Article
Micro market sales jump 41.9% in 2016 as installations hit new peak
Now that micro markets have moved beyond the concept stage, both operating companies and product manufacturers are looking at how to optimize micro market product sales and where the concept can be extended to beyond traditional work environments.
July 18, 2017 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times
Micro markets in 2016 generated $949.9 million in product sales, a 41.9 percent increase over 2015, according to the 2016 BandA Micro Market Report released by Bachtelle and Associates. The 2016 installations included more than 5,000 new placements, reaching a year-end active micro market count of 17,806.
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| Source: Bachtelle and Associates |
Micro markets, an unattended retail concept offering consumers open product shelving and automated cashless payment systems, are most often found at larger workplace locations with employee populations above 125. Micro markets, according to the report, are the fastest growing segment of the foodservice channel.
"The growth to date of micro markets has been dramatic, and the projected future trend is very positive," said Brad Bachtelle, president of Bachtelle and Associates, in a prepared statement. "New placements are continuing to accelerate, with active micro markets having grown in just five years from under 1,000 at the end of 2011 when the concept was still in its infancy stage, to nearly 18,000."
There were 5,045 net new locations in 2016, up 21.7 percent over 2015.
Installed micro market payment kiosks increased 39.3 percent over the prior year.
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| Source: Bachtelle and Associates |
Total consumer spending at micro markets in 2016, including sales taxes and other fees, fell just short of the billion dollar mark, reaching $993.8 million. Across the entire installed base, per-location product sales averaged $54,194.
"The rapid growth of micro markets has been driven by the very positive consumer response to the basic concept," Bachtelle said, "which includes open shelving allowing direct product access, significantly increased product varieties within the cold drink, snack, breakfast and lunch food categories, and ease of purchase and self-checkout."
Future growth projections for micro markets continue to be strong. Now that micro markets have moved beyond the concept stage, both operating companies and product manufacturers are looking at how to optimize micro market product sales and where the concept can be extended to beyond traditional work environments, Bachtelle said.
The study is based on data from micro market kiosk suppliers and operator companies with proprietary micro market systems.
About Elliot Maras
Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.
