Image Source: Facebook | Costco
Is Costco Over-Complicating Self-Checkout?
Costco’s move to increasingly add staff to self-checkout stations is drawing some poor reviews on social media.
Some have grown accustomed to the solitary self-checkout experience, according to a recent Costco-focused Reddit thread, “Self-Checkout has become awful.”
One commentator wrote of his Costco self-checkout experiences, “I do self-checkout to interact with the staff less, but I end up interacting with them more and more awkwardly.”
The extra staff, some felt, was partly due to an overall crackdown on sharing membership cards as well as to reduce theft. A few claimed their receipt gets checked twice as they exit the self-checkout and the store.
Costco also reportedly enables shoppers at some locations to use scanners but reserves them for associates at others in a sign Costco is working out the kinks of its self-checkout strategy. One Reddit commentator said, “They literally check your receipt on the way out, so I don’t get the mistrust of Costco.”
A number of commenters on Reddit comparatively praised Sam’s Club’s Scan & Go option. “Sam’s ‘Scan & Go’ is a dream. I use it all the time for the last two years and it is flawless, no more dealing with the cash registers,” one Redditor said.
Some said associates scan mostly for bulky items at their Costco. In a separate Reddit thread, a purported Costco employee said scanners are used for bulky items too heavy for the tabletop scanner, although some will also scan the contents of shopping carts with excessive items.
Some Reddit commentators wished Costco had maximum item limits for self-checkout. Several assumed related instances of rude associate behavior were because the self-checkout staff was overburdened.
Albeit a minority, a few raved about having an associate scan all their products at Costco’s self-checkout rather than having to do it themselves. Others felt the extra employee’s primary role was to speed their exit. Grading the experience “Grade A,” one Redditor responded, “Someone ushered me to a register, took my membership card, scanned it (and the credit card, my method of payment), and then used the gun to scan everything in my cart. (I) didn’t have to take anything out, and he handed me my receipt. Took less than a minute.”
Discussion Questions
DISCUSSION QUESTIONS: Do you see more pros than cons in Costco’s use of a hybrid assisted-and-self checkout process? Are any of the complaints noted in the article on target?
Poll
Loading …BrainTrust
Liza Amlani
Principal and Founder, Retail Strategy Group
Ricardo Belmar
Retail Transformation Thought Leader, Advisor, & Strategist
Costco is right to be cautious in how they move forward with self check out. Self check -out is still a work in progress, and the this process will get refined over time. Given the concerns about theft at self check out, I don’t blame Costco for proceeding carefully using a hybrid model. Costco should take the complaints seriously, but they also shouldn’t create knee-jerk policies based on some customers’ experiences either.
My thoughts exactly.
I’ve said on many occasions that most self-checkout approaches are flawed at best, and poor experiences at worst. It’s quite common in my experience for awkwardly shaped and sized items to create more hassle than success in a self-checkout experience. Having associates on hand to assist with these should be a plus for shoppers at Costco but it seems that the results are mixed. I’m not convinced self-checkout is the best approach for Costco and perhaps they should consider what Sam’s Club has done with scan and go as a better option. Given the receipt check at the exit to a Costco as a current control mechanism for theft, it may be a better approach to develop a scan and go solution rather than trying to supplement existing self-checkout. At some point, if the store associates are doing more of the work at self-checkout it becomes more like a regular checkout lane – so what is the benefit then?
Amen. Exactly my thoughts
I use the self-check out at Costco almost exclusively. Store associates do help but I don’t feel like they are obtrusive, merely helpful.
Costco’s vibe is different from other retailers. The checking of membership cards, the checking of the receipts at the door before you leave. It’s weird. But in reality they are just trying to maintain member exclusivity, and to be of service.
That’s what’s happening at the checkout, too. Just trying to make the customer experience a good one, and maybe trying a little too hard for those shoppers who prefer to be left alone. Costco will figure it out and everyone will be happy.
I agree. I was at Costco yesterday, and although there was long line for self checkout, but it still moved a fairly nice pace. It did not feel intrusive when they asked if I had my card out or an associate helped me scan my items. It’s a good process so far.
That’s how I see it, too. It’s friendly and it works.
The short answer is no. My experience at Costco has always been excellent. Yes, there are attendants in the self-checkout lanes, but I’ve seen no more than 2 at any given time, and the time to get through the line has always been at an acceptable pace. Additionally, my receipt has never been checked in the self-checkout area, only at the exit when I leave the building. I’d recommend Costco stay the course on their current staffing levels and continue to look for ways to improve the overall customer experience, with the use of additional technology and additional analytics.
David my experience mirrors yours. My only issues are the customers who have extremely overloaded baskets who use the self checkout lanes
You and Georganne have said it perfectly, David, so I’ll give you both a big “ditto!” I’m glad and grateful when staff show up to help.
Thanks, Ian!
My experience has been that they are there to help speed things along, not to check on us. Always happy with Costco’s efforts
Costco is a global brand with deep pockets, so it is disappointing they have not figured out a seamless, consistent process for self-checkout. With today’s technology, expedited check-out should be easy for a company like Costco to implement. Costco’s failure at self-checkout leaves the customer with a sour taste after an otherwise great shopping experience. The crackdown on shared membership tells me that perhaps a new membership tier is needed. Companies should not build processes around exceptions. Costco needs to figure out self-checkout before its loyal customers check out.
Employee assistance should be available when needed at self-checkout, to help guide those having challenges to free up queues as quickly as possible. However, they shouldn’t be there to complicate the experience or confuse customers with inconsistent checkout processes. Given the receipt check at the exit, there should be less of a need to maintain staff just for monitoring theft. My experiences at Costco have been mostly positive, without associate involvement for what it’s worth.
AITA for thinking Reddit and forget it? Sorry, too easy! As I’ve noted on several previous articles, I love self-checkout and love the fact that my Costco offers it. I feel it has allowed me greater flexibility and made my trips to Costco more frequent; I no longer have to wait until I have a “Costco sized list” of things to buy. It has also thinned the main lines which I believe has made all checkout faster, at least at my Costco. As with all retailers offering self checkout, Costco should exercise care to ensure it meets the needs of its customers profitably. Keep at it but keep it – don’t give up on it!
This is truly a hybrid situation. Self-checkout with at least one associate present (required). Large/heavy items too heavy for the flatbed scanners. People who take advantage by sharing membership cards (think fingerprint recognition). Sequences that cause errors and delays. All options have to be tested and the best of them, implemented. Overall, Costco does well. I am going tomorrow to experience it again, personally.
I agree that the checkout process at Costco works well — both regular and self-checkout — if the goal is to move customers with carts full of bulky items through the lines efficiently. Because of the nature of what Costco sells, you can’t really compare it to self-checkout at a Kroger or Target store (and both of those examples also have associates stationed at the self-checkout lanes). While Costco continues to refine its self-checkout practices, it shouldn’t overreact to complaints on social media, which tend to come from a vocal minority.
COSTCO is trying to fix its Disney park-length lines at checkout, but seems to need some Imagineers to help it. The benefits of self-checkout (SCO) for a retailer are many, but increased theft is a legitimate concern.
COSTCO has never fully trusted its members/customers, as they’ve always had staff checking your cart contents against your receipt. They’re showing even less trust with their “self-checkout” routine, and it is clearly upsetting some members. Now, most retailers using SCO have store associates serving as both a process enabler and a theft deterrent, but some customers feel like COSTCO is crossing some line.
Meanwhile, the customer feedback points to non-uniform implementations and workarounds. It’s definitely time to address this situation, especially if Sam’s Club and others seem to be getting it right. RFID would help to a certain extent, but not with food items. This is complex, and they will have to get the process and balance right to reap the ROI potential of SCO.
The one thing that remains consistent at Costco is their friendly staff. And great prices of course.
Costco is not over-complicating self-checkout at all. Having extra eyes is a helpful strategy to reduce theft and in most cases, customers are fine with the friendly staff.
I experienced the self-checkout a few days ago and the customer experience was great. The staff were helpful and all smiles. Customers around me didn’t seem annoyed and the process was smooth and not invasive at all.
Social media is exaggerating the experience and wannabe influencers are just finding ways to increase followers by complaining. I don’t buy it.
For the retailer, self-checkout reduces labor. For the customer, it is about speed and avoiding interaction with staff. It seems Costco is going in the exact wrong direction.
Self-checkout will be a bumpy road for the next few years, but the benefits for both the retailer and the customer are too big to ignore. In ten years, self-checkout may not even be an issue as all retailers will have grab-and-go technology.
Costco is the Disneyland of Retail crowd management. The front end is all about throughput and speed. I think the hybrid mode does a great job on both counts. Who can object to someone helpfully scanning those big heavy items in the cart.
Given Costco’s extremely slim margins and the current environment of retail theft, I cannot fault them for experimenting with the optimal way of implementing self checkout. At the grocery store, I find it to be more trouble than it’s worth. At Home Depot, it’s a breeze because there is always an associate handy to lend a hand. They are clearly watching and monitoring, but I have always found them to be courteous and helpful. I have to believe that’s the mix Costco is going for.
My experience with the “self” checkout process has been great. When I’m assisted, it speeds up my time in the warehouse. I wasn’t expecting to be helped the first time. But I now depend on it. And one day when the attendant had to start all over again, I didn’t mind. He wanted to be accurate and I support that. At first, I didn’t understand why there would be attendants at all the self-check-out kiosks, but I don’t think about it anymore…until today.
Working out the kinks? You would think they would have done so before rolling out the new enhanced service. If you self checkout you aren’t being asked to upgrade your membership. Getting “sold” while making a purchase and being exhausted as you deal with the warehouse shopping experience the majority of shoppers just want to get in and get out fast. Unless of course you are headed to the food court for boiled hot dogs or skinny pizza!
I was in Costco this weekend and found self-checkout to be fast and efficient. There were two associates on hand to assist and once of them scanned a big pack of water so we did not need to remove it from the cart – which is just find by me! They do seem to be sharper on checking membership cards these days, but I suspect that’s to ensure the person using the card is the actual owner rather than someone just sharing the card.
The last two times I shopped at Costco, I needed help with the self-checkout. My card wasn’t accepted. In came one of their associates to get taken care of as quickly as possible. Having a human backup in the self-service lines is important. And I love that it was quick. I didn’t have to wait for more than a minute. If that also helps deter theft, I’m okay with that. Ultimately, Costco’s goal is to give its members the best experience possible.
As a regular Costco shopper I use self checkout every visit. I find it considerably faster & more convenient than regular checkout. Checking membership cards is not a problem. I think these concerns are much ado about nothing.
This is just a personal opinion, no backup research.
I normally hate self-checkout, but I also hate long checkout lines.
Yes, I often find long lines at self-checkout at Costco, but I am amazed at how fast they move because of the associates there to move the long along and help the customers.
First Rule of critiquing Costco: Costco doesn’t make mistakes.
Second rule: if you want to question the first rule, then do so thoughtfully: “some Reddit commentators” is hardly any kind of meaningful survey. It may or may not be an ideal system – there’s zero comment offered here from Costco – but I’m confident they’ll work out any bugs (with or without RW’s help).
Costco is obviously still in the early stages of working out self-checkout. Self-checkout has two primary objectives, to speed the transaction and to reduce labor costs at the retailer. It appears that Costco’s focus is on the former, rather than the latter, which is admirable. Faster, checkout reduces friction, and should in the long term increase frequency among customers who shop at the busiest times and are often forced to wait in very long lines for checkout. It is unclear what the abandonment rate is for Costco; rather, improving the speed of checkout, should in the long term increase frequency by reducing friction
Costco’s use of hybrid and self-service checkout kiosks should be viewed less as labor reduction, rather as a tool for store associates to support multiple customers simultaneously. The self-check-out allows stores to combat traffic spikes and service more customers during busy times. There’s no need for a cashier at every register, one employee can easily monitor 6-10 self-service registers.
Generally speaking, the customer experience at Costco is good, the associates are helpful and all smiling. The checking of membership cards, the checking of the receipts at the door before customer leave, is really about maintaining member exclusivity, and minimize shrink. Let’s not forget that high shrink & store theft is a concern with all retailers are dealing with.
Redditors are about as correct about Costco self-checkout as they were about Gamestop. Costco has the best checkout in the retail business. I shop there regularly and marvel at their efficiency, which is measured in short times waiting in line and speed through checkout. Analysis of numerous labor and productivity metrics go into Costco’s mastery of the checkout process and now that they are adding a focus on shrink/theft I am sure they will use every tool at their disposal intend to maintain their superiority.
Costco continues to balance the fine lines of being customer friendly, helpful, while also ensuring their checkout processes help maintain profits. I’d bet recent complaints are relatively small as a percentage of the whole customer base.
I applaud the service team helping customers by manually scanning items in the cart. There are too many steps otherwise – first remove items from cart, then scan items, then place items on sensitive scale, then put items back in cart. Any opportunities to save time, hassles here should be welcomed.
As someone who has competed against Costco for most of my professional career, they have earned my respect as a competitor more times than I can count.
That said, I’m likely to give them the benefit of the doubt on their approach to self-checkout. Walmart and other retailers have faced a fair amount of criticism about self-checkout, and Costco could be seeking to prevent that same criticism from extending to them by continuing to monitor member satisfaction with those transactions.
This also spotlights one area where Sam’s Club surpasses Costco, in the use of their “Scan and Go” technology that allows a member to scan purchases on their mobile app while shopping, and bypass the checkout process completely. The purchase is verified by the Exit Greeter on the way out and has been an excellent shopping enhancement in the eyes of their members.
Having associates available to assist shoppers at self-checkout makes perfect sense – there’s nothing more frustrating than waiting (or being in line behind someone’s that is waiting) for associate support.
Costco always recommends keeping smaller things at the register and heavier commodities in the cart itself. Regardless of how long the checkout queue is, associates will scan them for you. Loyal customers also help in speeding up the checkout process by placing the product’s barcode on top, so that employees can swiftly scan it. Furthermore, Costco’s process of cross-verifying the receipt for purchased items at the gate actually helps the customers. In one instance, I purchased an item but forgot to pick it up, and the associate at the gate reminded me of it after checking the receipt.
I have no second thoughts that in ninety percent of cases, the process is as effortless as described in the last paragraph of this article. I’ve been a regular customer of Costco and genuinely believe that they are an outstanding place with amazing staff. In fact, the cashback received on Costco membership exceeds the cost of membership. An obstacle for Costco is that multiple people can take advantage of the purchasing perks on a single membership card, which means Costco is bound to keep an eye on such activities. If a customer’s intention is to fool the system, they will naturally have a lot to say about Costco’s self-checkout procedure.
I have been a Costco member for 25 years and I am not surprised by the latest round of aggressive membership checking. They show that they do not trust any of their members equally. I’m not a member because of their service. I am a member for their prices.