What is Automated Retail?
Automated Retail is the use of a machine to sell retail products, but it is far more than this. Automated retail is a brand new sales channel for retailers and brands to reach customers in an innovative, exciting and non-traditional way.
Automated Retail: The industry. The way of the future!
Automated Retail has been growing exponentially within the last few years to an all time high. Many retailers and national brands are looking for a way to build brand awareness and expand into untapped markets with minimal investment and low costs of entry. These machines will allow for:
- Direct market insertion
- Real time marketing and product data
- Hitting their target market more effectively
- Opening up a new way of product distribution
- Promoting new product while driving sales back to their brick and mortar stores and e-commerce sites
- Reducing overhead expenses and costs
- Increasing revenue per square foot
- Reducing shrinkage and theft
What Consumers love about Automated Retail:
- The immediate visual connection with desirable items
- The easy-to-use, appealing touch screen interface and instant product data
- The speed and convenience of executing a transaction and walking away with the product: no waiting for delivery, no shipping fees
What Retailers, Owners and Investors love about this product:
- Its ability to expand their retail presence without traditional overhead costs
- The versatility of location with round the clock functionality with no staff costs, no shrinkage, no hassle, just sales
- Increased revenue generation opportunities through on-screen, poster/graphic or LCD advertising
- Flexibility to increase capacity and product variety
- Complete remote management and analytics capability
What are the Advantages?
Automated retail offers a new, expanding channel that can be integrated into and augment existing store based and web based channels
Reinforce brand identity, increase brand awareness and improve brand availability
By amalgamating kiosk information and automated retail technology, customers can be better informed about products
Static advertising via posters/graphics or dynamic advertising through large flat screens
Security Against Theft
A machine can provide a secure method to hold more stock on the sales floor with improved shrinkage control
Intelligent Stock Ordering
Keep less product stock and order/stock efficiently only as required
Distributed Retailing Sites
Reach more customers more often through a distributed network of sites
Faster Expansion Roll Out
Lower cost expansion through autonomous retail when compared to traditional “brick and mortar” retail stores
Influence/Analyze the Consumer
By interacting with the consumer through a touch screen, interactions can be recorded and analyzed, providing new opportunities to influence the consumer
The machines dispense a receipt and provide information for easy returns
24/7 Window Shopping
Machines can be installed in-store behind glass windows with the access point accessible through the glass, allowing for extended store hours.
Automated Retail Case Study Excerpt
“ZoomShops Flying High in Airports-and Beyond” by Emily Lambert, Specialty Retail Report
“…Then there are the astronomical sales per square foot. “Our airport stores-[so small they] may be replacing a potted plant-do $4,000-$40,000 per square foot annually,” says Smith. “The average retailer in the airport does $1,000 a square foot in revenue per year.” That makes the average ZoomShop “the most productive retail space in the airport.” At McCarran International in Vegas, Kichline says Apple iPods sales topped $100,000 one month.
Traditional vending machines generate about $360 a month in sales per square foot, Smith adds. Mall-based ZoomShops (not including Macy’s department store locations) bring in between $3,000 and $10,000 per square foot…”