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Bank of England Flags Potential for Dynamic Pricing as Digital Shelf Labels Spread in UK Supermarkets

Retailers insist they will not use surge pricing.

Overview

  • The Bank of England said new digital price tags in stores could let supermarkets change prices in real time in the future.
  • Dynamic pricing means prices move based on demand or supply, and it is already common in travel and concert tickets.
  • UK chains are rolling out or testing the tags, with reports naming Co-op, Morrisons, Waitrose, some Asda and Lidl stores, and trials at Tesco and Sainsbury’s.
  • The British Retail Consortium said supermarkets do not use dynamic or surge pricing and have no plans to start.
  • Pricer, a supplier of the tags, says its system can adjust prices to real-time events, which has raised questions from consumer groups and drawn fresh attention from ministers focused on living costs.