Automatic Merchandiser - 44

OF

THE

INDUSTRY
16.1%
12.5%
17.6%
11.5%
11.4%

Equipment count

Both acquired
and divested

Acquired

STATE

79.6%
75.7%
79.5%
62.9%

Divested

Both acquired
and divested

Acquired

Neither acquired
nor divested

3.9%
4.3%
CHART 5A:
ACQUIRED OR DIVESTED3.4%
BUSINESS
6.4%
● 2014 ● 2015 ● 2016 ● 2017 ● 2018
11.4%

15.6%

Percentage of

15.6%

vending machines

The reduction in vending machines
appeared to have slowed in 2018
with the vending machine estimate at
2,084,500 (chart 4). While the deceleration can be attributed to fewer
accounts converted to micro markets,
operators cited other reasons as well.
Respondents noted a desire to diversify, growing in both micro market and
vending machine locations. Operators
are also using their surplus of equipment in accounts that would not have
warranted a vending machine in the
past. Smaller locations near larger
vending accounts can now be stocked
more profitably with a refurbished
machine and prekitting, making the
sites profitable. Some operators are
choosing to place more machines at
existing vending locations as well to
reduce the number of service visits
required per week. The count next year
will better illustrate if the industry has
reached the end of vending machine
removal or if this year was an anomaly.
While chart 4B makes it look as
though the number of glassfront vending machines in 2018 decreased compared to 2017, it is likely due to the
addition of the refrigerated food vending machine. In previous years, that
type of machine was not broken out.
When the percentages for refrigerated
food and glassfront vending machines
are combined, it's 48.3 percent, much
closer to the glassfront percentage
from the year before.

that accept

Cash still tech king

5.4%
3.6%
3.4%
2.6%
14.3%

Divested

74.6%
79.6%
75.7%
79.5%
62.9%
16.1%
12.5%
17.6%
11.5%
11.4%

CHART 5B:

ACQUIRED OR DIVESTED
BUSINESS BREAKOUT FOR
OPERATORS ALSO SERVING
MICRO MARKETS IN 2017

3.9%
4.3%
3.4%
6.4%
11.4%

Neither acquired
nor divested

5.4%
3.6%
3.4%
2.6%
14.3%

71.4%

Acquired

14.3%

Both acquired
and divested
Divested 0%

14.3%

TECHNOLOGY
RANKINGS, AVERAGED

CHART 6A:

● Great Investment - ROI
● Don't use it/like it
Neither acquired
Cashless payment
nor divested
14.3%
Acquired
Prekitting
Both acquired
14.3%
and divested
Divested 0%
Vending
Management System

9.5%
9.5%
15.6%
15.3%

Remote monitoring
Warehouse pick
to light system

7.0%
16%
17.8%

LED lights
QR code on machine
Video screens

44

24.5%
71.4%

5.7%

5.7%

cashless payment,
such as debit
cards, credit cards
or mobile wallets

2.3%
19.1%
2.3%

Automatic Merchandiser

19.1%

VendingMarketWatch.com

June/July 2019

The addition of cashless acceptance was
touted as successful for more than one
operator in 2018. It is generally accepted
that sales will lift between 20 to 30 percent once cashless acceptance is added
to a high traffic vending machine,
despite higher operating costs due to
transaction fees and processing fees.
While cashless has helped revenues, fewer operators called it a
"Great Investment" in 2018, with
http://www.VendingMarketWatch.com
Automatic Merchandiser

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