E-labels would allow shops to adjust prices according to demand

Three of the biggest supermarkets are working on plans that would allow them to introduce “surge pricing”, raising the prospect that the cost of groceries could go up or down depending on demand.

Tesco, Sainsbury’s and Morrisons are running trials of electronic labels which allow them to change prices at the click of a button. This would let them react to events and remove or introduce offers, increasing the price of ice cream during a heatwave, for example.

M&S tested a similar system last year in an effort to manage the lunchtime rush in its food stores. It used e-labels in some shops to cut the price of sandwiches before 11am to encourage people to buy their lunch earlier.

That system has yet to be