Costco does a lot of things right. The bulk savings, the treasure-hunt aisles, the rotating seasonal deals, and the consistently high-quality private-label products all help make it one of the best stores in all of retail. And the numbers back that up.
During its most recent quarterly earnings report, Costco reported membership fee income of $1.37 billion. It also boasted a 92.2% membership renewal rate across the U.S. and Canada.
But there’s one longstanding frustration that even the most devoted members quietly complain about — checkout.
I should know. I’m one of them.
I’ve been a Costco member for more than 20 years. And while I genuinely enjoy roaming the aisles and discovering new products I didn’t plan on buying, I’ve never enjoyed the final step of the trip.
The checkout line at Costco can feel like a bottleneck that turns a quick run for essentials into a drawn-out wait.
To make matters worse, I often shop during early store hours for Executive members, when the warehouse is supposed to be less crowded. In theory, that should mean faster trips. In practice, the checkout lanes can still feel understaffed during that window, creating long lines, even when the rest of the store is relatively calm.
The result is the familiar Costco paradox of a great shopping experience followed by a frustrating exit experience. Thankfully, though, Costco is taking steps to fix that.
Costco invests in technology to improve checkout speed
Costco is increasingly leaning on technology to address one of its most persistent customer pain points: checkout congestion.
During Costco’s third-quarter 2026 earnings call, CEO Ron Vachris highlighted that the company is actively seeing measurable improvements in checkout speed as a result of its investments.
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“As a result of our investments in technology… we are seeing a significant improvement in the speed of checkout,” Vachris said. “The enhancements we have made include improvements to the mobile wallet, the introduction of digital membership card with quick access on the Costco app, and the rollout of our shopping cart pre-scan tool internationally.”
These upgrades may sound incremental, but together, they point to a broader strategic shift.
Costco is slowly modernizing a traditionally low-tech shopping experience, where physical membership cards, paper receipts, and manual scanning have long defined the checkout process.
The company has also been expanding its digital ecosystem more broadly. The Costco app now plays a larger role in the shopping experience. Mobile wallet integration is also crucial, as it shortens the checkout process.
Costco aims to measurably improve checkout speed.
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Why improving checkout is so important for Costco
Checkout speed isn’t just a convenience issue for Costco; it’s a loyalty issue. Warehouse clubs operate on a membership model, which means long-term customer relationships are key.
In recent years, Walmart-owned Sam’s Club, Costco’s biggest competitor, has pushed aggressively on digital convenience.
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Sam’s Club has leaned heavily into scan-and-go technology through its app, allowing members to scan items as they shop and skip the traditional checkout line entirely. And not surprisingly, one in three Sam’s Club members uses that technology regularly, according to Grocery Dive.
Sam’s Club has also expanded curbside pickup and delivery options. In fact, as I reported in April, Sam’s Club is now routinely delivering same-day orders in under an hour.
Costco, meanwhile, has taken a more deliberate approach, prioritizing operational simplicity and in-warehouse efficiency over rapid digital transformation.
Costco has also long relied on the strength of its Kirkland Signature brand to encourage member loyalty. And the company specifically has not invested in curbside pickup to encourage members to come into the store, shop, and walk away with unplanned purchases.
But it’s clear that Costco recognizes it needs to do more. If checkout remains a pain point, Costco risks losing members. It’s that simple.
Investing in a smoother checkout process is one of the smartest things Costco could do at a time when it’s abundantly clear that its biggest rival is stepping up its game.
Maurie Backman owns shares of Costco.