Automatic Merchandiser

JUN-JUL 2016

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.

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33% 28.3% 9% 15.9% 58% 55.8% No change Reduced Added Other Management Administration Warehouse Repair Delivery Sales 17.6% 36.2% 28% 10.5% 26.6% 18.8% 50% 11.7% 23.4% 13.4% 26.6% N/A 9.6% 61.7% Other Management Administration Warehouse Repair Delivery Sales 17.5% 12% 30.1% 44% 8.7% 24% 13.6% 32% 17.5% 44% 11.7% 28% N/A 0% CHART 3A: MACHINES BY LOCATION ● Manufacturing ● Offices ● Hotels/motels ● Restaurants, bars, clubs ● Retail sites ● Hospitals, nursing homes ● Universities, colleges ● Elementary, middle, high schools ● Military bases ● Correctional facilities ● Other CHART 3B: NUMBER OF LOCATIONS SERVED IN 2015 COMPARED TO 2014 ● Increase ● Remained the same ● Decreased CHART 4: STAFFING CHANGES, 2-YEAR REVIEW ● 2014 ● 2015 CHART 4C: AREAS WHERE STAFF WAS REDUCED, 2-YEAR REVIEW ● 2014 ● 2015 CHART 4B: AREAS WHERE STAFF WAS ADDED, 2-YEAR REVIEW ● 2014 ● 2015 9.6% 9.7% 8.7% 10% 6.8% 13.1% 18.4% 5.6% 4.7% 7.3% 6.6% 2015 the highest revenue-providing service segment after vending machines. It's not surprising that micro mar- kets have been doing so well. Many of the challenges vending has and is currently facing don't exist with a micro market. One example is that many consumers no longer value con- venience as they once did. Instead, having grown up with restaurants and convenience stores on every corner, they like product variety, and trendy items as well as saving time. A vending machine's limited choices can't compete, especially now that healthier items are being required in many places, taking up real estate in the already limited vending machine. The open concept of micro market shelving allows additional product choices, better meeting the expec- tations and needs of the consumer. Micro markets also come with an inventory management system, which makes determining proftable prod- ucts easier from day one. Despite the benefts of micro markets, the segment is not without challenges. Managing the increased number of SKUs in the warehouse, hiring the right staff to analyze reports and making changes in the markets is challenging, as well as training or hiring the right type of driver to best service the market. Plus, locations are much more indi- vidualized when shopping a market. 32.2% 49.8% 18.1% 2015 NUMBER OF LOCATIONS SERVED has increased since 2014. *Other includes micro market related staff, marketing professionals, cleaning staff, kitchen and tech June/July 2016 VendingMarketWatch.com Automatic Merchandiser 23 STATE OF THE INDUSTRY

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