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Grocery stores or supermarkets are unlocking new ways to adapt to the technological revolution. In fact, American grocery stores such as Kroger and Walmart have already implemented this controversial labeling system. However, as with any digital advancement, users, in this case customers, are concerned about how it will affect their shopping experience.
A dynamic or problematic, depending on how you look at it, that is intrinsically related to dynamic pricing. These already generated controversy earlier this year when Wendy’s introduced this model. The restaurant chain replied to the accusation that its objective was to offer discounts during certain hours, and not to raise them during peak hours. Other fast food chains have also been criticized for having implemented dynamic pricing, such as Burger King, which claimed that it was false.
That same model is now coming to supermarkets. In June, Walmart announced that it was rolling out digital shelf labels (DSLs) on its shelves. The goal, the brand explained, is to supply 2,300 such labels by 2026. Kroger, meanwhile, has been using electronic labels since 2018, as a possible ‘exploitation model,’ the public suggests. And is that, Kroger now has the technology to change prices depending on the time of day or weather.
Why they have generated controversy
Despite Kroger’s claims that the technology will be used to streamline shelf stocking and offer consumers lower prices, some customers on Reddit have their doubts about it. One user said: ‘Meanwhile, they tell shareholders they will INCREASE PROFITS, while telling the public they will lower prices. Two-faced talk always means lying.’
‘Other companies will copy this,’ theorized one TikTok user. ‘If everything goes to the Uber model, where everything you buy is a dynamically adjusted surcharge price, we’re all going to be paying like three times as much for everything.’
It’s worth noting that other companies like Whole Foods, Amazon Fresh and other European grocery stores are already using this tagging system that could change the future of commerce.