Dive Brief:
- Costco’s scan-and-go pilot is improving checkout speed by up to 20% at locations that have adopted the technology, executives said on a Q1 2026 earnings call last week.
- The addition of membership card scanners at warehouse entrances is working alongside scan-and-go to improve the shopper experience as well as store productivity, according to President and CEO Ron Vachris.
- “This isn't about technology for technology's sake,” Vachris said on the earnings call. “It's about using technology to strengthen the fundamentals that make Costco who we are: increasing member loyalty, driving top line sales, and improving efficiency in our operations so that we can bring goods to market at the lowest possible price.”
Dive Insight:
Costco is working to sharpen its digital experience alongside store improvements.
“Our digital vision at Costco is to deliver a seamless experience that builds trust and loyalty with our members, both in-warehouse and online,” Vachris said.
The warehouse club retailer updated its digital personalization capabilities to provide more relevant product recommendations based on recent search history, Vachris said. While he didn’t provide exact numbers, he noted that “the sales lift from this enhancement has been very positive.”
Costco’s website traffic was up 24% during the first quarter, while app traffic was up 48%, according to EVP and CFO Gary Millerchip. The growth coincides with investments designed to make the digital experience more relevant for the warehouse club’s customers.
Not all of Costco’s CX updates are tech-based.
In June, the company announced it would start opening stores one hour early daily and staying open one hour later on Saturdays for customers with higher-tier executive memberships. The hours took effect at all stores following Labor Day weekend.
The change reduced crowds by spreading customer traffic out, according to Millerchip. Only executive members have access during the additional hours, but all members benefit from the reduced crowds.
Costco's U.S. comparable sales rose 5.9% year over year during the first quarter of 2026, according to an earnings report. Net sales rose 8.2% year over year to $65.98 billion.
