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Will new gen vending units make their mark on retail?

Written by RetailWire Staff

While threatened by the backlash against soft drinks and sugary snacks, kiosks selling premium goods are promising to reinvent the vending machine.

The items now found in vending machines can range from children's toys to designer handbags, perfumes, Apple electronics, Rolex watches, steaks, cupcakes and contraceptives, according to an article in the Toronto Star.

Linda Martin, marketing manager at Signifi, an Ontario-based developer of high-tech automated kiosks, said such vendor machines are aimed at helping retailers counter revenue losses from online shopping.

"Buying in a store has lost its luster," Ms. Martin told the Toronto Star. "People don't like the experience of walking into a store, being asked if they need any help and then standing in a line to buy a product — it's too slow in today's environment."

New generation vending machines offer goods priced similar to or less than stores (due to reduced labor and rent costs), combined with speed, 24/7 availability and touchscreen technology. The "bigger, brighter, smarter and more sophisticated" kiosks also enable consumers to gain additional information on product, with some playing video and music to draw attention as people pass by.

Farmer's Fridge
Source: Farmer’s Fridge

On the splashier end, a vending machine at Mondrian South Beach features $25 fake eyelashes, $350 gold handcuffs, and the keys to a $90,000 Bentley, as well as T-shirts, sunglasses, and best-selling novels, according to The Miami New Times.

On the food side, Farmer's Fridge has been rolling out salad-filled vending machines in the Chicago area and will expand to Los Angeles in 2016. The Los Angeles Times reports that the city already has vending machines dispensing fresh burritos, cupcakes and caviar (in Beverly Hills.)

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