Unlock the power of 2D barcodes in retail
New Zealand retailers are set to benefit from the growing adoption of GS1 2D barcodes – a game-changing tool that enables better inventory management, improved traceability, and faster, more accurate checkout experiences. Woolworths has already led the way, introducing 2D barcodes on meat and poultry products. Now, more Kiwi retailers can follow suit and reap the rewards of smarter product data.
Successfully transitioning to 2D barcodes requires a coordinated, strategic approach — from initial proof of concept through to pilot testing and full-scale rollout. With the right planning, you’ll be able to future-proof your business, reduce waste, and enhance customer experience.
Why 2D barcodes matter for retailers
- Smarter inventory management: With GS1 2D barcodes, product data like expiry date, batch number, pack date, and pricing is embedded directly into the code. This allows automated markdowns and expiry-based discounts, leading to fewer manual errors and more accurate stock control.
- Less food waste, greater sustainability: By enabling better stock rotation and date tracking, 2D barcodes help reduce shrinkage and minimise food waste — a win for both your bottom line and your sustainability goals.
- Faster product recalls: If a product recall occurs, 2D barcodes allow you to stop affected items at POS, trace them by batch or expiry date, and act quickly to protect customers and brand reputation.
- Improved product traceability: For variable measure products like fresh produce and meat, the barcode can encode GTIN, weight, count, and price — making it easier to identify, trace, and track goods throughout the supply chain.
- Speed and accuracy at checkout: Fewer errors and faster identification of similar items (like different varieties of apples or cuts of meat) help reduce checkout times and improve customer experience.
- Operational efficiency: Woolworths has reported up to 21% improvements in staff productivity thanks to 2D barcodes. Store teams no longer need to manually enter expiry dates for markdowns — they just scan the item and print the label.
- Built-in error protection: 2D barcodes come with error correction technology, meaning they can still be read even if damaged, scratched, or partially obscured.
How to transition to 2D barcodes
Rolling out 2D barcodes in your retail operations isn’t just a technology upgrade — it’s a strategic shift toward smarter, more connected retailing. For New Zealand retailers, making the move requires thoughtful planning, infrastructure readiness, and collaboration across your supply chain.
Here’s how to successfully make the transition.
Step 1: Define your use case
Start by identifying how 2D barcodes will support your retail goals. Will they help manage inventory more accurately? Enable traceability? Engage consumers?
Use the table below to map retail scenarios to the data you’ll need to encode.
| Retail POS Use Case |
Key Benefits |
Example Data to Encode |
| Inventory Management |
Improve FIFO accuracy, minimise stockouts, avoid spoilage |
GTIN + batch/lot number, serial number |
| Variable Measure Products |
Capture item-level data on count, weight, or price |
GTIN + count, net weight, price, expiry date |
| Product Safety |
Stop expired or recalled items from being sold |
GTIN + batch/lot number, expiry date, serial number |
| Consumer Engagement |
Link to recipes, brand content, promotions |
GTIN + GS1 Digital Link URL |
| Traceability |
Authenticate products, trace ingredients, build trust |
GTIN + batch/lot number, serial number, country of origin |
| Sustainability |
Share recycling info, track waste reduction |
GTIN + expiration or best before date |
Step 2: Upgrade your scanning infrastructure
To scan 2D barcodes, you’ll need to move from traditional laser scanners to camera-based (optical) scanners. These systems need to be configured to read both 1D and 2D barcodes, including:
- EAN-13, UPC-At
- GS1 DataBar
- 2D barcodes: GS1 DataMatrix, Data Matrix, QR Code (with GS1 Digital Link)
Where to upgrade:
- POS checkout scanners
- Handheld inventory devices
- Weigh-labelling and scale systems
Pro Tip: Work closely with your hardware and software providers early on to ensure compatibility and proper configuration.
Step 3: Train your team
Staff will need to understand how 2D barcodes differ from linear codes and how to use them effectively across the store. Key training areas include:
- Scanning techniques at POS and in stockrooms
- Recognising different 2D barcode types
- Understanding product data retrieved from scans
Step 4: Test, learn, repeat
Run a pilot program, gather feedback, and refine your processes. Use this phase to:
- Validate barcode readability
- Check scanner configuration
- Identify system gaps in handling data like expiry dates or batch codes
Stay updated: Follow Reynolds and GS1 New Zealand to keep pace with 2D barcode developments.
2D barcode implementation checklist for retailers
- Upgrade scanner hardware and POS software to process 2D barcode formats
- Ensure systems can read and store GS1 Application Identifiers (AIs), especially AI (01) for GTIN
- Implement fallback for unknown AIs — systems should not reject valid barcodes with unprocessed data
- Collaborate with suppliers to share data – exchange up-to-date GTIN and batch data for recall checks
- Prepare internal documentation and training for staff
- Pilot your barcode program before a full rollout
FAQs
What does it cost to move to 2D barcodes?
The main investment for retailers is upgrading point-of-sale infrastructure to support 2D barcode scanning. Costs vary depending on the scale of your stores and current technology. Start by speaking with your POS solution provider to assess what’s required.
How can retailers get started with 2D barcodes?
Start by building a strong business case with clear goals and timelines. Early project management is essential. Work closely with your hardware and software partners — they’ll help you choose the right scanning technology and ensure a seamless transition to 2D.
What are GS1 Application Identifiers (AIs)?
GS1 Application Identifiers are short numeric prefixes that help scanners understand the type of data that follows in a 2D barcode. Each piece of information must be preceded by its AI.
Some common AIs include:
01 – Global Trade Item Number (GTIN)
310 – Net weight in kilograms
17 – Expiry date
15 – Best before date
10 – Batch or lot number
391 – Price
What extra data can 2D barcodes provide at POS?
It depends on your use case. For example:
- Inventory management: GTIN + batch/lot number + serial number
- Traceability: GTIN + country of origin + batch
- Variable weight products: GTIN + net weight + price
This added information helps improve stock rotation, food safety, and traceability.
Will adding more barcodes on pack affect checkout speed?
No. Real-world testing, including in Woolworths supermarkets, has shown that scanning 2D barcodes is just as fast and accurate as 1D barcodes, even when multiple codes are present. The key is ensuring correct placement and barcode quality.