Sam’s Club tests a checkout-less future as retailers tweak their scanning strategies

BYO conveyor belt… Walmart’s Sam’s Club hopes its latest test will chip into Costco’s market dominance. This month the membership-only warehouse club is opening its first checkout-free location. Customers at a Dallas-area Sam’s Club will have to make purchases by scanning products in an app, which the company says could become the norm at its 600 US locations. For Walmart, it’s meant to win over Costco customers (two years ago, it undercut the retailer’s famous $1.50-hot-dog deal by 12 cents).

• Bulk tech: Sam’s Club recently rolled out a techy exit archway that automatically audits shoppers’ carts, eliminating employee checks. One in three of its members uses scan-and-go tech.

• Warehouse rivalry: Sam’s Club has about the same # of US stores as Costco, but pulls in half its annual revenue ($86B vs $177B). This year it revamped its Kirkland-esque private label (aka Member’s Mark) and said it planned to open more locations.

Checking in and out… Retailers can’t stop futzing with checkout. As self-checkouts’ outsized role in theft became clear, retailers have reversed course on DIY lane investments. Dollar General eliminated the tech at 12K stores this year, joining retailers including Five Below, Target, and Walmart. Amazon ditched “Just Walk Out” tech in its grocery stores this year, and the company closed more of its checkout-free Go convenience stores. Amazon once planned to open thousands of Just Walk Out stores but now has only 17 in the US.