The familiar sight of yellow stickers marking reduced items in UK supermarkets may soon become a thing of the past. Supermarkets are adopting dynamic pricing systems driven by artificial intelligence (AI), transforming the way discounts are applied and displayed.
This shift involves digital price tags, which are either placed on shelves beneath the products or featured on advanced stickers attached directly to the items. Powered by AI, these digital labels are wirelessly updated as products approach their use-by dates.
Dynamic Pricing
AI monitors several factors to adjust prices in real time. As a product nears its expiration date, or if there’s an excess of stock, the system automatically reduces the price. It even takes into account past demand for that item, adjusting prices based on patterns from previous years.
With this technology in place, there’s no longer a need for staff to walk the aisles manually applying yellow labels to reduce products nearing the end of their shelf life. Instead, AI-driven price reductions are made instantly, ensuring customers have access to lower prices sooner.
Digital Labels Already in UK Supermarkets
AI-powered dynamic pricing is already making its mark in supermarkets across Europe, and many UK retailers are following suit. Chains such as Aldi, Lidl, and M&S have introduced electronic shelf labels (ESLs) in selected stores, while Asda, Morrisons, and Sainsbury’s have also trialled the technology in recent years.
Unlike traditional yellow tags, which require staff to physically update prices, ESLs and other digital price tags automatically adjust based on the product’s shelf life. This ensures that price reductions are visible to customers earlier, giving them better opportunities to save.
According to Clare Bailey, founder of The Retail Champion, digital labelling should be rolled out in UK supermarkets “sooner rather than later.” Speaking to The Telegraph, Bailey emphasised that this technology is not only proven but can also reduce labour costs, improve production efficiency, and cut down on food waste.
“I think retailers should embrace this much sooner because the technology has already demonstrated its benefits,” Bailey remarked. The ability to pass price decreases to consumers more quickly is a key advantage, helping to enhance the overall shopping experience.
“If the technology is used to benefit the customer—whether by lowering prices or implementing necessary price increases—then it’s a positive step,” she added.
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