Costco pilots app-based pre-scan checkout and 8-second automated pay stations in 27 stores as it pushes a high-speed, low-cost model
Costco is piloting an app-based pre-scan checkout and automated pay stations in 27 U.S. warehouses since May 2025, enabling members to scan while shopping, verify via employee-scanned QR codes and complete an average eight‑second automated payment.
- Pilot scale: Tested in 27 U.S. warehouses since May 2025 with mixed human verification and automated pay stations.
- Speed claim: Company reports an average automated transaction time of about 8 seconds.
- Hybrid model: Members scan items in-app, an employee verifies via QR code, then payment is completed at a small automated station.
- Strategic aim: Drive throughput, protect low margins and improve member experience while expanding digital and AI capabilities.
What the pilot looks like
How it works: Members scan product barcodes with the Costco mobile app while they shop. When finished, the app generates a QR code that an employee scans to verify cart contents. Members then pay at an automated station that accepts the verified QR and processes payment quickly.
Company officials say the average automated transaction time is about eight seconds — the oft-cited “8-second checkout.” Early tests began in May 2025 at 27 locations and remain limited as Costco measures performance and member reaction, with reporting and analysis based on The Takeout and Sporked coverage.
The model retains a human touch: employees pre-scan or visually verify carts before members reach the automated pay station. That hybrid approach aims to capture automation speed while guarding against theft, mis-scans and the problems that have affected purely self-service rollouts.
Why the change now
Retailers have battled long lines and rising labor costs for years. Costco’s leadership — now led by CEO Ron Vachris with CFO Gary Millerchip — argues technology can ease those pressures without undermining the company’s low-margin, membership-driven value proposition.
“We are achieving meaningful improvements in the speed of checkout and employee productivity,” CFO Gary Millerchip said on Costco’s Q2 2026 earnings call, pointing to mobile wallet upgrades, pharmacy pay-ahead and employee pre-scan tech.
On the Q2 2026 earnings call, Millerchip also noted work on digital personalization and AI for e-commerce sites and suggested Costco could be a beneficiary as consumers embrace AI-enabled shopping behaviors (see earnings call coverage).
Costco typically caps product margins near 14–15%, well below many grocers. Faster checkouts and higher employee productivity can help protect margins as labor and supply costs fluctuate.
History of automation at Costco
Costco previously deployed self-checkout terminals with scanner guns in the early 2020s in hundreds of warehouses, but adoption and member experiences varied. The current pre-scan pilot differs by emphasizing app-based scanning during shopping, employee verification prior to payment and small automated pay stations rather than full self-check lanes.
The aim appears to be faster throughput without wholesale removal of human roles; pilot messaging stresses that employees still perform verification and customer-service duties even as transactions accelerate (see Parade’s reporting on earlier self-checkout terminals).
Member response and payment preferences
Early member feedback has been largely positive, particularly from younger shoppers who value speed and mobile wallets. Data from the NCR Voyix Digital Commerce Index shows about 43% of all consumers now prefer self-checkout options, rising to 53% among shoppers aged 18–44. Older shoppers, especially 55 and up, still favor manned lanes for large carts and complex bulk purchases.
This generational split matters for Costco’s broad membership base: any checkout change must serve families, seniors with large carts, and younger members seeking speed and convenience.
Tech, AI and e-commerce strategy
Executives say the pre-scan pilot fits into a wider digital push. Costco is upgrading its mobile wallet and app features and rolling out personalization tools on its digital sites. The CFO noted these changes are “resonating well with our members and are starting to have measurable impact on e-commerce sales growth” (see earnings call coverage).
Analysts view AI-driven personalization and app integration as critical to compete with rivals that prioritize convenience and online experience. If combined with Costco’s low-margin model, digital improvements could expand share in both warehouses and e-commerce.
Financial and market context
Costco reported Q2 2026 net sales up 9.1% to $68.24 billion and net income up 13.6% to $1.36 billion. Those gains followed a membership price increase that supported revenue growth. Faster checkouts and improved productivity could further protect margins and the membership model.
Industry commentary and a 2026 YouTube analysis predict broader automation trends in big-box retail over the next few years, including deeper app integration and expanded self-checkout options.
Potential challenges
- Adoption: Older members and shoppers with large carts may resist scanning in-store or using automated pay stations, possibly requiring staffed lanes.
- Technical glitches: Earlier self-checkout rollouts showed inconsistent availability and frustrating technical problems, underscoring the need for robust testing and support.
- Labor relations and roles: Some hourly duties could shift; effective retraining and role allocation will be essential to maintain service and morale.
- Security and shrink: Member scanning raises theft and mis-scan risks; the employee verification step aims to limit those risks, but scaling will require careful controls.
Implications for the United States
Economic impact: If scaled successfully, the pre-scan and 8-second stations could raise operational efficiency across a major retail chain, potentially lowering costs for consumers who rely on Costco’s low prices and helping stores handle higher volumes without expanding staff hours.
Labor and employment: Job duties may shift toward verification, customer service and in-warehouse roles. While some cashier hours could decline, new tech-support and floor-assistant tasks may emerge; workforce transitions and training will be key.
Consumer choice and accessibility: Generational differences mean some shoppers will embrace the app-driven flow while others will prefer traditional lanes. To serve a nationwide membership, Costco will likely maintain mixed checkout options.
Competition and policy: The move pressures rivals focused on convenience and could influence policy discussions on workforce retraining and local labor markets. Policymakers and conservative readers tracking fiscal responsibility may note the effort to contain costs while preserving member value.
Reporting sources and further reading
Reporting and analysis referenced in this story include coverage from The Takeout, analysis from Sporked, historical context from Parade, and broader industry commentary including a YouTube analysis.
Preserved facts: Pilot began in May 2025 in 27 stores; members scan items with the Costco app, employee verification via QR precedes payment at automated stations averaging eight seconds; CFO Gary Millerchip discussed the program and broader digital efforts during Costco’s Q2 2026 earnings call.
