Costco new checkout system promises 8‑second transactions as company pilots pre‑scan model
Costco is piloting a hybrid pre‑scan checkout that pairs employee or app scanning with automated pay stations, cutting average transaction times to roughly eight seconds in pilot stores — a move CFO Gary Millerchip credits with boosting speed and productivity.
Key takeaways
- What: A Costco pre‑scanning pilot pairing employee or member app scanning with automated pay stations to slash checkout times.
- Where: Rolled out at select U.S. warehouses in mid‑2025; reports say about 27 stores or a few dozen locations are testing the system (The Daily Meal, The Takeout, Sporked).
- Early results: Average transaction times around eight seconds and positive member feedback reported by company leaders (The Takeout).
How the pilot works
Costco’s pilot blends human work and automation. Employees or members use handheld scanners or the Costco app to pre‑scan items while shopping or waiting; that scan generates a QR code or digital record tied to the member account. At checkout, members present the QR at an automated pay station and pay — often in about eight seconds, according to the company — reducing bottlenecks and improving traffic flow. Early testing and reporting have come from The Daily Meal and The Takeout.
Why Costco is testing pre‑scan rather than full self‑checkout
Earlier self‑checkout trials and scanner‑gun tests in the early 2020s produced mixed reactions: some shoppers liked speed, while others hit technical snags or struggled with large carts. The current hybrid model keeps employees involved for verification and heavy‑cart handling while using automation to speed payment — aiming for throughput gains without losing the member service model that helped build Costco’s popularity (Parade).
Company statements and financial context
Gary Millerchip, Costco’s CFO, discussed the program on the company’s second‑quarter earnings call on March 5, 2026, noting “meaningful improvements in the speed of checkout and employee productivity.” He credited mobile‑wallet updates, pharmacy pay‑ahead and employee pre‑scan technology for early gains, and said automated pay stations are averaging roughly eight seconds per transaction with positive member feedback. Reporting on the call was covered by The Takeout and Sporked.
Costco posted strong Q2 2026 results that support investment in efficiency: net sales rose 9.1% to $68.24 billion, and net income climbed 13.6% to $1.36 billion following a membership price increase. Those results suggest the company can invest in checkout tech while maintaining tight product margins (about 14%–15%) that preserve member value (The Takeout, Sporked).
Consumer preferences and generational split
Industry data show a generational split on self‑checkout: the NCR Voyix Digital Commerce Index finds 43% of all consumers prefer self‑checkout, rising to 53% among ages 18–44, while shoppers 55+ still favor manned lanes and often cite large carts as a deterrent. Costco’s hybrid model aims to deliver speed for younger members while retaining staff oversight for older shoppers and bulky purchases (The Takeout, Sporked).
Operational tradeoffs and employee impact
Framed as a productivity initiative, pre‑scanning moves repetitive scanning earlier in the visit so employees can focus on verification, exceptions and customer service at the pay point. That can raise labor efficiency without eliminating roles. Early results point to better flow and positive member reactions, but broader labor and implementation details remain limited in public reporting (The Daily Meal, The Takeout).
Tech, privacy and friction points
A large rollout raises questions about membership verification, app adoption and data handling. Reports do not make clear whether automated stations will remove the need for a physical card, or how returns and price checks will be processed. The average eight‑second number suggests streamlined verification steps, but Costco has said it is enhancing mobile wallet features and watching AI trends to personalize digital shopping. Consumers concerned about data collection will want clear policies on how member information is used and stored (The Daily Meal, The Takeout).
Competition and market context
Other retailers have pursued mobile scanning and cashierless formats — for example, Walmart’s Mobile Scan & Go and Amazon’s cashierless experiments. Costco’s hybrid approach aims to preserve its bulk, low‑margin model while matching rivals on convenience; if successful, rivals may feel pressure to match speed without undermining margins (The Takeout, Sporked).
Rollout timeline and what’s still unknown
Costco has not announced a nationwide rollout or firm timeline. Pilots began in mid‑2025 at a modest number of stores and continued into early 2026. Expansion depends on resolving technical snags, staff training, app adoption and handling exceptions such as large carts and returns. If pilots sustain eight‑second transactions and positive feedback, expansion seems likely but specific dates remain unconfirmed (The Daily Meal, The Takeout, Sporked).
Implications for the United States
Economic impact: Faster checkout and higher employee productivity could help Costco control operating costs and maintain low prices for middle‑class families, supporting household purchasing power. Continued low product margins make Costco a value choice (The Takeout, Sporked).
Labor and training: The model shifts tasks toward pre‑scanning and tech assistance, requiring training but preserving roles more than full automation. Expect policy conversations about retraining and scheduling as retailers consider similar systems (The Daily Meal, Parade).
Consumer convenience and behavior: Younger shoppers may embrace the speed; older shoppers still receive staff oversight for large purchases. The hybrid design aims to reduce friction and could shift shopping patterns toward quicker, more frequent trips (The Takeout).
Competition: If scaled successfully, Costco’s program could push competitors to adopt similar hybrid systems to match convenience without sacrificing margins (The Takeout, Sporked).
Practical advice for members: Be prepared to use the Costco app or carry your membership card as pilots expand; staff should still be available to help with heavy or complex purchases (The Daily Meal, The Takeout).
“We are achieving meaningful improvements in the speed of checkout and employee productivity,” said CFO Gary Millerchip on the March 5, 2026 earnings call.
Reporting and next steps
Reporting on Costco’s pre‑scan pilot is ongoing. Early pilot data indicate meaningful speed gains and strong member feedback, but national rollout plans and full operational details await further company announcements. Key reporting outlets covering the pilot include The Daily Meal, The Takeout, Sporked and Parade.
