Costco Door Scanning Rolling Out

[BillyGr]

I also wonder when we will start to see the foreign standard for credit cards arrive here, photos on the card. I used to work near the Port and would get many international credit cards. Most had photos on them, much higher quality than the ones from the 90s that don't seem to exist anymore. They usually had some engraving and microprinting of the photo similar to a drivers license. Of course these folks were always startled about having to swipe instead of use a chip. Photo technology similar to what Costco is using could be a great solution to reducing credit card fraud, but then it would likely require a whole new generation of credit card machines with operator screens that show the photo.

I remember my Mom having one of those cards with the photo on it years ago, and also remember how many places we went that employees were both surprised to see it (since I guess not too many cards ever did that), and also thought it was a great idea (this was before many spots had do-it-yourself cards, so the employee would swipe them through the register).

Certainly, even that would cut down a bit on issues, since even with the self-use terminals now at checkouts and such, it wouldn't be hard for the stores etc. to have cashiers ask customers to show them the card quickly to look at the photo, if they knew that was a common thing on cards.

[storewanderer]

I also wonder when we will start to see the foreign standard for credit cards arrive here, photos on the card. I used to work near the Port and would get many international credit cards. Most had photos on them, much higher quality than the ones from the 90s that don't seem to exist anymore. They usually had some engraving and microprinting of the photo similar to a drivers license. Of course these folks were always startled about having to swipe instead of use a chip. Photo technology similar to what Costco is using could be a great solution to reducing credit card fraud, but then it would likely require a whole new generation of credit card machines with operator screens that show the photo.

I remember my Mom having one of those cards with the photo on it years ago, and also remember how many places we went that employees were both surprised to see it (since I guess not too many cards ever did that), and also thought it was a great idea (this was before many spots had do-it-yourself cards, so the employee would swipe them through the register).

Certainly, even that would cut down a bit on issues, since even with the self-use terminals now at checkouts and such, it wouldn't be hard for the stores etc. to have cashiers ask customers to show them the card quickly to look at the photo, if they knew that was a common thing on cards.

The photo cards most common were from Bank of America, you could just take your card into a branch and they had the equipment to take your photo and get it onto a card. Some of the larger card issuers also offered this, I think Citi may have been one but only on certain cards, but maybe you had to mail them a Passport photo or something.

I never understood why the photo cards didn't "take off" better. My guess is the logistics of getting the photos onto the card cost more than the cost of whatever fraud they prevented. Since the fraud cost is on the card issuer and the card issuer is the one paying for the photo this is interesting.

Then there was another bank who let you make your own card with a photo of your choice in the card background. So you theoretically could have sent in a big photo of yourself and it would have been the photo on the entire card but that would have looked very funny.

[ClownLoach]

I also wonder when we will start to see the foreign standard for credit cards arrive here, photos on the card. I used to work near the Port and would get many international credit cards. Most had photos on them, much higher quality than the ones from the 90s that don't seem to exist anymore. They usually had some engraving and microprinting of the photo similar to a drivers license. Of course these folks were always startled about having to swipe instead of use a chip. Photo technology similar to what Costco is using could be a great solution to reducing credit card fraud, but then it would likely require a whole new generation of credit card machines with operator screens that show the photo.

I remember my Mom having one of those cards with the photo on it years ago, and also remember how many places we went that employees were both surprised to see it (since I guess not too many cards ever did that), and also thought it was a great idea (this was before many spots had do-it-yourself cards, so the employee would swipe them through the register).

Certainly, even that would cut down a bit on issues, since even with the self-use terminals now at checkouts and such, it wouldn't be hard for the stores etc. to have cashiers ask customers to show them the card quickly to look at the photo, if they knew that was a common thing on cards.

The photo cards most common were from Bank of America, you could just take your card into a branch and they had the equipment to take your photo and get it onto a card. Some of the larger card issuers also offered this, I think Citi may have been one but only on certain cards, but maybe you had to mail them a Passport photo or something.

I never understood why the photo cards didn't "take off" better. My guess is the logistics of getting the photos onto the card cost more than the cost of whatever fraud they prevented. Since the fraud cost is on the card issuer and the card issuer is the one paying for the photo this is interesting.

Then there was another bank who let you make your own card with a photo of your choice in the card background. So you theoretically could have sent in a big photo of yourself and it would have been the photo on the entire card but that would have looked very funny.

I'm talking primarily about World Mastercard, issued by foreign banks. They looked more like a drivers license on the back versus a credit card and had better security features.

The BofA and other photo cards were very low quality, low resolution, and easy to fake which doomed them.

[ClownLoach]

If I had to guess the real technological rush will be getting the self checkout register to show the pictures while the member is checking out so they can see if a non member managed to get in and borrow a card.

The best solution would be for Costco to follow the lead of other retailers and severely limit or scrap 'Self' checkouts. The entire system makes zero sense in the way it is configured and staffed, and checking cards at the door would only help in the slightest.

My location gave up card checking at the Self Checkout before the holidays, and everyone knows it (despite the next nearest Costco still checking all day, every day). I can't recall the exact numbers but it was quite high the amount of shrink (at least the stuff that isn't caught at the exit door) they believe is coming from SCO's (Then why do we still have them??)

Emphasis on "shrink they believe is coming from SCOs."

What makes them so sure the shrink is coming from SCOs?

Because shrink is higher overall than before they were installed?

Also why isn't it being caught at the door?

I think only the top 25% of their stores in volume should have self checkout. The rest don't need the additional register count on peak days, and they can pivot the staff back to the old process of Pre scanning orders with the scan guns.

In the top 25% Costco is basically staffing these as regular registers anyway, and all the others they don't seem to make a difference in cutting down lines as half the checkstands aren't even open.

They do not have the same motives as other retailers who need to shift checkout labor to the customer so they can use the labor for e-commerce like curbside pickup. They primarily implemented self checkout to reduce lines in these stores that physically couldn't fit more registers. Then they got carried away and added them to pretty much the entire chain. It's rather obvious what stores don't need them, it's the ones that only got 6 self checks. The ones with a dozen probably needed them all as they're doing over a million dollars a day on the weekends (yes, they are).

[storewanderer]

The best solution would be for Costco to follow the lead of other retailers and severely limit or scrap 'Self' checkouts. The entire system makes zero sense in the way it is configured and staffed, and checking cards at the door would only help in the slightest.

My location gave up card checking at the Self Checkout before the holidays, and everyone knows it (despite the next nearest Costco still checking all day, every day). I can't recall the exact numbers but it was quite high the amount of shrink (at least the stuff that isn't caught at the exit door) they believe is coming from SCO's (Then why do we still have them??)

Emphasis on "shrink they believe is coming from SCOs."

What makes them so sure the shrink is coming from SCOs?

Because shrink is higher overall than before they were installed?

Also why isn't it being caught at the door?

I think only the top 25% of their stores in volume should have self checkout. The rest don't need the additional register count on peak days, and they can pivot the staff back to the old process of Pre scanning orders with the scan guns.

In the top 25% Costco is basically staffing these as regular registers anyway, and all the others they don't seem to make a difference in cutting down lines as half the checkstands aren't even open.

They do not have the same motives as other retailers who need to shift checkout labor to the customer so they can use the labor for e-commerce like curbside pickup. They primarily implemented self checkout to reduce lines in these stores that physically couldn't fit more registers. Then they got carried away and added them to pretty much the entire chain. It's rather obvious what stores don't need them, it's the ones that only got 6 self checks. The ones with a dozen probably needed them all as they're doing over a million dollars a day on the weekends (yes, they are).

I think for Costco their front ends are so efficient the best thing they can do is keep people on regular registers and have both a cashier and a helper on each regular register to keep the lines moving. They are efficient enough I don't see how self checkout helps them. Plus way too many "loaded" carts at Costco.

They could have also done limited quantity transaction self checkouts. Like 5 item limit or something. Costco doesn't want to acknowledge people go in there and only buy a few items but actually there are people who do that... And any receipt from self checkout- 100% audit at exit door... doesn't take long to audit 5 items.

Sam's Club and self checkout- completely different topic. Sam's Club front end was never efficient, they never had a helper (just cashier) and never did a good job. Self checkout saved their front ends. Scan & Go revolutionized their entire payment/checkout experience. They don't have as many "loaded" carts either. Plus they have the technology at the exit to do the receipt audits efficiently. I keep falling into "if it works at Sam's why doesn't it work at Costco" but there are a lot of reasons why that is.

[ClownLoach]

Emphasis on "shrink they believe is coming from SCOs."

What makes them so sure the shrink is coming from SCOs?

Because shrink is higher overall than before they were installed?

Also why isn't it being caught at the door?

I think only the top 25% of their stores in volume should have self checkout. The rest don't need the additional register count on peak days, and they can pivot the staff back to the old process of Pre scanning orders with the scan guns.

In the top 25% Costco is basically staffing these as regular registers anyway, and all the others they don't seem to make a difference in cutting down lines as half the checkstands aren't even open.

They do not have the same motives as other retailers who need to shift checkout labor to the customer so they can use the labor for e-commerce like curbside pickup. They primarily implemented self checkout to reduce lines in these stores that physically couldn't fit more registers. Then they got carried away and added them to pretty much the entire chain. It's rather obvious what stores don't need them, it's the ones that only got 6 self checks. The ones with a dozen probably needed them all as they're doing over a million dollars a day on the weekends (yes, they are).

I think for Costco their front ends are so efficient the best thing they can do is keep people on regular registers and have both a cashier and a helper on each regular register to keep the lines moving. They are efficient enough I don't see how self checkout helps them. Plus way too many "loaded" carts at Costco.

They could have also done limited quantity transaction self checkouts. Like 5 item limit or something. Costco doesn't want to acknowledge people go in there and only buy a few items but actually there are people who do that... And any receipt from self checkout- 100% audit at exit door... doesn't take long to audit 5 items.

Sam's Club and self checkout- completely different topic. Sam's Club front end was never efficient, they never had a helper (just cashier) and never did a good job. Self checkout saved their front ends. Scan & Go revolutionized their entire payment/checkout experience. They don't have as many "loaded" carts either. Plus they have the technology at the exit to do the receipt audits efficiently. I keep falling into "if it works at Sam's why doesn't it work at Costco" but there are a lot of reasons why that is.

Sam's is satisfied with a couple million a week right now as they purged the stores that don't bring in that much in the 2010s. Costco is only satisfied when a store does two million per weekend. Sam's is a fully integrated e-commerce business. Costco is not.

Operationally those are two completely different businesses.

[Alpha8472]

Perhaps Costco should have express lanes with a 10 item limit and use a cash register without the bulky conveyor belt. This would fit more registers and eliminate the issue with the self checkout not being able to handle more than 5 items.

[ClownLoach]

Perhaps Costco should have express lanes with a 10 item limit and use a cash register without the bulky conveyor belt. This would fit more registers and eliminate the issue with the self checkout not being able to handle more than 5 items.

Costco was founded with no conveyor belts, and switched to them once they acquired Price Club. They used to do a straight cart swap. Actually, they also used to just have the helper read the SKU out loud to the cashier who used ten key to input it prior to the Price Club merger. So they must have learned belts are more efficient. Despite their large basket size, some of the cashier recognition boards at Costco are publicly visible and top gun cashiers exceed 60 transactions per minute, 40+ units scanned per minute. I've worked for retailers with much smaller basket size that can't get below two minutes a transaction.

The self checkout is a de facto express lane, but the real incentive for installation was to put 3 registers in the space of one. Thus the top volume stores removed one regular and added three self checkout which can double up as full serve which they do during peak weekend hours. Some stores gained 9 registers where no space existed for them and drastically reduced their lines.

[arizonaguy]

Perhaps Costco should have express lanes with a 10 item limit and use a cash register without the bulky conveyor belt. This would fit more registers and eliminate the issue with the self checkout not being able to handle more than 5 items.

Costco was founded with no conveyor belts, and switched to them once they acquired Price Club. They used to do a straight cart swap. Actually, they also used to just have the helper read the SKU out loud to the cashier who used ten key to input it prior to the Price Club merger. So they must have learned belts are more efficient. Despite their large basket size, some of the cashier recognition boards at Costco are publicly visible and top gun cashiers exceed 60 transactions per minute, 40+ units scanned per minute. I've worked for retailers with much smaller basket size that can't get below two minutes a transaction.

The self checkout is a de facto express lane, but the real incentive for installation was to put 3 registers in the space of one. Thus the top volume stores removed one regular and added three self checkout which can double up as full serve which they do during peak weekend hours. Some stores gained 9 registers where no space existed for them and drastically reduced their lines.

I recall prior to the installation of self checkouts (and potentially after, but I haven't witnessed it for a while) Costco frequently had a staff member with a hand scanner scanning my cart while I was in line for the cash register. By the time I got to the register I simply would show my Costco card and membership card, paid for my transaction, and was on my way. I don't know the limitations to this system but it seemed to work great. Then for about a year after the self checkouts were installed the employees were using those same hand scanners to hand scan baskets at the self checkout location. More recently, I've noticed that I need to do most of the scanning at those self checkouts.

I don't know why Costco opted for the supermarket style self checkouts without the scan gun. Even most supermarkets (Fry's, Safeway, Target, Walmart) have scan guns now but Costco doesn't. When employees are not scanning items self checkout is a royal pain taking bulky items out of the cart to put them on the scale / scanner.

[ClownLoach]

Perhaps Costco should have express lanes with a 10 item limit and use a cash register without the bulky conveyor belt. This would fit more registers and eliminate the issue with the self checkout not being able to handle more than 5 items.

Costco was founded with no conveyor belts, and switched to them once they acquired Price Club. They used to do a straight cart swap. Actually, they also used to just have the helper read the SKU out loud to the cashier who used ten key to input it prior to the Price Club merger. So they must have learned belts are more efficient. Despite their large basket size, some of the cashier recognition boards at Costco are publicly visible and top gun cashiers exceed 60 transactions per minute, 40+ units scanned per minute. I've worked for retailers with much smaller basket size that can't get below two minutes a transaction.

The self checkout is a de facto express lane, but the real incentive for installation was to put 3 registers in the space of one. Thus the top volume stores removed one regular and added three self checkout which can double up as full serve which they do during peak weekend hours. Some stores gained 9 registers where no space existed for them and drastically reduced their lines.

I recall prior to the installation of self checkouts (and potentially after, but I haven't witnessed it for a while) Costco frequently had a staff member with a hand scanner scanning my cart while I was in line for the cash register. By the time I got to the register I simply would show my Costco card and membership card, paid for my transaction, and was on my way. I don't know the limitations to this system but it seemed to work great. Then for about a year after the self checkouts were installed the employees were using those same hand scanners to hand scan baskets at the self checkout location. More recently, I've noticed that I need to do most of the scanning at those self checkouts.

I don't know why Costco opted for the supermarket style self checkouts without the scan gun. Even most supermarkets (Fry's, Safeway, Target, Walmart) have scan guns now but Costco doesn't. When employees are not scanning items self checkout is a royal pain taking bulky items out of the cart to put them on the scale / scanner.

Allegedly there was some sort of agreement made with the Union at the represented stores where only an employee can work a hand scanner. This was to prevent self checkouts from removing jobs. Since Costco likes to operate consistently they maintain the same rule at all stores.

Costco maintained they needed these self checks as additional registers but the Union did not trust them. (Note: despite popular belief, Costco is a fervently anti union employer and there are only a handful of Union represented employees, mostly converted Price Club stores. Less than 5% of Costco employees are in a Union, public perception is 100%)

The in-line scanning is with an industry standard RF unit that would never be used by customers as it's the touchscreen device that retailers maintain inventory counts and order with among other functions. They have usernames and login passwords. This "line busting" software is available for all retailers but I very seldom see it in use in the age of self checkout. Now these devices are primarily used to up sell executive membership as they can calculate how much the membership reward would be if the member upgraded.

The self checkout is a regular cordless scanner, they're just hidden behind the screen which acts as a cover instead of being available to a customer. Technically if a customer got their hands on it they could scan the barcode on top of the screen that pairs it with that register and use it for their transaction.

Another issue is theft, self checkout flatbed scanners tell the customer to move the item to the scale platform but the Costco software does not check the weight for anything scanned with the hand scanner. Therefore in theory it would be easier for a customer to scam the system with the hand scanner (ticket switching, fake UPC etc.) because the register would not weigh to verify the right item. So no hand scanners reduces theft at self checkout.