A man surprised with his hands on his cheeks in front of the facades of Sam's Club and Costco.
CONSUMER AFFAIRS

Costco follows Sam's Club's lead and announces a major innovation in their stores

Costco is closely watching Sam's Club's moves and is starting to apply similar ideas in their stores

Changes in the shopping experience are transforming the way customers interact with big-box stores. More and more, brands are looking to streamline processes and reduce the time people spend waiting in line. In this context, Costco has taken an important step toward modernization in the United States.

From now on, Costco will begin testing a method similar to its main competitor, Sam’s Club. This is a new feature that will allow users to scan and pay for their products directly from their mobile phones. This innovation promises to eliminate waiting at checkout and make the shopping process smoother in their stores.

Costco successfully tests its "Scan & Pay" option | Costco

Scan, pay, and leave

The feature, called "Scan & Pay," will allow Costco customers to scan product barcodes while they shop. Then they will be able to pay through the company’s official app. To leave the store, they will only need to show a QR code at an exit kiosk.

This system is very similar to what Sam’s Club has offered for years under the name “Scan & Go.” In their case, users can create a digital cart, pay from their mobile phones, and show a code at the exit without going through checkout lanes. Now Costco, which had not implemented major digital advances for some time, is opting for this approach to gain agility and compete on equal footing.

Ron Vachris, CEO of Costco, confirmed that the initial tests are yielding good results. During the third quarter earnings presentation, he stated that "they’ve been extremely successful at moving people through the lines and streamlining transactions." In addition, this is part of a broader strategy that aims to integrate technology into different aspects of the business, according to The Sun.

Facade of a Costco store with the logo visible at the top of the building.
The new system avoids lines at traditional checkouts | Costco

Beyond traditional self-service

This type of innovation comes at a time when many chains in the United States are redefining the use of self-service. Walmart, for example, has restricted access to self-checkout lanes at certain times or only enables them for Walmart+ members. Target has limited their use to customers with a maximum of 10 products, in an effort to reduce errors, minimize theft, and increase efficiency.

In this scenario, Costco is seeking a different alternative: to keep customer trust while also speeding up processes without eliminating options. According to its Chief Financial Officer, Gary Millerchip, "there’s a clear opportunity to keep driving digital interaction among our members." More than half of their members have already downloaded the app, which shows the growing interest in fast, digital solutions.

Although an official launch date for all locations has not been announced, the “Scan & Pay” system seems destined to become an essential part of Costco. If the test results continue to be positive, it would not be surprising to see this method operating in many more stores in the United States before the end of 2025.

➡️ Consumer Affairs

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