The Reason Your Receipt Gets Checked At Costco

Most people intrinsically know Costco operates a little differently than other retailers. One of the first — and most obvious — indicators is that you need a special membership card to shop at one of the 839 warehouse locations (via Costco Wholesale). The no-frills superstore has nearly 118 million cardholders worldwide who, according to the wholesale giant, pay $60 to $120 dollars annually to prove their loyalty.

Access to 54-count chip boxes, large-scale electronics, and even wedding registries are just a few of Costco's unique offerings. Let's not forget the iconic food court either. CNN claims the Costco food court has been a staple for cardholders since the 1980s, with the alluring $1.50 hot dog-and-drink combo showcasing the mainstay's cost-effectiveness for over three decades.

Hot dogs aside, Costco also has a surprising number of long-term employees. Costco CEO Craig Jelinek told Yahoo that over 12,000 employees have worked for the company for more than 25 years. CNN also revealed the retailer increased the minimum wage in 2021 to $17 per hour. The wholesaler has dedicated employees, cheap on-the-go food options, and a select assortment of in-house Kirkland brand products, accessible only with a membership card. With all the unique differences between Costco and a standard supermarket, some wholesale shoppers may be put off by the receipt scanning that always takes place at Costco exits. Employees tend to mark the receipts after checking purchased items and shopping carts. What's behind this unique policy?

According to the Costco website, checking receipts is a required practice in all warehouse locations to verify purchases and look for any mischarges. Scanning receipts also helps the wholesaler manage inventory. Insider was able to get the skinny from Costco employees on the details behind these receipt scans and uncovered some interesting facts you probably didn't know.

While there are specific shopping tricks when it comes to getting the best deals at Costco, the truth remains that Costco employees are used to full shopping carts. The average shopper spends at least $100 dollars for every Costco trip (per The Ascent). Employees double-check the item count listed on the receipt to make sure it matches the number of items scanned in respective carts. There's also a code at the top of every Costco receipt that changes daily, so employees can't be fooled by past receipts.

Additionally, employees revealed to Insider that they scan receipts for supervisor verification on big-ticket items as well as properly scanned bulkier items. While the receipt scan may be a unique experience if you're not accustomed to the ins and outs of Costco, the company stands firm behind the practice since it helps achieve low shrinkage numbers compared to other major retailers.

The reason behind Costco's low shrinkage has — in large part — to do with the company's policies which include the unique practice of checking receipts. According to a 2018 survey conducted by the National Retail Federation, U.S.-based shops faced an average shrink rate of 1.33%. In 2021, Costco's Chief Financial Officer Chris Galanti told Barron's that Costco's average shrink rate was a mere 0.12%. The low statistic, according to Galanti, is due in part to Costco's exclusive membership model. Other contributors include Costco's loyal employees and the simple fact that stealing bulk items poses difficulty for those trying to sneak by unnoticed.

In the brand's 2021 annual report, Costco attributed its low shrink rate to its members-only method and the retailer's strategic layout of only one controlled entrance and exit at every location. Costco stores may have their own way of operating, but the superstore's retail sales were up more than 17% in 2021 and seem to increase with every year. While you may roll your eyes as you stand in that long line waiting for verification on your latest grocery haul, just know it's part of Costco's commitment to providing a safe and fulfilling shopping experience to its dedicated members.