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News today that supermarket retailers are looking at digital pricing at point of purchase should not lead to the jump in thinking that this tech will lead to surge pricing and the end of "fixed pricing".

Why?

Shoppers are looking for transparency in pricing in everything that they buy and unclear or misleading pricing is one of the most frustrating issues shoppers face, leading to a lack of trust that the major supermarkets in the UK are fighting to regain. The market share gains by discounter and single price point retailers is in part due to customer desire for simple and transparent pricing. Changing and varying prices in store will only lead to confusion and complexity and in a marketplace where inflation is creeping back why would any smart retailer want to lose shopper trust ?

This model of variable pricing has been adopted in the USA by both jet.com and Amazon where prices permanently fluctuate based on demand and online this model can be managed effectively whereas an instore retail environment presents very different challenges.

Let's also think about how we feel about surge pricing models that already exist for holidays, travel and taxi journeys. Many consumers don't like these models as they feel disadvantaged by them. Families with children can only travel in school holidays where holiday costs are at their highest, travellers have to pay a premium to reach London before 9am on a weekday morning, and Uber users complain about surge pricing whenever they are presented with it and look for alternative taxis or methods of transport.

So it would be a brave retailer indeed that decides to sell ice cream at a higher price point on a summers day, charge extra for champagne on Valentine's and add to their profits by increasing the price of Fireworks on November 5th.