The advent of electronic shelf labels — small digital tags that can instantly adjust prices — is causing concern among US consumers who are wary of unexpected price increases and diminishing discounts.

Walmart, Kroger, Kohl’s, Whole Foods and Lidl have all begun rolling out the tags, which were once mostly used in Europe. 

The technology is designed to save staff time, reduce paper waste, and allow for easier inventory updates. But customers aren’t convinced.

‘Don’t buy anything with a digital price tag on it – we can stop this nonsense real soon. Start shopping local in any way possible,’ an X user wrote.

Retailers insist they’re not using the tags for dynamic pricing — a strategy where prices rise and fall based on demand, time of day, or location.

But shoppers remain skeptical, especially as inflation and tariffs continue to drive costs higher. 

Lidl plans to add the tech to all 190 of its US stores by the end of summer. Walmart is pushing to have them in 2,300 locations by next year. 

For instance, Walmart can now modify the prices of the 120,000 products available in each store within minutes. Previously, updating paper shelf labels would require a store employee about two days each week.

The tags, which are also known as electronic shelf labels, launched in Europe in the 1990s

Digital price tags have infuriated Walmart, Kohl’s, Kroger and Lidl shoppers

Retail experts point out that such digital labels — and the speed that prices can be altered — could usher in an era of dynamic pricing.

This approach is similar to Uber. In retail, Amazon already employs such pricing strategies, with some product prices fluctuating multiple times a day based on demand and competitor activity.

Neil Saunders, retail expert at Global Data, said retailers will need to tread carefully to allay shoppers’ fears of dynamic pricing. 

‘Retailers would have to be very careful not to adjust pricing too much otherwise it could undermine their price competitiveness and reduce consumer trust in them,’ Saunders told Daily Mail.

Whole Foods and Kroger told the Daily Mail that their electronic shelf labels are not being used for dynamic pricing. Walmart declined to comment on whether it plans to use the tags that way.

The Daily Mail has also reached out to Kohl’s and Lidl for comment, but neither has replied.

Announcing its roll out in June, Walmart said the new technology will give customers ‘an even better shopping experience.’

Meanwhile, a Kroger spokesperson said: ‘They are a great way to take manual shelf tagging work off our associates’ roles so they can have more time to work with our customers directly—and it’s a huge reduction in the paper waste generated by tags.’

Reddit users were driven crazy by electronic price tags that arrived in Kohl’s stores several years ago

Shoppers believe the idea of electronic price tag usage is ‘crazy’

Still, for shoppers already reeling from rising costs, any whiff of dynamic pricing hits a nerve.

Recent tariff hikes have sparked consumer outrage — especially after Walmart employees began flagging products with price jumps as high as 80 percent on Reddit.

In fact, other Walmart staff complained they were being hit with a flood of instore price rises. 

‘Lately my section has been getting 5,000 to 9,000 a week,’ a Reddit user wrote, adding it was a 40 to 50 percent increase over usual.

Target, another retailer testing electronic shelf labels, has also faced internal pushback after employees noticed steep price increases on everyday items due to tariffs. 

Target, a major competitor that’s also begun using electronic store labels, has left employees fearful for their jobs with its price hikes.

Workers spotted everyday products with drastic price jumps, including a $9.99 USB-C cord now costing $17.99.

For many consumers, the fear is that digital pricing makes it easier for retailers to pass those increases on — without anyone noticing until it’s too late.