Under 10 seconds: How Costco's new automated pay stations slash wait times

For millions of shoppers, a trip to Costco has long followed a familiar pattern: load up the cart, brace for the line, and wait.

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Now, the company is testing a new approach that could fundamentally change that final step, turning one of retail's most frustrating moments into one of its fastest.

The warehouse retailer is piloting a checkout model that shifts most of the work away from the register. Instead of scanning items at the end of the process, employees begin scanning while customers are still in line.

By the time a shopper reaches the front, their order is already processed, leaving only a quick confirmation and payment.

According to Costco CFO Gary Millerchip, that final step can take less than 10 seconds. Speaking during the company's second quarter earnings call, he said early testing shows the system is improving traffic flow and earning positive feedback from members.

The change may seem subtle, but it addresses a long standing challenge for Costco. Unlike traditional supermarkets, the retailer's bulk model often leads to large, heavy carts filled with dozens of items. That makes checkout slower and more physically demanding for both employees and customers.

Rather than relying on speed at the register, Costco's approach focuses on removing the bottleneck altogether. By spreading the scanning process earlier in the customer journey, the company reduces congestion at the point of payment.

Once shoppers reach the register, the process is reduced to a few simple steps: scanning a membership card, reviewing the total, and completing payment. The system also integrates with automated pay stations, further accelerating the final transaction.

This hybrid model reflects a broader shift in retail, where companies are experimenting with ways to blend automation with human assistance.

Fully self-checkout systems have grown in popularity, particularly among younger consumers, but they have limitations, especially for large purchases. Costco's approach appears designed to bridge that gap.

Customers and employees both stand to benefit

Early reactions suggest the changes are being noticed. Shoppers have highlighted shorter wait times and a smoother overall experience, while employees benefit from reduced physical strain associated with scanning large orders at once.

The system also aligns with evolving consumer preferences. Data from the NCR Voyix Digital Commerce Index shows that while many shoppers prefer self-checkout, particularly those under 45, others still favor staffed lanes. Larger purchases remain one of the main reasons customers avoid fully automated options.

By combining pre-scanning with a simplified payment process, Costco is attempting to satisfy both groups.

Technology plays growing role in Costco strategy

The checkout pilot is part of a wider effort by Costco to modernize its operations. Executives say the company is investing in digital tools and artificial intelligence to improve personalization and enhance both in-store and online experiences.

Gary Millerchip noted that these efforts are already contributing to measurable growth in e-commerce, as the retailer adapts to shifting consumer habits.

Despite these changes, Costco continues to rely on the same core strategy that has driven its success: low prices and high value. The company's relatively low product margins, typically in the mid teens, have helped it maintain strong customer loyalty even as it experiments with new technology.

If the pilot proves successful, it could mark a turning point not just for Costco, but for large format retail more broadly. By rethinking when and how transactions happen, the company is addressing a problem that has persisted across the industry for decades.

And for shoppers, the payoff could be simple: less waiting, and a checkout process that feels almost instant.