Costco to test new checkout system that will take just 8 seconds
Long lines at Costco, often exacerbated by new policies such as membership card scanning at entrances, have long been a source of frustration for customers. But now the membership-only warehouse giant is trialing a new checkout system which could make the process down to as little as eight seconds per shopper. CEO Ron Vachris told investors the company has begun deploying systems that allow employees to scan items in customers' carts before they reach the cashier - an effort aimed at speeding up throughput and reducing errors.The approach differs from the fully customer-operated 'Scan & Go' system already in place at rival Sam's Club, where shoppers scan items using the retailer's app, pay digitally, and present a QR code at the exit.Costco CFO Gary Millerchip said in the company's second-quarter earnings call that the new technology allowed for 'an average transaction time of around eight seconds'.That compares with current wait times, which some customers report can exceed 20 minutes. 'Early results show this is improving the flow of traffic, and we have received great member feedback,' Millerchip added.Some customers say they have already seen the technology introduced in their local stores, with mixed reviews. Long lines at Costco, often exacerbated by new policies such as membership card scanning at entrances, have long been a source of frustration for customersOne shopper wrote on Reddit: 'I just had this happen at a business Costco I frequent. It isn't tied to a checkout line but to your card. When I got to the register, they scanned my card and the system took a minute to catch up, but then everything was fine.'Another shopper said the process still needs some refining: 'I've had them do that for me once. I had a case of soda and nothing else.'Got scanned in the waiting line, was told I could scan my membership at the checkout and just pay.'Got to the checkout, scanned my card and immediately another associate came and scanned my soda for me.'I then had to wait for him to remove the second charge from my bill. I paid, got the receipt signed, and then had to wait in line to leave the store so they could check it.'Costco does not currently offer a nationwide app-based checkout system that allows customers to complete purchases entirely on their phones but it is investing heavily in new technology.Still, some members say they have yet to notice meaningful changes.One Reddit user wrote in late February: 'I cannot figure out why Costco has refused to utilize technology more efficiently.'Another said they switched to Sam's Club primarily because of its mobile scanning system, adding: 'We're in and out in 15 minutes.' CEO Ron Vachris told investors the company has begun deploying systems that allow employees to scan items in customers' carts before they reach the cashier - an effort aimed at speeding up throughput and reducing errors Costco CFO Gary Millerchip said in the company's second-quarter earnings call that the new technology allowed for 'an average transaction time of around eight seconds'Others, however, say they have seen self-checkout changes at Costco - and are not fans.Rick LeBeau, posting in early February, said his San Diego-area warehouse removed hand-held scanners from self-checkout stations. According to store staff, the decision was linked to theft concerns.'I didn't think Costco would have a problem with that,' he wrote, asking whether other locations had done the same.Not all shoppers want more automation. Some say they prefer traditional cashier lanes and are wary of increased app usage or data sharing.'I fully expect to still have the ability to go through a cashier line,' one customer wrote. 'The moment it becomes 'app only' is the moment I cancel my membership.'The checkout adjustments come as several major retailers reassess self-service technology. Chains including Walmart and Target have also scaled back self-checkout in some stores following complaints about errors, slowdowns and theft. Pictured, Costco CEO Ron Vachris. The company says its new payment system which is being trialed has 'improved the flow of traffic'Beyond checkout, Costco has rolled out a series of digital upgrades, including app improvements and virtual 'waiting rooms' for high-demand items such as Pokémon cards, designed to prevent bots from overwhelming the site.Last year, the company also installed membership card scanners at store entrances to curb card sharing - a move that drew mixed reactions from customers.As part of that crackdown, Costco began requiring membership verification at certain outdoor food courts, limiting access to non-members who previously could purchase the retailer's $1.50 hot dog and soda combo.Some shoppers have also complained about constantly shifting aisles - though executives have long described the rotating layout as part of Costco's 'treasure hunt' strategy, designed to encourage discovery.Earlier this year, the retailer faced accusations of shrinkflation after customers said a new cookie variety contained fewer units per package while prices remained steady or increased.
