BENTONVILLE, Arkansas, June 6 (Reuters) - Paper shelf

price labels are going away at thousands of Walmart ( WMT ) stores.

The company on Thursday announced an expanded roll-out of

digital shelf labels that will allow it to update prices on over

120,000 items within minutes.

Weekly updates to paper shelf labels typically took a store

worker about two days. With digital labels, prices can be

updated within two minutes after a few clicks through its mobile

app for workers called Me@Walmart, the company said.

The new labels are small square screens that look very much

like the paper labels they will replace. They will also enable

workers to pick products for online order fulfillment faster,

the company said in a statement.

The digital shelf tags will appear on shelves at 2,300

stores by 2026, said Greg Cathey, senior vice president of

transformation and innovation at Walmart ( WMT ), which operates 4,700

U.S. stores.

The way companies price products have become a hot button

issue recently after burger chain Wendy's was scorched

on social media after its CEO suggested it may start testing

"dynamic pricing" or surge pricing based on demand, especially

during peak hours of the day.

Cathey said Walmart ( WMT ) had no plans to do that.

"It is absolutely not going to be one hour it is this price

and the next hour it is not," he said on the sidelines of

Walmart's ( WMT ) annual shareholder meet in Bentonville, Arkansas, on

Thursday.

Merchants typically provided pricing updates to Walmart ( WMT ) on a

weekly basis, but with digital price tags, they can pass on

price changes to Walmart ( WMT ) daily, Walmart ( WMT ) spokesperson Cristina

Rodrigues said.

Rodrigues said these prices are updated overnight, left the

same during the day and revisited again after store hours or

before the store opens the next day.