ZAANDAM, the Netherlands — Ahold Delhaize said Friday it formed a strategic partnership with Hanshow Technology to introduce digital in-store applications for its European brands.

As a first step in this collaboration, the brands will deploy Hanshow’s electronic shelf labels across their store networks. In addition, Ahold Delhaize and Hanshow will set up a Joint Innovation Lab to develop new in-store functions and capabilities, according to a statement from Ahold Delhaize.

Ahold Delhaize said the collaboration with Hanshow started in early 2018 with electronic shelf labels (ESL) in stores at Delhaize Belgium and Albert Heijn in the Netherlands. ESL allows customers to obtain product information and pay with mobile phones or Near Field Communication cards, it also allows for quicker  pricing methods such as automated price reductions for items close to expiration date. The partnership has been extended so that the two companies will now collectively develop new digital solutions for all Ahold Delhaize’s European brands.

Ahold Delhaize said the first step in the extended partnership is for Hanshow to supply ESL to all Ahold Delhaize’s European brands in the Netherlands, Belgium, Luxemburg, Greece, Czech Republic, Serbia and Romania. In the Joint Innovation Lab, Hanshow and Ahold Delhaize will develop other digital innovations such as frictionless payment, in-store navigation and in-store advertising.

As part of the collaboration, Hanshow will move its European head office to the Amsterdam region, close to the Ahold Delhaize office. This move will allow both teams to work together and simultaneously develop and test new solutions.

“The digital applications we will develop through this partnership will enhance the customer experience in our stores and allow us to operate more efficiently,” said Wouter Kolk, chief executive officer of Ahold Delhaize Europe and Indonesia. “Hanshow offers best in class in-store applications and know-how, and we have been very pleased with their contribution to the mobile phone scan and pay service ‘YesWeScan’ at Delhaize and with the first wave of installed ESL at Albert Heijn. This is an important step for Ahold Delhaize and our local brands to offer an easy and attractive shopping experience to our customers.”

“We are grateful for the trust Ahold Delhaize has placed in us and appreciate its vision and consistent commitment to driving change. Retail stores are undergoing a fundamental transformation as digital and mobile reshape the customer journey, bringing together customers, store associates, products and the store itself,” said Shiguo Hou, executive chairman and chief executive officer of Hanshow Technology.