The Bank of England has warned that UK supermarkets could introduce dynamic pricing, adjusting prices in real-time based on demand and supply. This follows the use of electronic shelf labels by major retailers such as Co-op, Morrisons, and Waitrose, which allow for instant price updates.
Clare Lombardelli, deputy governor for monetary policy at the Bank, stated: "We are seeing some sectors experimenting with technology that could enable dynamic pricing in the future, such as electronic shelf labels in supermarkets, which are already widespread in Europe."
However, the British Retail Consortium (BRC) has dismissed the idea, with director Andrew Opie saying: "Supermarkets do not use, and have no plan to use, dynamic or surge pricing in their stores. Digital pricing displays allow retailers to update and check thousands of prices in an effective way, so they can continue to offer great value for customers."
Thomas Hill, co-founder at HyperFinity and former Asda pricing lead, added: "Dynamic pricing is not coming to groceries - at least not yet. Supermarkets will be very careful not to create a PR disaster by applying it to core staples where customers genuinely need value. Bread, milk, cheese - these are not concert tickets."
Meanwhile, grocery price inflation remained steady at 4.3% in March, but the Food and Drink Federation warned it could exceed 9% by the end of 2026 due to rising energy costs. Chancellor Rachel Reeves and Energy Secretary Ed Miliband recently met with supermarket chiefs to discuss easing the cost of living.
