Barcodes Move Beyond Checkout

This article is brought to you by GS1 US.

Retailers might not have thought about the barcodes on the milk, snacks or even fresh items that leave their stores in decades—if ever. But new barcode technology could help convenience retailers tackle some of their most pressing challenges, from managing perishables and responding to recalls to automating routine processes at checkout.

Barcodes have come a long way since 1974, when the first Universal Product Code (UPC) was scanned on a 10-pack of Wrigley’s chewing gum. Retailers are preparing for this technology to shift to 2D barcodes by the end of 2027, according to GS1 US, the not-for-profit administrator of UPC barcodes that is also leading the barcode transition.

Right now, the UPC barcodes on goods identify a product for checkout and that’s usually that. But 2D barcodes can contain and identify more information, such as expiration dates, lot codes and other data that can improve visibility and decision-making. Rather than just a series of black lines, 2D barcodes are grids made up of dark and light spaces. Most people will already be familiar with one variety: the QR code.

Retailers should be excited about the potential changes that 2D barcodes can empower, according to Lindsay Hillman, director of global standards at GS1 US.

With barcodes that can carry more data, a retailer could set up automatic markdowns based on expiration dates or direct a loyalty app to interact with a customer based on their purchase history.

“This is just the beginning for 2D barcodes,” said Hillman. “Point of sale is key for Sunrise 2027— that’s going to be the first driver, but there’s going to be so much future enablement out there.”

Automated Markdown Management 

Hillman said that 2D barcodes can hold more infor­mation, such as expiration and production dates, batch/lots and serial numbers. The GS1 system of standards provides a common language for busi­nesses to know what that information means.

“As adoption progresses, we’ll see brands begin to add additional data that’s relevant for their companies,” Hillman said.

One of the potential applications of that data in the 2D barcode is that retailers will have the ability to implement autonomous markdown pricing. For example, a convenience store could use data embedded in 2D barcodes to discount milk based on its sell-by date, Hillman said.

She added that combined with other in-store technology, the barcodes could lessen labor around price reductions. “They could do it on other markdown pricing models if they’ve got different types of electronics within their store space,” Hillman said. “They could trigger their system to mark down at point of sale based on the sell-by date carried within the 2D code. It really enables the opportunity to automate.”

She said the operator could decide to implement a markdown automatically, such as 20% off three days prior to a sell-by date and then 60% off one day before that date or enter the markdowns manually each time.

Continue reading “Beyond Checkout” in the September 2026 issue of NACS Magazine.