Target: John Furner, CEO of Walmart Stores
Goal: Do not allow consumers to be overcharged as a result of digital dynamic pricing.
The 120,000 products in a typical Walmart location will soon be subject to on-the-spot price changes, and many consumer advocates are not here for the change. The company’s rolling out of digital price tags (expected to eventually become routine in all Walmart locations) reflects a nationwide trend in retail. In common usages of electronic shelf labels (ESLs), prices are reflected on a digital monitor that replaces paper price tags. Updates occur remotely and can change up to six times in just an hour. While advocates argue that consumers could see lower prices and workers can perform their jobs more efficiently, potential drawbacks are undeniable.
For one, controversial dynamic pricing could result in unexpected and unpleasant sudden price jumps before consumers even leave a store. Other attempts at dynamic pricing, such as an ill-fated move by Wendy’s, have notoriously failed. Further, smaller stores that cannot keep up with technology will face pressures of their own…pressures that may be passed on to consumers. And the installation of digital price tags could have an adverse effect even on employees of larger chains, as they find more of their jobs replaced.
Some cities, such as New York, have already taken steps to limit or even ban digital price tags. Sign the petition below to urge the nation’s leading retailer to think twice about this complex endeavor.
PETITION LETTER:
Dear Mr. Furner,
“Grocery retail is built on repeat purchases, large baskets, and consumer trust. Raising prices opportunistically on everyday items risks alienating customers for very small, short-term gains.” An academic cautioned about this impact of electronic shelf labels. With Walmart’s planned launch of ESLs in most of its locations, it bears repeating how much consumers and employees need assurance that these changes will not impact their livelihoods or their wallets during tumultuous economic times.
The proposed ban on ESLs in locations like New York demonstrates just how deeply these concerns go. Please take a thoughtful, measured approach and ensure that dynamic pricing and other detrimental effects do not become the norm.
Sincerely,
[Your Name Here]
Photo Credit: Ralf Gruner
