Costco customers have largely rejected self-checkout, and warehouse clubs have responded by eliminating self-checkout from most stores.
This follows recent trends, with both Walmart and Target limiting maximum quantities at many self-checkouts. In part, the changes are designed to limit theft opportunities and prevent scanning errors from leading to accidental shoplifting, while it also provides self-checkout for people with only a few items.
This is very similar to the “10 items or less” checkouts that grocery stores used to have.
But just because Costco is giving up on self-checkout, that doesn’t mean the chain is giving up on helping you pay for your items more efficiently. It’s actually implementing two methods to speed up store checkouts, including letting customers scan as they walk.
One of the challenges Costco shoppers face is that the chain sells in bulk. Many of its items are large, and maneuvering them to scan UPC codes can be challenging in a traditional self-checkout.
Scan and Go technology will solve this problem, but it does require customer buy-in.
“We’ve found that digital does improve checkout speeds. So we’ve also really worked hard on the use of digital loyalty cards. We’ve also done some ‘Scan & Go by Costco’ type tests that have been very successful in getting people in line and speeding up transactions,” CEO Ron Vachris said on Costco’s third-quarter earnings call.
Scan & Go requires customers to scan items while using the Costco app on their phone. After completing their purchase, they can verify their purchase by presenting the QR code when leaving the store.
“We’ve seen some very, very early results that are very positive and our members are seeing that,” the CEO added.
Vachris made it clear that Costco leadership wants to improve members’ in-store experience.
“Our operations team is really focused on the front end, and we know there are a lot of benefits to that part of the Costco experience to make the experience better for people. So, it does use the digital enhancements that we have available today, and we think we’ll see some good things happen,” he added.
The CEO talked about another big closing change during a recent earnings call.
“Another way we are improving the member experience is by rolling out enhanced checkout technology across all of our U.S. warehouses,” Vaklis shared during the Warehouse Club’s fourth-quarter earnings call.