PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Sam’s Club’s Ambitious Plan to Forgo Checkout Lanes

By Tom Nawrocki
April 21, 2025
in Analysts Coverage, Merchant
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Frictionless Checkouts May Lead To Loss Prevention Challenges

Frictionless Checkouts May Lead To Loss Prevention Challenges

After a successful pilot at a store in Grapevine, TX, Sam’s Club will redesign all 600 of its locations to remove both self-serve and cashier checkouts, requiring customers to check out using its mobile app.

Traditional checkouts will be replaced by a system known as Scan & Go, which allows members to scan products with the store app and complete their purchases directly from their phones.

The Walmart-owned membership retailer has been steadily transitioning members to its app, moving away from physical membership cards. Stores have also been encouraging shoppers to start using the app as soon as they enter.

Checking Out with AI

This new update adds a layer of artificial intelligence (AI) to the checkout process. An AI scanner verifies the goods as customers leave, eliminating the need for receipt checks at the door. Since Sam’s Club operates under a subscription model, theft isn’t as much of a concern as it would be at a flagship Walmart store.

“When people pay to be members, they tend to view shopping there as a privilege, which they don’t want to lose by behaving badly,” said Don Apgar, Director of the Merchant Payments Practice at Javelin Strategy & Research. “Shrink is not likely to be as much of an issue as it would be in general retail.”

Losing Personnel

One long-term goal is to reduce head count, which could be a risky proposition. While customers are being pushed to rely on their own phones for checkout, stores will still need associates to ensure a friction-free experience.

“Stores that went to self-checkout and redeployed cashier staff to other areas of the store where they could assist customers saw favorable feedback from customers,” said Apgar. “Stores that simply reduced staff damaged their customer experience. In the past, customers have always known that if they can’t find someone to help them in the store, there is always somebody at the register.”

It also remains to be seen how reliable the technology will be. Amazon’s similar “Just Walk Out” technology, which claimed to be based on AI, turned out to rely on teams in India monitoring store cameras.

“Several stores, including Target, offer this tech now,” Apgar said. “The question is whether AI will reliably audit those exiting the store—without resulting in a horrible customer experience.”

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: AIAmazonCheckoutSams ClubSelf-Checkout

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    ai phishing

    The Fraud Epidemic Is Testing the Limits of Cybersecurity

    February 6, 2026
    stablecoins b2b payments

    Stablecoins and the Future of B2B Payments: Faster, Cheaper, Better

    February 5, 2026
    Payment Facilitator

    The Payment Facilitator Model as a Growth Strategy for ISVs

    February 4, 2026
    Simplifying Payment Processing? Payment Orchestration Can Help , multi-acquiring merchants

    Multi-Acquiring Is the New Standard—Are Merchants Ready?

    February 3, 2026
    ACH Network, credit-push fraud, ACH payments growth

    What’s Driving the Rapid Growth in ACH Payments

    February 2, 2026
    chatgpt payments

    How Merchants Should Navigate the Rise of Agentic AI

    January 30, 2026
    fraud passkey

    Why the Future of Financial Fraud Prevention Is Passwordless

    January 29, 2026
    payments AI

    When Can Payments Trust AI?

    January 28, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result