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A Thing

Robot Retailers Gain Ground

Welcome to the future of vending. San Francisco-based Zoom Systems has created automated retail storefronts that do not require store clerks and are open 24 hours a day. Zoom teamed with Japanese hardware superpower Sanyo to create the next step in retail vending technology.

Strategically placed in highly trafficked locations such as airports, hotels and shopping malls, the software-driven, mechanized storefronts are definitely not your typical vending machines.

The merchandise, which consumers pay for with ATM or credit cards, ranges in price from $2 - $500 and includes bottled water, batteries, phone cards, digital cameras and even iPods.

What happens if the machines fail to dispense merchandise? Instead of kicking and shaking them in vain, like people often do with traditional vending machines, sensors notify a built-in computer system. If the product is not properly dispensed, the credit card will not be charged.

Jeff Loomans of Sierra Ventures, also based in San Francisco, is a lead investor in the Zoom storefronts.

"There are 50,000 hotel gift shops in the U.S., and only about 1,500 of them make any profit," he said. "They are replacing small, manned retail locations. All a cashier does is take credit cards and make sure there is no theft."

One store opened last month in the Argent Hotel, located in the heart of San Francisco's financial district. "We have received nothing but great feedback from our guests," said Fabiola Price, the hotel's Marketing Communications Manager. "They are going to be replacing more and more hotel gift shops."

Price did note one problem. The machines only take cards and require that customers enter their zip codes. This did not work for international guests. However, the hotel immediately contacted Zoom, which fixed the problem the next day.

Loomans doesn't think the robotic storefronts will eventually phase out staffed retail stores. "These new stores will increase retail efficiency, just as ATMs did [for] banks," he said.

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