Should Walmart's Invisible Barcodes Become the Norm for Retail?

At Walmart’s self-checkouts, there’s no more scrambling to find the barcode on some items.

According to Retail Customer Experience, invisible barcodes — first introduced to Walmart in 2019 through a partnership with Digimarc — are specifically designed to streamline the checkout process for both employees and customers. These barcodes are printed all over an item and invisible to the naked eye. Previously, shoppers had to locate and align a visible barcode to scan an item, but this technology removes that step entirely.

"The scanning speed goes up significantly," a spokesperson for Digimarc told the outlet. "Hunting for barcodes during the scanning process becomes unnecessary, which eases the self-scanning for customers."

Now, as reported by The Mirror, Walmart is updating its self-checkout service by testing the invisible barcode technology on its Great Value branded items, though it could expand to more products if successful. Here are the key points:

1. Invisible barcode implementation: The new barcodes are embedded across product packaging, allowing customers to scan items from any angle without searching for a visible barcode.
2. Advanced scanning capability: Self-checkout machines are equipped with scanners that can detect multiple items simultaneously as customers pass products near the scanner.
3. Customer convenience: This technology eliminates the hassle of misaligned or unrecognized barcodes, enhancing the shopping experience by simplifying the scanning process.
4. Theft reduction: The system also aims to address rising theft at self-checkout lanes, making it more challenging for customers to skip scanning items. In 2022, U.S. retailers lost over $112 billion to theft, with Walmart facing $3 billion in annual losses at self-checkout kiosks.
5. Investment and testing: Walmart is investing $3 million annually into this technology, which is currently being tested in select stores with promising initial results.
6. Industry impact: If successful, this technology could lead to wider adoption among other retailers, as seen with similar initiatives by Wegmans.

Digimarc explained in a report that the rollout of Digimarc Barcodes on product packaging is unlikely to occur widely in the near future, as the traditional barcode remains integral to over 10 million products globally. Industry experts Erik Bank of Digimarc and Thomas Pahlings from Datalogic anticipate that initial implementations will focus on private-label items. This approach is feasible because retailers have control over their own packaging, unlike national brands that require a collective industry shift.

The Digimarc Barcode doesn’t require special inks or complex printing processes to embed the GTIN number. Instead, an algorithm adjusts the print data to create tiny dots that hold the information, readable only with image-based scanners and compatible software.

Interpack highlighted some drawbacks to invisible barcodes: Camera-based scanners involve high upfront costs, current global IT systems tied to conventional barcodes can’t be changed overnight, and critics question the reliability of error-free code reading. Additionally, labeling bulk items remains a challenge.

An interesting note from Daily Dot revealed that every few years, a video of someone discovering this feature goes viral, surprising customers unfamiliar with it. While employees may be informed, it seems the technology hasn’t been widely advertised to shoppers yet.

The question then remains: Is there a reason Walmart hasn’t widely promoted this Great Value feature in stores, on its website, or across social media? Highlighting it could encourage more customers to choose Great Value products for quicker self-checkout times, but it's possible that Walmart is prioritizing the anti-theft benefits of invisible barcodes.