Three of the UK’s ‘Big Four’ supermarkets are looking at the possibility of introducing Uber-style ‘surge pricing’ in their stores in a bid to boost profits.
Tesco PLC (LON:TSCO), J Sainsbury plc (LON:SBRY) and WM Morrisons Supermarkets PLC (LON:MRW) are all running trials which allow them to raise of cut the price of groceries depending on demand.
For example, on a warm summer’s day, the store manager would be able to up the cost of an ice cream at the touch of a button.
The model is widely-used in Europe and over in the States, as well as by the popular taxi-hailing app Uber which automatically hikes it prices when there is a surge in requests.
Those foreign retailers reportedly change prices up to ten times per day.
As well as the ability to better monitor prices and react to particular events, electronic pricing also has the potential to save time and improve efficiencies as it removes the need to change labels manually.
Marks and Spencer Group Plc (LON:MKS) was the first supermarket in the UK to trial electronic pricing.
It used the labels to offer special deals before 11am to try and encourage workers to buy their food before the lunchtime rush.
Both Tesco and Sainsbury’s both said they’re always on the lookout for new technologies which can ‘improve the shopping experience’.