Costco is trialling a new checkout system that executives claim could reduce transaction times to as little as eight seconds for some shoppers. The warehouse retailer's pilot programme introduces a 'pre-scan' process where employees scan customers' items while they are still waiting in line, according to chief financial officer Gary Millerchip.
Speaking during the company's second-quarter earnings call, Millerchip explained that the system works by having an employee approach shoppers in the queue and scan all items in their cart using a handheld device. By the time the customer reaches the register, their entire order is already entered into the system, requiring only a quick payment step. This approach mirrors how busy drive-through restaurants handle peak hours by taking orders in advance.
Early results indicate that the system is improving traffic flow and customer satisfaction, with shorter lines and faster transactions. 'We are also piloting automated pay stations that will allow members to pay for their pre-scan orders seamlessly with an average transaction time of around eight seconds,' Millerchip added.
In addition to the pre-scan system, Costco is testing a 'Scan & Go' feature within its mobile app, allowing customers to scan items as they shop and pay through the app, then present a QR code at the exit for verification. These initiatives aim to tackle long checkout lines, a major customer complaint, while catching up with similar systems already used by competitors such as Sam's Club and BJ's Wholesale Club.
