Automated Retail – Can it Work for Essential Products?
Over time, automated retail has evolved. Today it’s more than just vending machines.
From unmanned kiosks to unattended grocery stores – automated retail provides brands with a lot of scope for innovation as well as growth.
In fact, research shows that the Global Retail Automation Market is expected to grow to US$ 21.50 billion by 2025 at a CAGR of 11%.
A great example of successful implementation of automated retail is the Amazon Go offering from Amazon. Amazon Go allows customers to grab a delicious lunch or ingredients for preparing their own food quickly — with no lines and no physical checkouts.
Automated retail isn’t exactly new to Canada. We have seen that many Canadian businesses in the technology and foodservice segments have successfully implemented automated retail solutions. For instance:
- Best Buy has Best Buy Express™ kiosks at many airports.
- Cake Boss vending machines bring the famous Carlo’s Bakery cakes all the way from New Jersey to dessert lovers in Canada.
When these businesses can successfully leverage this type of retail solution, it is definitely an option worth exploring for companies that make essential items such as food, beverages, personal care products, and over-the-counter medications.
By entering this space, your brand can gain the following benefits:
Cost Savings
Retail automation helps you reduce both fixed and variable costs.
When the processes, from product selection to purchase, are automated, the need to have human capital at the location is practically eliminated.
Apart from visits for quality control and restocking, not much is required. This means that you can reallocate your resources where they are needed the most.
Increased Efficiency
Retail automation also saves you another important thing – time.
When you have automated retail solutions in place:
I. Your operations are ‘always-on’. Even when your employees aren’t physically working, your customers are receiving the products and you are making sales.
II. Customers have quick and easy access to your products and don’t have to go looking for them in busy supermarkets, where they are usually stocked next to your competitor’s products.
III. Automation makes workflows seamless by reducing or eliminating some steps.
Drive Sales and Business Growth
Retail automation opens up new product distribution channels and helps drive sales in a more proactive way.
It allows you to be in more places without making a significant investment. For instance, your customers may go somewhere where you can’t have a full retail location (like a library) but they still need some essentials or you simply don’t have the budget to open a full-scale retail space – this is where automated retail can help.
It can not only get the product in the hands of your customers faster but also enable you to expand your retail footprint.
Remember, growing your business doesn’t always require a huge investment in human capital or physical spaces. With automated retail, you can do more with your current resources and scale faster.
Get in touch today to see how we can support you in entering or growing within the automated retail space. Call 1-877-421-5081 or visit www.storesupport.ca.
Have you looked into automated retail for your brand? Let us know on social media. Storesupport Canada is on Twitter, Facebook, and LinkedIn.
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