Digital shelf labels could put almost 200,000 grocery jobs at risk, report warns
The widespread rollout of electronic shelf labels could put almost 200,000 grocery jobs at risk and lead to billions of dollars in lost wages, according to a new report.
The AFL-CIO Tech Institute has warned that universal adoption of the digital price tags across US supermarkets could affect between 44,223 and 191,633 jobs.
It estimated workers could lose between $1.6bn (£1.2bn) and $6.9bn (£5.1bn) in wages each year as retailers automate tasks traditionally carried out by store staff.
The AFL-CIO report, titled Priced Out, Pushed Out: Electronic Shelf Labels Raise Prices and Shrink Paychecks, argued the technology could ultimately allow retailers to cut staff hours and reduce headcount.
The union-backed organisation also raised concerns that electronic labels could make it easier for grocers to introduce more frequent or algorithm-led price changes.
It claimed the infrastructure could enable dynamic pricing, where prices are adjusted according to factors such as demand, as well as so-called surveillance pricing based on customer data.
AFL-CIO Tech Institute executive director Lauren McFerran said the rollout risked harming both workers and shoppers and called on US policymakers to restrict the technology.
Walmart is among the chains rolling out the technology across its estate and expects digital shelf labels to be used throughout its US stores.
The supermarket has rejected suggestions that the technology is being introduced to enable personalised or surge pricing.
Walmart said its labels simply replace paper tickets and that all customers continue to see the same price, with pricing decisions made centrally rather than by the labels themselves.
It added that digitising shelf prices frees employees from repetitive ticket changes, allowing them to spend more time restocking shelves and serving customers.
Research published last year examining electronic shelf label adoption at a major grocer also found no meaningful evidence that introducing the technology led to an increase in surge pricing.
Nevertheless, political scrutiny of data-led pricing is increasing in the US, with a number of states taking action against the use of personal information to determine what individual shoppers pay.
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