Morrisons, Asda and Co-op to roll out new label technology which could lead to ‘price hikes’
UK supermarkets including Morrisons, Co-op and Asda are rolling out electronic shelf labels (ESLs) that could enable real-time price changes, raising concerns over instant price hikes and the cost of living
UK supermarkets are undergoing a significant transformation that could trigger price increases on numerous everyday products – while potentially pushing up the cost of shoppers’ baskets depending on when and where they buy.
Electronic shelf labels (ESL), which can facilitate real-time price adjustments, are reportedly being introduced across a number of stores.
Morrisons, Co-op and Asda are amongst the supermarkets set to install the technology.
The news follows a fresh wave of analysis from the Bank of England, with shoppers growing increasingly concerned as the cost of staple goods could vary depending on the time of day, footfall or demand.
Dynamic pricing is already commonplace across many retailers, but this new rollout of ESLs makes such changes far more visible to customers.
It is understood that Tesco and Sainsbury’s are also currently trialling the ESLs.
Once the rollout is complete, Morrisons will have 10.8 million individual ESLs across its estate.
Gordon Macpherson, Morrisons group productivity director said: “As digital innovation reshapes the digital landscape we’re constantly evaluating new technology that can help us serve customers better.
“We’re excited to be the first large supermarket group in the UK to introduce digital shelf edge labelling across our entire supermarket estate and look forward to rolling out the technology in 2026.”
The technology will enable staff to spend less time updating labels throughout stores and concentrate on assisting customers and restocking shelves. Despite the advantages, there are significant worries that the shift will see prices surge rapidly, particularly in the current volatile climate.
The Middle East conflict is driving inflation across numerous sectors, with energy severely affected, but households are starting to feel the knock-on effects elsewhere.
According to the Office for National Statistics, the annual rate of Consumer Prices Index (CPI) inflation sat at 3.3 per cent in March, an increase from February.
In supermarkets, this is evident as food and drink price inflation has also accelerated, fuelled by monthly rises in the cost of products such as chocolate, coffee and fresh fish.
As temporary ceasefires take hold and peace negotiations look to restart, prices continue to swing, and ESLs will be capable of instantly adjusting prices in response to global developments.
According to Food and Drink Technology, consumers are braced for price increases, yet the notion that hikes can now hit shelves immediately, without affording households the opportunity to budget accordingly, is stoking genuine concern.
