Costco pilots pre-scan checkout and 8‑second automated pay stations to slash lines and speed traffic
Costco is piloting a pre‑scan checkout that lets members scan items with the Costco app, generate a QR for employee verification, then pay at automated stations averaging about eight seconds — a pilot now active in 27 stores.
- Members scan while they shop via the Costco app and present a QR for verification at automated pay stations averaging about eight seconds per transaction. (Sources: TheTakeout, Sporked)
- Pilot scope: Began mid‑2025 and is active in 27 stores; no nationwide rollout date announced. (TheTakeout, Sporked)
- Company rationale: Leadership frames the system as a way to speed checkout, boost employee productivity and preserve Costco’s low‑margin model; CFO Gary Millerchip highlighted related upgrades on the Q2 2026 earnings call.
How the pre-scan system works
Hybrid flow: Members use the Costco app to scan item barcodes as they shop. When finished, the app generates a QR code that lists basket items and the total. An employee then scans or visually verifies the pre‑scan at a verification station to confirm accuracy and reduce misuse.
After verification, the member pays at an automated pay station; pilot data reports average processing time of roughly eight seconds per transaction. (Sources: TheTakeout, Sporked)
Leadership view and company strategy
On the March 5 Q2 2026 earnings call, CFO Gary Millerchip said the pilot is part of a broader push to make in‑warehouse and digital experiences more seamless. He cited mobile wallet upgrades, pharmacy pay‑ahead and employee pre‑scan technology as key drivers.
“In the warehouses, we are achieving meaningful improvements in the speed of checkout and employee productivity,” Millerchip said on the earnings call.
Under CEO Ron Vachris, Costco is moving toward a hybrid model that keeps employees involved while adding automation; early leadership feedback reports member responses have been “great.”
Why Costco is betting on this model
Costco’s value proposition relies on low product margins (around 14–15%) and high membership volumes. Management aims to increase throughput and reduce in‑store friction without raising prices, so the pre‑scan hybrid preserves employee verification while adding speed.
The approach mirrors competitor features (mobile scanning and automated pay kiosks) but keeps staff in the loop to limit shrink and support large orders.
Digital upgrades and AI
Costco is also expanding personalization online and experimenting with AI tools to match member preferences. Leadership says these improvements are beginning to contribute to e‑commerce growth and are part of a wider 2026 technology push.
Other ideas discussed include entry scans to reduce card sharing and expanded self‑checkout trials beyond basic grocery sales. (Video discussion)
How shoppers feel — a generational split
NCR Voyix Digital Commerce Index data shows a split: 43% of all consumers prefer self‑checkout, while 53% of shoppers aged 18–44 favor DIY options. Shoppers 55+ tend to prefer manned lanes and cite large carts as a deterrent to self‑service.
Costco’s pre‑scan model is designed to serve both groups: fast, contactless payment for those who want it, and employee verification/support for customers with larger orders or accessibility needs.
Past trials and why this rollout differs
Costco previously tested self‑checkout and scanner guns in some U.S. warehouses in the early 2020s with mixed reactions: speed and convenience for some, technical delays for others. The current pilot differs by adding employee pre‑scan verification and automated pay stations to mitigate earlier issues. (Parade)
Operational questions and concerns
Fraud and accuracy: Employee verification is intended to limit mistakes and shrink, but large carts and scanning errors remain a challenge.
Accessibility: Older shoppers and those without smartphones may continue to prefer manned lanes; Costco has not detailed long‑term accommodations.
Labor impact: Company messaging emphasizes productivity gains, but job roles could shift toward mobile verification and customer assistance, requiring retraining.
Financial context: why speed matters
Faster checkout can increase store capacity and reduce congestion. In Q2 Costco reported net sales of $68.24 billion (up 9.1%) and net income of $1.36 billion (up 13.6% year over year); management ties growth to membership price increases and digital improvements.
By lowering in‑store friction, Costco aims to drive more visits and stronger e‑commerce synergies without raising product margins — a central tradeoff behind the pre‑scan test. (Sources: TheTakeout, Sporked)
Implications for the Inland Empire, California
Economic: Local shoppers may see shorter lines and faster visits; stores could serve more customers during peak hours, potentially raising local sales. Employee roles may shift toward pre‑scan verification and assistance.
Political: Fewer long‑line complaints could reduce local scrutiny, but labor groups and officials may monitor employment changes and seek assurances on pay and retraining.
Social and cultural: Busy families and shift workers may welcome faster visits, while older shoppers with large carts will likely still rely on manned lanes. Residents should download and update the Costco app to try pre‑scan and ask managers about alternatives if needed.
Sources
- TheTakeout: “Costco’s new fast checkout plan, explained”
- Sporked: “Costco changing checkout system”
- Parade: earlier self‑checkout coverage
- Video discussion of broader tech changes
- Company earnings call and related reporting summarized in the outlets above.
This reporting is based on company statements and public reporting on Costco’s pilot program and digital plans.
