In recent months, there have been raised concerns about electronic shelf labels (ESLs) and the potential for surge pricing in grocery stores. For grocers who rely on consistency, customer trust, and transparent pricing, it’s understandable why this narrative might raise questions.
But here’s the reality: ESLs are not designed — or commonly used — for surge pricing in the grocery sector. In fact, they’re doing quite the opposite, supporting operational efficiency, accuracy, and better customer experience.
The term surge pricing typically refers to rapid, automated price increases based on real-time demand — like paying more for a ride home during a rainstorm. It’s a pricing strategy that works in some sectors, but grocery isn’t one of them.
Because they enable real-time price changes, some have speculated they could be used to implement dynamic, demand-based pricing. While that’s technically possible, it’s far from the norm and not aligned with how most grocers operate or how ESL technology is currently being used.
In practice, ESLs support smart, stable pricing strategies — not surge pricing. Here’s how:
Electronics shelf labels allow grocers to manage inventory and pricing updates across stores from a single source, ensuring consistency and compliance.
Teams spend less time printing and replacing paper tags, and more time on customer-focused tasks. Tags can reduce the time spent on price changes by up to 80%.
ESLs give shelves a cleaner, more modern look and keep displayed prices aligned with the POS system.
By reducing the need for printed paper tags and manual updates, ESLs contribute to more eco-friendly store operations.
In fast-moving environments, ESLs help grocers reflect changes related to promotions, vendor cost updates, and regulatory adjustments — accurately and on schedule.
82% of shoppers say clear pricing and no hidden fees are essential to reducing stress and improving the shopping experience. These are the real drivers behind ESL adoption—not a desire to capitalize on sudden demand spikes.
Smart pricing means using data and planning to optimize pricing strategies over time — balancing competitiveness, margins, and customer expectations. It includes scheduled promotions, loyalty programs, and regionally adjusted pricing.
Grocers using ESLs typically focused on:
Electronic Shelf Labels don’t undermine price stability, they strengthen it. They help ensure the price a customer sees is the price they pay. They minimize confusion and human error. And they enable store teams to communicate clearly and consistently, especially during complex or high-volume pricing changes.
In today’s grocery stores — where inflation, labor shortages, and evolving shopper expectations all converge — tools that improve transparency and efficiency are more essential than ever.
