Electronic shelf labels likely to cost jobs and drive up grocery prices, US report warns

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Published: 2026-09-09T11:06:05.617Z • Permanent link

Electronic Shelf Labels Likely to Cost Jobs and Drive Up Grocery Prices, US Report Warns

AFL-CIO President Liz Shuler has called for a ban on electronic shelf labels in grocery stores across the US, citing concerns over job losses and price hikes. The union's warning comes as retailers continue to roll out the technology, which uses sensors and data analytics to adjust prices in real-time. According to a report by the National Retail Federation, over 75% of grocery stores in the US now use electronic shelf labels, with many more expected to follow suit. The AFL-CIO report highlights the potential risks of this trend, particularly in the wake of the COVID-19 pandemic, when many retail workers lost their jobs due to reduced hours and store closures.

The report points to the example of Amazon, which has been aggressively pushing electronic shelf labels as part of its efforts to improve the customer experience. Amazon has partnered with several major retailers, including Kroger and Albertsons, to offer the technology to their customers. However, the report notes that the benefits of electronic shelf labels are often overstated, and that the real-world impact on workers and consumers is more complex. For example, a study by the Economic Policy Institute found that electronic shelf labels can lead to price increases of up to 10% for certain products, which can have a disproportionate impact on low-income households.

Amazon's efforts to push electronic shelf labels have also been met with resistance from some union leaders, who see the technology as a threat to workers' jobs and wages. In a statement, Shuler said, "We cannot allow big corporations to use technology to undermine the rights and livelihoods of our members. We will do everything in our power to stop this trend and ensure that workers are protected from the negative impacts of electronic shelf labels.

The potential impact of electronic shelf labels on the grocery industry is significant, and will have far-reaching consequences for consumers, retailers, and workers. Companies like Walmart and Target are already investing heavily in electronic shelf labels, and many more are expected to follow suit in the coming years. However, the report warns that this trend could lead to job losses and price hikes, particularly in low-income communities where access to affordable groceries is already limited.

The AFL-CIO report highlights the need for policymakers to take action to protect workers and consumers from the negative impacts of electronic shelf labels. This could include regulations on the use of electronic shelf labels, as well as support for workers who are displaced by the technology. Research communities are also taking notice of the issue, with some experts warning that electronic shelf labels could exacerbate existing inequalities in the grocery market.