Fears over grocery store ‘dynamic pricing’ however digital value tags might make outlets cheaper
Fears has arisen over ‘dynamic pricing’ hitting UK supermarkets like Sainsbury’s and Lidl – but experts say it could slash bills, not hike them, thanks to fierce competition
UK supermarkets could roll out ‘dynamic pricing’(Image: Getty)
There are growing fears Britain’s supermarkets could roll out dreaded “dynamic pricing” – but experts insist it might actually make your weekly shop cheaper.
The controversial tactic, already familiar to millions, sees prices rise and fall depending on demand. If you’ve ever forked out big money for a last-minute ride home or a peak-season getaway, you’ve seen it in action. Now, major UK supermarkets could be next in line.
The Bank of England (BoE) revealed this week that electronic shelf labels (ESLs) – digital price tags already being introduced across stores – could pave the way for dynamic pricing in the future.
These high-tech labels, used by chains like Morrisons, Sainsbury’s and Lidl, allow prices to be updated instantly at the touch of a button.
But before shoppers panic about sky-high prices on summer treats or match-day beers, retail expert Bryan Roberts says there’s no need to worry. “There’s no reason for British punters to be at all concerned,” he told The Sun.
In fact, he says the system could actually work in shoppers’ favour. In countries like Belgium and Denmark, supermarkets already use dynamic pricing – but often to slash prices, not raise them.
Stores use cutting-edge tech to monitor competitors and quickly drop prices on everyday essentials to stay ahead in the fierce retail battle.
Roberts also believes the system could help tackle food waste – acting like a turbocharged version of yellow sticker discounts.
Products nearing their sell-by date, like fresh meat or fruit, could see instant price cuts to clear shelves faster.
And any supermarket trying to hike prices unfairly would face a brutal backlash.
Retailers that push their luck risk losing customers and being “hung out to dry” by rivals, Roberts warned.
Despite the buzz, the British Retail Consortium says supermarkets currently have no plans to introduce dynamic pricing – though there’s nothing stopping them in the future.
Some tech firms are already encouraging it. Pricer, which supplies digital shelf labels to some Co-op stores, says prices can be adjusted based on “real-time events” like weather, demand and even major sporting moments.
But consumer expert Martyn James has sounded a warning over potential “sneaky” tactics.
“If some sun cream is on sale at £2 most of the time, and then a supermarket sees that the weather forecast is going to be sunny next week, they could put the sun cream up to £2.99 and then when the sun comes, reduce it to £2.50.
“So they can argue that they’ve actually discounted the suncream, when in actual fact they’ve increased the price by 50p,” he warned.
This is a breaking news story and is being constantly updated. Please refresh the page regularly with the latest news, pictures and videos.
You can also get email updates on the day’s biggest stories straight to your inbox by signing up for our newsletters.
Get all the very best headlines, pictures, opinion and video on the stories that matter to you by following Daily Star every time you see our name.
Follow Daily Star on Android – CLICK HERE
Follow Daily Star on Apple – CLICK HERE
Follow Daily Star on Snapchat – CLICK HERE
You can also sign up for Twitter alerts for breaking news by following @starbreaksnews and follow us @dailystar for all the latest updates.
Keep up-to-date with your must-see news, features, videos and pictures throughout the day by following us on Facebook at facebook.com/thedailystar.
