If you’re like most shoppers, you probably don’t think twice about the little paper price tag sitting beneath an item at Walmart, but now that’s about to change. A new technology rolling out at Walmart stores could transform how prices are displayed, and potentially how they’re set. Critics say it may even open the door to higher prices. Digital Shelf Labels (DSLs) are small electronic displays that show prices, promotions and product details in real time, and they are replacing the traditional paper tags. The DSLs are connected to a central system, which means store employees no longer have to manually swap out paper tags. Instead, prices can be updated instantly across entire departments, or even the entire store, with just a few clicks. Walmart says the move is about efficiency and accuracy. So why are shoppers worried? Because DSLs allow instant price updates, they could pave the way for what’s known as dynamic pricing, or prices that fluctuate based on demand, time of day, or even customer behavior. Right now, Walmart says there’s no need to panic because the digital shelf labels are not being used for dynamic or surge pricing in stores. Instead, they’re focused on improving efficiency and making sure prices are consistent between the shelf and the register. Still, there’s cause for skepticism, since the technology could be used for dynamic pricing in the future, even if it isn’t today. State and federal lawmakers are beginning to pay attention to DSLs, with at least 12 states — including New York and Pennsylvania — considering legislation that would limit or regulate certain types of dynamic pricing, especially if it’s based on personal data.
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| Paper tag on the left, DSL on the right |
