Hy-Vee has confirmed that it will update price tags on every item nationwide across hundreds of its stores.
The supermarket chain has partnered with VusionGroup, a retail technology firm, to facilitate these changes. This move follows Walmart's recent implementation of digital price tags at a Texas store.
Hy-Vee Adopts VusionGroup's Digital Labels
VusionGroup announced on Wednesday that Hy-Vee will soon adopt its electronic shelf labels at 230 stores. According to Grocery Drive, the company explained that these digital tags would streamline shopping by eliminating the need for the laborious task of printing and hanging paper tags.
Hy-Vee can instantly update prices and product information with the new digital labels. This efficiency allows store employees to focus on tasks like restocking, merchandising, and assisting customers.
Additionally, Hy-Vee will leverage the technology for "intra-day promotions," helping reduce waste by lowering prices on perishable items near the end of their shelf life.
The labels also feature flashing lights that aid in-store order fulfillment by guiding pickers to the correct products.
The promotion automatically reduces prices on perishable goods to help sell them before spoiling. It remains uncertain when the new price tags will be implemented at the 230 locations across the United States.
Hy-Vee, Inc., an employee-owned company, operates over 570 locations across nine Midwestern states. Supermarket News noted that the retailer, which generates over $13 billion in annual sales, employs more than 75,000 people.
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Hy-Vee Follows Walmart's Lead in Digital Pricing
Hy-Vee's recent decision to update its pricing system mirrors an earlier move by Walmart, which tested digital price tags at a Texas store, per The U.S. Sun.
Encouraged by the success of this test, Walmart plans to expand these tags to at least 2,600 stores by 2026, with 1,400 locations expected to see the change by the end of this year.
Walmart notes that the digital tags have improved employee productivity and enhanced customer service.
At a recent shareholder meeting in Bentonville, Arkansas, Greg Cathey, Walmart's senior vice president of transformation and innovation, addressed concerns about potential price gouging with digital tags.
He assured that prices would not fluctuate dramatically within short periods.
Despite these assurances, some shoppers remain skeptical.
On X, formerly known as Twitter, one customer expressed worries that prices might increase just as they decide to purchase an item. Others described the digital pricing strategy as irritating and frustrating.
Meanwhile, Walmart reaffirmed its commitment to maintaining Everyday Low Prices (EDLP) while introducing digital shelf labels (DSLs) as a statement to The U.S. Sun.
These digital tags streamline store operations like price updates, shelf stocking, and product picking for online orders, enhancing employee productivity. This efficiency allows associates more time for customer service, improving the shopping experience.
Walmart is a "people-led, tech-powered" retailer eager to boost customer and associate satisfaction across its stores through new technologies and productivity tools.
Moreover, Schnuck Markets, Whole Foods Market, and Good Food Holdings have recently introduced digital shelf labels. These tags offer advantages such as accurate pricing, sustainability, retail media, and fulfillment enhancements.
However, the widespread adoption of this technology among U.S. food retailers has not yet occurred.
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