1
Introduction
Micro Markets are an innovative and expanding retailing channel that includes
automated self-service, in an unattended payment environment, that is directly linked to
the vending industry. It is for this reason that NAMA® has recognized Micro Markets as
one of its focus channels along with vending, foodservice, and refreshment services. As
an independent and distinctly separate market channel, NAMA® has implemented
specific Micro Market educational programming, equipment and payment standards,
operational guidelines, and government and legislative resource support.
At the start of 2013, there were approximately 3,000 installed Micro Markets in
the United States. This number is expected to quadruple over the next several years as
Micro Markets replace vending machines, lobby pantries, gift shops, and breakfast and
snack food bars. To date, most Micro Markets are successfully installed in business and
industry (B&I) accounts that support a large number of employees (150 or so) and that
were historically served by a bank of vending machines. While Micro Markets represent
a potentially strong revenue source for vending operators, they also require a different
business model (and operator mindset) for success.
Basically, a Micro Market is a hybrid form of managed foodservice, vending,
coffee service, and convenience store channels that delivers an improved consumer
experience, expanded product variety, and increased same location sales while
retaining the labor and operational efficiencies of automated retailing. A Micro Market
tends to differ from traditional forms of unattended retail in the sense that products are
not stored in a secured cabinetry (like in a vending machine) and offer a much broader
array of product variety (often 350-600 items) with virtually no restrictions as to product
size, packaging, or price. Products are presented and fully accessible to consumers
from a shelf, cooler, freezer, or alternate type of presentation within a limited retail
footprint. Self-checkout settlement is managed through an automated kiosk system that
has the ability to price, monitor, and promote individual products as well as record and
track distinct consumer purchases. As such, Micro Market operations are closely
aligned with multiple forms of retailing (e.g. convenience store, grocery store, and home
improvement store) and require operators to become astute product merchandisers and
promoters. Micro Markets may also be labeled grab-n-go shops, snack express
locations, self-markets, retail cafes, smart shop hubs, and others.
The presence of a touchscreen kiosk, secure payment integration, surveillance
equipment monitoring, and comprehensive consumer data analytics can pose
complexities and challenges not normally encountered in an unattended environment.
The broader product variety offered in Micro Markets also requires substantial
operational changes to traditional vending support services including warehousing and
route management. Since a Micro Market is convenient and customizable, it is often
misclassified as a form of business enterprise by governmental licensing agencies.
