Micromarket

Micro Markets constitutes a retail sector closely associated with the vending machine industry.

They employ automated self-checkout technology and are commonly found in locations requiring unattended payment systems. Micro Markets offer grab-and-go retail environments where customers can purchase products from open shelves, coolers, and freezers. Consumers use self-checkout kiosks for a streamlined experience.

Micro Markets resembles a modern convenience store but functions as a fusion of vending, foodservice, and refreshment services. They typically consist of open rack displays, refrigerated coolers or freezers, and self-checkout kiosks.

The National Automatic Merchandising Association (NAMA) recognizes Micro Markets as a significant focus channel, along with vending, food service, and refreshment services.

A typical Micro Market generally stocks between 150 and 400 products, a notable contrast to the standard vending machine's capacity of around 40 products. In addition to product variety, open flow layouts and cashless payment options reduce waiting times, promote multiple-item purchases, and increase transaction values compared to cash transactions.

Micro Markets are appealing to vending industry operators due to their potential profitability. According to a study by Micro Market provider Parlevel Systems, a Micro Market in a location with 125 employees can generate over $1,000 per week on average. Statistics also indicate that replacing vending machines with Micro Markets increases location sales by around 80%. However, there are challenges such as theft associated with this technology.

Micro Market adoption has grown significantly due to the enhanced efficiency and convenience for consumers and operators. This growth has led to the replacement of banks of vending machines with Micro Markets. Since their inception in 2005, Micro Markets have witnessed steady adoption, with substantial growth between 2012 and 2016. During this period, active Micro Market locations increased by 574%, from 2,642 in 2012 to 17,806 in 2016. Micro Market sales grew by 42% between 2015 and 2016, accounting for 20% of total sales. In 2016, total sales included 456 million consumer transactions and over 660 million product purchases.

Micro Markets are typically placed in closed environments like office breakrooms with 150 to 500 employees. However, technological innovations like 365 Retail Markets' "nanomarket"™ are making Micro Markets viable in locations with fewer than 150 patrons. Locations with over 500 patrons benefit from the "grab-and-go" option appealing to a broader range of consumers.

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