By Daily Mail (U.S.) | Created at 2026-06-12 05:52:55 | Updated at 2026-06-13 21:32:54
1 day ago
A major grocery chain has quietly expanded a controversial new technology that allows prices to be changed across entire stores in seconds, and some shoppers are already sounding the alarm.
Kroger has been rolling out electronic shelf labels, or ESLs, to hundreds of stores across the country, replacing traditional paper price tags with digital displays that can be updated remotely from a computer.
The supermarket giant says the technology is designed to improve efficiency, reduce paper waste and free up employees to spend more time helping customers.
But critics fear the digital tags could eventually pave the way for so-called 'surge pricing' at the grocery store, allowing retailers to change prices instantly based on demand, weather conditions or peak shopping periods.
The backlash has been growing online as more shoppers notice the electronic labels appearing in stores.
'Don't buy anything with a digital price tag on it,' one frustrated customer wrote on X. 'We can stop this nonsense real soon.'
Others have compared the technology to airline ticket pricing or ride-sharing apps such as Uber, where costs can fluctuate rapidly depending on demand.
Kroger has repeatedly denied that it uses electronic shelf labels for surge pricing.
Kroger has been rolling out electronic shelf labels, or ESLs, to hundreds of stores across the country, replacing traditional paper price tags with digital displays
The company first began testing the technology in 2018 and has since expanded it to roughly 500 stores nationwide.
Interim CEO Ron Sargent recently confirmed the retailer is continuing to roll out the labels across the company.
'Electronic shelf tags, we are rolling out across the company,' Sargent told analysts during a conference call.
The controversy has even attracted the attention of lawmakers.
Senators Elizabeth Warren and Bob Casey previously demanded answers from Kroger over concerns that the technology could be used to implement dynamic pricing on everyday essentials at a time when many Americans are already struggling with higher grocery bills.
'These digital price tags may enable Kroger and other grocery chains to transition to dynamic pricing,' the senators wrote in a letter to the company, warning that retailers could potentially adjust prices based on factors such as time of day, weather or shopping demand.
The concern comes as food prices remain significantly higher than before the pandemic, with grocery inflation continuing to put pressure on household budgets.
Kroger insists those fears are misplaced. The retailer says the digital labels are primarily designed to reduce the enormous amount of labor involved in changing prices manually throughout stores every week.
Critics fear the digital tags could eventually pave the way for so-called 'surge pricing' at the grocery store, allowing retailers to change prices instantly based on demand, weather conditions or peak shopping periods (stock image)
Doug Baker, vice president of industry relations at The Food Industry Association, said electronic shelf labels - seen above at Walmart - are becoming an increasingly important part of modern grocery operations
Company executives also argue the technology improves price accuracy and helps workers focus on customer service rather than replacing thousands of paper tags.
Industry groups have largely echoed that view.
Doug Baker, vice president of industry relations for FMI - The Food Industry Association - said electronic shelf labels are becoming an increasingly important part of modern grocery operations.
'The grocery industry is embracing the technology,' Baker said. 'ESLs are an important part of the future.'
Supporters say the labels also help employees locate products more quickly for online grocery orders and restocking, improving efficiency as retailers continue to invest heavily in home delivery and e-commerce services.
But many shoppers remain unconvinced. The ability to change thousands of prices instantly has raised fears that retailers could eventually adopt the kind of dynamic pricing already common in industries such as travel and hospitality.
Global Data retail analyst Neil Saunders believes stores will need to be extremely careful if they want to avoid a consumer backlash.
'Retailers would have to be very careful not to adjust pricing too much otherwise it could undermine their price competitiveness and reduce consumer trust in them,' Saunders told the Daily Mail.
Retailers argue the technology can dramatically reduce workloads. Walmart has previously said updating traditional paper shelf labels can take employees up to two days every week, while digital systems allow changes to be completed in minutes.
Still, for consumers already frustrated by inflation, tariffs and rising prices on everyday essentials, the arrival of digital price tags is proving difficult to ignore.
