Sam's Club change fixes a Costco customer pain point

Walmart's Sam's Club uses the same business model as Costco. Both retailers charge a membership fee in exchange for access to its no-frills warehouses which offer low-cost household goods, groceries, clothes, and various other items.

In both cases, the companies are offering very low prices in exchange for limited selection. You won't see ketchup sold in seven different sizes at either chain. In fact, you may have to buy two large bottles because that was the lowest per-ounce price the retailers could negotiate.  

Related: Dollar General and Walmart try new ways to fight retail theft

Value has always been key for both Sam's Club and Costco (COST) - Get Free Report. Both chains have worked to protect their value proposition and that means making sure customers don't steal.

That's not an easy task for companies trying to build a relationship with members. One aspect of keeping theft down, checking receipts when people leave, has struck many members of both chains as invasive and showing a lack of trust.

In many ways, it would be like Olive Garden using its old "when you're here, your family" tagline and then frisking customers as they leave because they don't trust their family to not steal silverware. Sure, you're a member at Costco or Sam's Club, but just because we let you into the club doesn't mean we aren't watching every move you make.

Most members don't like having to stop, show their receipt, and then let someone look through their cart. It's both insulting and inconvenient, and Sam's Club now has a way to make it a thing of the past without compromising on protecting itself from theft.

Yes, Sam's Club and Costco can check your receipt

Costco has been very upfront about its policy when it comes to checking receipts.

"It is standard practice at all our warehouse locations to verify purchase receipts when customers exit our buildings. We do this to double-check that the items purchased have been correctly processed by our cashiers. It’s our most effective method of maintaining accuracy in inventory control, and it’s also a good way to ensure that our members have been charged properly for their purchases," the company shared on its website.

Sam's Club has similar language on its website.

"To ensure that you are charged correctly for the merchandise you have selected, Sam's Club may inspect or electronically scan your merchandise and electronic/phone or paper copy receipt(s) when you exit any Sam's Club location," the retailer shares in its terms and conditions of membership.

When you sign up for a membership at either chain you explicitly agree to allow these checks. Few people read that fine print, but that does not make it any less binding.

Sam's Club has new checkout technology

The receipt check causes two issues for Costco and Sam's Club members. First, it's an invasive sign that neither chain trusts its customers. Second, it can cause a delay in leaving the store as the people checking receipt can get backed up.

Sam's Club has a technology solution that should eliminate those backups which it showed off in Las Vegas at the CES show.

"The new tech announced at CES will deliver new levels of convenience by leveraging a first-of-its-kind application of artificial intelligence (AI) and computer vision technology to eliminate queuing at the club’s exit area," the company shared in a press release. 

Sam's Club has also tested the new technology at 10 of its warehouse locations.