Costco has an immense and fiercely loyal customer base, but even the most die-hard fans admit that the company is severely lacking in one area: technology. Thankfully, the company is finally testing scan-and-go technology — something that Sam’s Club has had for years — and customers are thrilled.
For some reason, Costco seems way behind its competition when it comes to its website and mobile app, making tasks like checking whether the local store has an item in stock or picking up an order difficult (or even non-existent). Couple that with massively long checkout lines, and you’ve got a recipe for lots of annoyed customers who pay a membership fee just to shop there.
What Is Costco’s Scan-and-Go Checkout?
Costco is trying to improve the checkout experience by testing scan-and-go. It’s a technology that allows you to use your cell phone to ring up your order and checkout — no lines or unloading your cart necessary.
As you add items to your cart, you scan the barcode with the Costco app. It tallies your entire order, adds taxes, and gives you your total. Then you enter your credit card information and pay for it right there on your app.
Once your order is paid for, the app displays a unique QR code. That’s what you’ll show the Costco employees (or, eventually, AI cameras) at the store’s exit instead of a paper receipt. They scan the QR code to make sure you’ve paid for everything, just like they would a receipt.
As members of both Costco and Sam’s Club, we can tell you that scan-and-go is an absolute joy to use in Sam’s, and we wish Costco had it every time we shop there. We’re not alone in that thinking.
“Their competitor has been doing this for years,” said one Costco member on Reddit. “It’s about time.”
“Finally! This was the biggest advantage Sam’s had over Costco,” said another.
When Can I Check Out on My Phone at Costco?
All that celebrating might be a little premature, however. Costco started testing the scan-and-go technology last year, and — in true Costco fashion — there’s been no official timeline of when it might be rolling out nationwide. The only hint we have is that if the test goes well, the company may start retrofitting stores in California, Texas, and the Northeast sometime this year.
A total of 27 Costco locations have been part of the test, with a mix of established and newly opened stores, according to Retail Wire. After testing in those warehouses for a number of months, the scan-and-go technology had improved checkout speed by up to 20%, presumably by reducing the amount of customers using traditional checkout lanes.
That number doesn’t hit Costco’s target of reducing “front-end dwell time” by 30%, however, so it’s hard to say if the company will still be on track for a roll-out of the tech this year or not.
Back on Reddit, some customers are pretty jaded about Costco’s technology department and don’t have much faith that they can pull this type of massive upgrade off, given the company’s rocky tech history and less-than-user-friendly app. One person referenced that the new system is being “entirely built by Costco’s tech team,” then adds their own commentary: “We are doomed.”
