Retail pricing: What shoppers need to know

Technology is changing the way that retailers do business, including how they display prices. Digital shelf labels are one example. They display prices rather than determine them. Growing concerns about surveillance pricing have shoppers questioning how retailers set those prices. Joining us this morning to help separate fact from fiction is Jason Strzelecki with the National Retail Federation. Jason, good morning. What should shoppers know about this? We reported on Walmart doing this. They say it's for efficiency, and so people aren't having to go actually put the new sticker and the new pricing there. But what should consumers know about this? Good morning, thanks for having me today. Digital shelf label technology is something that's been around for a long time. We've seen it when we drive by gas stations or at a drive-thru menu board, and more frequently now in retail stores. This technology is helping retailers do what they've always done, which is display an accurate competitive price so that they can compete for customers' business. What this technology doesn't do is set a higher price based on who happens to be shopping in a particular store. It's all about efficiency, removing waste from the system, improving their inventory management and extending savings to us more frequently and more often. So you're saying this does not hurt shoppers in any way? It's a benefit and a bonus to shoppers and to retail store employees. As you mentioned, it eliminates a tedious task of freeing employees up to cover much more important tasks like serving customers and helping us find the products we're looking for. And it helps the customer by providing a clear, accurate price that they know is going to be charged at the checkout. By law, that's what has to happen. And it allows retailers to extend savings and compete for our business much more quickly. So how are these prices determined? What factors go into figuring out what price the item will be? What's important for folks to understand is that retail prices reflect a lot of real-world costs in operating your business. When you're in the retail industry, competition comes at you from everywhere, not only across the street, but online and around the globe. And there's a lot of costs built into the system to bring those products to market. You got taxes, transportation costs, higher fuel costs, tariffs, and a host of other costs that have to be covered to run your business. That's what's reflected in retail prices. But there's also competition, competitors prices are also reflected in that. And when retailers are competing against each other, the customer wins. Hopefully, all those prices come down here soon. Jason, thanks for your time. Appreciate it. Thank you very much for having me.