Warehouse retail giant Costco is implementing a significant change to its checkout process, aiming to get shoppers through the tills faster. The move marks a strategic pivot away from expanding self-service options and towards enhancing staff-assisted lanes with new technology.
How Costco's New In-Line Scanning Works
Chief Executive Ron Vachris has revealed to investors that the company has begun rolling out a system where employees scan items while customers are still waiting in the queue. This means a shopper's entire cart is tallied before they even reach the cashier station.
"It's speeding up the checkout process by allowing our employees to scan transactions while the member is still in line," Vachris explained. "Upon reaching the cashier, nothing has to be removed from the cart." The final step is simply payment, streamlining what is often the busiest part of the warehouse visit.
A Strategic Retreat from Self-Checkout
This technological investment follows Costco's decision to scale back its experiment with self-checkout lanes, choosing instead to refocus on staffed tills. The company is not alone in this reassessment.
Other major retail chains, including Walmart and Target, have also pulled back on their self-checkout expansions following widespread complaints. These have included increased errors, unexpected slowdowns, and a worrying rise in theft incidents linked to the unmanned stations.
Broader Digital Upgrades and Member Changes
Costco is channelling more funds into its digital infrastructure. Recent upgrades include a password-free sign-in for its app, an AI-powered search function overhaul, and virtual 'waiting rooms' for high-demand items like collectible Pokémon cards to thwart automated bots.
Not every innovation has been welcomed by members. Last year, the introduction of card scanners at entrances to prevent membership sharing caused reported backups at doors, though Costco maintains it ensures fairness for paying members.
This crackdown extended to requiring membership checks at outdoor food courts across the US, closing a loophole that previously allowed non-members to access the famed $1.50 hot dog and soda combo.
Shoppers have also voiced frustrations over the store's frequently shifting layouts, describing trips as a "scavenger hunt." CEO Vachris has acknowledged this is part of the deliberate "treasure hunt" merchandising strategy designed to encourage exploration and additional purchases.
Furthermore, the chain faced accusations of 'shrinkflation' earlier this year when customers noticed a new cookie variety contained fewer pieces per pack while the price remained the same or even increased.
