Walmart’s CEO John Furner has sought to address concerns about dynamic pricing linked to new technologies, releasing a statement on Friday denying that Walmart uses personalised pricing strategies. He emphasised that prices do not fluctuate based on consumer data like income or shopping habits, nor on timing or urgency of purchases, whether groceries or electronic goods.
Assurance on Digital Shelf Labels
The CEO reassured customers about the retailer’s use of digital shelf labels and Sparky, their AI shopping assistant, stating that these technologies do not seek to alter prices or obscure cheaper options. Despite Furner’s reassurances, some concerns linger following the company’s 2023 patent for electronic shelf label technology. This patent allows for prices to be altered according to items a consumer already has in their cart, potentially offering variable pricing like varying the cost of mayonnaise for a customer who has already added tuna to their cart. Moreover, the patent provides for dynamic pricing based on supply and demand fluctuations.
Increased Spending with Sparky
Furner also highlighted Sparky’s impact on sales, reporting a 70% rise in customer usage from the previous year. Customers who use Sparky tend to spend 40% more per transaction compared to those who do not take advantage of the AI tool.
Criticism from Consumer Advocates
Consumer advocacy group Groundwork Collaborative has expressed scepticism about the motivations behind Walmart’s patent. Lindsay Owens, president and CEO of Groundwork, argued the patented technologies focus on profit rather than customer service. Owens has urged Walmart to revoke these patents, halt the deployment of electronic shelf labels, and ensure that Sparky operates in the customers’ interest.
Groundwork Collaborative also pointed to Walmart’s acquisition of electronics manufacturer Vizio in 2024 as indicative of the retailer’s potential data collection capabilities. Walmart U.S. CEO and President David Guggina recently mentioned at a Goldman Sachs conference that Vizio could eventually integrate with Sparky, further enhancing consumer interaction through connected devices at home.
Reporting based on coverage first published by retaildive.com.