On the surface, the change seems harmless enough: Kroger plans to introduce electronic shelving labels that will replace paper labels on its grocery shelves.
But two U.S. senators — Elizabeth Warren (D-Mass.) and Bob Casey (D-Pa.) — say the real goal behind the switch is likely to make it easier for Kroger to price-gouge its customers.
The two senators sent a letter to Rodney McMullen, chairman and CEO of The Kroger Co., expressing their concern over the change.
In a press release, the senators say the electronic shelving labels will allow Kroger to engage in “surge pricing” and to change the cost of goods “based on temporary factors such as the time of day or the weather.”
According to the press release on Warren’s website:
“By updating price tags with the simple click of a button, corporations can price gouge, suddenly raising the consumer costs at times when certain products are in highest demand.”
The senators note that other grocery chains are also using electronic shelving labels. Walmart plans to use the new labels in 2,300 locations by 2026, according to a Supermarket News report. Schnuck Markets plans to use the labels in all its locations by next year.
Warren and Casey warn that the trend toward electronic shelving labels is a way to “extract maximum profits” in an inflationary era when consumers are simply trying to keep their heads above water.
For its part, Kroger says the switch to electronic shelving labels will help it lower prices so it can woo new customers. Erin Rolfes, a Kroger spokeswoman, told the Cincinnati Enquirer:
“Kroger’s business model is to lower prices over time so that more customers shop with us. Everything we do is designed to support this strategy, and customers are shopping more with Kroger now than ever because we are fighting inflation and providing great value. Any test of electronic shelf tags is to lower prices more for customers where it matters most. To suggest otherwise is not true.”
If you are struggling to afford sky-high grocery costs, check out “18 Strategies for Stretching Your Grocery Budget.”
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