THE DOWNLOAD
When you say dynamic pricing, the hair on the back of my neck kind of
stands up.” — Joel Rampoldt, CEO of Lidl US, part of the Germany-based grocery giant
more expensive on a hot day. Kroger says it doesn’t plan to use
electronic price tags for dynamic pricing. “They are a great way to take manual shelf tagging work off our associates’ roles so they can have more time to work with our customers directly — and it’s a huge reduction in the paper waste generated by tags,” a company spokesperson said. Whole Foods, which is piloting
electronic price labels in select stores, said it has no plans to use them for dynamic or surge pricing. Grocery stores have long used paper
stickers to mark down meat, baked goods, and other items as they reach their sell-by dates. While the digital systems are expensive, companies say they can ultimately save time and money by decreasing the labor needed to print out and place new price stickers. Still, many consumers hear
“dynamic pricing” and think of the surge pricing they see when hailing an Uber, buying concert tickets, or booking a fl ight. When Wendy’s then-CEO Kirk
Tanner announced plans last year to test dynamic pricing and invest in the rollout of digital menu boards, it brought a backlash, with posters on social media raising the prospect of sky-high hamburger costs during peak demand times. Wendy’s said its plans were misconstrued and that it wouldn’t raise prices at the busiest times, but instead off er discounts when business was slow. “When you say dynamic pricing,
the hair on the back of my neck kind of stands up,” says Joel Rampoldt, CEO of Lidl US, part of the Germany-based grocery giant. “You see an electronic
shelf label and the thought is going to occur to you, ‘Well, this is a way to raise prices more effi ciently and more quickly, and to take advantage of situations,’” he says. Lidl US introduced electronic shelf
labels in its stores last year to save time and display more consistent pricing, Rampoldt says. The plan is to outfi t all of its nearly 190 U.S. stores by the end of the summer. Intraday price changes using
the digital shelf labels aren’t under consideration, he says. When items are marked down, usually near expiration, this is done manually with stickers. Outside the U.S., Lidl’s stores use
the electronic shelf labels to make price changes during the day, but they are only reductions aimed to fi ght food waste, the company said. Walmart has digital shelf labels
in more than 400 of its nearly 4,600 U.S. stores, with plans to get to half of locations soon, Cedric Clark, Walmart’s executive vice president of U.S. store operations, said at a retail conference in January. Fears of surge pricing are likely
overblown, says Stamatopoulos. A recent study he authored along with Robert Evan Sanders at the University of California, San Diego, and Robert Bray of Northwestern University, found that electronic shelf labels haven’t led to demand-based pricing in U.S. grocery retail, despite regulators’ concerns. One reason is that it’s hard to detect
a real-time surge in demand for goods in the store aisles, Stamatopoulos says. Another is that retailers know shoppers would take their business elsewhere if prices for items in the cart were higher by the time they made it to a store checkout. — The Wall Street Journal
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SEPTEMBER 2025 | NEWSMAX MAXLIFE 77
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