TORONTO — Retailers are increasingly turning to “dynamic pricing” practices, which customize prices based on a variety of factors including timing, supply and demand, and the customer’s location and purchase history. As the Toronto Star reports, this trend brings retail up to speed with already established developments in other industries. “Retailers are very much emulating where travel went five or 10 years ago,” said Jenn Markey of retail data analyst 360pi. “In the electronics sector on Amazon, we’ve seen a price change eight times, nine times in one day.”
While experts tend to welcome the trend, they acknowledge that the practice, which is unpopular among consumers, needs to be handled in a way that doesn’t undermine confidence. Sears Canada announced this summer that it would revise prices on a daily basis for appliances and mattresses, with the option of branching out into other product categories later. Walmart Canada insisted through a spokesperson that it differentiates prices only on a regional basis. “We don’t adjust prices frequently throughout the day for an item — we lower prices, online and in store simultaneously,” said Alex Roberton. “Typically this is done overnight.”
