rate increasing from 28% to 37% last year, a significant growth.
### AI Dual-Track Strategy: Internal Efficiency and External Communication Upgraded Simultaneously
'Now, stores can do a lot of real-time consumer communication,' said Chiu Kuang-lung. After the initial electronic shelf label system is in place, the second step of AI truly begins to show its value.
He divides Simple Mart's AI strategy into two main axes: first, internal operational optimization. The AI automatic replenishment system can calculate the optimal replenishment quantity based on product turnover rate, storage space, and safety stock days, and also track the inventory turnover and performance of each individual item.
Based on this, stores can more boldly reduce inventory levels, shortening them by an average of 6 or even 10 days, and free up more space for displaying high-efficiency products or expanding refrigeration equipment, thereby improving operational efficiency. He further explained that AI can also extend to dynamic pricing and automatic promotion mechanisms, such as automatically triggering single-store activities based on inventory conditions and directly connecting with POS to update prices, improving efficiency and avoiding human errors.
Second, upgrading external communication capabilities. For example, by combining AI with weather, time, and regional characteristics, the system can automatically generate promotional strategies and instantly reflect them on electronic shelf labels and in-store electronic signage. When the system predicts afternoon rain, AI can automatically push discounts for relevant products at specific stores, and even generate
'If you only see electronic shelf labels as a way to save labor and paper, you're completely underestimating them,' said Chiu Kuang-lung, General Manager of San Shang Gou, in an interview with CNA. He compared electronic shelf labels to the infrastructure of smart retail, noting that not only has Simple Mart adopted them, but there are also plans to fully implement them in acquired OK Mart locations in the future.
### Investing in Electronic Shelf Labels: The Key Is Not Cost, But a Ticket to Future Competition
San Shang Gou partnered with E Ink Holdings and Cloudcomm Technology to fully implement 3 million electronic shelf labels across its over 800 Simple Mart stores, costing approximately NT$450 million. Factoring in a five-year depreciation, this amounts to NT$90 million annually, a pressure Chiu Kuang-lung admitted was not small.
Why did Simple Mart dare to invest first while other retailers were still observing? The answer lies not in short-term costs but in a long-term ticket. Chiu Kuang-lung explained that most operators hesitated because, compared to countries like Germany and Singapore, Taiwan's labor costs are relatively low. Simply comparing the benefits against 'paper and manual labor,' investing in electronic shelf label systems didn't seem cost-effective.
However, in his view, the true value of the electronic shelf label system is to 'enable real-time data flow,' thereby changing the entire retail decision-making process. The board not only supported this investment but also invested in Cloudcomm Technology, precisely because this is not just an equipment upgrade, but paving the way for the future AI era. 'The decisive factor in future retail is intelligence, AI.'
### What if there are two for NT$50 but only one left? Electronic Shelf Labels Bring Prices to Life
In traditional retail, prices are static; at Simple Mart, prices have begun to 'come alive.' By connecting electronic shelf labels with POS (Point of Sale) and inventory systems, each Simple Mart store can instantly adjust prices for certain products based on actual sales and inventory status, forming 'dynamic pricing.'
'Two items for NT$50, but only one is left on site,' Chiu Kuang-lung gave an example. In this scenario, the electronic shelf label system can detect that only one item remains in stock and immediately change the price. Another example is that across 800-plus Simple Mart stores, when products are being phased out, they are cleared out in stores. Simple Mart can then transfer products to stores where they sell well. Products that might have previously been cleared at half price can now sell at 70% off, or even sell out quickly.
'A more direct benefit is improving the accuracy of inventory management.' Chiu Kuang-lung stated that through the electronic shelf label system, store sales and inventory data can be instantly integrated and connected with POS and the app.
Taking the recent milk shortage as an example, consumers can check the real-time inventory of nearby stores via the app, avoiding the situation of 'wanting to buy but unable to find.' The key behind this is the immediacy of data, with real-time updates of single-store inventory every 15 minutes via Wi-Fi transmission.
### Incorrect Prices Cause Outcry; Simple Mart Wants to Attach the 'Trustworthiness' Label
'What's the first impression Simple Mart gives people?' Chiu Kuang-lung smiled wryly. Many say 'cheap,' but this isn't a negative image; it makes him proud, as it's Simple Mart's core competitiveness. However, he also wants to attach a new label: 'trustworthiness.'
The issue of 'incorrect pricing' in retail channels often causes an uproar on social media. Chiu Kuang-lung believes, 'As long as there are people, mistakes will be made.' Especially with larger scales and more channels, relying on manual labor to change price tags makes it almost impossible to avoid errors.
'But price itself is part of trust,' Chiu Kuang-lung stated. Electronic shelf labels can significantly shorten the time required for price changes. Promotional labels that used to take two days to change manually can now be updated with a single click the moment the store opens, not only reducing error rates but also preventing implicit profit loss before promotions.
He believes that when prices are accurate, timely, and consistent, and products are not out of stock with transparent information, consumers will truly build long-term trust.
### Simple Mart's Solution to Labor Shortage: Intelligence Reduces Unnecessary Work
Furthermore, the retail industry has long faced labor shortages. Simple Mart's solution is not simply to increase staffing but to 'reduce unnecessary work.' Chiu Kuang-lung stated that after the implementation of electronic shelf labels, store staff no longer need to frequently change price tags, allowing them to dedicate their time to restocking and service. 'As long as shelves are fully stocked, sales will naturally increase.'
At the same time, Simple Mart launched the 'Golden Brick Store' model, streamlining product offerings to about 3,000 items, focusing on high-demand products, which significantly reduces the burden of restocking and inventory. Approximately 400 such stores already exist across Taiwan; coupled with electronic shelf labels and AI systems, this forms a 'low-labor, high-efficiency' operating structure.
Data shows that Simple Mart's staffing satisfaction has risen from 85% to a record high of 92%. It has also attracted franchisees, with the franchising rate increasing from 28% to 37% last year, a significant growth.
### AI Dual-Track Strategy: Internal Efficiency and External Communication Upgraded Simultaneously
'Now, stores can do a lot of real-time consumer communication,' said Chiu Kuang-lung. After the initial electronic shelf label system is in place, the second step of AI truly begins to show its value.
He divides Simple Mart's AI strategy into two main axes: first, internal operational optimization. The AI automatic replenishment system can calculate the optimal replenishment quantity based on product turnover rate, storage space, and safety stock days, and also track the inventory turnover and performance of each individual item.
Based on this, stores can more boldly reduce inventory levels, shortening them by an average of 6 or even 10 days, and free up more space for displaying high-efficiency products or expanding refrigeration equipment, thereby improving operational efficiency. He further explained that AI can also extend to dynamic pricing and automatic promotion mechanisms, such as automatically triggering single-store activities based on inventory conditions and directly connecting with POS to update prices, improving efficiency and avoiding human errors.
Second, upgrading external communication capabilities. For example, by combining AI with weather, time, and regional characteristics, the system can automatically generate promotional strategies and instantly reflect them on electronic shelf labels and in-store electronic signage. When the system predicts afternoon rain, AI can automatically push discounts for relevant products at specific stores, and even generate