Macy's and Zoom to provide self-serve iPod vending machines

Wow, I haven't even had a chance to use the one dollar, DVD movie vending machines at McDonald's yet, and here we have a high tech automated machine, that spits out iPods like a $300 dollar bag of corn chips! At the annual Federated Department Stores shareholders meeting, Terry J. Lundgren, Federated's chairman, president and CEO, gave a demonstration by swiping his Macy's Visa credit card (Surprise!) through one of the behemoth machines. Then, to the delight of the spellbound audience, even this high powered executive was able to dispense a player. 

The automated electronics dispenser from Zoom Systems, will accept debit and gift cards as well. This convenience could be a nice holiday gift idea for those that have acquaintances that are hard to buy for, as long as you have an extra few hundred lying around. Mr. Lundgren says it's exciting, because it brings these hot products into their stores in a unique new way. He, along with the stockholders, are probably most excited though, by the thought of no store employees being required for the sales process.

Lundgren demonstrated the 28-square-foot unit to shareholders, using his Macy's Visa card to buy an iPod. Apple's iPod music players and accessories make up the primary assortment of merchandise displayed on shelves behind glass. A touch screen allows customers to get product and price information and select an item, which is then retrieved by a robotic arm and dropped into a delivery bin. Payment is made with the swipe of a credit or debit card or a Macy's gift card. Lundgren said electronics have been unprofitable for Federated in the past so he did not want to go with a full electronics department. 'I've wanted to be in electronics for a long time, but we had just never been able to figure out how to do it," Lundgren said.

The beauty of the scheme for Macy's, is that Zoom Systems will own the inventory and machines. Federated will own the space and take an undisclosed cut of the sales. In this respect, there is little risk for the department store other than the loss of conventional sales floor space. If the concept proves successful, they will try other electronics as well. For instance the report indicated that Magnavox and Sony would have some products tested this fall.

Source: MS NBC