PLEASANTON, Calif. — Several U.S. grocery store chains are trying customized pricing based on shoppers' behavior to try to encourage spending and boost their margins, analysts said.
The pricing model – already in Safeway and Kroger stores — is expected to extend to other grocery chains and, over time, could supplant standardized price tags, The New York Times reported Friday.
Even though use of personal shopping data, based on information gleaned from those customer loyalty card swipes, could raise privacy concerns among some shoppers, retailers said they're betting most people will accept the trade-off if it means a better product price.
"If our consumer information is right, personalization is really a consumer desire right now, not so much a consumer fear," said Michael Minasi, president for marketing at Safeway, based in Pleasanton, Calif.
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