Get Ready For High-Tech ‘Dynamic Pricing’ On Supermarket Shelves Near You

You might be familiar with the concept of dynamic pricing, with companies like Uber often charging more for rides during peak hours and even Wendy’s flirting with the idea of changing menu prices based on demand.

But now the grocery industry is starting to jump on the bandwagon.

What we know so far

Walmart has long been among the most influential forces in the retail industry, and it recently confirmed plans to replace traditional price stickers on its aisles with electronic tags that can be changed based on any number of factors.

One industry insider explained how this tactic might be implemented.

“If it’s hot outside, we can raise the price of water and ice cream,” Phil Lempert said.

Of course, the opposite can potentially occur … particularly if foods are getting close to their sell-by date and retailers want to get rid of them at a lower price. Generally speaking, however, you can probably expect to see the cost of in-demand items increase right before your eyes pretty soon.

Other reasons to go digital

In some ways, America is late to the party when it comes to electronic shelf labels. European stores have been using them far and wide for years.

If you’ve been to Whole Foods or a handful of other U.S. grocers in recent years, you’ve probably already noticed this addition.

And it’s worth noting that there are other uses for this technology aside from hiking prices whenever the mood strikes.

As Walmart explained in announcing its plan to roll out digital tags in all of its stores by 2026, the change will also reduce shelf restocking time and result in “increased productivity and reduced walking time.”

Lempert explained shoppers can also scan these tags with their smartphones to find out more detailed information about products.

Chris Agee June 20th, 2024

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