The Reason Behind Costco's New Checkout Process

Earlier this month, Costco revealed that it is piloting a program in which store employees pre-scan customers’ purchases while they wait in line to pay at an automated pay station. As the company says, this approach saves customers significant time, as the average transaction time will drop to just eight seconds.

Of course, those eight seconds don’t include the amount of time that you’re still standing in line at the checkout. Still, Costco chief financial officer Gary Millerchip said that early results show the process is improving the flow of traffic and receiving positive feedback from members.

How It Works

The new approach was demonstrated in a recent viral video by an Instagram user. In the video, taken at a Costco store in Issaquah, Washington, an employee scanned the shopper's items, after which the shopper only had to scan their membership card to complete the payment.

The chain has made other efforts to address long checkout lines at its stores in the past. It previously rolled out self-checkout terminals in stores, but now appears to be scaling back on this approach in favor of the new pre-scan checkout process.

What Customers Think

Costco’s pre-scan pilot has received mixed reactions from shoppers. Some customers have praised the process for making checkout faster and more convenient, particularly because they don't need to remove items from their carts.

Others have pointed out that Costco's competitor, Sam’s Club, already offers a scan-and-go feature through its smartphone app.

Some shoppers have also expressed concerns that the pre-scan process could actually add time for customers who only purchase a few items.

When Is This New Process Coming to My Store?

An official timeline for a national rollout of Costco's new pre-checkout process has not been announced. In the meantime, the initiative is being piloted at several Costco locations.