DURING THREE YEARS OF STUBBORN INFLATION, MANY AMERICAN HOUSEHOLDS CUT BACK ON ROUTINE PURCHASES AT THE STORE.

AMID ASSIGNS RETAIL PRICES HAVE STARTED TO DROP, SOME COMPANIES ARE RETHINKING HOW THEY DECIDE WHAT TO CHARGE.

MORE ON THE NEW TECHNOLOGY THAT ALLOWS RETAILERS TO QUICKLY CHANGE PRICES FOR ITEMS ON SHELVES.

>> THE TRADITIONAL PRICES WE ALL SEE ON GROCERY SHELVES MAY BE ON THEIR WAY OUT IN FAVOR OF DIGITAL OR ELECTRONIC SHELF LABELS WITH SMALL DIGITAL SCREENS WHERE PRICES CAN BE UPDATED REMOTELY, SOMETIMES DAILY.

CONSUMER ADVOCATES WORRIED THE TECHNOLOGY COULD LEAD TOSURGE PRICING ALREADY SEEN WITH CONCERTS, TRAVEL, AND RIDESHARING.

WALMART ANNOUNCED THAT BY 2026 MORE THAN 2000 STORES WOULD HAVE DIGITIZED SHELF LABELS.

AN E-COMMERCE AND RETAIL REPORTER AT REUTERS.

THANK YOU FOR JOINING US.

HOW DOES A DIGITAL SHELF LABELS WORK?

HOW COMMON ARE THEY IN THE U.S.

RIGHT NOW?

>> THE DIGITAL SHELF LABELS ARE SMALL DIGITAL SCREENS THAT REFLECT PRICES.

GENERALLY, THEY USE GOOGLE TECHNOLOGY TO COMMUNICATE WITH MOBILE TECHNOLOGY TO UPDATE THE PRICES VERY QUICKLY.

SO FAR, THE ADOPTION OF IT IN THE U.S. IS NOT AS RAMPANT.

CERTAINLY, WALMART IS ONE OF THE COMPANIES THAT HAS GONE BIG INTRODUCING THEM IN THEIR STORES.

WE ALSO KNOW THAT KROGER AND INSTACART ARE TESTING IT NOW.

BUT WE HAVE NOT SEEN IT IN STORES YET.

ME AND YOU, THE REGULAR CUSTOMER WANT TO SEE IT IN THE NEXT TWO OR THREE YEARS UNLESS YOU SHOP REGULARLY AT WALMART.

>> THE TECHNOLOGY IS PREVALENT IN PARTS OF EUROPE RIGHT NOW.

I WANT TO ASK ABOUT WHAT RETAILERS SAY ABOUT THE BENEFITS OF ELECTRIC STORE LABELS AND HOW THE BENEFITS MIGHT END UP TRICKLING DOWN TO CUSTOMERS.

>> FROM THE WALMART PERSPECTIVE, WHEN THEY INTRODUCED THIS THEY WERE SPEAKING ABOUT HOW THEY COULD LABEL PRICES MORE EASILY.

WHAT WOULD TAKE A WEEK FOR A WORKER WILL NOT A STATEMENT OF – – WILL NOW JUST TAKE MINUTES.

IT WILL REPLACE ECO-SHELF LABELS, CUTTING BACK ON PAPER WASTE BY 20%.

THEY SAID IT IS AN EASY TECHNOLOGY FOR THEM TO KEEP ASSOCIATES ABREAST OF THE INVENTORY.

AND, IF THEY WANT TO USE IT TO LET KNOW — LET WORKERS KNOW HOW TO PICK UP PRODUCTS FOR ONLINE WORKERS.

SO THEY CAN FIGURE OUT WHERE IN THE STORE THE PRODUCT IS.

THERE ARE MULTIPLE WAYS THEY CAN USE THE TECHNOLOGY.

IN FACT, SOMETIMES, RETAILERS ARE USING IT FOR DISPLAYING QR CODES.

SO IF YOU BUY HEINZ KETCHUP, YOU DO NOT KNOW W IT IS GLUTEN OR ALLERGEN FREE.

OR THE FAT CONTAINED IN IT.

THESE THINGS ARE DISPLAYED ON THE LABEL EASILY.

BUT YOU CAN GET A SCANNED QR CODE RIGHT ON THE SHELF LABEL.

YOU CAN WHIP OUT YOUR PHONE AND SEE THE INFORMATION EASILY.

THAT IS ANOTHER ASPECT OF FOR DIGITAL SHELF LABELS ARE BEING USED TO HELP THE CUSTOMER.

>> I KNOW WALMART AND OTHER STORES ARE ARGUING THOSE EFFICIENCIES COULD LEAD TO SAVINGS FOR THE CUSTOMER.

I WANT WEST ABOUT THE FLIP SIDE, CONSUMERS AND ADVOCATES ARE NERVOUS THAT THERE MAY BE DYNAMIC PRICING EMPLOYED IN WHICH RETAILERS INCREASE PRICES OF ITEMS BASED ON DEMAND.

HOW ARE COMPANIES RESPONDING?

WHAT IS THE LIKELIHOOD THAT SORT OF PRACTICE WILL TAKE PLACE?

>> DYNAMIC PRICING IS GENERALLY LEGAL IN THE U.S.. ANY RETAILER IS ABLE TO DO IT IF THEY WANT.

BUT, BECAUSE OF THE BACKLASH AGAINST SURGE PRICING, WALMART WON’T BE USING IT FOR SURGE PRICING.

IF THEY USE THAT IT WILL BE TO CUT PRICES OR OFFER PROMOTIONS OR DISPLAY PROMOTIONS OR DISCOUNTS.

FOR CONSUMER ADVOCATES THERE IS CONCERNED THEY COULD RAISE PRICES.

THIS HAS HAPPENED IN THE PAST.

COCA-COLA IN THE 1990’S HAD A VENDING MACHINE WHERE THEY WOULD RAISE PRICES WHEN THE WEATHER WAS HOT.

THAT CREATED BACKLASH AND THEY QUIT THAT PROGRAM.

SURGE PRICING IN GROCERY STORES, IT WOULD BE HARD FOR RETAILERS TO GET AWAY WITH IT.

WHY ARE THE EFFORTS BEING EMPLOYED NOW?

THEY HAVE BEEN THE NORM IN EUROPE AND PARTS OF THE U.S. FOR A WHILE NOW.

IS IT JUST THE PACE OF MODERNIZATION, OR, ARE THESE EFFORTS BY RETAILERS TO ADDRESS INFLATION CONCERNS OR A COMBINATION OF THE TWO?

>> RETAILERS ARE TRYING TO UPGRADE THEIR STORES USING AUTOMATION.

THEY ARE TRYING TO USE MATERIALS LIKE LED.

NOW THEY ARE MOVING TOWARDS DIGITAL SHELF LABELS.

ONE PART OF THIS IS MODERNIZATION.

IT HELPS WITH EFFICIENCY.

IF THEY GET DIGITAL PRICE LABELS THEY CAN UPDATE PRICES TO MARKET CONDITIONS MORE EASILY AND THERE WILL NOT BE A LAG BETWEEN WHAT THE MARKET SAYS AND WHAT YOU CAN PUT IN THE STORE.

IT HELPS WITH MANAGING INVENTORY MUCH BETTER.

WHEN YOU WANT TO SELL PRODUCTS MORE QUICKLY, THINK ABOUT A MILK CARTON THAT EXPIRES IN TWO DAYS.

YOU WANT IT OUT QUICKLY.

THEN IT MAY BE YOU CUT THE PRICE BY HALF SO PEOPLE BUY IT MORE QUICKLY.

THERE ARE WAYS TO ADDRESS BRINGING INFLATIONARY PRESSURES DOWN ON THEIR BUSINESS AND ALSO REDUCING COST.

I MENTIONED EARLIER THAT THE PAPER SHELF TAGS WERE A BIG ENVIRONMENTAL ISSUE AND COST PROBLEM.

REPLACING PAPER SHELF TAGS WITH DIGITAL SHELF TAGS THEY CAN REINVEST SAVINGS BACK INTO PRICE.

>> THANK YOU FOR BREAKING THIS DOWN WITH US.

>> THANK YOU FOR HAVING ME.