Barcodes have been used in retail since the 1970s to automate processes like checkout and inventory tracking. There are different types of barcodes like numeric, alphanumeric, and 2D barcodes. Barcode readers scan the black and white bars and spaces and translate them into numbers or characters. This allows retailers to more efficiently manage inventory, reduce errors, gain insights from sales data, and lower costs overall. While barcodes provide many benefits, they also have drawbacks like high upfront costs and needing maintenance of barcode labels.