Fast Company interviewed Carly Fink, President of Provoke Insights, to discuss the impact of digital price tags and dynamic pricing at big-box retailers.  Provoke Insights recently researched the topic of dynamic pricing as this new retail structure becomes more prominent. While some restaurants are ready to transition to this model, national retailers like Walmart deny plans for dynamic pricing, emphasizing adjustments only for specific promotions. Consumers remain wary, fearing rapid price changes akin to surge pricing in other industries, despite the potential benefits of lower prices during off-peak times.

Some noteworthy insights include:  

• Walmart is expanding digital shelf labels, enabling remote price changes for over 100,000 items via mobile app, freeing up staff, and enhancing inventory management.
• Despite assurances that the technology won’t enable dynamic pricing, concerns remain about its potential for fluctuating prices similar to surge pricing in other industries.
• The consumer worries are valid since 63% of people are more budget-conscious than six months ago.
• Proponents argue dynamic pricing could benefit consumers during off-peak periods but stress the need for transparency to manage consumer expectations.
• Dynamic pricing in retail remains contentious despite potential benefits during off-peak times.