Costco Tightens Self Checkout Rules as Staff and ID Checks Block Non Members

Costco Wholesale has launched a comprehensive overhaul of its warehouse checkout operations, deploying mobile scanning applications, employee-assisted pre-scan protocols, and automated membership verification systems at store entrances. The transformation directly responds to mounting customer frustration over extended wait times while attempting to match Sam’s Club’s digital shopping capabilities. CEO Ron Vachris reported that initial implementations have already cut checkout duration by up to 20% at pilot locations.

Mobile Scanning Technology Reaches Pilot Warehouses

The flagship innovation enables members to scan product barcodes via smartphone during their shopping journey, building a digital transaction that receives verification at exit. By December 2025, this scan-and-go capability had reached 27 stores as a test program following what Vachris described as “extremely successful” preliminary outcomes. Shoppers scan merchandise while navigating aisles, process payment through the Costco application, and display a QR code to staff before leaving the warehouse.

Pre-Scan Systems Bridge Traditional and Digital Models

Alongside mobile solutions, Costco positioned employees equipped with handheld scanners who process items while customers queue in conventional checkout lanes. This hybrid method eliminates cart unloading at registers—members merely present their card and finalize payment after staff complete scanning. Arizona warehouses documented wait time reductions reaching 20% where pre-scan protocols were deployed, offering efficiency gains without requiring customer behavior changes.

Entrance Verification Systems Modernize Access Control

Membership card scanners installed at warehouse entrances now require members to scan physical or digital credentials before entry rather than displaying them to door attendants. Over 350 U.S. stores operated this technology by September 2024, with screens showing member photographs for staff confirmation. The system prevents non-members from accessing borrowed cards while generating real-time traffic analytics. This frontline verification resolves membership validity issues before customers reach payment stations, protecting the company’s $5 billion annual membership revenue stream.

Competitive Pressure Accelerates Digital Transformation

The technology surge stems from rivalry with Walmart-owned Sam’s Club, which invested heavily in checkout innovation years earlier. Sam’s Club rolled out its Scan & Go mobile application across all 600-plus locations, with approximately one-third of members utilizing the feature by 2025—representing over 50% growth during the preceding three years. The 2025 American Customer Satisfaction Index revealed Sam’s Club jumped 5 points to score 85, surpassing Costco’s stagnant score of 82. ACSI explicitly credited Sam’s Club’s scanning application and AI-powered exit technology for driving the improvement, noting that “digital features continue to have significant impact on younger generations’ satisfaction ratings.”

Customer Response Reveals Implementation Challenges

Members experiencing scan-and-go and pre-scan systems generally praised their effectiveness, with shoppers completing entire trips in under ten minutes. Vachris noted “great adoption from our members” among early testers. However, significant friction emerged around self-checkout modifications. One discussion thread titled “Self Checkout has become awful” accumulated over 1,600 posts complaining about inconsistent policies regarding handheld scanner access. Some locations permitted customer use while others restricted scanners to employees only, creating confusion. Multiple customers expressed discomfort with monitoring staff hovering during self-checkout transactions. “Every other retailer—Kroger, Walmart, Home Depot, Target—trusts their shoppers more,” one user observed. The fundamental tension emerged clearly: customers wanted faster checkout but resented performing additional work themselves while being monitored.

The technology initiatives coincided with robust Q1 fiscal 2026 results showing net sales of $66.0 billion, up 8.2% year-over-year, with earnings per share reaching $4.50. Digitally-enabled comparable sales surged 20.5% during the quarter. Costco’s worldwide renewal rate reached 89.7%, with the company ending the quarter with 81.4 million total paid members. Nearly half of Sam’s Club’s new member growth came from Gen Z and millennial consumers who expect seamless digital-physical integration, making Costco’s traditional checkout model a competitive liability among digitally native shoppers.

Costco’s measured approach—piloting scan-and-go in 27 stores before broader deployment, maintaining staffed lanes alongside self-checkout, requiring human exit verification—reflects institutional caution. With membership fees constituting the bulk of profitability at $4.6 billion annually, alienating existing members poses existential risk. Yet stagnant customer satisfaction scores while Sam’s Club surged suggest traditional models face erosion among younger demographics. The technology foundation now exists; execution consistency and deployment pace will determine whether Costco reclaims customer satisfaction leadership or concedes digital superiority to competitors.