John Furner, CEO of Walmart, has responded directly to the debate around personalized pricing, emphasizing that neither digital shelf labels nor the AI assistant Sparky will be used to set different prices for different shoppers.
Commitment to Equal Pricing Reaffirmed by CEO
Last Friday, Furner published a letter confronting concerns about the possibility of Walmart utilizing advanced technology to introduce individualized pricing models. He made it clear: “We don’t set different prices based on who you are or the time of day, and we won’t. Your income, shopping history, urgency or what we think you could pay won’t change the price. And whether you’re buying groceries or electronics on a hot afternoon or in a sudden rush for an item, it’s never a reason to charge you more.”
This clarification emerges as more consumer advocates and privacy watchdogs express uncertainty about retailers’ intentions, particularly as the use of digital shelf labels that allow real-time price updates becomes widespread.
Scrutiny of AI Service and Customer Data
Furner also responded to scrutiny surrounding Walmart’s generative AI shopping assistant, Sparky. He assured customers that personal information shared with Sparky won’t be used to raise prices or to hide better deals. Highlighting positive feedback for the new service, he shared in an August earnings report that Sparky’s user count has risen 70% over the previous year. Additionally, orders placed through Sparky are, on average, 40% higher in value compared to orders from customers not using the tool.
Dynamic Pricing Patent Fuels Doubts
Nevertheless, certain advocacy groups, such as the Groundwork Collaborative, continue to question Walmart’s intentions. They highlighted a technology patent recently secured by Walmart that could allow for individualized, dynamically adjusted pricing. In 2023, Walmart was issued a U.S. patent for technology designed to control electronic shelf labels remotely, giving the option to shift prices in real time.
According to the patent, price changes could be based on the specific items a shopper has in their cart — for instance, a customer purchasing tuna fish may receive a different price for mayonnaise. The document also covers price shifts based on supply and demand.
Lindsay Owens, president and CEO of the Groundwork Collaborative, expressed skepticism, stating, “Walmart wouldn’t spend the time, effort, and money to develop and deploy these technologies unless it padded their profits. If Walmart is serious about its commitments to shoppers, it should pull the patent filings, clawback the electronic shelf labels, and make Sparky work for customers, not for Walmart.” When pressed for comment, Walmart declined to clarify why it would obtain a patent for individualized dynamic pricing without planning to use it.
Concerns Over Data Collection and Potential Technology Integration
The Groundwork Collaborative also referenced Walmart’s 2024 acquisition of Vizio to illustrate how the company is expanding its ability to gather detailed customer data. At this month’s Goldman Sachs Global Consumer and Retail Conference, Walmart U.S. CEO and President David Guggina explored the future possibility of integrating Vizio’s technology with the Sparky AI assistant. He suggested Walmart may soon use these capabilities to interact with shoppers “in new and differentiated ways,” which could include advertising or assisting consumers as they use their television apps, and noted that “the average customer in the U.S. keeps their TV for about 7 years.”
Although Walmart’s leadership reiterates their stance on uniform, transparent pricing, ongoing developments with patents and new technologies continue to spark questions about how the company will balance consumer protection, profitability, and innovation moving forward.