CVS is set up 25 vending machines in
the Northeast, selling everything from makeup remover to healthy snacks to earbuds. Uniqlo, the Japanese fast-fashion brand that has stumbled in its store expansion plan, is setting up 10 vending
machines in U.S. airports. And brands are increasingly using vending machines as part of publicity ploys, like Snapchat in its Spectacles launch. We asked Lee Peterson, executive vice president of
strategy and design at WD Partners, a customer experience company in Columbus, Ohio, to explain why the 140-year-old vending machine is new again.
Q. So vending machines have been
around since the 1880s. Why are they getting so much attention now?
A. It started with Best Buy, putting machines in airports about five years ago. It’s
another way of addressing the
advertisement
advertisement
way people shop now. Consumers think, ‘I can buy anything, anywhere, anytime.’ So to have something to offer them when they really
can’t — when they’re stuck at an airport or in a dorm, for example — is helpful.
Q. So is this trend really about filling a need? Or is it also about
sampling? Best Buy is a widely known, but Benefit, a high-end cosmetic brand that’s also in many airports, isn’t.
A. I think it is mostly about
familiarity and convenience—shoppers buying products they’re familiar with and need right now, like laundry soap from CVS or a computer cord from Best Buy. I’ve noticed they do sell
high-priced items, even cameras and iPhones, and I wonder how many of those they actually sell.
But this is all part of what retailers should be doing, to combat the threat of
online shopping. If you think of the whole customer journey, this is part of it. Should stores still explore other ideas to introduce people to their brands, like pop-up stores? Sure. Vending machines
aren’t going to solve all their problems, but it’s one more way to connect, to offer convenience. This is just a small part of the larger picture.
Q. Will they make
money?
A. Revenue-wise, no. CVS has something like 7,300 locations so vending machines won’t move the needle. But it’s a brand awareness factor, and
that can be valuable.
RA. Yes, we did some research several years back, and Millennials love the idea of interactive vending machines. Boomers, not so much. But younger
people grew up with text. They just don’t like phone calls. We see it in the appeal of online ordering for groceries and restaurants, and even restaurant concepts like Eatsa, which enables you
to get high-quality fast-food really fast, without any human contact. And Walmart is having a lot of success with its pickup towers. People like machines.