MAJOR chains are facing a huge backlash from customers over the implementation of electronic price tags.
Among the stores who have or plan to adopt these tags are Walmart, Kohl’s, Whole Foods, and Kroger, and Lidl.
Walmart’s decision to introduce electronic tags has faced some criticism among shoppers[/caption]
These tags, also called electronic shelf labels, are known for “dynamic pricing.”
Unlike traditional adhesive price tags, electronic tags digitally change via Bluetooth and similar technologies – ideally to keep prices competitive.
Electronic price tags are nothing new in Europe – countries who’ve already adopted them include Norway, Belgium, the UK, France, and more.
Despite this, US shoppers fear the ability for retailers to alter product prices before they’ve reached the checkout.
While customers may be wary of electronic price tags, big box chains like Walmart and Kroger began rolling them out in 2024.
In July, supermarket discounter Lidl also announced it would replace traditional sticker tags with digital ones at all 190 US locations by the end of the summer.
One Redditor even claimed that Kohl’s implemented electronic price tags roughly six years ago.
Whole Foods recently initiated a trial run for digital tags in 50 locations nationwide, according to the Associated Press.
Reactions remain mixed when it comes to e-tag rollouts.
According to a 2024 survey, 53% of Americans seemed convinced that electronic price tags could lead to profiteering, per Forbes.
That said, at least 34% of respondents reacted positively to the change.
Fear from opponents of the dynamic pricing model have led to comparisons to rideshare companies like Uber, which are known for price surging.
Backlash against Kroger’s e-tags led to talk of an investigation into the matter by Senator Elizabeth Warren (D) and former Senator Bob Casey (D) in 2024.
Norway: a dynamic pricing case study
Here’s what Norwegians experience at a popular supermarket chain.
- As a test subject, Norway supermarket discounter REMA 1000 sees prices change on electronic tags.
- Prices can change a number of times daily, but mostly around the holidays.
- REMA 1000’s Head of Pricing Partap Sandhu assures that prices don’t vary wildly.
- “We lower the prices maybe 10 cents and then our competitors do the same, and it kind of gets to [be] a race to the bottom,” says Sandhu.
Source: The Wall Street Journal
Even so, a number of experts have pointed out considerable positives.
Most notable is that electronic price tags are considerably eco-friendly, as they eschew paper stick-ons and thereby reduce mass waste.
Others have pointed out that abandoning paper stick-on tags for electronic ones also frees up a considerable amount of time for employees, allowing them to focus on more important tasks.
Like it or not, it looks like electronic price tags are coming for us Stateside — and likely here to stay.
