Retailers could end fixed prices within five years

The change is likely to lead to an ‘Uber-style pricing revolution’, the Telegraph reported.

‘Peak time’, which allows prices to rise and fall according to demand, will become commonplace in grocery stores.

The technology is used widely in Europe and the US but could ‘cause a stir if introduced in the UK, where shoppers are increasingly cost-conscious’, the newspaper reported.

Tesco, Sainsbury’s and Morrisons are replacing paper price tags on shelves in some stores with electronic labels.

If trials are successful they could eventually remove paper price tags entirely.

M&S tried a similar system last year in an attempt to better manage the lunchtime rush in stores.

It used electronic labels to offer lunch deals before 11am and then removing them.

Rising demand

Andrew Dark, chief executive of electronic pricing firm Displaydata, told the Telegraph that demand for the technology among UK retailers is beginning to “go berserk”.

He said: “This kind of technology will be dominant in the UK within two years, and within five years it will be rare to see a paper price tag.

“Paper tags often show the wrong prices as they have to be manually replaced by staff when prices move, but electronic labels can be updated in just 20 seconds.”

A Sainsbury’s spokesman said: “We always look at ways that technology can help us improve the shopping experience for our customers.”

A Tesco spokesman said: “We are always looking at ways to improve the shopping experience for our customers and are currently trialling electronic shelf-edge labels in one of our stores.

“We’re still at the early stages of this trial and will review feedback from customers and colleagues before deciding next steps.”

Morrisons said its pilot was at the “early stages” and it had not decided whether to roll it out.