iStock.com/Thai Liang Lim
Executive Summary:
Walmart has begun implementing invisible barcodes at self-checkouts, a technology developed in partnership with Digimarc since 2019, aimed at streamlining the scanning process for both employees and customers. Unlike traditional barcodes that must be located and aligned, invisible barcodes are embedded across product packaging, allowing customers to scan items effortlessly from any angle, speeding up checkout times.
Currently being tested on Walmart’s Great Value items, the invisible barcode technology enables self-checkout scanners to detect multiple items simultaneously, enhancing customer convenience and reducing the likelihood of unrecognized barcodes. Walmart is investing $3 million annually in this technology, which could expand to other products if testing proves successful. The system also addresses a major issue in retail: theft. In 2022, self-checkout theft cost U.S. retailers over $112 billion, with Walmart alone losing an estimated $3 billion annually. By eliminating the need to locate a barcode, the system reduces opportunities for “missed” scans, making it a deterrent against theft.
While the technology is promising, its widespread adoption faces challenges, including high costs, compatibility issues with existing global barcode systems, and reliability concerns with error-free scanning. Additionally, Walmart has yet to fully promote the technology, leaving some customers unaware of its benefits. Experts believe that the technology will initially remain limited to private-label items, as an industry-wide shift for national brands would be complex and costly.
If successful, Walmart’s invisible barcode system could inspire other retailers to adopt similar technologies, potentially reshaping the self-checkout experience across the industry.
