In a turn of events, Costco is taking a positive step towards modernizing their in-store shopping experience by implementing a new “Scan & Go” checkout system. This change is aimed at reducing long queues at the cash registers as well as to increase the convenience for shoppers. It is currently in the piloting phase, and it allows customers to scan items using their mobile phones and pay directly through the Costco app. This method then avoids the need to stand in queue for checkout.
How the “Scan & Go” System Works
The “Scan & Go” implementation is simple but effective. Shoppers use the Costco app on their mobile phones to scan the barcode of each item/product they place in their cart. Once shopping is complete, payment is made directly through the app. Once payment is complete, a QR code is generated and shown to a Costco employee at the verification area.
Responding to Longstanding Customer Frustrations
Costco has been known to have many great deals over the years, but this also comes with long queues especially during weekends and holidays. Shoppers often state that they wait about 10 to 30 minutes to pay. By introducing the new “Scan & Go”, Costco aims to mitigate these problems.
It is important for customers to note that not all items are eligible for self-checkout. There are certain items which are restricted such as alcohol, tobacco, prescription medication and prepaid gift cards. This is meant to ensure that age-restricted items and controlled items are sold responsibly.
Competing with Sam’s Club
Sam’s Club, owned by Walmart is Costco’s biggest competitor. In 2016, they introduced a similar “Scan & Go” feature and this was widely praised and helped the company earn higher customer satisfaction ratings. In 2024, Sam’s Club surpassed Costco in the American Customer Satisfaction Index, earning a score of 85 versus Costco’s 82. Analysts mention that the adoption to tech-friendly shopping features are key contributors.
Enhancing Entry with Membership Card Scanners
In addition to checkout changes, Costco is implementing automated membership card scanners at store entrances. In the past, a Costco employee manually checked each card, which was known to be time-consuming during busy hours. With these new scanners, members simply tap or scan their cards to gain entry, freeing up staff and speeding up the process. This system also allows Costco to collect real-time data on foot traffic and shopping behaviour. That data from this system can then be used to optimize staffing, manage inventory more efficiently, and tailor store operations to better meet customer needs.
Customer Reception and Next Steps
Many customers have reacted positively towards the “Scan & Go” system. They appreciate the convenience and flexibility it offers especially those who require a few items, can now avoid waiting in long queues. On platforms like Reddit and X (formerly Twitter), shoppers are already calling the move a “game-changer.”
Still, Costco is approaching the rollout cautiously. The company will analyse customer feedback and operational challenges during the pilot phase before deciding whether to implement the feature nationally. Training staff, preventing theft, and ensuring smooth tech integration are all part of the company’s considerations before full-scale implementation.
A Glimpse into the Future of Warehouse Shopping
The retail industry is continuously changing each day, and customers always expect speed, convenience, and seamless technology in their shopping experience to make their daily lives hassle-free. With the “Scan & Go” system, Costco is aiming to meet those demands while retaining its core values of affordability and bulk savings.
Should this system be successful, it could positively impact how shoppers interact with Costco, not only as a place for good deals but also a place where technology is improving.