Digital shelf labels (DSLs) are gaining momentum in retail stores, as major players prepare to scale adoption. Walmart recently announced plans to roll out DSLs across its entire store fleet within the next year, while Kroger has already begun replacing traditional paper tags with electronic labels in its Cincinnati-area stores.

The operational upside is clear.

• Prior to adopting DSLs, managing weekly price updates across the 120,000 items carried in Walmart stores could take hours, if not days, said the retailer.
• Now, pricing updates can be applied within minutes, reducing time spent on pricing by as much as 75%, a Walmart employee told CNBC.

But the real significance of DSLs goes beyond efficiency. By digitizing the shelf, retailers gain the ability to update prices, promotions, and product information in near real time. That capability positions DSLs as a foundational layer for more connected, responsive stores, especially as retailers invest in AI-driven tools.

“Even in physical stores, which is where most transactions take place, AI assistants will become more deeply integrated into consumer- and associate-facing apps,” wrote our analyst Sky Canaves in her “The Next Era of Retail” report. “They will also become connected to interactive in-store technologies such as digital shelf labels and smart beacons.”

That same flexibility, however, is fueling concern about potential price gouging or predatory practices. Nearly two-thirds (62%) of US adults say they are somewhat or very concerned about personalized pricing, according to a December survey by Talker Research.

The issue is also drawing scrutiny from legislators. In February, Senator Ben Ray Luján (D-NM) and Senator Jeff Merkley (D-OR) introduced the Stop Price Gouging in Grocery Stores Act in the US Senate, which would prohibit price gouging and surveillance pricing in retail food stores and ban DSLs in large grocery stores.

Walmart has pushed back on that narrative, telling the Financial Times that its new tools are “unrelated to dynamic pricing.” Still, the company acknowledged that its “end-to-end price markdown system” adjusts online prices based on predicted demand and shoppers’ price sensitivities.

The bottom line: Despite heightened scrutiny, retailers are moving ahead with DSL adoption. Nearly half (48%) of retail professionals worldwide plan to invest in electronic shelf labels, according to January 2025 data from Retail Systems Research.

For companies like Walmart and Kroger, the efficiency gains, plus the longer-term potential of more agile, data-driven stores, appear to outweigh the risks.

And while skepticism is high, some consumers see upside: 29.7% say technologies like digital shelf labels or smart carts that display personalized pricing would make grocery shopping easier, according to a July 2025 survey from Amazon Ads and EMARKETER.

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