Costco bets on speed: new pre-scan checkout and automated pay stations aim to cut transactions to 8 seconds
Costco is piloting a pre-scan checkout combined with automated pay stations in 27 stores, aiming to cut transaction times to about eight seconds, CFO Gary Millerchip said during the company’s Q2 2026 earnings call on March 5, 2026.
- Speed-first pilot: A pre-scan model plus automated pay stations averaged roughly eight seconds per transaction in early trials.
- Hybrid oversight: Employees verify scanned carts to limit theft and errors while preserving throughput.
- Broader tech push: The effort complements mobile wallet upgrades, pharmacy pay-ahead and employee pre-scan tools to boost productivity.
- Local implications: Fresno warehouses may see higher throughput, role shifts for employees, and needs for training and reliable connectivity.
How the pre-scan system works
Costco’s test blends mobile scanning with human verification. Shoppers use the Costco app to scan barcodes while they shop, producing a single QR code that represents the full cart total. At exit, a Costco employee verifies scanned items and the member pays at an automated station rather than a traditional lane. Reporting on the pilot and early descriptions are available from The Takeout.
This model differs from fully self-serve approaches because employees retain a verification role, which company leaders say helps control large orders and reduce scanning errors while increasing throughput. Early member feedback has been largely positive, noting improved traffic flow at registers.
Leadership strategy and financial context
Under CEO Ron Vachris and CFO Gary Millerchip, Costco is modernizing in-warehouse and digital experiences without abandoning the low-price membership model. Millerchip described the pre-scan pilot alongside upgrades such as mobile wallet improvements and pharmacy pay-ahead systems as part of a roadmap to improve convenience and employee productivity (Sporked).
Costco’s Q2 results helped fund the push: net sales rose 9.1% to $68.24 billion, and net income rose 13.6% to $1.36 billion year over year, aided by a membership price increase. The company maintains a relatively low product margin (about 14%–15%) compared with typical grocers, which supports competitive pricing while investing in technology (Sporked).
Consumer attitudes and industry trends
Industry data highlight a generational split in checkout preference: the NCR Voyix Digital Commerce Index found roughly 43% of U.S. consumers prefer self-checkout, rising to 53% among 18–44-year-olds, while shoppers 55+ often prefer manned lanes. Costco’s pre-scan hybrid targets a middle ground—fast, app-based checkout with staff verification.
Costco has experimented with handheld scanners and partial self-serve lanes in the early 2020s; results were mixed, which helps explain the move to a hybrid model that retains employee involvement. Shopper reactions reported by outlets include praise for speed but note technical hiccups and inconsistent terminal availability across warehouses (Parade; The Takeout).
Pilot results and technology partnerships
The pilot began in mid-2025 across roughly two dozen to a few dozen U.S. stores and was expanded to about 27 locations in May 2025. Early metrics reported by company leadership and press indicate improved traffic flow and faster checkout times, with the automated pay stations averaging around eight seconds per transaction in early trials (The Takeout; Sporked).
Leadership also mentioned talks with leading AI companies to bring personalization and efficiency to e-commerce and in-warehouse experiences. Analysts note competitors like Aldi and Amazon have already leaned into automation and convenience; Costco’s approach mixes automation with employee oversight to protect service and control.
Member experience: praise and questions
“Members report faster exits and less waiting in lines, though some have encountered technical glitches and inconsistent terminal availability.”
Shoppers praise the speed of automated pay stations, but critics highlight concerns: technical hiccups, uneven rollout, and whether automated terminals can reliably handle very large pallet-sized orders. The employee verification step is intended to manage exceptions, but it raises questions about training, staffing, and balancing speed with service.
Implications for Fresno, California
Economic impact
Faster checkouts could increase throughput at Fresno Costco warehouses and slightly raise sales per hour if traffic moves more quickly, potentially benefiting local suppliers and Fresno’s retail economy (The Takeout).
Jobs and labor
The hybrid system keeps employees involved, but tasks may shift from traditional cashiering to verification, customer support, and exception handling. Fresno-area employees may need training and adjusted scheduling to support new roles (Sporked).
Consumer convenience
For Fresno shoppers who use the Costco app scanning feature, trips—especially small runs—could become notably faster. Older shoppers with large carts may continue to prefer manned lanes; local warehouses are likely to keep staffed lanes to accommodate them.
Digital access and equity
The pre-scan approach assumes smartphone access. Fresno’s digital divide means some members may need in-store help or alternatives; local stores should provide staff assistance and clear signage to help adoption of Costco app scanning features (The Takeout).
Local competition and pricing
Costco’s low product margin (around 14%–15%) underpins its pricing advantage in Fresno. If faster checkout increases store traffic, local competitors may feel pressure to speed service or expand digital options, but price remains a primary retention factor (Sporked).
Operational readiness
Fresno warehouses will need reliable internet, trained verification staff, and customer support for app issues. Any terminal glitches or inconsistent availability could frustrate shoppers during peak periods, so local management will likely monitor pilot metrics closely before a wider rollout (Parade).
Sources and reporting notes
- Company statements from Costco’s Q2 2026 earnings call, March 5, 2026 (comments by CFO Gary Millerchip).
- Reporting on the pilot by The Takeout and Sporked.
- Consumer reaction reported by Parade and industry context in a YouTube overview.
- Context on consumer preferences from the NCR Voyix Digital Commerce Index as cited in coverage.
- Reporting by Times Media Service.
(Reporting by Times Media Service)
