Digital Tags Come to Kroger and Walmart, but Chains Deny ‘Surge Pricing’

Published On Oct 23, 2024, 1:50 PM

Concerns have been raised by some members of Congress about the deployment of digital price tags at supermarkets like Kroger and Walmart, suggesting that this technology could lead to dynamic pricing based on customer data, including facial recognition. However, both companies have denied these claims, stating they do not plan to use dynamic pricing or facial recognition to influence prices. They assert that electronic shelf labels (E.S.L.s) are environmentally friendly and have benefits for employee efficiency. Experts also indicate that grocery prices are unlikely to rise significantly due to these changes.

Stock Forecasts

The adoption of electronic shelf labels at Kroger and Walmart signals an operational shift towards more tech-driven store management, likely improving efficiency and potentially profitability in the long run. However, the backlash from privacy advocates and Congressional scrutiny may pose short-term risks. This could create a volatile environment for these stocks in the near term but a stable outlook as the technology proves beneficial.

Walmart's confirmation of using E.S.L.s across its stores suggests a strong commitment to improving operational efficiencies. Despite the potential public relations issues tied to privacy concerns, the long-term trend towards digital solutions in retail bodes well for the company's operational margins.

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