Supermarkets to trial 'happy hours'

Pub-style happy hours are set to be introduced in Britain's leading supermarkets as new electronic shelf pricing allows store chiefs to reduce the prices of grocery items at quieter times of the day.

The country's major supermarket chains, including Tesco and Sainsbury's, are already looking at trialling the hi-tech system at busy branches.

The electronic pricing is so simple to use that it can be programmed to progressively reduce the prices of perishable food items such as dairy foods, bread and fruit.

The system involves an electronic display on shelves that can show an item's full price, its cost per weight and even the "happy hour" price compared to the normal cost.

It uses a radio transmission system to tell store bosses the items that are selling well and those that are nearing their sell-by date. It can also be "interactive" with shoppers, displaying other nutritional information such as salt content, calories or allergy details.

UK supermarkets considered the technology several years ago but are only now starting to take it seriously as techniques have improved and costs have come down.

The system is also widespread in France, Holland, Germany and America. Its inventors say store managers can be creative about pricing, and the system frees up staff in stores.

David Stoddart, an analyst at retail experts Teather & Greenwood, said: "Consumer groups may be against variable pricing, because it could lead to price confusion among shoppers.

"However, it is going to happen. It won't make the store look significantly different but it will alter the shelf design and the way products are merchandised at different times of the day."