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Shoppers are wary of digital shelf labels, but a study found they don’t lead to price surges
- Researchers examined pricing data from 2019 to 2024 at a major grocery retailer that implemented digital shelf labels starting in October 2022 to assess their effects.
- This technology has been in use for more than ten years across many European grocery stores and certain U.S. retailers, although some lawmakers like Arizona Representative Cesar Aguilar have expressed concerns that digital pricing labels could lead to job reductions.
- The study observed that before the introduction of digital labels, price surges occurred for only 0.005% of items each day, with this figure rising by a minimal 0.0006 percentage points following their implementation.
- Kroger denied linking digital labels to facial recognition and stated its pricing strategy aims to keep prices low, while Amanda Oren noted initial label costs range from $5 to $20 each.
- The findings suggest digital shelf labels do not cause surge pricing, supporting retailers’ claims of efficiency gains, but lawmakers and some consumers remain skeptical about potential abuses and job impacts.
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Shoppers are wary of digital shelf labels, but a study found they don’t lead to price surges
By DEE-ANN DURBIN Digital price labels, which are rapidly replacing paper shelf tags at U.S. supermarkets, haven’t led to demand-based pricing surges, according to a new study that examined five years’ worth of prices at one grocery chain. Related Articles As labor costs rise, AI is learning to farm AI chatbots need more books to learn from. These libraries are opening their stacks Average long-ter…
Digital price tags spark concern but show no surge
KEY TAKEAWAYS: Study finds no significant price hikes from digital shelf labels Lawmakers and consumers remain skeptical of dynamic pricing risks Digital tags speed up pricing changes and may reduce food waste U.S. adoption lags Europe, but major chains like Walmart expanding rollout Digital price labels, which are rapidly replacing paper shelf tags at U.S. supermarkets, haven’t led to demand-based pricing surges, according to a new study …
New study finds little evidence of surge pricing when retailers use digital shelf labels
Research recently published by teams from the University of Texas at Austin, the University of California, San Diego, and Northwestern University analyzed five years of pricing data from a major grocery chain that adopted digital shelf labels in 2022. The study found no evidence that the store engaged in surge...Read Entire Article
Shoppers, lawmakers are wary of digital shelf labels
Digital price labels, which are rapidly replacing paper shelf tags at U.S. supermarkets, haven't led to demand-based pricing surges, according to a new study that examined five years' worth of prices at one grocery chain.
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