BJ's Wholesale is being sued by Walmart for allegedly stealing self-checkout technology.

• On Tuesday, a lawsuit was filed accusing BJ's Wholesale Club of stealing technology used in the popular self-checkout feature of the Sam's Club mobile app, which is owned by Walmart and its big-box warehouse subsidiary.
• In the lawsuit, Sam's Club accuses BJ's of launching a self-checkout feature in its mobile app that is almost identical to Walmart's Scan & Go.
• The popularity of Scan & Go has increased since the start of the Covid-19 pandemic in the U.S. in early 2020 due to the adoption of social distancing and contactless checkout by shoppers.

Sam's Club, a big-box warehouse subsidiary, accused a rival retailer in a lawsuit filed Tuesday of stealing technology that powers a popular self-checkout option in the Sam's Club mobile app.

In federal court, a suit has been filed against Walmart, alleging that the company spent years developing Scan & Go, a feature that enables Sam's Club customers to scan and pay for their purchases using their smartphones as they walk through the store, thereby eliminating the need for a checkout line.

Since its debut in 2016, Walmart has held multiple patents for its self-checkout feature, which has become increasingly popular since the Covid-19 pandemic began in the U.S. in early 2020, as shoppers have adopted social distancing and contactless checkout.

BJ's is accused by Walmart of launching its contactless payment system, ExpressPay, without permission and using Walmart's innovations.

The lawsuit alleges that Express Pay is a replica of Sam's Club's Scan & Go, with only minor changes in the app's colors and name.

The suit alleges that BJ's has violated Walmart's patent rights, resulting in substantial damages and irreparable harm.

In Orlando, Florida, a lawsuit was filed in a U.S. District Court. Neither Walmart nor BJ's commented on the suit, which was initially reported by Bloomberg Law.

As sales of warehouse clubs such as Sam's Club, BJ's, and others have increased during the Covid pandemic, Americans have been stockpiling large quantities of toilet paper and food, cooking more at home, and moving to homes with larger pantries, resulting in a legal action.

Walmart's tech incubator, Sam's Club, has leveraged technology as a competitive edge against other retailers. In its first-ever Super Bowl ad, the company showcased Scan & Go and featured comedian and actor Kevin Hart.

Walmart+, a subscription-based service launched by Walmart to enhance customer loyalty and compete with Prime, now offers Scan & Go as a benefit for shoppers who sign up.

In the fourth quarter, Sam's Club's membership reached a record high, despite the company not disclosing customer data, like Walmart does.

In the fourth quarter of 2021, Sam's Club's same-store sales increased by 10.4% compared to the previous year, excluding fuel.

During the same period, Walmart's U.S. same-store sales growth rate was significantly lower than that of the other company.