Shrinkflation tends to get talked about as a consumer problem, which makes sense given that shoppers are the ones ending up with a smaller chocolate bar for the same price. But retailers are caught up in it too.

For the unaware, the term shrinkflation refers to when a product shrinks in size or quantity but the price stays the same. It’s a way manufacturers sidestep an outright price increase while increasing their margins.

But customers are getting wise to it. People are shopping more carefully now, paying closer attention to pack sizes and making deliberate choices about where their money goes. For retailers, it’s a real headache when they’re working to hold onto a customer base that’s becoming increasingly value-driven.

Let’s take a closer look at how shrinkflation is impacting grocers and convenience stores, so you can better tackle this ongoing challenge.

The New Price Order Amendment (PMO)

Part of what’s driving more scrutiny around pricing is a recent change to the law. The Price Marking Order was updated on 6 April 2026, and it has some direct implications for how retailers display prices.

Basically, if you’re selling products by weight or volume, you now need to show unit pricing using consistent metric units. So rather than one product showing a price per 100g and another per kg, the units have to line up. The idea is to make it genuinely easy for shoppers to compare products side by side, which is good for transparency but does mean retailers need to make sure their labeling and pricing displays are up to date.

Luckily, for those running an Everything EPOS system, updating pricing can make it easy to check that your setup can handle unit pricing correctly and display it consistently across your product range.

Do Retailers Pay More, too?

Something that doesn’t get talked about enough is whether retailers actually pay less wholesale when a product shrinks. The short answer is: not necessarily. Manufacturers don’t always pass on savings when they reduce pack sizes, which means retailers can end up paying a similar wholesale price for less product. Pair that with customers who are now more price-conscious and quicker to switch brands, and the margin squeeze starts to feel pretty uncomfortable, leaving retailers to essentially absorb the impact from both ends without having had much say in the matter.

What to Do at the POS

Between savvier shoppers and the updated Price Marking Order, there’s a lot for retailers to keep on top of right now. Getting unit pricing right is essential for compliance, it’s also a chance to build trust with customers who are already paying closer attention to what they’re buying.

The good news is that a lot of this becomes much more manageable with the right EPOS setup. From displaying unit pricing consistently across your product range to keeping shelf labels accurate, your EPOS system should be doing the heavy lifting so you’re not scrambling every time something changes.

If your EPOS system isn’t helping you tackle these challenges, maybe it’s time to switch? Contact our EPOS specialists today to discuss your business challenges and how a more modern EPOS system can help you overcome them.