Automatic Merchandiser - 11

This category growth may be due to
an increasing number of operators
diversifying their revenue streams to
better serve their customers in a competitive marketplace.
This year's State of the Industry
report, which had the highest response
rate from Automatic Merchandiser
readers in four years, captured
operators' data from January 2019 to
December 2019, just before COVID19 disrupted the American economy.
In next year's report, we will explore
how the coronavirus impacted the
convenience services industry.

CHART 3A:

●	 Manufacturing
●	 Offices
●	 Retail sites
●	 Hotels/motels
●	 Elementary,
middle,
high schools

Like previous years, "small" operators, or operators with a total annual
revenue under $1 million, account for
most operations (67.1%) but yield the
smallest percentage of the industry's
overall revenue ($1.3 billion or 5.2%,
chart 2). "Extra-large" operators with
more than $10 million in annual
revenue continue to contribute the
highest percentage of the industry's
total sales ($13.5 billion or 55.6%).
When comparing data to 2018
(not shown), operators in the "large"
revenue range ($5-$9.9 million) nearly
doubled their share of the industry's
overall sales in 2019 while the "extralarge" category decreased, suggesting
that while larger operations continue
to acquire smaller ones, the industry's
biggest players may not have experienced the highest gains.
BUSINESS GROWTH CONTINUES

Number of locations served

●	 Universities,
colleges

●	 Correctional
facilities

●	 Increased
●	 Remained the same
●	 Decreased

22.7%
22.7%

●	 Military bases
●	Restaurants,
bars, clubs

●	 Hospitals,

nursing homes

38.6%
38.6%

4.5%

2017
2017

38.6%
38.6%

2018
2018

68.2%
68.2%

4.4%

2.4%
6.5%

SIZE BREAKOUT
SHIFTS SLIGHTLY

CHART 3B:

Machines by location

7.4%

18.2%
18.2%

2019

14.3%

9.8%

22.1%

7.4%
2018

13.5%

85.7%

17.4%
17.4%

14.3%

CHART 3C:

Micro markets by location

14.3%
●	 Manufacturing
2019
●	 Offices
●	 Retail sites
●	 Hotels/motels
●	 Elementary,

57.6%
57.6%

colleges

●	 Correctional
facilities

●	 Military bases
●	Restaurants,
bars, clubs

●	 Hospitals,

nursing homes

CHART 3D:

Number of micro market
locations served
●	 Increased
●	 Remained the same
●	 Decreased
14.3%
14.3%

5.8%
0.9%

25%
25%

2019
2019

●	 Universities,
71.4%

middle,
high schools

More than half of the operators
surveyed added new accounts in 2019
(chart 3B). While the percentage of

13.6%
13.6%

22.1%

7%

25%

2018
2018

85.7%
85.7%

2019
2019

71.4%
71.4%

8.3%
2019

8.4%

14.3%
14.3%

Respondents said theft
was the biggest challenge

5.6%

6%

23.9%
9.3%

14.3%
14.3%

for micro markets.

June/July 2020 * VendingMarketWatch.com

11



http://www.VendingMarketWatch.com

Automatic Merchandiser

Table of Contents for the Digital Edition of Automatic Merchandiser

Editor's Note: Staying Strong
Industry News
OCS Update
State of the Industry - 2019: Another Record Breaking Year For Operators
Small Op: How to Increase Sales and Profits
Design for Durability
Why Micro Market Promotions Still Matter
All in the Family
Classifieds
Social Hubs
Automatic Merchandiser - 1
Automatic Merchandiser - 2
Automatic Merchandiser - 3
Automatic Merchandiser - Editor's Note: Staying Strong
Automatic Merchandiser - 5
Automatic Merchandiser - Industry News
Automatic Merchandiser - 7
Automatic Merchandiser - OCS Update
Automatic Merchandiser - 9
Automatic Merchandiser - State of the Industry - 2019: Another Record Breaking Year For Operators
Automatic Merchandiser - 11
Automatic Merchandiser - 12
Automatic Merchandiser - 13
Automatic Merchandiser - 14
Automatic Merchandiser - 15
Automatic Merchandiser - 16
Automatic Merchandiser - 17
Automatic Merchandiser - 18
Automatic Merchandiser - 19
Automatic Merchandiser - Small Op: How to Increase Sales and Profits
Automatic Merchandiser - 21
Automatic Merchandiser - 22
Automatic Merchandiser - 23
Automatic Merchandiser - Design for Durability
Automatic Merchandiser - 25
Automatic Merchandiser - 26
Automatic Merchandiser - 27
Automatic Merchandiser - Why Micro Market Promotions Still Matter
Automatic Merchandiser - 29
Automatic Merchandiser - 30
Automatic Merchandiser - 31
Automatic Merchandiser - All in the Family
Automatic Merchandiser - 33
Automatic Merchandiser - 34
Automatic Merchandiser - 35
Automatic Merchandiser - Classifieds
Automatic Merchandiser - 37
Automatic Merchandiser - Social Hubs
Automatic Merchandiser - 39
Automatic Merchandiser - 40
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