The most sweeping change to the use of barcodes since the technology’s inception over 50 years ago is right around the corner. If you’re already aware that Sunrise 2027 will usher in a new era of scanning where sales will be transacted using two-dimensional (2D) barcodes on packaged goods—instead of the current one-dimensional lines we’re all used to—then you’re right where you need to be. If that’s news, then “Check It Out: Barcodes Enter the Next Dimension” in the September issue of NACS Magazine is essential reading.

Either way, there’s a lot to be done to prepare for the transition. GS1, the global not-for-profit organization that develops and maintains standards for barcode technology, and GS1 US offer guidance to help retailers and store operators get started today setting up their businesses to accept 2D barcodes at the register three years from now.

“The transition is less about sunsetting traditional 1D barcodes and more about rising to the occasion for 2D barcodes,” said Carrie Wilkie, senior vice president, standards and technology for GS1 US. “The change will come in phases, which you can think of as crawl, walk, run.”

By talking to their solution providers now to understand their current POS capabilities and the timeline needed to execute the transition, retailers that meet the challenge ahead of the curve will reap the myriad benefits 2D barcodes offer—and can differentiate themselves from retailers that lagged behind.

Crawl, Walk, Run

The basic expectation for Sunrise 2027 is that manufacturers will include QR codes or other types of 2D barcodes on almost all CPGs by the end of 2027, and that retailers will be able to scan that type of code at the register to bring up a price and conduct a transaction.

That’s the “crawl” phase of the transition, Wilkie said. The 1D barcode we’re all familiar with won’t just go away overnight. In fact, most suppliers will likely include both types of barcodes on packaging for a period of time after Sunrise 2027 goes into effect. And there are no penalties associated with missing the deadline.

So, what’s the big deal? And why is time of the essence?

“Consumers have a lot of choices as to where they shop, and they vote on retailers by choosing what matters to them,” Wilkie said. Capitalizing on the benefits of 2D barcodes will be a great differentiator between you and your competition, she added.

Imagine a customer goes to check out, and upon scanning their carton of dairy coffee creamer, the cashier gets an alert from the POS system that the item is one day beyond its expiration date. The worker can stop the customer from unwittingly walking out with the coffee creamer—and that customer may then value that store over the one down the street.

That’s the type of information that can be contained in the more complex 2D code and falls under the “walk” stage of this game-changing shift in barcode technology.

To continue reading, check out the October 2024 issue of NACS Magazine.