Grocery store prices are changing faster than ever before — literally. This month, Walmart became the latest retailer to announce it’s replacing the price stickers in its aisles with electronic shelf labels. The new labels allow employees to change prices as often as every ten seconds.
“If it’s hot outside, we can raise the price of water and ice cream. If there’s something that’s close to the expiration date, we can lower the price — that’s the good news,” said Phil Lempert, a grocery industry analyst.
The real change in retail pricing might be discrimination pricing (or ‘surveillance pricing’ as it is now called sometimes). Simply speaking, it uses personal data to personalize prices not just for each customer, but also for each customer depending on actual circumstances such as day time, weather, an individual’s pay day, and other data, collected through apps, loyalty cards, …
"If I literally tell you, the price of a six-pack is $1.99, and then I tell someone else the price of a six-pack for them is $3.99, this would be deemed very unfair if there was too much transparency on it,” [University of Chicago economists Jean-Pierre] Dubé said. “But if instead I say, the price of a six-pack is $3.99 for everyone, and that’s fair. But then I give you a coupon for $2 off [through your app] but I don’t give the coupon to the other person, somehow that’s not as unfair as if I just targeted a different price.”
The linked article is a very long read but worth everyone’s time. Very insightful.
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The real change in retail pricing might be discrimination pricing (or ‘surveillance pricing’ as it is now called sometimes). Simply speaking, it uses personal data to personalize prices not just for each customer, but also for each customer depending on actual circumstances such as day time, weather, an individual’s pay day, and other data, collected through apps, loyalty cards, …
As one article says, there is One Person One Price:
The linked article is a very long read but worth everyone’s time. Very insightful.