Walmart sues BJ’s Wholesale claiming it stole self-checkout technology

Walmart sues BJ’s Wholesale claiming it stole self-checkout technology


Shoppers stock up on merchandise at a Sam’s Club store on January 12, 2018 in Streamwood, Illinois.

Scott Olson | Getty Images

Walmart and its big-box warehouse subsidiary Sam’s Club accused rival retailer BJ’s Wholesale Club in a lawsuit filed Tuesday of stealing technology that powers a popular self-checkout option in the Sam’s Club mobile app.

The suit, filed in federal court, claims Walmart worked for years to develop Scan & Go, a feature that lets Sam’s Club customers ring up purchases on their smartphones while walking through the store, allowing them to avoid a checkout line.

It also notes that Walmart holds multiple patents protecting the intellectual property for the self-checkout feature, which debuted in 2016. Scan & Go has become more popular since the Covid-19 pandemic began in the U.S. in early 2020 as shoppers adopted social distancing and contactless checkout.

Walmart alleges its “innovations were simply taken without permission” by BJ’s, which launched its contactless offering, ExpressPay, in late 2021.

“Express Pay is an apparent copy of Sam’s Club’s Scan & Go, merely changing the in-app colors and changing the name from Scan & Go to Express Pay,” the lawsuit says.

As a result, the suit claims, BJ’s has infringed on Walmart’s patent rights, causing “significant damages and irreparable harm.”

The lawsuit was filed in a U.S. District Court in Orlando, Florida. Walmart and BJ’s both declined to comment on the suit, which was first reported by Bloomberg Law.

The legal action comes as warehouse clubs such as Sam’s Club, BJ’s and Costco have seen sales surge during the Covid pandemic, with Americans stockpiling large quantities of toilet paper and food, cooking more at home, and moving to homes in the suburbs with larger pantries.

Sam’s Club, which has served as a tech incubator for Walmart, has looked to technology as a competitive advantage against other retailers. It touted Scan & Go last month in its first-ever Super Bowl ad, which featured comedian and actor Kevin Hart.

Scan & Go is now available at Walmart locations, as a perk for shoppers who sign up for Walmart+, a subscription-based service that Walmart launched to deepen customer loyalty and better compete with Amazon Prime.

Sam’s Club does not disclose customer data, but Walmart said the retailer’s membership hit a record high in the fourth quarter.

Same-store sales at Sam’s Club grew 10.4% in the fourth quarter of 2021, compared with the year-ago period, excluding fuel.

That rate was nearly double the sales growth of Walmart’s U.S. same-store sales during the same period.



Source

Starbucks doubles down on hospitality with ‘Green Apron Service’ strategy
Business

Starbucks doubles down on hospitality with ‘Green Apron Service’ strategy

As companies lean into value offerings and buzzy beverages to lure price-sensitive consumers, Starbucks is doubling down on its plans to get back to basics by leaning into hospitality at its cafes. The coffee giant aims to stand out on guest experience in a cutthroat consumer environment as it tries to boost lackluster sales. Last […]

Read More
Procter & Gamble beats estimates but warns tariffs will start to weigh on earnings
Business

Procter & Gamble beats estimates but warns tariffs will start to weigh on earnings

In this photo illustration, Procter and Gamble products Pepto Bismol and Charmin toilet paper are displayed on June 05, 2025 in San Anselmo, California. Justin Sullivan | Getty Images Procter & Gamble on Tuesday reported quarterly results that beat Wall Street’s expectations, but introduced fiscal year 2026 guidance that included a $1 billion hit due […]

Read More
Boeing reports results before the bell. Here’s what to expect
Business

Boeing reports results before the bell. Here’s what to expect

The nose cone of a Boeing 787 being displayed on the tarmac during the Paris Air Show at Le Bourget Airport, outside Paris, June 25, 2023. Nicolas Economou | Nurphoto | Getty Images Boeing is expected to report a smaller second-quarter loss when it reports its earnings Tuesday morning. Investors will also hear from CEO […]

Read More