Shop Till Eggs, Diapers, Toothpaste DropHere's one more stop for our
advocacy movement.  Even though there is no indication that these machines
are capable of replacing stores at this time, I certainly foresee that
possibility.  Perhaps some of us can come up with interface ideas to make it
really "convenient"  for "all"

Pratik

the New York Times online

 August 28, 2002
Shop Till Eggs, Diapers, Toothpaste Drop
By JOHN TIERNEY


WASHINGTON, Aug. 27 — It looks like a 7-Eleven in a box.
Early this morning, as the restaurants and clubs were shutting down in the
Adams Morgan neighborhood here, a young waiter named Rick Roman joined a
crowd gawking at the new attraction on the sidewalk: an 18-foot-wide vending
machine.
Mr. Roman looked through the glass at the dozens of products — bottles of
olive oil and milk, cartons of eggs, chicken sandwiches, paper towels,
detergent, diapers, pantyhose, toothpaste, condoms, DVD's — and realized
what he absolutely had to take home at 12:15 a.m. After he inserted a $10
bill and punched numbers on a screen, the crowd watched a metal bin rise to
collect a package of razor blades from one shelf and a can of shaving cream
from another.
One bystander muttered about "dehumanizing technology," but most oohed
approvingly as the bin swung back to deposit the razors and cream in front
of Mr. Roman. The machine even provided a plastic bag.
"It's pretty cool," Mr. Roman said. "Whoever made this is a genius. A guy in
the store can make a mistake or give you a hard time, but not the machine. I
definitely prefer the machine to a person."
This machine, the Shop 2000, is the only one operating in America. Some
locals call it an eyesore, but others are happily posing for photos in front
of it, and in its second week of operation, more than a few people are
feeding it their cash and credit cards. If the test in Washington goes well,
its manufacturer predicts a new era in convenience for Americans, as do
rivals working on similar machines.
These kiosks, known as automated convenience stores (a better name might be
RoboShop), are similar to multipurpose vending machines already operating in
Japan and some cities in the Netherlands, Belgium and other European
countries where labor is expensive and real estate is scarce. Those
constraints are now being felt by American retailers. A study by the
National Association of Convenience Stores suggests that a shortage of labor
will be one of the industry's biggest problems in coming years.
"With this machine, you eliminate most of your labor costs as well as
problems with theft," said Hettie Herzog, president of the machine's
manufacturer, Automated Distribution Technologies of Exton, Pa. "Plus it
goes into a small space. A typical convenience store takes up 2,500 square
feet, but for this you need only 200. It's perfect for places that get a lot
of foot traffic — busy sidewalks, dormitories, train stations, office
buildings."
Ms. Herzog, who got the idea for her machine from one in Belgium selling
groceries, tested it last year at a gas station in York, Pa. Drivers there
did not provide enough business, but there were better results at a test at
a parking lot near Howard University here this year, and she predicted
strong sales from pedestrians now walking past the machine at the edge of a
parking lot at a corner of 18th and California Streets in the city's
northwest section.
The prices at the machine — $1 for a can of soup, $2 for a half-gallon of
milk, $4 for a box of Cheerios — are in line with those at nearby
convenience stores, although the selection is limited. Ms. Herzog said her
machine can stock about 200 products, less than a tenth of what is found in
a typical convenience store.
"You can track sales remotely by dialing the machine's computer to find out
exactly what's left of each item," she said. "If the machine stops or has a
problem, it will call your pager and e-mail you."
This machine is being greeted cautiously by operators of traditional vending
machines, as is a drive-through automated store under development by another
company.
"Automated C-Store: Vending's Partner or Competitor?" was the headline of a
recent article in the trade journal Automatic Merchandiser. Industry
veterans note that there have been unsuccessful efforts to move beyond the
"four C's" — candy, coffee, cold drinks, cigarettes.
The Keedoozle, a self-service grocery store using a conveyor belt, failed in
the 1930's. A more successful predecessor, the Horn & Hardart Automat
offering hot food, was supplanted by fast-food franchises.
"One reason full-line vending machines have not swept the United States to
date is that we have had a large population of entrepreneurial immigrants
eager to operate convenience stores," said Timothy Sanford, editor of the
trade journal Vending Times. "But it's getting very hard to find capable
sales staff, and it doesn't make sense for them to spend valuable time
selling simple items that don't require their expertise."
RoboShops have advantages, he said. "You don't need bathroom space for
employees and aisles for customers. You don't need to worry about someone
pulling a gun on a clerk. The public needs to get used to these kinds of
stores, but I think it's inevitable that they will. People are already
accustomed to automatic teller machines and self-service gas pumps. When
they know what they want, they want to get it without waiting in line and
worrying about whether the clerk's had a bad day."
Those attitudes were evident in a survey by the National Association of
Convenience Stores. When asked which factors affected their decision to shop
in a convenience store, people ranked "friendly, helpful service" well below
"convenient location" and "fast in and out of store." Way down the list, in
13th place, was "pleasant store ambience."
Still, some people watching the machine defended stores with clerks. "I'm
concerned about the people this is going to put out of work," said David
Bottoroff, an editor. "It's shockingly inhumane, and it's also an eyesore.
I'd much rather see a storefront here than this ugly box."
Other late-night machine-watchers shared his feelings and complained about
lazy Americans' obsession with convenience, but the critics seemed to be
few. "Awesome" was the typical review. "Like something from the future!"
shouted the leader of a group heading home from a bar.
Even Mr. Bottoroff paid the machine a compliment. He did not approve of it,
he said, but since there were no competing stores open on the block at this
hour, there might come a night when he buys a DVD or popcorn or something.
"I have to admit it's convenient," he said.


Copyright 2002 The New York Times Company


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