Costco tests lightning-fast pre-scan checkout in 27 stores — can the tech speed lines without raising prices?
Costco is piloting a pre-scan checkout through its mobile app at 27 stores starting May 2025, letting members scan items, generate a QR code and pay at automated stations to speed exits and improve traffic flow.
- Pilot: Launched May 2025 at 27 stores; early data shows smoother flow and positive feedback (The Takeout, Sporked).
- How it works: Members scan items in-app, generate a QR for verification, then pay at automated stations in about eight seconds on average (The Takeout, Sporked).
- Leadership aim: Management links mobile wallet upgrades, pharmacy pay-ahead and pre-scan work to faster checkouts and staff productivity (comments on March 5, 2026 earnings call reported by Sporked).
What Costco is changing — how the new checkout system works
Hybrid pre-scan model: Members use the Costco mobile app to scan each item’s barcode while they shop. The app keeps a running total and, when finished, produces a QR code tied to the order. At exits, an employee briefly verifies the cart and QR code; the member then completes payment at an automated pay station. Costco reports the automated pay step takes about eight seconds on average, trimming time at the register (The Takeout, Sporked).
Why hybrid? The model retains staff verification to validate large orders and deter theft, addressing shortcomings of earlier self-checkout and handheld-scanner experiments that Costco did not fully adopt (Parade, The Takeout).
Why leadership is pushing the change now
New CEO Ron Vachris and CFO Gary Millerchip are steering Costco toward combining its low-price club model with improved customer flows and digital upgrades. On the March 5, 2026 earnings call, Millerchip said the program ties mobile wallet upgrades, pharmacy pay-ahead and employee pre-scan work into efforts to boost checkout speed and staff productivity (Sporked).
Financial context and pricing strategy
Costco reported second-quarter net sales of $68.24 billion and net income of $1.36 billion, gains supported by a membership price increase and steady product-margin strategy. Costco typically keeps product margins around 14%–15%, well below many grocers’ 25%–35%, which helps the chain preserve low prices even while investing in tech (Sporked).
What the pilots show so far
Pilot rollout began in May 2025 at 27 locations. Early pilot data reportedly shows improved traffic flow and positive member feedback. The pilots mix employee verification and fast automated payment to avoid issues seen in past self-checkout experiments and also test whether employees pre-scan items to speed final verification (The Takeout, Sporked).
Retail context: how shoppers want to pay
Data from the NCR Voyix Digital Commerce Index shows a generational split: about 43% of all consumers now prefer self-checkout, and 53% of shoppers aged 18–44 favor DIY lanes. Older shoppers, especially those 55 and up, still prefer manned lanes and cite large carts as a reason to avoid self-checkout. Costco’s hybrid model is intended to serve both preferences (Sporked).
Investigating risks and trade-offs
Faster checkout can reduce waits, but several issues merit scrutiny:
- Cart size and verification: Bulk purchases common at Costco may complicate scanning; employee verification is key to accuracy and loss prevention (The Takeout).
- Accessibility and digital divide: Not all members use smartphones or want to pre-scan; older members may prefer traditional lanes, so preserving staffed options is important (Sporked).
- Labor and costs: Automated pay stations could reduce cashier hours over time. Costco emphasizes employee roles now, but staffing plans may shift as pilots expand.
- Security and fraud: QR- and app-based payments raise questions about account protection and loss prevention; the employee verification step aims to mitigate these risks (The Takeout).
What customers are saying
Company reports: Early member feedback has been positive, with shoppers noting faster exits and simpler payments. However, third-party videos and coverage of similar rollouts show mixed experiences when machines fail or staffing is thin—leading to jams or longer waits (Video overview of self-checkout expansions, Parade).
How this ties into Costco’s digital strategy
The pre-scan rollout complements app and digital wallet upgrades and efforts to add personalization and AI-driven suggestions on Costco’s e-commerce sites. Executives say these moves aim to preserve Costco’s low-price value while improving convenience for members (Sporked).
Implications for The Imperial Valley
Economic: Faster checkouts could attract additional local trips to nearby Costco warehouses if lines shorten. Imperial Valley residents who commute for bulk shopping may find shorter in-store time a meaningful benefit. Costco remains a major regional employer; the pilot’s retention of verification roles may protect some positions, but automated shifts could change schedules.
Political and civic: Local officials and workforce groups may need to plan for retraining or scheduling impacts if automation reduces traditional cashier roles. Consumer-protection outreach could help seniors or residents with limited smartphone access adopt digital options.
Social and daily life: Seniors and bulk buyers rely on staffed lanes; Costco’s decision to retain staffed checkouts during the pilot will influence whether those shoppers continue routine visits. Cross-border and binational shoppers may shift destinations based on speed and convenience.
Cultural relevance: Costco’s capped margins and membership model resonate with value-focused households across the region. Any tech change that preserves low prices while improving convenience aligns with local priorities; but the digital divide remains a concern in parts of the valley.
Practical applications for residents
Members who want to use the pre-scan system should update the Costco mobile app and follow in-app scanning instructions. Those preferring traditional service can continue using staffed lanes during the pilot. Watch local warehouse signage for pilot participation and expansion notices.
Sources and reporting notes
This article draws on company commentary and public reporting, including:
Reporting contacts
For more information about the pilot and rollout specifics, monitor Costco’s investor relations releases and the earnings commentary summarized by Sporked and The Takeout.
“The pilot mixes employee verification and automated payments to speed lanes while protecting inventory and serving members across age groups.”
