Costco pilots lightning-fast “pre-scan” checkout and automated pay stations to speed member lines
Costco is piloting a pre-scan checkout system that pairs the Costco app with staff verification and automated pay stations in 27 stores, aiming to reduce average transaction times to roughly eight seconds and improve traffic flow and member satisfaction.
Key takeaways
- Pre-scan + automated pay: Members scan items with the Costco app while shopping and finish at automated pay stations — average transaction time reported at ~8 seconds. (The Takeout; Sporked)
- Pilot scope: Rolled out in 27 stores beginning May 2025 as a test of app-integrated, hybrid checkout.
- Hybrid model: Employees verify pre-scanned carts before members complete payment at automated stations, preserving a human check for large carts and loss prevention.
- Business implications: Leadership says the pilot improves speed, employee productivity and supports Costco’s low-margin value model while raising questions about labor and privacy.
How the system works
Costco’s pre-scan checkout program blends mobile scanning, staff verification and automated payment. Shoppers scan item barcodes using the Costco app while they shop to track spending in real time. When finished, customers present a personalized QR code to a Costco employee for verification. After the employee confirms the pre-scan, members complete payment at an automated pay station — the company reports an average transaction time at these stations of about eight seconds. This hybrid model keeps a human check in the loop while automating payment, unlike fully autonomous systems used elsewhere. (Source: The Takeout)
Pilot performance and early results
On Costco’s second-quarter earnings call, CFO Gary Millerchip cited “meaningful improvements in the speed of checkout and employee productivity” tied to mobile wallet upgrades, pharmacy pay-ahead features and the employee pre-scan step. He added the automated pay stations “allow members to pay for their pre-scan orders seamlessly with an average transaction time of around eight seconds,” and early feedback has been positive. The company has not provided a national rollout timeline but said the early wins make broader adoption likely. (Source: The Takeout)
“meaningful improvements in the speed of checkout and employee productivity” — Gary Millerchip, Costco CFO
Why Costco is betting on pre-scan and automation
Strategic context: Grocery and big-box competitors are increasingly using e-commerce, personalization and automation to capture convenience-focused shoppers. Costco’s pilot advances its digital roadmap — app integration and emerging personalization features — which leadership says are already producing measurable e-commerce growth. CFO Millerchip noted the company is “embracing AI and e-commerce shifts” and believes its value-focused model benefits as consumers adopt new shopping tech. (Source: The Takeout)
How this differs from past experiments
Costco has tested self-checkout in the past, but those trials did not become permanent. The new pre-scan model is deliberately hybrid: employees still verify carts before members use automated pay stations. That human element aims to address problems that made pure self-checkout unpopular for some Costco shoppers — particularly large-cart customers and older members who prefer manned lanes. The combination is intended to speed lines while keeping staff involved in loss prevention and member service. (Source: The Takeout)
Consumer preferences and generational divide
Data from the NCR Voyix Digital Commerce Index shows generational splits: 53% of shoppers aged 18–44 prefer self-checkout, while shoppers 55 and older lean toward manned lanes, often because they shop with large carts. Overall, 43% of consumers now say they prefer self-checkout options. Costco’s pre-scan design appears aimed at both groups by letting tech-savvy shoppers move quickly while retaining staffed verification for members who want assistance. (Source: The Takeout)
Financial context: how efficiency supports Costco’s model
Costco’s low-margin model (product margins generally around 14%–15%) has helped the chain remain a value destination compared with typical grocers (25%–35% margins). In Q2, net sales rose 9.1% to $68.24 billion and net income climbed 13.6% year over year to $1.36 billion after a membership-price increase. Faster checkout and stronger e-commerce could further protect Costco’s value promise by lowering labor cost per transaction and nudging digital sales growth. (Source: The Takeout)
Labor, privacy and member experience questions
The hybrid design keeps employees involved but may change job duties and scheduling. While leadership highlights improved productivity, labor advocates and members may seek clarity about staffing levels, training and how pre-scan responsibilities are distributed. Privacy-conscious members will likely want more detail on the data collected through the Costco app — what is stored, retention periods, and how data may be used for AI-driven personalization. Costco will need to show how technology enhances service without undermining privacy or worker protections. (Source: The Takeout)
Competitive landscape
Big-box retailers use mixes of self-checkout, cashier lanes and camera-based autonomous systems to speed purchases. Costco’s hybrid pre-scan model tries to capture automation speed gains while preserving the warehouse-club experience members expect. By tying technology to the Costco app and rolling out personalization and AI features, Costco aims to keep members within its ecosystem as shopping habits shift. (Source: The Takeout)
Implications for California
Economic impact: California hosts a high concentration of Costco warehouses. Faster checkout could boost throughput at busy Bay Area and Southern California clubs, potentially increasing same-store sales and reducing wait-related complaints. Reduced labor hours per transaction could shift scheduling needs and affect local wage cost dynamics. (Source: The Takeout)
Political consequences
California policymakers emphasize labor protections and privacy. Any change that reduces front-line hours or alters job duties may draw scrutiny from state labor regulators and unions. Increased app data collection and AI personalization may also trigger interest under California privacy laws; Costco’s approach to staffing and data governance will shape local political discussions. (Source: The Takeout)
Social effects and cultural relevance
California’s diverse shopper base includes tech-forward younger consumers and older residents who rely on in-person help. The hybrid model could satisfy younger shoppers seeking speed while preserving service for those with large carts or mobility needs. Clear signage and staffed lanes will be essential in retirement-heavy areas to keep the experience accessible. Californians’ expectation for convenience and digital integration aligns with Costco app features that allow real-time spending tracking and faster pay — so long as value and low prices remain intact. (Source: The Takeout)
Practical applications for shoppers
California members should watch for pilot availability at local warehouses and new in-app guidance on pre-scanning. Shoppers who value speed may adopt pre-scan immediately; those with larger carts or who prefer in-person help will still have staffed verification before paying. Members concerned about data or job impacts can ask managers about privacy settings and local staffing plans during the rollout. (Source: The Takeout)
Sources and further reading
- The Takeout: Costco’s new fast checkout plan and automated pay stations (May 2025 pilot details, CFO comments, margins, and consumer data)
- Sporked: Coverage of Costco’s changing checkout system and member feedback (pilot results and early reactions)
Reporting note: This article preserves original facts and source links provided in the briefing. For the pilot details and CFO comments, refer to the linked reporting above.
