Overview
- A Bank of England survey this week found about one in three firms plan to use market‑responsive pricing within a year, up from one in five, using algorithms and digital displays to react to demand, capacity, or competitors’ prices.
- Supermarkets are installing electronic shelf labels, with Co‑op in more than 700 stores and aiming for about 2,300, Morrisons covering all 497 supermarkets, Waitrose planning a full rollout this year, Asda fitting around 250 Express sites, and Tesco and Sainsbury’s testing.
- There is no evidence UK grocers use surge or demand‑led pricing today, and Morrisons and Waitrose say the new labels are for efficiency and not for changing prices by demand.
- Deputy governor Clare Lombardelli said cheap, digital price updates cut old “menu costs” and could bring more frequent and bespoke prices that make official inflation less like what households feel.
- Consumer advocates warn the practice can feel opaque or unfair, while the Bank notes reputational risk may slow UK adoption even though dynamic pricing is common online and in travel, where hotel rates now change monthly about 80% of the time versus 15% in 2005.