stales costs while minimizing out-
of-stocks and seeking ways to deliver
on customized foods. That last point,
customization or personalization, is
a critical purchase decision factor
among the shoppers we serve, espe-
cially Millennials, Gen X and Gen Y.
› What does this mean for us?
Convenience stores are ramping up
their foodservice programs — espe -
cially made-to-order sandwiches,
salads and more. This will be the
most demanding and potentially
proft-building (or maybe proft-
draining) menu issue in the next
fve years.
Delivery:
Here is something you're not think-
ing about as a competitive threat. It
is the "last mile" with a new ending.
You've seen the news stories about
drone delivery by Amazon (and other
companies). Maybe it will be drones.
Maybe not. It doesn't matter. What
they want to accomplish is same-day
delivery — probably in less than two
hours after the order is placed. People
at locations we serve will be able to
order beverages, snacks and possibly
fresh food for delivery in two hours
or less. They'll see it as even better
than brown-bagging. Why bring it
from home if you can get it delivered
(at prices comparable to what it would
cost at a supermarket)?
› What does this mean for us?
These companies want to steal share
from other channels of distribution.
In a Fortune magazine article, Jeff
Bezos, the Amazon CEO, said, "Your
margin is my opportunity." The com-
panies pursuing home delivery will
eventually realize that they can sell
and ship to the people at the locations
we service. You're saying, "That will
never happen." It is happening now.
People have packages shipped to
them at work — because no one is at
home to accept the package. Before we
know it, those packages will include
beverages, snacks and food.
This view of the future is meant
to be thought-provoking. It is not an
absolute prediction of the future. Our
competition is far in front, but we
can leapfrog ahead with very well-
executed strategies and tactics. Don't
wait for tomorrow. Start right now.
ABOUT THE AUTHOR
Paul Schlossberg is
the president of D/
FW Consulting, which
helps clients mer-
chandise and market
products. He can be
reached at Paul@DFWConsulting.net or
972-877-2972; www.DFWConsulting.net.
60
Calories
www.verisoda.com
April 2015 VendingMarketWatch.com Automatic Merchandiser 43
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