The National Grocers Association released an industry statement on Oct. 26 – approved by its board of directors – outlining guiding principles on pricing technology, from electronic shelf labels and loyalty programs to artificial intelligence and the handling of customer data.
The statement, “Commitment from America’s Independent Grocery Industry on Pricing Technology,” voices support for innovation that keeps food affordable, reduces waste and improves the shopping experience, while making clear those tools must be used responsibly and transparently. It is organized around four core values: treating customers fairly, sharing savings, transparency and protecting customer privacy.
“Independent grocers earn their customers’ trust one shopping trip at a time, and as technology continues to evolve, our industry’s commitment to putting customers first remains unchanged,” said Greg Ferrara, president and CEO of NGA. “This statement puts in writing what independent grocers practice every day. New technology should help families save money and make the store better for the people who shop there.”
In the statement, independent grocers announce their opposition to pricing practices that use a customer’s personal data to set a higher personalized price. It affirms that participation in loyalty and membership programs should always be voluntary, with customers able to see the benefits of enrolling and to opt out at any time, and says customer data should be handled responsibly, consistent with the law and in ways that earn and maintain trust.
The statement adds that customers deserve fair and transparent pricing “particularly during emergencies when families depend on access to essential goods.”
On sharing savings, the statement says loyalty and membership programs, store apps, coupons and electronic shelf labels “help local grocers pass savings on to customers.”
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The statement also describes an electronic shelf label as a price tag, used to update prices and discounts quickly and accurately, “not to change prices based on who is in the aisle.”
“There’s an important distinction between technology that helps grocers lower prices and practices that use personal information to charge shoppers more,” said Stephanie Johnson, NGA SVP and head of government relations. “We should be encouraging innovation that makes groceries more affordable and shopping more convenient, while ensuring consumers are treated fairly and their privacy is respected.”
The statement comes as policymakers and consumers increasingly examine how technology affects grocery prices, and notes that individual retailers independently determine their own prices and business practices. NGA represents the independent grocery sector, which generates more than $250 billion in sales and 1.1 million jobs.