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They are currently testing QR codes on items which will ultimately replace barcodes in an effort to be more environmentally friendly.
Retailers are embedding QR codes on items like milk and water bottles to increase their reusability, as traditional barcodes are expected to become obsolete within 50 years.
According to a non-profit organization called GS1, the traditional barcode format is set to be phased out for a new, square-shaped alternative that can hold significantly more data.
Ocado has expanded its use of a unique digital code, known as “Digital Link,” on its own-label products, raising its total to over 60 packaged food, beverage, and household items, following its initial testing on milk bottles in 2022.
The company teamed up with packaging technology company Polytag to integrate GS1 QR codes on their products, which enable consumers to link directly to guidelines for refilling and recycling the products.
This “world-first” nationwide trial of a digital deposit return scheme collected over 20,000 20p rewards over eight weeks from consumers who purchased and recycled milk bottles.
The rollout of its QR code scanning system has now been expanded to 60 items. With a smartphone, consumers can scan these codes, which will then link to a webpage providing detailed product information.
Ocado is launching an initiative to motivate its customers to recycle and minimize food waste in the hope of diminishing single-use plastic waste and fostering a culture of reuse.
The company supplemented its knowledge with information on consumer website interactions, including time spent viewing the page, unique visitor IDs, total page visits and length of video watching sessions.
UK-based supermarket Tesco is also exploring the use of QR codes in conjunction with Polytag and GS1. The technology is currently being tested on limited-edition Highland Spring flavoured water bottles, as part of an effort to decrease reliance on single-use plastics.
The companies are also using the codes to enhance their marketing initiatives, share product information, and remotely access real-time data to track packaging throughout its movement through the supply chain.
The bottles, distinguished by three distinct flavours represented by corresponding codes, have been available in Tesco stores and online since July. These varieties are: strawberry; apple and blackcurrant; and lemon and lime.
Tesco also hopes that this new project will enable its products to be scanned both by consumers using their smartphones and at the point of purchase, taking advantage of the fact that QR codes offer the same checkout functionality as traditional barcodes.
GS1 has reportedly collaborated with retailers such as Marks & Spencer, Aldi, Lidl, and Morrisons on QR code initiatives being piloted in 48 countries.
These major brands such as PepsiCo, Procter & Gamble, L’Oreal, Amazon and Walmart are also participating in the project, with a global implementation set to be finalized by the year 2027.
Jenni Matthews, marketing and insights director at MRI Software, an expert in retail technology, noted that the development reflects changing consumer behavior and the demand for readily accessible, transparent information.
Ms Matthews to MailOnline stated that QR codes ‘present a distinct method of fulfilling that need by incorporating links to nutritional data, promotional content and occasionally, recipe options to provide a more interactive and informed shopping experience’.
She further noted, ‘While these technological advancements benefit consumers significantly, there is a pressing concern that specific age groups, including the Baby Boomers, may be inadvertently left behind.’
Some members in this group may face difficulties with the transition if they are not up to date with the latest smartphone developments.
To avoid driving away loyal clients, retail executives should find a balance between their current customers’ needs and preparing for the tastes and preferences of future buyers.
GS1’s CEO Renaud de Barbuat stated that QR codes will allow consumers and companies alike to gain more reliable information to make informed decisions, such as allergen details and recipe information.
He pointed out that these drones can assist retailers in avoiding the sale of outdated products and enhance their inventory control systems. He noted that Coca-Cola is already utilising them in Brazil to ensure that bottles are recycled after not more than five refills to prevent unnecessary waste.
We’ve successfully combined the QR code and barcode technologies. In essence, the barcode is embedded within the QR code, allowing consumers to retrieve detailed information about a product effortlessly.
‘Relevant information for the product includes its composition, potential allergens, usage guidelines if it’s a consumable, recipes in cases of food products, tips on recycling if it’s clothing, or instructions for using it correctly if it’s cosmetics.’
“By scanning the QR code, customers can now access a comprehensive overview of the product.
By harmonizing these two technologies, companies can create supply chains that are far more transparent, traceable, and eco-friendly. With a single scan, a wide range of benefits can be unlocked.
He provided an example of Woolworths in Australia, where the company had reportedly achieved a 40 per cent reduction in waste by utilizing QR codes to establish a more efficient process for managing perishable products, such as poultry, which are highly susceptible to spoilage based on their expiration dates.
The world’s first small retailer to adopt GS1’s QR codes was a three-shop deli store group in Brazil, citing a ’50 per cent reduction in waste’ achieved through ‘improved inventory management’.
Leading investment expert Gabriel McKeown, head of Macroeconomics at Sad Rabbit Investments, cautioned that upgrading technology for QR codes could result in substantial expenses for retailers, although the advantages it offers.
He told MailOnline: “Industry leaders are preparing for a significant change that coincides with their ongoing struggles to cope with rising cost pressures and the changing shopping habits of consumers.”
This shift brings a mixed blessing, as it offers improved inventory management and a rich source of consumer data, but also requires substantial investment in a time when every penny matters significantly.
Retailers utilizing QR codes will possess a more advanced system for tracking inventory, which may lead to a reduction in waste and enhanced stock management procedures.
As the retail industry stands at a crossroads of significant change, it’s evident that this transformation goes far beyond just updating how we scan items, but involves fundamentally rethinking the entire retail environment.
Some individuals have expressed apprehensions regarding the financial implications.
Mazin from Poshwalks, an independent footwear retailer, describes the anticipated changes as a ‘tedious process’ and cites a potential heavy financial burden for implementation.
Rajesh Kumar, who is employed at the McGrain’s store, is also concerned about the expenses associated with new software required for the technology.
Dan Redhead, an employee at Reflex record store, which houses an extensive collection of vinyls and CDs, believes that utilising QR codes could possibly streamline the trading process, particularly during busy times.
Anne Godfrey, chief executive of GS1 UK, stated that approximately 45% of British retailers have previously implemented updates on their checkout systems in preparation for the forthcoming QR codes expansion.
This has been in development for some time, but COVID-19 has notably expedited it,” she said, “During the pandemic, people became accustomed to using their phones to scan QR codes in pubs and restaurants to view menus.
Portable QR codes, which display relevant information, are becoming increasingly common on product packaging.
In the very near future, traditional barcodes will be a thing of the past, replaced by a singular QR code for each product, providing instant access to all relevant product information.
Conventional barcodes are limited to encoding only six basic details – product name, manufacturer, item type, dimensions, weight, and color – as well as the highly important price.
It is now extremely difficult to acquire a product from most supermarkets unless it has a barcode.
At checkout, the numerical code on the barcode is swiftly cross-checked with a vast catalog of products to guarantee accurate billing for customers.
Today’s QR codes can hold a substantial amount of information, including ingredient details, potential allergens, and even suggestions for recipes, which consumers can easily retrieve using their smartphones.
Mrs Godfrey stated: “The old barcodes accomplish exactly what they claim to do – they emit a beep sound, display the price information, and allow customers to leave the store quickly.
In today’s marketplace, consumers are seeking significant details about the products they make purchasing decisions on. The latest advancements in barcoding technology will empower consumers with enhanced information about products they buy. Consequently, retailers will need to adapt to this shift or risk falling behind their competitors.
In the late 1940s, US graduates Norman Joseph Woodland and Bernard Silver developed the technology for barcodes, but it wasn’t until later, over several decades, that they began being used in retail stores.
In 1974, Ohio proudly witnessed the world’s first product scanned with a barcode, which happened to be a package of Wrigley’s Juicy Fruit gum. The barcodes later found their way to the UK in 1979, making their debut on a box of tea bags at a shop in Spalding, Lincolnshire.
Over 200 million products worldwide now have barcodes registered through GS1.
Each standard barcode is distinct from others, boasting a virtually boundless register, with the potential to encode as many as ten trillion different items.
An investigation conducted on behalf of GS1 revealed that 96 percent of high-level retail professionals in the UK anticipate another significant change in retail technology in years to come.
Forty-six percent of stores have already replaced their checkout systems so they can handle QR codes, while 52 percent plan to make the same change within the next year.
Mrs. Godfrey noted, “The introduction of the barcode is an extraordinary, unheralded chapter in the evolution of our contemporary society. It is employed far more widely than Google.”
It appears the humble barcode will soon be phased out, marking the end of its era.
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