advertisement
advertisement

This is page 2 of:

Major Delays Feared For UPC Successor DataBar

June 4th, 2009

“The U.S. is still moving forward” with the New Years Day recommendation, said GS1 US spokeswoman Varsha Anand. “Retailers in other countries have asked for a little bit more time, but the retailers here feel they can meet it.”

Andrew Verb, president of Bar Code Graphics, a company that specializes in bar code artwork, was one of the ACP conference attendees who left the event believing the Jan. 1 sunrise was in jeopardy. “They read a statement indicating that the survey from retailers was indicating it is very unrealistic that a mass populous of grocery store retailers will be ready by the Jan. 1 sunrise date,” Verb said. “They indicated GS1 would be announcing something shortly.”

Given that the Jan. 1 is merely a target, there’s no specific need for GS1 to officially change anything. It will be a goal for all and those that make it will make it. Those that deploy six months later will, well, deploy six months later.

Verb said some of the biggest grocery chains, including Wal-Mart, Winn-Dixie, Krogers and Canada’s Loblaw, are ready for DataBar. However, many smaller chains have yet to install and test the technology needed to process the new labels, he noted.

Although most modern POS scanners are capable of reading DataBar, obtaining, installing and testing the software needed to process and take advantage of the extra information is proving to be a bigger challenge for many retailers than was originally pitched.

“I’ve heard a lot of different stories,” Verb said. “It’s not a simple software patch. This barcode carries a lot more data than is typically passed through the systems.”

But there are those who doubt GS1 US will buckle under pressure to relax the sunrise date. One of the folks in that camp is John Baily, executive director of Top 10 Produce, a California company that helps small farms attain DataBar labels for their produce.

“They’re not going to move that date” said Baily, who said he is “obsessed” with the improvements made possible with the DataBar. “That sunrise date is that sunrise date. Whether retailers are up to speed or not is another story.”

Baily said adoption of the new labels would help the agriculture industry comply with the proposed Food Safety Enhancement Act of 2009 which, in part, calls for better food source traceability. “President Obama is making this (loose produce traceability) an agenda item,” Baily said. “There is no way this (sunrise) is going to get pushed back. The only way you can label loose produce is with the DataBar.”

Additionally, Baily argued that grocery retailers who procrastinate when it comes to DataBar adoption will be placing themselves at a competitive disadvantage. “In order to compete, they’re going to have to jump on the bandwagon,” he said. “There are way too many benefits to the retailer that does have the GS1 DataBar scanners if the labels are on the produce. There are benefits for category management, shrink-reduction, self-checkout efficiencies, auto-reordering and they can see which products are selling faster. So if their competition is benefiting and they are not, eventually they’re going to have to do it. The question is whether they will jump on-board from Day One.”

To a large extent, retailer adherence to the Jan. 1 recommended adoption date will be driven by the actions of suppliers. Many coupons now have both the venerable 35-year-old UPC and its newfangled replacement. When those long-in-the-tooth UPCs disappear, cashiers at stores that are not DataBar-ready will be forced to enter coupon information manually. And when those extra minutes start eating into the number of transactions each cashier can process in an hour, someone in corporate is likely to start taking notice.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.