In a bold move that could reshape warehouse retail, Sam’s Club, the membership-only chain owned by Walmart Inc., has begun phasing out traditional cash registers and self-checkout kiosks in select stores, opting instead for an AI-driven “frictionless” exit system. According to a recent report in the Daily Mail, this transformation involves installing large archway portals equipped with cameras and sensors that automatically scan entire carts as shoppers walk through, charging their linked payment methods without stopping. The initiative, piloted in a Dallas-area store, has already shown promising results, with exit times reduced by nearly 25% and positive feedback from members who describe it as a “game-changer” for convenience.

This shift comes amid growing frustrations with self-checkout technology across the industry, where theft, technical glitches, and long lines have prompted retailers to rethink their strategies. Sam’s Club’s approach builds on its existing Scan & Go app, which allows users to scan items via smartphone while shopping, but the new portals eliminate the need for any manual verification at the door. Early adopters report seamless experiences, though some express privacy concerns over the extensive use of AI surveillance.

The Push Toward AI-Driven Efficiency

Industry insiders view this as Sam’s Club’s attempt to outpace rivals like Costco, which has historically resisted rapid tech adoption in favor of human-staffed checkouts. A May 2025 article in Fortune highlighted how Costco finally introduced its own “Scan & Pay” feature, inspired by Sam’s Club’s decade-old Scan & Go system, to address member complaints about checkout delays. However, Sam’s Club is going further by removing all traditional lanes, aiming for a fully automated exit that could handle high-volume warehouse environments more effectively.

Data from the pilot suggests not just faster exits but also reduced shrinkage—retail speak for losses from theft or errors. Walmart executives, speaking at a recent investor conference, emphasized that the technology uses advanced computer vision to detect unpaid items with over 95% accuracy, potentially saving millions in operational costs annually. Yet, this innovation isn’t without challenges; labor unions have raised questions about job impacts on cashiers, though Sam’s Club claims the change reallocates staff to customer service roles.

Competitive Pressures and Consumer Reactions

The transformation aligns with broader retail trends, where competitors like Amazon’s cashierless stores have set new benchmarks for speed. Posts on X (formerly Twitter) from shoppers and analysts reflect mixed sentiments: some praise the efficiency, with one user noting how it “eliminates the dreaded line wait,” while others worry about glitches in crowded scenarios. A June 2025 piece in The US Sun detailed Costco’s rollout of similar app-based scanning to bypass lines, but Sam’s Club’s portal system appears more ambitious, targeting a complete overhaul by 2026 in up to 600 locations.

Critics argue that such tech-heavy solutions could alienate older demographics less comfortable with apps and AI. Nonetheless, internal surveys cited in the Daily Mail report show 80% of pilot participants preferring the new system, citing time savings as a key factor in membership renewal.

Implications for Warehouse Retail’s Future

Looking ahead, this could pressure Costco to accelerate its innovations, especially as membership fees rise and competition intensifies. A RetailWire analysis from June 2025, available at RetailWire, notes that Costco is testing similar tech in 27 stores, focusing on mobile self-ringing to maintain its no-frills ethos. Industry experts predict that if Sam’s Club’s model succeeds, it might inspire a wave of AI integrations across big-box retailers, balancing efficiency with the human touch that defines warehouse shopping.

For now, Sam’s Club’s experiment underscores a pivotal shift: from self-service kiosks to invisible, intelligent systems that promise to redefine the checkout experience. As one X post from a retail consultant put it, “This isn’t just about speed—it’s about reimagining the store as a seamless extension of digital life.” With early metrics showing reduced wait times and boosted satisfaction, the transformation may well set the standard for how bulk retailers operate in an increasingly impatient world.