Costco is testing a new checkout system that executives say could allow some shoppers to complete transactions in as little as eight seconds.
The warehouse retailer’s pilot program introduces a “pre-scan” process in which employees scan customers’ items while they are still waiting in line, Costco Chief Financial Officer Gary Millerchip announced during the company’s second-quarter earnings call, Delish reports.
Costco’s new checkout process is designed to save time by scanning items before customers even reach the register. While shoppers are still waiting in line, an employee approaches and scans everything in their cart using a handheld device, effectively entering the full order into the system in advance.
By the time the customer reaches the front and scans their membership card, all their items appear on the screen, eliminating the need to rescan anything. The transaction is then reduced to a quick payment step. The approach is similar to how busy drive-thrus, like In-N-Out or Chick-fil-A, handle peak hours, taking orders ahead of time to keep lines moving efficiently.
Early results at Costco show the system is improving traffic flow and customer satisfaction, with shorter lines and faster transactions, Millerchip said.
“In digital, we continue to make strides with our roadmap to deliver a more seamless experience for members in warehouse and online,” Millerchip said on the call, Delish reports. “In the warehouses, we are achieving meaningful improvements in the speed of checkout and employee productivity, both as a result of our mobile wallet enhancements, pharmacy pay ahead and the rollout of employee pre-scan technology.”
“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. “Early results show this is improving the flow of traffic, and we have received great member feedback.”
Costco is also testing a new “Scan & Go” checkout system designed to speed up the shopping experience and reduce time spent in line. The feature allows customers to scan items as they shop using the Costco mobile app, eliminating the need to unload and rescan products at a traditional register. After completing their purchase in the app, shoppers can simply present a QR code at the exit to verify their items before leaving the store.
The change comes as Costco works to tackle long checkout lines, a major customer complaint. By combining employee-assisted scanning with self-checkout technology, the company aims to speed things up without eliminating traditional lanes, while also catching up to similar systems already used by competitors like Sam’s Club and BJ’s Wholesale Club.
