A forthcoming change in the checkout process at Sam’s Club stores is set to revolutionize the shopping experience, with the aim of reducing wait times for customers, as confirmed by the CEO of its parent company, Walmart.
Sam’s Club, a membership-based warehouse store akin to Costco in the Walmart family, is introducing a new system that allows shoppers to scan and pay for their groceries using an app on their smartphones, enabling them to simply walk out of the store without needing to queue at a traditional checkout counter. Doug McMillon, Walmart’s CEO, announced this development during an earnings call, highlighting the introduction of new exit technology at Sam’s Club locations across the United States.
This innovative system involves an airport-style scanner equipped with AI cameras positioned at the store’s exit. These cameras analyze the items in customers’ carts to ensure that everything has been properly scanned and paid for using the mobile app. Consequently, there’s no need for employees to manually check receipts, streamlining the checkout process and allowing members to exit the store swiftly.
The implementation of this technology addresses a common frustration among Sam’s Club members – congested exits during peak hours. By enabling customers to complete their transactions seamlessly and exit without delay, the new system aims to enhance overall satisfaction and convenience.
Currently undergoing trials at ten Sam’s Club locations in the US, the scan-and-go system is slated for deployment in all 600 stores by the end of 2024. While its potential adoption in Walmart stores remains uncertain, this development underscores Walmart’s commitment to leveraging technology to improve the shopping experience for its customers.
Sam’s Club, a membership-only warehouse chain offering bulk groceries, electronics, and home goods, competes directly with Costco. With annual membership fees starting at $50, Sam’s Club provides a cost-effective alternative to its rival, offering similar products and services.
The introduction of the new checkout technology builds upon Sam’s Club’s existing Scan & Go system, which allows shoppers to scan items as they shop, add them to their carts, and pay via the mobile app. While this system already bypasses traditional checkout lines, customers are still required to present their digital receipts to staff before exiting. The new AI-powered technology eliminates this step, further streamlining the process.
Sam’s Club’s initiative marks a significant advancement in retail technology, with the company becoming the first to deploy such a system at scale. This move follows in the footsteps of Amazon, which introduced its Amazon Go stores in 2020, allowing customers to exit without traditional checkout procedures.
Despite these advancements, Walmart faced challenges in its store operations, leading to the closure of 23 stores in 2023, eight of which were in Illinois. However, Walmart remains focused on expansion, with plans to open over 150 new stores in the coming years.
The closure of underperforming stores underscores the competitive landscape in the retail industry, where companies like Costco and Sam’s Club continue to vie for market share. Founded in response to Costco’s success, Sam’s Club has emerged as a formidable competitor, leveraging technology to enhance the shopping experience for its members.
In conclusion, Sam’s Club’s introduction of innovative checkout technology reflects Walmart’s ongoing commitment to innovation and customer satisfaction. By streamlining the checkout process and reducing wait times, the new system promises to enhance the overall shopping experience for Sam’s Club members, setting a new standard for convenience in retail.
