Costco customers largely rejected self-checkout, and Warehouse Club responded by removing it from many stores.
This follows recent trends where both Walmart and Target have limited many self-checkouts to maximum quantities of items. In some ways, those changes were made to limit opportunities for theft and prevent scanning errors that lead to accidental shoplifting, while also keeping self-checkout for people with only a few items.
That’s similar to the “10 items or less” checkouts that used to be common at grocery stores.
But just because Costco has backed away from self-checkout, that doesn’t mean the chain has stopped helping you pay for your items more efficiently. It’s actually implementing two ways to speed up checkout at its stores, including letting customers scan as they go.
Costco is testing new checkout methods.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Costco is testing new checkout methods.Shutterstock
One of the challenges facing Costco shoppers is selling to chain wholesalers. Many of its items are large, and at a traditional self-checkout, manipulating those items to scan the UPC code can be challenging.
Scan and Go technology will fix this, but it will require customer buy-in.
“We’ve found that digital really speeds up checkout. And so, we’re also working hard on digital membership card usage. We’ve also been involved in the “Scan & Go done by Costco” type of tests that we’ve been doing there that have been very successful in getting people through lines and speeding up transactions,” CEO Ron Vachris-Koster said on the third earnings call.
Scan & Go requires customers to scan items using the Costco app on their phones. Once they’ve completed a purchase, they can show a QR code verifying what they’ve purchased as they exit the store.
“We’ve seen some very, very early results that have been very positive and seeing great adoption from our members as well,” added the CEO.
Vachris Kost’s leadership made it clear that they want to improve the in-store experience for members.
“Our operations team is really focused on the front-end, and we know there’s a lot of benefit in that part of the Costco experience moving people through much better. So, it’s really using the digital enhancements that we have available, and we think we’re going to see some good things happen there,” he added.
The CEO talked about another big checkout change on a recent earnings call.
“Another way we’re improving the member experience is through the rollout of enhanced checkout technology across all U.S. warehouses,” Vakris shared on Warehouse Club’s fourth-quarter earnings call.
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The CEO explained how it works.
“This is speeding up the checkout process by allowing our staff to scan small and medium-sized transactions while the member is still in line. So when reaching the cashier, nothing needs to be removed from the cart, and only payment is required,” he added.
Ricardo Belmar, who has more than 20 years of retail experience, thinks Costco was right to pull back from self-checkout.
“I’ve said on numerous occasions that most self-checkout approaches are flawed at best, and bad experiences are bad. It’s common in my experience for items of surprising shapes and sizes to create more hassle than success in the self-checkout experience,” he posted on RetailWire.
According to retail author and public speaker Jorgen Bender, Costco has a special culture.
“The vibe at Costco is different from other retailers. Checking membership cards, checking receipts at the door before you leave. It’s weird. But in reality, they’re just trying to maintain member exclusivity and service,” she wrote.
She believes that no matter how the chain handles checkout, it’s all about providing a positive experience.
“The same thing is happening at checkout. Trying to give the customer a great experience, and maybe trying a little too hard for those shoppers who prefer to be left alone. Costco will figure it out, and everyone will be happy,” she added.
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Based on my 30-plus years covering retail, I’ve seen that large-format retailers like Costco often struggle with self-checkout for bulk items, which matches the pattern the company has experienced. As a longtime Costco member, I’ve never had a problem with the chain’s Classic Checkout.
I’m not usually popping into Warehouse Club to make a quick purchase. Normally, I might not even have a shopping list, and just casually walk around the store looking for what I want.
Scan & Go may drive some other customers out of line, and I appreciate the checkout efforts by the chain, but it’s never been a factor in how often I go to Costco.
Related: USDA: Costco has a serious problem with its $4.99 chicken
This story was originally published by TheStreet on January 14, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
