Costco tests lightning-fast pre-scan checkout as it blends app scanning and automation to cut wait times
Costco is piloting a pre-scan checkout in 27 warehouses that combines mobile-app barcode scanning, employee verification and automated pay stations — reducing pay-station transactions to about eight seconds, part of broader digital upgrades revealed on the Q2 2026 call.
- Pilot scope: Launched in 27 stores in May 2025 to speed checkout using the Costco mobile app and automated pay stations — early reports emphasize faster flows and positive member feedback. (Sources: The Takeout, Sporked)
- Speed: Typical transaction at automated stations averages about eight seconds, with employees verifying pre-scanned carts before payment. (Sources: The Takeout, Sporked)
- Financial context: Costco reported net sales up 9.1% to $68.24 billion and net income rising 13.6% to $1.36 billion in Q2 2026; leadership ties digital upgrades and the pre-scan model to these results. (Source: Sporked)
- Broader roadmap: Company expanding mobile wallet features, pharmacy pay-ahead and employee pre-scan tools to improve speed and productivity, highlighted by CFO Gary Millerchip on the Q2 call. (Sources: The Takeout, Sporked)
How the Costco pre-scan checkout works
Hybrid flow: Members use the Costco mobile app to scan barcodes while they shop; the app builds a running list and generates a QR code or digital token for payment. At the front, an employee performs a quick verification of the pre-scanned cart, and the member completes payment at an automated pay station.
Speed vs. security: The verification step is designed to reduce errors and theft, while the automated station reduces the payment step to roughly eight seconds on average, according to company reporting. (Sources: The Takeout, Sporked)
Costco frames the model as a blended solution — faster technology combined with employee verification preserves the warehouse feel while shortening lines.
Pilot results and member feedback
The pilot began in May 2025 at 27 locations. Early feedback from leadership and members has been positive: stores report smoother traffic patterns at exits and improved throughput. Management described the pilot as receiving “great member feedback” but has not given a timetable for national rollout. (Sources: The Takeout, Sporked)
How this differs from past trials
Costco previously rolled out self-checkout terminals and scanner guns in the early 2020s. Those systems delivered speed but sometimes suffered technical glitches and uneven availability. The new pre-scan model shifts scanning earlier in the trip via the app, pairing member-driven scanning with staff verification rather than relying only on register-side terminals. (Source: Parade)
Why Costco is doubling down on speed and digital
Retailers chase faster checkout to reduce lines and boost sales. For Costco, speed supports a low-margin, high-volume model: product margins are roughly 14%–15%, well below many grocers. Faster lanes can increase visits per hour and enhance customer satisfaction while preserving price competitiveness. (Source: Sporked)
Executives also described an expanding digital roadmap and called out personalization and AI as areas of interest as e-commerce evolves — though no formal AI partnerships were announced on the call. (Source: Sporked)
Consumer preferences and the generational split
Recent data show a generational divide: about 43% of U.S. consumers prefer self-checkout overall, rising to 53% among shoppers aged 18–44, while shoppers 55+ favor manned lanes for large carts and personal help. Costco’s verification step aims to bridge those preferences by keeping staff involved for heavy or bulk purchases. (Source: NCR Voyix Digital Commerce Index — as cited in company commentary)
Payroll, turnover and the labor angle
While faster checkout can reduce register time, Costco positions this pilot as a productivity tool rather than a headcount cut: pre-scan verification requires employee involvement and can reassign staff to verification, hospitality and restocking roles. Nonetheless, labor advocates typically scrutinize automation’s impact when firms reduce headcount.
Financial context: why speed matters to the bottom line
Speeding checkout supports several financial goals: shorter lines can increase throughput, visits per hour and customer satisfaction, potentially aiding both in-store and online sales. Costco’s Q2 2026 results — net sales up 9.1% to $68.24 billion and net income up 13.6% to $1.36 billion — give the company room to pilot these initiatives while preserving its low-price strategy. Management also pointed to a membership price increase as a contributor to the quarter’s results. (Source: Sporked)
How the system addresses past self-checkout problems
By moving scanning into members’ hands and retaining employee verification, Costco’s approach aims to combine speed with reliability. Members who liked previous self-checkout speed may see faster exits; members who prefer staff assistance still have verification and service at the front. The app approach also complements mobile wallet upgrades and pharmacy pay-ahead features cited by leadership. (Sources: Parade, The Takeout)
Implications for Los Angeles, California
Economic impact: Faster checkout could raise throughput at busy LA warehouses, potentially increasing sales per store and shifting some roles toward verification, stocking and customer help — even if routine cashier tasks become more automated.
Political consequences: Local officials monitor job shifts. A model that preserves employee verification may ease labor concerns, but any future headcount reductions would likely draw scrutiny from city leaders and unions.
Social and cultural effects: Multi-generational shoppers and older adults in LA benefit from the verification step for bulk purchases, while younger, tech-forward Angelenos get an app-first checkout option that fits existing contactless habits.
Practical applications for residents
Angelenos using the Costco app can expect quicker exits at busy stores. Practical tips: download or update the Costco app, practice barcode scanning, and configure mobile wallets for faster payment. Those preferring cashier lanes should still find staff assistance available thanks to the verification step. (Sources: The Takeout, Sporked, Parade, YouTube coverage)
