What’s Happening In-Store?
Over the past year, Walmart has begun rolling out digital shelf labels (DSLs) in over 2,000 of its U.S. stores, with Target, Kroger, and other big-box players not far behind. These electronic price tags allow retailers to update prices in real time using AI and centralized pricing systems. Some stores have gone even further, removing physical price tags entirely, requiring shoppers to scan items with a mobile app to view pricing.
The pitch to consumers? Speed, convenience, and accuracy. The reality for many shoppersvConfusion, skepticism, and growing concern over price manipulation.
While retailers insist these tools are not being used to surge prices on demand, the optics tell a different story. With no visible prices on shelves, it quickly becomes difficult for consumers to compare items, track price fluctuations, or even trust that the price they see at checkout matches what they expected. In fact, over 50% of consumers expressed concern about the potential for dynamic or AI-driven price hikes.
Consumers' Trust Is Being Tested
As digital pricing technology continues to rise, consumers worry that prices could soon fluctuate based on demand, time of day, or even their own shopping history. This perceived lack of transparency introduces friction into the in-store experience, breaking a longstanding and fundamental trust between retailer and customer. It’s no surprise that many shoppers, even those who have thus far resisted, are now choosing to go online, where price tracking, comparison, and purchasing are clear and convenient.
According to eMarketer, digital buyers in the U.S. will surpass 230 million in 2025, with over 70% of Gen X shoppers citing price transparency as a reason they prefer online retail. (eMarketer source)
The Return of Showrooming and Why Amazon Wins
This growing in-store ambiguity is reviving a dreaded trend among brick-and-mortar retailers: showrooming. Consumers browse items in-store, then whip out their phone to purchase the same product online, often from Amazon, where the price is locked, consistent, and clearly displayed.
Unlike in-store experiences, Amazon:
- Displays consistent pricing upfront
- Provides visibility into deals, shipping times, and return policies
- Allows consumers to compare across brands and sellers in one interface
In this environment, trust becomes a competitive advantage, and Amazon’s model is built on it. Savvy brands will use this shift as a chance to earn market share.
Strategic Implications for Amazon-First Brands
So what does this mean for brands operating on Amazon?
It’s time to recognize that shoppers aren’t just choosing between brands, they’re choosing between shopping experiences. As in-store friction grows, the predictability and simplicity of Amazon becomes a greater draw. Brands that understand and capitalize on this shift will be positioned to win.
Not sure what to do next? Here’s what we recommend:
- Double down on retail-ready product detail pages that convert scanning showroomers
- Target keywords tied to impulse in-store purchases, especially in consumables and household goods
- Run DSP retargeting for users who engage with your products on Amazon but don’t convert immediately
- Highlight price consistency, subscription savings, or loyalty perks in your messaging
- Monitor omnichannel pricing and competitor moves to stay agile
This is not just about reacting to new retail tech, it’s about proactively owning the trust gap that’s growing between consumers and traditional stores.
The Retail Tech Arms Race Has a Side Effect
As AI-powered pricing continues to expand in physical retail, it may drive short-term efficiencies for stores, but it also risks alienating the very shoppers they aim to serve. For brands invested in Amazon, this moment represents more than just a curiosity; it’s a cue.
Because when price becomes unpredictable in-store, predictability becomes priceless online.