Retailers expand electronic price tags, rule out demand-based price hikes

Estonian retailers are increasingly using electronic price tags, which allow prices to be changed faster, but say they will not raise prices during periods of high demand, ERR reports.

Selver has introduced the tags mainly for fruit and vegetables, and in newer stores at bakery counters, where prices change most often. The chain’s communications manager, Mariann Järvela, said the system makes work more efficient but requires a substantial investment. Replacing paper tags with electronic ones in all of a large chain’s stores would cost millions of euros.

Rimi’s smaller stores use electronic tags throughout. The retailer’s head of sales and business operations, Jelena Litvinovitš, said the investment has not yet paid off because the technology remains very expensive. She added that the batteries will eventually run out, forcing the company to decide what to do with the tags.

The ability to change prices in seconds has raised concerns among shoppers that prices could increase when demand is high. Litvinovitš said Rimi does not use this approach, adding that the company has not found a suitable way to change prices during the day or explain such changes to customers.

Electronics retailer Euronics introduced electronic price tags in 2023, citing savings on labour costs, and paid 500,000 euros for them three years ago. Nele Peil, head of the Estonian Traders Association, said paper price tags may disappear in the more distant future, but that electronic systems still have both advantages and drawbacks.