Costco bets on speed: pre-scan checkout, app scanning and eight-second pay stations in pilot
Costco is piloting a pre-scan checkout across 27 stores, letting members scan items in the app, get employee verification and finish at automated pay stations — reportedly completing payments in about eight seconds to dramatically speed transactions.
- Pilot scope: 27 stores began testing in May 2025 with early reports of smoother traffic and positive member feedback (The Takeout, Sporked).
- How it works: Members scan barcodes in the Costco mobile app, receive a QR-style verified total via an employee pre-scan, then pay at automated stations in roughly eight seconds (The Takeout, Sporked).
- Company context: Costco reported Q2 net sales of $68.24 billion (up 9.1%) and net income of $1.36 billion (up 13.6%) after membership price increases; leadership says digital and AI investments are beginning to pay off (The Takeout).
What Costco is testing now
Costco’s pilot blends human verification with high-speed automation. Members use the Costco mobile app to scan barcodes while shopping, building a running total on their phones. When finished, an employee performs a pre-scan verification to catch shrink and errors before customers complete payment at automated pay stations — a process the company says can be finished in about eight seconds (The Takeout, Sporked).
Background: The pilot builds on prior investments — mobile wallet upgrades, pharmacy pay‑ahead and employee pre-scan tools — that leadership says have improved checkout speed and productivity.
“In the warehouses, we are achieving meaningful improvements in the speed of checkout and employee productivity, both as a result of our mobile wallet enhancements, pharmacy pay ahead and the rollout of employee pre-scan technology,” CFO Gary Millerchip said on the company Q2 call (coverage summarized in reporting; The Takeout).
Why Costco is making the change
Retailers face the challenge of speeding checkout without undermining low-price models. Costco maintains thin product margins (many capped at ~14–15%), so improving throughput and lowering labor per transaction helps protect margins while enhancing member experience. Faster checkout supports higher sales per store without expanding prices for members, aligning with broader digital investments that leadership says are lifting e-commerce results.
Leadership and strategy: a pivot under new CEO
Under CEO Ron Vachris and CFO Gary Millerchip, Costco appears to be shifting toward pre-scan workflows and automated pay stations while investing in personalization and AI on digital platforms to “deliver a more seamless experience for members.” The company has discussed partnerships and talks with AI firms to extend personalization and convenience, positioning Costco to compete in convenience-focused segments.
Past attempts and challenges with self-checkout
Costco previously tested scanner guns and other self-checkout variants in the early 2020s. Shoppers praised speed but cited inconsistent availability and technical hiccups. Those mixed experiences likely explain the retained employee verification step — an explicit effort to reduce theft, errors and friction for large-cart shoppers who comprise a large share of Costco’s sales (Parade).
Consumer preferences and the generational divide
National data: The NCR Voyix Digital Commerce Index finds roughly 43% of shoppers prefer self-checkout overall, rising to 53% among ages 18–44. Shoppers 55+ still favor manned lanes, often due to large cart volumes and a desire for assistance. Costco’s model — bulk buying and large carts — must balance speed and large-order accuracy, which the pre-scan step seeks to address (source cited in reporting).
Competition and the wider retail shift
Other big-box and discount grocers (including Aldi and Amazon) have adopted app-driven and automated checkout systems. Analysts note automation reduces payroll pressure and speeds turnover while digital features keep customers engaged. Industry coverage and analyses highlight broader sector moves toward app use, self-checkout growth and non-grocery expansions such as fuel and service centers (The Takeout; YouTube analysis).
Operational questions that remain
- Rollout timing: No public timeline beyond the initial 27-store pilot (The Takeout, Sporked).
- Shrink and theft: The pre-scan step is intended to limit losses, but its scale effectiveness remains unproven in public reporting (pilot coverage and past tests).
- Member adoption: Positive early feedback exists, but broad acceptance depends on app usability, speed, and how well the system handles big carts and returns (The Takeout, Sporked).
Implications for San Diego, California
Economic impact
San Diego hosts several Costco warehouses and a large club-member base. If Costco scales the pre-scan system, local warehouses could increase throughput and daily sales per store without adding staff, helping preserve Costco’s low-margin strategy and potentially stabilizing prices for San Diego shoppers. Faster lanes may also ease peak-hour congestion at busy locations near military bases, suburban centers and central neighborhoods.
Labor and jobs
Automation raises job questions. The pilot’s mix — employee pre-scan duties plus automated pay stations — suggests task shifts rather than outright eliminations: employees may spend less time at registers and more time verifying orders, assisting members and stocking. Local discussions will likely focus on training, peak-hour staffing and schedule impacts for hourly workers and unions (industry trends and company statements).
Customer experience and access
San Diego’s diverse shoppers include bulk-buying families, older customers who prefer staffed lanes, and tech-savvy younger members. Costco’s hybrid approach — app checkout plus employee verification — aims to satisfy speed seekers while preserving help for older shoppers and large-cart buyers. Stores must ensure robust Wi‑Fi and app support so members can pre-scan smoothly; retaining staffed lanes is essential for accessibility for disabled shoppers and those less comfortable with smartphones.
Local competition and retail landscape
Faster checkout could be a competitive edge for Costco in San Diego. Success may pressure nearby grocers and club stores to accelerate their own checkout experiences or expand app-based options, fueling regional adoption of automated pay systems (industry trend analysis).
Technical and infrastructure needs
San Diego warehouses will need reliable cellular and in-store connectivity, higher network capacity, charging infrastructure for employee devices, and staff training on verification protocols. Neighborhood variation across coastal tourist centers and inland suburbs means each warehouse may face different technical and staffing challenges during any wider rollout.
Bottom line: As Costco pilots pre-scan checkout and automated pay stations, San Diego shoppers and store operators will watch whether the eight-second promise holds up, whether prices and jobs are protected, and whether the member experience improves across all demographics (The Takeout, Sporked, Parade, YouTube analysis).
