‘Stop this’ cry Kroger shoppers over surge pricing fears as the store implements new technology

KROGER shoppers are angry over claims the company could use so-called “surge pricing” in its stores.

A pair of senators are investigating the company after rolling out tech that many fear could raise prices when demand is highest.

For years, Kroger has been slowly rolling out electronic shelving labels, or ESLs.

The tech allows the company to easily change prices on goods, sparking fears that it could be used for price-gouging purposes.

There is currently no evidence that Kroger is using surge pricing, and the company has firmly denied the allegations.

PRICE HIKES?

Surge or “dynamic” pricing occurs when a company adjusts its prices in real time to match supply and demand. Ride-share services like Uber and Lyft are known to use surge pricing, as their services depend heavily on driver availability.

With ESLs rolling out in stores, some fear that Kroger could change prices rapidly — possibly even multiple times in a day — to raise prices while demand is high.

Tapping into those fears, Sen. Elizabeth Warren, from Massachusetts, and Sen. Bob Casey of Pennsylvania are launching an investigation into the company’s use of ESLs. The two Democrats sent a letter to CEO Rodney McMullen asking questions about the company’s practices.

They’re concerned about the price tags and the company’s partnerships with tech and AI firms.

“Widespread adoption of digital price tags appears poised to enable large grocery stores to squeeze consumers to increase profits,” the letter said.

The pair also claimed the chain actively uses surge pricing, which the company denies.

The senators have requested answers from McMullen by August 20.

“Kroger's business model is to lower prices over time so that more customers shop with us, which leads to more revenue that we then invest in lower prices, higher wages, and an even better shopping experience,” a representative told Fox Business.

“Any test of electronic shelf tags is to lower prices more for customers where it matters most," they continued. "To suggest otherwise is not true.”

The U.S. Sun has reached out to Kroger for further clarification.

CUSTOMERS REACT

The suggestion that Kroger could use surge pricing has caused a strong backlash among shoppers online.

One called Vice President Kamala Harris to push back on the concept during her campaign.

“They need to make sure they stop this "surge pricing" that Kroger and others want to implement with their new digital signs,” he said on X.

Others were concerned about the company’s partnership with Microsoft and the possible use of personal data to set individual prices.

“Every aspect of this is evil,” an X user said.

“Don't trust Kroger!!” another said.

The discussion of price-gouging has become increasingly heated and political since the Harris campaign began blaming corporations for inflation.

Warren has been pushing against a proposed merger between Kroger and Albertsons.

Widespread adoption of digital price tags appears poised to enable large grocery stores to squeeze consumers to increase profits.”

SURGE RAGE

Kroger isn’t the only company to face backlash over the possibility of surge prices.

Walmart’s recent rollout of ESLs sparked similar fears.

Fast food chain Wendy’s received a swift and negative reaction from customers after an executive hinted at dynamic pricing.

The company soon walked back the statements.

Even Lyft’s CEO has acknowledged that people dislike surge pricing — and he plans to shift the company away from it.