STORES Magazine - June 2010 - (Page 22) EXECUTIVE SUITE / SELF-SERVE RETAIL Dispensing with Limitations Retailers, manufacturers taking vending to new levels – and locations BY DAVID P. SCHULZ all them automated retail stores or product dispensing centers, but please don’t call them vending machines. This latest generation of self-contained selling is popping up all over the retail landscape, stationed inside stores to vend high-ticket, security-intensive items like personal electronics or occupying off-site locations to extend branding and take advantage of the reduced labor costs, a small real estate footprint and 24/7 operating capability. C Global Industry Analysts of San Jose, Calif., predicts vending networks will be a $1.2 billion industry within five years; Boston-based Aberdeen Group says 36 percent of retailers it recently surveyed plan to use varied self-service tools and systems within the next 12 months. Michael L. Kasavana uses the term “v-commerce” to describe this latest iteration of product vending. Kasavana, the National Automatic Merchandising Association endowed professor at Michigan State University’s School of Hospitality Business, says the marriage of vending machines and bricks-and-mortar retailing could work well “as non-traditional product purchases at higher vend prices tend to resonate more reliably and securely with consumers when they have an actual business to contact for reconciliation or remediation of a problem.” Those who continue to equate vending machines with snacks, beverages, inexpensive toys and plush items have long held there was a ceiling holding down what consumers would electronics that are difficult to secure on spend in an automated environment, but shelves or in merchandise displays. The Vending networks will be a “early speculation that price would be the pilot project included approximately 35 barrier has proven only half true,” says Sam’s Clubs that had been remodeled to Ben Ball, a consumer product and cusaccommodate the product dispensing industry within five years. tomer development senior vice president centers. with consultant Dechert-Hampe. “ConMacy’s beat Wal-Mart to the punch two sumers comfortable with buying an iPod years ago when it partnered with Zoomwithout assistance are just as happy to give their $50 for a 1GB Systems to install vending machines in some 400 department Nano to a vending machine as they are to Wal-Mart.” stores. Labeled “eSpot” while also carrying the Macy’s logo, The real barrier, Ball says, appears to be “high-touch catethe “automated shops” have enabled the retailer to get back gories” — products that consumers prefer to handle and exinto the business of selling small consumer electronics — iPods, amine prior to purchase. Wal-Mart dipped its toe into autoGPS units, digital cameras, headphones — at prices up to mated retailing earlier this year with machines selling small $350. $1.2 billion 22 STORES / JUNE 2010 WWW.STORES.ORG http://WWW.STORES.ORG Table of Contents for the Digital Edition of STORES Magazine - June 2010 STORES Magazine - June 2010 Contents Editor’s Page President’s Page Trends Retail People CEO Pay Self-Serve Retail Smash and Grab Conference Preview Fraud Prevention Disaster Preparedness LP Newsbeat Concept2watch New Products Forecasting Supply Chain Online Marketing Information Technology Sustainability ARTS Update Point of View NRF News Retail Industry Calendar End Cap STORES Magazine - June 2010 http://www.nxtbook.com/nxtbooks/nrf/STORES2019_tuesday http://www.nxtbook.com/nxtbooks/nrf/STORES2019_monday http://www.nxtbook.com/nxtbooks/nrf/STORES2019_sunday http://www.nxtbook.com/nxtbooks/nrf/STORES2019_preview http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180116 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