Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.
Issue link: http://automaticmerchandiser.epubxp.com/i/62876
S E L F C H E C K O UT MA R K E T S Self checkout markets raise the bar: Key things for operators to consider By Allen Weintraub, Contributing Editor Vending operators looking to add kiosks must recognize the importance of consumer data analysis. T he 2012 National Automatic Merchandising Association (NAMA) OneShow marks the second year self checkout micro market companies will be on the exhibit fl oor. The growth and importance of the micro market channel is further confi rmed by the presence on the NAMA OneShow program of a panel, "Customers Love Self Checkout — How to Capitalize on This New Trend," to be chaired by Terry Touchton, vice president of sales and marketing at Vistar Corp. Panel participants will include the four exhibiting micro market companies — 365 Retail Markets, Avanti Markets, Breakroom Provi- sions and Microtronic US — and operators who have installed their micro markets. With an estimated 2,000 micro markets now on location, major questions remain about the busi- ness model that will make the markets profi table for the operator. Given that virtually all the current micro market operators are vend- ing operators, the initial response is to follow the vending business 18 Stored value card Self checkout market sales tracked with stored value card JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY Thinkstock Stored value cards offer the benefits of cashless with lower fees as well as product purchase information valuable in merchandis- ing micro markets. model, whereby product manufac- turers subsidize the micro market equipment, similar to how bever- age companies provide vending machines and provide rebates based on products purchased. However, the vending model, when applied to micro markets, is severely limited because it does not address the major opportunity afforded by the micro markets: the ability to identify and then satisfy individual consumer tastes and to thereby increase sales. Automatic Merchandiser VendingMarketWatch.com May 2012 Why data analysis? Instead, product manufacturers, micro market providers and micro market operators should concen- trate their resources on consumer data analysis to develop product promotions to increase sales and profi ts. They can do this by: • Encouraging non-users at the location to become micro market consumers; • Increasing the units and dollars per transaction and transaction frequency by the current micro market consumers; and • Converting debit/debit card con- sumers to use the micro market C ONT INUED ▶ AMOUNT IN DOLLARS