With almost everyone this year complaining about grocery prices…
The last thing we need is more price surges stretching our wallets thin.
Walmart and Kroger stand accused of using new technology to inflate grocery store prices even more…
Are these companies trying to make our grocery bill even bigger or could this new technology work in customers’ favor?
Are More Price Surges In Our Future?
Both Walmart and Kroger have plans to introduce electronic shelf labels in stores…
Electronic shelf labels (ESLs) are tiny screens that display the price and unit of a product in a grocery store. These screens can update product info, like prices, in real-time.
Walmart wants to incorporate this tech into half of their stores by 2026 and Kroger already has some in place as part of a pilot program…
HOWEVER, CRITICS OF ESLS WORRY THAT THEY WOULD ALLOW COMPANIES TO FATTEN THEIR BOTTOM LINE BY INTRODUCING DYNAMIC PRICES AND CREATING PRICE SURGES.
Prices might surge during busier store hours and when facing inclement weather.
With more people worrying about grocery inflation and shrinkflation…
It only makes sense that consumers might be weary of incoming price surges.
Both Walmart and Kroger have denied the use of dynamic pricing with ESLs…
But the question remains…
Will the new labels contribute, one way or another, to surging prices and more expensive grocery products?
Will ESLs Actually Lead To Higher Prices?
While data experts and others may worry about price surges with electronic shelf labels…
MANY ECONOMISTS BELIEVE THAT THIS NEW TECHNOLOGY WILL COME TO BENEFIT CONSUMERS.
Kroger stated that the purpose of ESLs was to ensure customers had access to the lowest prices at all times…
And experts are inclined to agree. Yannis Stamatopoulos, an associate professor at the University of Texas at Austin, said that after studying the use of ESLs in Europe…
WHEN STORES USED ESLs, THE AVERAGE PRICE PER UNIT DROPPED WHILE THE AVERAGE NUMBER OF ITEMS SOLD WENT UP.
In instances when the technology was used, it did not lead to price surges.
Stores can lower prices based on new offers and discounts and when a certain item is nearing its expiration date…
Ultimately, as far as it looks right now, electronic shelf labels might not lead to price surging…
But actually, provides shoppers with some respite from skyrocketing prices.
Be Great,
GCTV Staff
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