Walmart's use of digital price tags signal the future of retail shopping, but consumers are worried
Walmart's use of digital price tags signal the future of retail shopping, but consumers are worried
Work in retail without e-ink and a lot of the concerns people have here already happen with paper. We do full store paper price tag updates daily, also someone will go around with a scanner making sure prices are up to date with website and print new sheets if not.
Normal days will consist of 3-5 new batches of tickets with the full store update batch containing normally ~10-20 a4 sheets. This isn't a huge store either I imagine most wallmarts would have more products.
The prices already update super frequently and e-inks don't really change that. It basically just cuts out the printing and placing, the person running around with the scanner now updates prices.
I think for workers they are nice as they reduce the chance of paper cuts and the back and leg pain from changing the 100s of bottom shelf tags.
The benefit for stores is they likely don't need to hire as many people, less training and possibly reduced material cost over time as the paper would probably add up.
I'm not worried about e-ink price tags. Aldi has them. I'm worry if it says, use your phone to find special offers only for you.
AFAIK, they use RFID now so they must be changed manually but maybe someday, they will devise a price-gouging scheme involving face detection and tracking people with security cameras.
"Here comes this lady that always buys four cans of dog food despite the last price increase! Let's notch it up it by another 20%!"
No they are wifi controlled
Rightfully worried IMO
Haven't digital price tags been used for decades? I'm sure these will be more high tech, but I remember ones like this at least 20 years ago
Yeah these have existed for a while.
I think the only thing new is that walmart previously talked about actually implementing "on demand pricing" and now that they're adding digital price tags they could actually do it.
I think this will be potentially be a good thing (at first) as you won't have people wasting their life away just endlessly walking around the store updating the price of every individual item for 40 hours a week.
Things will get messy when they start price gouging based on current inventory, weather, holidays or emergency situations.
Things will get deeply dystopian if they start scanning customers as they enter and change the price based on their skin color, gender, clothing, or estimated net worth.
Can't wait for somebody to hack them, the displays are certainly neat. Especially if they manage to add it to an existing Home Automation network without extra hardware.
It's not just Walmart - the entire grocery sector is doing it. The potential for abuse is certainly not low.
The new labels allow employees to change prices as often as every ten seconds. - NPR
this gets into what if the price changes between pikcing it up and purchasing. They should really guarantee to not change prices while the store is open and find an hour to close and make 24hour stores 23 hours.
As noted in other comments, that certainly happens now even with paper tags - but it makes that wheel just a bit more greased...
It's understandable given the effort required to update tags manually, but it would be nice to see price guarantees from stores ("price stable for 24 hours!").
Paper tickets at work but change frequently. Had this happen a couple times. Since its manual we normally ask if someone updated the isle. I've had to respond a few times and had the ticket in my pocket still.
If there is major doubt though register price will be used, it's not hard for someone to lie or move a ticket.
Oh also iirc there is a way to check price history to see if someone is lying so that can be used too if the store has that in the system.
Best thing for any store is to take a photo tbh since its not just eink.
I don't really agree with this but its the way it is.
It would be a crying shame if someone were to figure out a way to force those e ink displays to refresh fast enough that it kills the batteries on those things...
It’s America, so the answer is probably “No”.
Do you not have consumer protection laws?
We’ve had digital price tags for decades. But you couldn’t do this in NZ. Stores are obligated to sell you a product at the price they advertise it for AND have a reasonable quantity of units at that price… you couldn’t sell 1 TV for $1.
So these systems would need to track what price you saw it at.
(Caveat: Our stores are still cunts and have been found to overcharge people)
Someone will have to start a website to track item prices so we can work out when the cheapest time to buy something is.
I’m store item prices will be the next gas prices.
Obviously the way to combat this is to organize dozens or more people who just walk around, load up shopping carts, then leave the store without buying anything. They can pay people to put everything back.
As long as they are still sending out flyers with stuff you buy you are okay. Also, if you already knew the price range of your regularly shopped goods, you know something is off. Superstore is already using digital tags. And you can just pull out your phone and take pictures.
Lastly, it should be put into law so you can't increase price during the day. Going down is fine, but no going down and then going up again for peak hour. Stores can set whatever price they want to sell before opening. (for those non-regulated things)
New Jersey has a law like that for gas. Can only increase the price one time per day. But ut doesn't apply to all gass stations, just ones on the highway rest areas.
If they used a screen for the price tag on the display: Cool.
If I have to look it up on my own device: Fuck that.
@Powderhorn These have been the norm in my country already for quite a while FWIW, haven't tested if they change these prices often or not however.
Yet. Infrastructure on this scale moves slowly and the transparentness of pricing changes on short time lines in physical stores is hard to track. It exists in emergency economies - we call it price gouging - but that's usually quite obvious. The idea of dynamic pricing has existed forever - hotels, airline flights, movie tickets, taxi rides, even electric rates. As technology advances it offers the opportunity to use the technology to shorten the time window for pricing changes more and more. An extra two tenths of a percent profit seems like a trivial amount. Amazon and Walmart combined for more than a trillion dollars in sales last year. 0.2% is a very non-trivial $2 Billion. If it becomes available, it will be exploited.
I’m pretty sure this was in the book of revelations.
It's bound to happen. Why waste hours replacing tags when you can just change what the shelf says when the prices change.
But this article is so pro Walmart it's crazy.
Slim profit margins my ass. Walmarts gross profit for the twelve months ending July 31, 2024 was $163.786B,
I think the main concern is that this is a step towards normalizing extremely frequent price changes, a la Uber surge pricing.
That’s exactly what this is. All stores will eventually do this and prices will fluctuate throughout the day.
It’ll be exciting to see prices temporarily jump during the few hours the majority of working class folk have to do their shopping.
And personalized pricing, based on your profile and what they think they can get you to pay.
It will become an Olympic event where you have to get from the shelf to the till before the price changes!
I edited in another thought. I agree with that fear, that's obviously the concern. I didn't feel the need to repeat it.
Not to sound flippant, but do you know what gross profit means? They aren't pocketing all of that. Walmart's net profit margin is 2.66%, which is minuscule. They make up for that by having enormous volume.
A measly $3.2b. Can hardly afford a new yacht with that!
That's an expected tradeoff of operating an essential service is the point. It's not as though their margin is that slim by mistake, or out of goodwill, or bad business sense. It's meant to lead to the situation where we shop at Walmart not by choice, but in lieu of other options.
You made a good point and I immediately thought that reporting a gross profit dollar amount as an example of how profit margins are not slim as simply inappropriate. And I would have responded myself if you hadn't. There's no single dollar figure that can inform anyone about anything useful about the profit margin of a business. A number without context is useless.
Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services.
Flippant away
Walmart has 10.5k locations. 163B divided by 10.5K is about $15.6M per location.
Jesus, in what world is $15M profits per store location considered a "slim margin"?
"Gross profit" is a meaningless number in this context. Their net income was $15.5B. If you do the same math to try to determine profit per location, ($15.5B/10500) it's about $1.48M. Not bad, but still about 90% lower than your estimate.
Since I was already estimating seemingly random profit ratios, I also looked at their profit per employee, which came out to $7380/person ($15.5B/2.1M employees).
Unfortunately these numbers are also inclusive of, for example, Walmart's e-commerce program, so calculating the profit per location doesn't indicate anything meaningful to me, though I'm morbidly curious about what insights you are hoping to get from it?