If you’ve walked into the Albertsons in McCall lately, you might have noticed something new on the shelves: digital pricing labels.
The labels appear throughout the store, touting the prices of items, showing sales, and more. No more sticky paper labels applied by workers.
During a quarterly call with analysts earlier this summer, the Boise-based retailer’s CEO told investors they are currently testing the so-called electronic shelf labels.
“We are currently in pilot on ESL in, I think it’s forty stores at this moment in time, (and) we’re seeing great results there,” she said.
Electronic shelf labels became a point of contention last summer for competitor Kroger — which at the time was trying to buy Albertsons in a mega-deal that ultimately fell apart. Two Democratic senators wrote a letter to Kroger’s former CEO, Rodney McMullen, wanting details on the grocer’s use of ESLs. They claimed it opened the potential for chains to “abuse their power and surge grocery prices suddenly.”
According to the Associated Press, a survey showed the digital labels don’t lead to pricing surges. But, they said, consumers remain skeptical of the shelf-side tech.
If you’ve shopped a Kohl’s store, you’ve likely seen the same technology in recent years — and the labels are common in Europe. The Wall Street Journal reported last month that in Europe, labels often change during the day as retailers work to beat each other on price. Lowering prices flash before customers’ eyes. The WSJ said European retailers never raise prices while customers are in stores. The reason is simple.
“They’re very, very sensitive not to piss you off,” Ioannis Stamatopoulos, associate professor of retail technology at the University of Texas-Austin’s Business School, said.
An Albertsons spokesperson said that eight of the 40 stores involved in the pilot are here in Albertsons’ home state.
“We are exploring how ESLs can ensure continued pricing accuracy and reduce manual labeling tasks currently performed by associates, allowing them to spend more time serving our customers,” the spokesperson wrote.
Albertsons says it does “not intend to use dynamic pricing.”
