Macy’s Readies iPod Vending Machines

Posted on by Chief Marketer Staff

Macy’s will install vending machines selling iPods in 180 stores this fall.

Macy’s stores in 32 cities will get self-serve “Zoom Stores,” giant vending machines, as part of an effort by parent Federated Department Stores to introduce consumer electronics without the expense of opening full departments.

“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,” Federated President-CEO Terry Lundgren told shareholders last week, per The Associated Press.

The Zoom Stores will sell iPods and accessories, and will test products from Sony Corp. and Motorola, per news reports. Shoppers pay with a credit card, debit card or Macy’s gift card. Federated tested the system in a San Francisco store and found shoppers were receptive to high-end vending.

The system is operated by Zoom Systems, which owns the machines and inventory; Federated gets a percentage of sales, with no upfront investment.

San Francisco-based Zoom Systems also pitches its machines to supermarkets, malls, hotels and universities. San Francisco International and Atlanta Hartsfield airports have had Zoom Stores for just over a year, selling digital music players, noise-canceling headphones and computer accessories.

Meanwhile, New York-based Federated capitalizes on three private-label brands. It will roll out Marshall Field’s iconic Frango Mints to all Macy’s stores nationally this fall, as Field’s stores convert to Macy’s. The retail chain also expands its private-label textiles brand Style & Co. Home to about 500 stores, and launches a private-label sportswear line by designer Elie Tahari.

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