BYU NewsNet - iPods Hit Vending Machines

The vending machine has traditionally been known as the snack food lover's paradise, satisfying the craving for cookies, candy and soda to the tune of a crumpled dollar bill.

But now, a San Francisco-based company has created a vending machine to cater to the hunger of another kind of customer - the technology junkie.

Zoom Systems has taken the concept of the vending machine one step further with its Zoom Shops, 40-square-foot "robotic stores" that carry everything from cosmetics to computer accessories and iPods.

"Zoom is ushering in a new era of automated retailing," said representatives on Zoom Systems' Web site. "[This is] creating a new experience and generating revenue opportunities where none existed before."

While not yet available in Utah, the stores are expected to pop up in approximately 3,000 locations around the United States this year.

Zoom Shops come equipped with graphic touch screens for viewing product information and deliver products to the consumer by way of a robotic arm. They are also centrally networked and can update product information, price and stock instantly via the network, according to the Web site.

In the process of going beyond traditional vending, Zoom Systems has placed stores in grocery shops, airports and hotels, among other spaces. In places like the San Francisco International Airport, which was one of the first to host a store, travelers can stop at a Zoom Shop for pre-paid mobile phones, digital cameras and headphones. Since its opening, the stores have met with almost unanimous approval.

"We've only had them in place for about six months, but initial reports have been really positive," said Michael McCarron, director of community affairs at the airport. "For the immediate future, anyway, we plan on keeping the store open."

Zoom Shops in hotels, such as in San Francisco's Argent Hotel, carry medicine, travel and personal care products. The Argent shut down its fledgling gift shop in favor of a Zoom Shop and found nearly half the store's sales occurred during hours when the gift shop would have been closed, according to Zoom's Web site.

Other hotels adopting Zoom Shops have included the Hilton, Marriott, La Quinta and Howard Johnson hotels.

Part of the appeal of Zoom Shops, particularly those carrying electronics, has been the no-pressure environment. Akin to shopping online, customers can read information about the products and make decisions without the presence of salespeople. Many items the shops carry don't even require face-to-face assistance, according to Tyler Dickman, owner of Mac Something in Orem.

"With iPods, I think it's a smart idea," Dickman said. "Being iPods only, the things aren't really information-intense, so I think people can handle that much on their own."

However, Dickman also said he was intrigued that the concept took off.

"I'm surprised it flies, though," he said. "They [iPods] just seem like a high-ticket item. But I guess if you have people who've dealt with the items before, it could work. I'd be interested to see their [Zoom's] numbers."

The self-service idea is taking root in America in other major markets as well. SmartMart International builds completely self-serve gas stations and MovieMate Inc. rents DVDs by way of a vending machine. Grocery stores all over the nation have incorporated "self-checkout" lines for customers to ring up their items.

Executives at Zoom Systems hope to have 10,000 stores up and running within five years.