Cross selling with a fully automated convenience store

Chapter 1 Defining Marketing for the 21st Century by: It has already happened. Unfortunately, it is unequally distributed among companies, industries and nations. Kotler on Marketing Chapter Objectives:

Cross selling with a fully automated convenience store

Image courtesy of Oasis24seven. The Internet of Things is unleashing new capabilities for automated retailing to meet the needs of consumers and businesses alike — more economically and efficiently than traditional brick and mortar retailers. Traditional retail, meanwhile, becomes more capital intensive, largely on account of rising labor costs.

One retail concept that stands to benefit from these changes is the automated convenience store. Fully-automated stores offering food and convenience items have existed for decades, but in the U.

The concept has been more successful in Europe, which has denser populations and higher labor costs. Amazon recently introduced Amazon Gowhich allows shoppers to enjoy the convenience of shopping without the need to stop and check out.

The items are in turn billed to an authorized Amazon.

Cross selling with a fully automated convenience store

Amazon Go can be viewed as a variation of a concept that has existed in the U. Automated stores come in different formats. They can be free-standing terminals where consumers purchase products from shelves, similar to a vending machine.

They can also be stores that the consumer enters and buys products, such as Amazon Go. Historical overview In the s, Clarence Saunders, founder of the Memphis, Tennessee-based Piggly Wiggly supermarket chain, introduced the "Keedoozle. Stock personnel then put the selected items onto conveyor belts that took the products to the cashier for checkout.

The system, which was not fully automatic, proved mechanically unreliable. Other systems have emerged over the years. One that has managed to survive from the s is the SmartMart, also in Memphis. The SmartMart is a drive-up store where people order on a touchscreen and pay using cash or card.

The customer views images of more than 2, products. A picking device removes product from inside the machine and places it on a conveyor belt to a slide-out door. The system has been upgraded over the years, according to owner Mike Rivalto.

As the new millennium approached, some massive glassfront merchandisers from Europe made their ways to U. The marketers of these systems recognized an opportunity as U. One unit that showed promise was the Shopa square-foot glassfront machine that dispensed up to SKUs of varying shapes, sizes and temperature needs.

The company in chose to discontinue the Tik Tok Easy Shop, while Redbox evolved into a separate company. The unit dispensed snacks, cleaning supplies, medicine and full meals in a fraction of the time it takes to shop at a traditional convenience store. Shop 24 secured several other placements in universities and other sites to varying degrees of success.

The SUNY Morrisville machine, serviced by university staff, is considered to be the most successful automated c-store in the U. What has worked to date The reason the SUNY Morrisville deployment was successful is that the university took an active role operating and servicing the machine, Bruno said.

In less successful Shop 24 deployments, the location hosting the machine did not have the support of a larger organization such as SUNY. Hence, there are more support resources for alternative retail formats such as automated c-stores. He also sees opportunity for the concept in military locations and for disaster relief efforts in addition to traditional retail opportunities.

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Oasis24seven plans to deploy four to five units in the U. Oasis24seven can offer between and SKUs. The inventory management software allows the unit to reorder automatically. It is a belt-driven as opposed to gear-driven system, and shelving can be adjusted in matter of minutes.

It also has the automated capability of pulling expired product out of the sale position. While other self-service concepts are in the works, such as Amazon Go and micro markets, a massive glassfront merchandiser such as Oasis24seven can stand alone in an unprotected outdoor environment, Bruno said.

The business metrics are also different for an automated c-store than for a micro market, Bruno added. Businesses and organizations that have satellite retail outlets are prime users for the automated c-store, Bruno said.

Military camps, marinas, interstate stops, dormitories and gated communities are good examples. Mike Rivalto, who owns the SmartMart in Memphis, thinks technology is catching up to the concept he introduced decades ago.

Meanwhile, ecommerce is creating the need for new pick-up options that SmartMart can provide, Rivalto said.Originated in Guangdong’s Zhongshan City, BingoBox has developed fully-automated, 24/7 convenience stores.

With full integration with WeChat, users enter and exit using WeChat’s scanning feature. With full integration with WeChat, users enter and exit using WeChat’s scanning feature.

The fully-automated convenience store

CVS was founded in Lowell, MA by the Goldstein brothers in By , there were 17 CVS stores selling primarily health and beauty items. In , CVS opened its first stores with pharmacy departments in Rhode Island. In Fully-automated stores offering food and convenience items have existed for decades, but in the U.S., they have never gained traction.

The concept has been more successful in Europe, which has denser populations and higher labor costs.

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South Africa’s Freshest Food Chain. We started in the s with six stores selling fresh meat in KwaZulu-Natal. Today, we are a chain of more than thirty outlets operating in five provinces.

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