With the convenience sector under pressure to do more with less, veteran retailer Mo Razzaq believes vending machines in convenience stores could be the next frontier in trade, making stores available long after the shutters are down.
Last month, Razzaq unveiled two vending machines outside his Premier Mo's Blantyre in Glasgow, and the results are already turning heads.
Speaking to Asian Trader, Razzaq shared his thought process behind the installation of the machines.
“The idea of getting vending machines is about serving our customers even when we are closed.
“We were aware that our customers were looking for basic supplies when we are closed and this turned out to be a very cost effective way to remain 24 hour available without any additional energy or labour costs.
“Even in the day time, people are increasingly using vending machines who have come for grab-and-go mission. Many people are in a hurry and they do not want to stand in the queue for the payment. They prefer machines.”
So what is inside these machines?
Razzaq revealed, “The idea then was to put in products that our customers wanted the most. I was aiming to catch the market of customers who were looking for basics in the night when everything is closed in a cost-effective way
“A close look at the demographic of the nighttime customers helped me decide what to keep in the machines. Like there are people going to work who were looking for snacks at night like pies, sausage rolls and burgers.
“Then there were others looking for drinks. So water, sparkling water and everything else."
Constant trial and error is key.
“We basically try and test constantly to see which ones are selling more and which ones are not. We removed the ones not performing very well and reintroduced some other lines," he said.
Provided by Sielaff UK, the two machines outside Premier Mo's Blantyre contain more than just crisps and cola.
Razzaq explained, “In one of the machines, we have put household items. So there are items like condoms, pregnancy test kits, sanitary kits and baby wipes.
“I realised that with condoms, people were a bit hesitant to buy them inside the store and with the machines, they can do it discreetly without interacting with any of the staff member.
"Same goes for pregnancy kits test. Baby wipes too sell like hot cakes.
"The sanitary range is also quite a hit. We are offering the same at an affordable range of 79 pence, which is below cost price.
“Our store is in a deprived area; period poverty is very much a thing here. So we have put the price to really a low of 79 pence so that it's affordable for every women. It's the same price as in the shop.”
The rest of the space is dedicated to food and drinks.
Giving a peek into the machines, Razzaq shared, “We are selling a lot of Pringles. Our individual cakes, small loaves of bread, the medium Warburtons and pint of milk are also selling well.
“We have many food-to-go items as well like pies, sausage rolls, crisps, Pepperami's range, Russell's burgers, sandwiches and wraps.
“The machine also has M&Ms, the Maltesers, Haribo bags, the Swizzles, bags of Galaxy as well as bigger bars of Dairy Milk and KitKat.
“And then there are drinks. The machines have a very wide range of drinks right from Tropicana, Chocomel, two types of Costa coffee, cans of Coke and Pepsi Max.
“Then we have the electrolyte water called Wow Hydrate. We have some flavours of popular sports drinks.
"The bestselling item from the machine is energy drinks and water as well as confectionery items. Also, I am surprised to see the sale of sandwiches from the machine.”
Challenges and Concerns
Since having automated vending machines in (outside) a convenience store is a fairly new concept, Razzaq revealed that he is facing some teething issues as well.
He said, “We faced some problems in the payment gateway. Since in the store, we do not sell energy drinks to under 16s and the machine has a wide range of that, we need to find payment provider who would grant that sale to the card holder of someone more than 16 years of age only.
“I am still trying to sort this out.”
But what about the theft issues and fear of vandalism?
“I am obviously concerned about it but we already have the washing machines and lockers outside the store. I have CCTV coverage in the area but at the end of the day, one has to take the risk to grow."
Its just a month since the two machines are installed but Razzaq is already planning to add a hot food-to-go machine very soon.
“I am thinking more on the lines of a pizza machine. I can see many people working night shifts like taxi drivers and ambulance drivers. Nothing is open in the night time.
“If we can give a quick option of a hot meal like a pizza or a sandwich, it would be a great addition," he said.
Future is here?
For Razzaq, the vending project is about more than sales; it’s about proving independents can adapt quickly to shifting shopper habits.
“One needs to innovate to grow,” he said. “If one does not want to open the store until very late hours yet catch the night-time sales, vending machines are one of the best ways of doing it.”
With plans for hot food, everyday emergency items, and continued price accessibility, Razzaq is clearly seeing vending machines as a practical extension of convenience retailing.
And as more shoppers embrace grab-and-go, his Blantyre store could become a blueprint for how independents across the UK keep customers served even when the doors are shut.