Vending

Why a veteran airport concessionaire sees a big future for automated retail

Self-service retailing is expanding from office and travel products to numerous other product types, including CBD products that require age verification, thanks to new technology.

Artwork courtesy of the Hartsfield-Jackson Atlanta International Airport and ViaTouch Media.

February 3, 2021 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

As a prime concessionaire for the Hartsfield-Jackson Atlanta International Airport, William Swift has seen a lot of change in automated retailing over the last 30-plus years.

The first self-service machines that Swift, president of Business Travelers Services Inc., managed in the airport were mostly carrying office products, computer accessories and travel products. Now they offer beauty supplies, OTC medicine and even CBD products that require age verification.

Airport concessionaire William Swift sees a big future for automated retailing thanks to new technology.

One reason for the diversification is that consumer goods manufacturers have recognized the unique opportunity an automated store offers in an airport, with its high volume of captive, affluent visitors on the go.

Another reason is that technology has improved the presentation of consumer products in an unattended venue.

These factors, along with the consumer's acceptance of self-service, make unattended retail a highly profitable proposition for consumer goods manufacturers, according to Swift.

"Airports are an unusual venue for the sale of product through an automated store," Swift told this website in a phone interview. "The volume of traffic under normal conditions is exceptional to say the least."

In 2019, the total population in the Atlanta airport, excluding employees, was 110 million, he said, making it the world's busiest airport. The employee count is between 50,000 to 60,000.

The disposable income of the average airport visitor in 2019 was close to $100,000, he said, which is double the nation's per person average income.

Business Traveler Services oversees more than 30 retail locations at the airport, which includes both attended stores and automated stores, such as Best Buy electronics product machines, CVS vending machines, Benefit beauty product machines and, most recently, Green Spirit Rx CBD product machines.

The Green Spirit Rx branded machine from Chemesis International, a CBD product manufacturer and development company, is one of the most technologically advanced self-service machines available. Swift's company operates two of these machines — AI-powered Vicki machines made by ViaTouch Media — on the A and D concourses.

How the machine works

A credit card reader on the branded CBD machine gives the customer access to the products inside the machine. A demonstration video is prompted when the customer removes a product from the shelf. Picture courtesy of Chemesis International.

To use the Vicki machine, a customer inserts a credit card before opening the machine door. The credit card authorization also verifies they are at least 18 years of age.

The machine allows the shopper to take product from a shelf and examine it before making a purchase. When the product is removed from the shelf, a video screen above the door plays content related to that particular product.

The customer also can ask questions and get answers about products, thanks to the machine's voice technology.

If the customer returns the product to the shelf, there is no purchase. If they remove the product, their payment account is billed automatically, thanks to the sensors embedded in the shelf.

There is no need for the customer to press a button to use the machine.

There is also a manned location near the machine to assist with age verification, which the airport requires.

"It's an unusual machine," Swift said. "It has a good range of capabilities. It also relates to where the future is going in terms of the consumer."

Swift envisioned the automated concept for selling CBD products at the airport before he was even approached by Chemesis International.

"We had locations that we thought we could put CBD machines in," he said. "I wanted it because I thought it was something that the customers also wanted."

One of the top driving forces with the machines is that when the customer opens the door, they see the machine's product variety. Swift compares it to opening a refrigerator door.

"You want to eat more than you should," he said.

CBD manufacturer invests in automated retail

From Chemesis International's viewpoint, the machine offers an excellent sales tool.

"We believe it provides the most secure, informed transaction for our brands, consumer and retail partners," Josh Rosenberg, Chemesis International president, told this website.

"Vicki addressed many, if not all retail and consumer points of friction," Rosenberg said. "Retailers struggle with theft, addressing consumer questions on the attributes of each product, and age restrictions in this growing category. Consumers want convenience, education and ease of transaction. Vicki provides all of the above while allowing the consumer to interact with the product, shop freely without risk and stay informed."

Machine challenges

The Vicki machine does present some challenges, however.

"We've got to educate the consumer on how to use a Vicki type machine," Swift said. "That's taken some effort. You're introducing an automated machine… a machine that can read your card, your image, and you lifting the product off the shelf."

He said the frequency of customers interacting with the machine is higher than most machines, which raises a concern to him as an operator. The durability is a concern that Swift has learned working with some of the automated stores.

"We've got to make sure that the manufacturer of the machine has taken (into) consideration the delicacy that some of these machines operate on… It has to be more durable, constructed to take not only the frequency but the possible abuse of the machine, unintended.

"The unintended use of the machine puts the machine out for hours or days or week at a time," he said. "Once you knock that machine out for two hours to two days waiting for a new bucket to come in, we've lost sales we'll never recover."

In relation to the airport's CVS machine, the bin in the bucket has been problematic as a customer sometimes places their hand into the bin too soon, he said.

To address this concern, Swift's team is able to make minor equipment repairs.

Automation is the future

Swift nonetheless thinks the Vicki machine represents the future for automated retail.

"I think the transition from a gravity-driven machine to a Vicki machine, which is highly sensitive and all that, we're doing that, and the customer is slowly but obviously moving in the direction of understanding and using it," he said.

"Customers are willing to spend a little more if they feel there's value. Quantity often represents value," he said. "Charging them another $5, $10 or $20 is immaterial if you give them price value. The manufacturer, the distributor, all down the food chain appreciate the larger quantity … if there's a price/value consideration. Sam's Club and Costco has demonstrated that in spades.

"We have a chance here, specifically with CBD products, to take the same route," he said.

Swift declined to reveal sales numbers for the machine.

Vending