Costco tests lightning-fast “pre-scan” checkout to cut lines, boost productivity — and protect low prices
Issaquah, Washington (Times Media Service) — Costco is piloting a mobile app “pre-scan” checkout in 27 stores, letting members scan items while shopping and finish purchases at automated pay stations in about eight seconds — aiming to reduce lines, boost productivity and protect low prices.
Key takeaways
- Pre-scan pilot: Members scan barcodes with the Costco mobile app while shopping; a QR code lets employees verify totals and members pay at automated stations in roughly eight seconds. Sources: The Takeout, Sporked.
- Pilot scope: Launched in 27 stores in May 2025; broader rollout possible but no national date confirmed. Sources: The Takeout, Sporked.
- Business drivers: CFO Gary Millerchip and CEO Ron Vachris point to mobile wallet, pharmacy pay-ahead and employee pre-scan tools as productivity drivers; early feedback notes improved traffic flow and member response. Source: The Takeout.
- Financial context: Q2 net sales were $68.24 billion, net income $1.36 billion; Costco keeps product margins near 14–15%, below typical grocer margins (25–35%). Source: The Takeout.
How the pre-scan system works
Costco’s pilot blends member-led scanning with employee verification. Shoppers scan item barcodes into the Costco mobile app as they move through the warehouse; the app generates a running total and a QR code. A brief staff check at the exit verifies the list, and members then use an automated pay station designed to finish transactions in roughly eight seconds (average pilot times reported).
Why Costco is pushing the change now
Executives frame the move as a member-experience and productivity play. On the company’s March 5, 2026 second-quarter earnings call, CFO Gary Millerchip cited mobile wallet improvements, pharmacy pay-ahead and employee pre-scan tools as clear drivers of faster checkout times and better employee output. Under new CEO Ron Vachris, the company appears to be modernizing operations while preserving its low-cost model.
Financial context and member value
Costco’s Q2 results support continued investment. Net sales rose 9.1% year-over-year to $68.24 billion, and net income climbed 13.6% to $1.36 billion, helped in part by a membership fee increase. Those results give Costco room to invest in technology while keeping product margins around 14–15% — a key reason value-conscious shoppers stick with the warehouse model versus traditional grocers that typically mark up 25–35%.
Digital, AI and e-commerce moves
Costco’s checkout update is part of a broader push: personalization on digital sites, experiments with AI-driven features, and investments that are already producing measurable lifts in e-commerce sales. The company sees a two-pronged approach — faster in-store checkout plus smarter online personalization — as central to keeping up with shifting shopping habits, especially among younger customers. (See the company video briefing.)
Past self-checkout trials and lessons learned
Earlier self-checkout experiments in the early 2020s, including scanner guns and DIY systems, had mixed adoption and inconsistent results. This new pre-scan method is intentionally hybrid — keeping staff in the loop to reduce misuse and handle large or awkward orders that pure self-checkout struggles with. Deployment of new terminals is uneven across roughly 640 U.S. warehouses as management proceeds cautiously. Reporting on earlier rollouts: Parade, and analysis: The Takeout.
Who wants DIY checkout — and who doesn’t
Industry data show a generational split: roughly 43% of shoppers prefer self-checkout overall, rising to about 53% for ages 18–44. Customers 55+ tend to prefer manned lanes, often because they buy in bulk and maneuver large carts. Costco’s pre-scan plan attempts to bridge the gap by enabling faster trips for tech-savvy shoppers while preserving staff support and verification for older members and complex orders (data summarized from industry reporting and the NCR Voyix Digital Commerce Index).
Labor and store-floor effects
Pre-scan and automated pay stations can lower per-transaction labor hours and speed throughput — attractive for a company focused on preserving low prices. Costco emphasizes employees will remain part of the checkout flow: verifying pre-scans, managing exceptions, and assisting members. Management frames the change as a productivity play: fewer bottlenecks and the potential to redeploy staff to member services, inventory, and other value-added tasks.
Implementation timeline and rollout questions
The pilot began in 27 stores in May 2025. Early feedback indicates improved traffic flow and faster transactions, but Costco has not committed to a national rollout date. The measured expansion lets management refine employee verification, adjust for member demographics, and avoid the pitfalls of earlier experiments. Further reporting and analysis are tracking pilot results and member adoption rates.
Implications for Huntington Beach, California
Economic impact
Faster checkouts could raise throughput at Huntington Beach Costco warehouse(s), processing more customers per hour and potentially increasing weekend and holiday sales without higher prices — consistent with Costco’s low-margin strategy and beneficial to local households aiming to stretch budgets.
Political consequences
Local officials focused on job preservation may scrutinize role shifts. Costco emphasizes redeploying staff rather than wholesale cuts, which can soften political concerns. If automation meaningfully reduces staffing needs, city leaders and labor advocates might call for retraining or workforce programs.
Social effects
Younger residents and busy families will likely welcome an eight-second payment option via the Costco mobile app, possibly changing shopping patterns and encouraging more frequent trips for perishables. Older shoppers should still find employee-verified exits and guidance for large-cart workflows.
Cultural relevance
Huntington Beach shoppers often value practical savings and reliable service. Costco’s combination of careful tech testing and a commitment to low margins aligns with a pragmatic local worldview: adopt improvements that reduce friction without sacrificing core value.
Practical applications for residents
- Use the Costco mobile app to learn the pre-scan workflow before trying it in-store; early adopters can save minutes on busy trips.
- Expect staff verification of QR codes at exits; members with large carts should follow posted guidance or use manned lanes when more convenient.
- Watch local warehouse signage and staff announcements for pilot instructions and assistance during rollout.
Reporting and sources
This report draws on coverage of Costco’s pilot and earnings remarks, plus industry reporting on self-checkout trends and pilot rollouts:
- The Takeout — coverage of Costco fast-checkout reporting and earnings context.
- Sporked — analysis of checkout changes and pilot details.
- Parade — history and reporting on new self-checkout terminals.
- Company video briefing — discussion of strategy and store investments.
Readers in Huntington Beach should expect local Costco warehouses to pilot or expand these systems carefully, with early benefits for speed and member value while management balances technology gains against staff roles and member preferences.
