Because self-checkout options promise to increase the efficiency of a shopping trip, their introduction has been most prominent in retail locations that encourage quick trips, like convenience stores. But few people visit Sam’s Club with the belief that they are going to get in and out quickly. So what is prompting the warehouse club to experiment with cashierless stores?

In the pilot store, planned to open in the Dallas area soon, members will be able to use a dedicated app to scan purchases as they shop. When they exit the store, the surveillance archways will perform automatic cross-checks of the contents of the carts. Some employees will still be standing nearby, to assist with any queries, but as long as shoppers don’t have any issues, the process will be completely free of interactions with employees.

Perhaps that promise is driving the experiment; some consumers simply prefer not to make small talk when they shop. But in addition, by eliminating staffed checkout counters, the revised store design promises to free up substantial space, meaning that Sam’s Club could strategically rethink the entire layout of its warehouses. Newly available space near the doors promises approximately four times as much room for staffers to prepare and hold curbside or delivery orders. Furthermore, it can be used to offer physical displays of really compelling products that consumers must order online, but which they might want to check out in person first, like Christmas trees or diamond earrings.

Even if some people hate talking to clerks in stores, others enjoy it. That is, a completely cashierless experience is not for everyone. Sam’s Club’s internal data show that 30 percent of its customers already use its app regularly. Implementing the new checkout technology would force the remaining 70 percent of its customer base to adapt or else look elsewhere. Such considerations are likely to be especially worrisome for elderly or tech-resistant buyers.

In acknowledging such risks, Sam’s Club’s leaders also note that, for now, the test is just that—an experiment in one store to see how well the alternative store design works. Nor are they focused solely on profitability. By devoting resources to testing the new concept, these executives can learn how flexible Sam’s Club shoppers are willing to be. Using the data they gather, the company can adjust the design or devise iterations, such that perhaps stores could offer shoppers a choice of relying on the cashierless technology or else checking out with a few remaining cashiers.

In this sense, Sam’s Club is making clear plans for its future. The strategic experiments look not one or two years ahead but decades in advance, testing ideas that could be ready for widespread execution in 2045.

Discussion Questions

1. What are the advantages and disadvantages of a cashierless shopping model, for consumers and retailers?
2. What other layout changes might Sam’s Club make, in conjunction with the cashierless shopping process?

Sources: Ben Tobin, “Sam’s Club Set to Open a Cashier-Less Store in Texas,” USA Today, October 29, 2018; Chris Walton, “Why Sam’s Club’s New Cashierless Store Is Retail Innovation at Its Finest,” Forbes, October 9, 2024; Melissa Repko, “Walmart-Owned Sam’s Club Tests a Future Without Checkout Lines,” NBC News, October 7, 2024