The new labels allow employees to change prices as often as every ten seconds.

“If it’s hot outside, we can raise the price of water and ice cream. If there’s something that’s close to the expiration date, we can lower the price — that’s the good news,” said Phil Lempert, a grocery industry analyst.

Apps like Uber already use surge pricing, in which higher demand leads to higher prices in real time. Companies across industries have caused controversy with talk of implementing surge pricing, with fast-food restaurant Wendy’s making headlines most recently. Electronic shelf labels allow the same strategy to be applied at grocery stores, but are not the only reason why retailers may make the switch.

  • JoshuaFalken@lemmy.world
    121·
    6 months ago

    While the labels give retailers the ability to increase prices suddenly, Gallino doubts companies like Walmart will take advantage of the technology in that way.

    “To be honest, I don’t think that’s the underlying main driver of this,” Gallino said. “These are companies that tend to have a long-term relationship with their customers and I think the risk of frustrating them could be too risky, so I would be surprised if they try to do that.”

    Rather than seeing an opportunity to use surge pricing, Gallino says retailers are likely drawn to electronic shelf tags to ensure consistency between online and in-store pricing.

    This person must live on another planet.

    Sure, the prices won’t be changing every six seconds, but anyone with half a mind can see these tags won’t be used only when stock or expiry are a factor. The prices will be up on the weekend to start. Then later it’ll be changing through the day to get higher prices between 4:00-7:00 when people are getting off work.

    The arguments of no longer needing people to do yet another menial task and increasing utility of labels for consumers both have merit, but this alien even says the primary factor:

    “The bottom line … is the calculation of the amount of labor that they’re going to save by incorporating this."