Walmart and Sam’s Club, the retailer’s big-box warehouse subsidiary, have accused rival retailer BJ’s Wholesale Club of stealing technology in a new lawsuit, CNBC wrote Wednesday (March 23).
The tech involves a popular self-checkout option in the Sam’s Club mobile app.
According to a lawsuit filed in federal court, Walmart worked for years to develop the feature, called Scan & Go, which lets Sam’s Club customers ring up purchases on their smartphones while walking through the store. Customers can then skip the checkout line, expediting their trip.
CNBC noted that Walmart has multiple patents which protect the intellectual property for the self-checkout feature from Scan & Go. The feature grew in popularity during the pandemic, with more customers embracing digital-driven shopping and retail experiences.
Walmart alleges that BJ’s stole its innovations “without permission” as it rolled out its ExpressPay option in late 2021. Additionally, the lawsuit says BJ’s infringed on Walmart’s patent rights and caused “significant damages and irreparable harm.”
This has come as warehouse clubs also saw their sales surge during the pandemic, as Americans stockpiled large amounts of goods and food amid uncertainty.
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Sam’s Club has been a tech incubator for Walmart and has looked at tech as a way to have an advantage over other retailers. Scan & Go was also featured in Sam’s Club’s first Super Bowl ad.
Last week, PYMNTS wrote that Walmart said it plans to hire 50,000 new workers in the U.S., adding to the 2.3 million Walmart and Sam’s Club associates within the company’s ranks.
Read more: Walmart Plans 50K Worker Hiring Spree as Commerce Giant Doubles Down on Tech
According to EVP, Chief Technology Officer and Chief Development Officer Suresh Kumar, the company is also adding tech hubs in Toronto and Atlanta.
“Today, Walmart Global Tech develops and manages the foundational technologies on which customer experiences are built, including cloud, data, enterprise architecture, DevOps, infrastructure and security,” he said, per the report.
