Kroger recently announced a test roll out of "smart shelving" in 120 stores. Electronic Display for Grocery Environment (EDGE) is said to offer a personalized, interactive shopping experience for customers.
Connected by sensors and using cameras, EDGE sends real time information from every shelf and display where it is installed. Additionally, Walmart has plans to install similar Electronic Shelf Labels (ESLs) in 2300 stores by 2026.
Proponents of this technology say that ESLs: enhance accuracy and speed, reduce labor costs, reduce paper and plastic waste and energy usage, improve customer experience, and allow for better inventory management.
Additionally, proponents say the ability to offer instant dynamic pricing is a good thing - it allows a retailer to adjust prices based on competitor pricing, and enable flash sales or other promotional events.
While both Kroger and Walmart have publicly stated that they won't use the technology for surge pricing, many remain skeptical. Critics say that the ability to adjust prices by the minute (or even faster) will allow retailers to exploit consumers - for instance, increasing the cost of a bottle of water during the hottest part of the day. Additionally, the use of facial-recognition cameras to determine demographics like gender and age to push advertisements raise concerns about privacy and data protection. And, US lawmakers are already asking questions about how Kroger will ensure that they are not using customer data related to discriminate based on protected classes (like race, gender, and age).
How do you feel about ESLs? How about the use of facial recognition with ESLs? Do you want digital interaction woven in to your grocery store experience? If this technology saves people money at the grocery store (as the retailers suggest), how would that effect the overall economy? Let us know.
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