Costco borrows tech upgrade from competitor to boost member experience

Costco has made several changes to enhance the shopper experience, its CEO said during an earnings call last month. 

The big-box retailer has streamlined the checkout process to make it fast and more efficient, meaning shoppers are in and out of stores faster, freeing up parking spaces for others, TheStreet reported. 

"In the warehouse implementation of scanning memberships at entry, the Costco Digital Wallet and pre-scanning small- to medium-sized baskets is leading to better member experience and improved productivity," CEO Ron Vachris shared during the chain’s first-quarter earnings call.

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"We aim to make the shopping at Costco easier, faster and more personal, no matter where or how our members choose to shop," he added. "This isn't about technology for technology's sake. It's about using technology to strengthen the fundamentals that make Costco who we are."

The company also added warehouses to its portfolio, Varchris said. 

"We’ve been about 50-50, half of the expansion in the U.S. and half outside of the U.S. And now we’re seeing even more opportunities in Canada and North America and Mexico. So, a good balance, about half of the 30 should be outside the U.S. we see in the next five years," Vachris shared.

He said the company usually does about five or six warehouse relocations annually. 

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"When we do these, we normally are moving from a building that is underserving the market and goes into a larger facility, better parking," he said. 

He added that Costco sees "50%, 60% increases when you add a gas station and really add a lot of parking to a 20% uplift to a building that had everything [and] just got into a better facility."

The company is continually investing in its warehouse stores, Vachris said.

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"We are continuously investing in our current warehouses, too, to make sure that we’re updating the fresh foods areas. We’re bringing the new ancillary businesses in there. So, it’s a process we go through every year of planning ahead, and we look out several years and a good combination of all three — new locations, relocation and taking care of the existing buildings that we’re doing business in as well," he said.