Three technologies that will change retailers' work

Drug Store News, Feb 2, 1991 by Ted Gladson

The only (current) limitation of using vending technology in this form is that bank debit card purchases aren't practical for very low-value items such as candy. However, this should not be considered a limitation for use in a drug store, because the purpose of having such devices is to build traffic. Many drug stores currently operate postal substations, accept payments for utility bills, and sell tickets to build traffic. These traffic enhancers can be continued, but at a much lower cost through the use of electronic vending technology.

The manager's job is affected by this technology to the same extent as discussed for bank debit card technology: increased traffic and sales with less labor expense. Some maintenance may be required, but it will probably only be simple tasks since specialized maintenance will be provided by experts.

Summary: Three technologies have been presented to demonstrate how drug store retailing is likely to change in the next five years. These changes will surely transform the manager's job, although the nature of the change is more difficult to predict because management could use the time saved in many ways: to reduce store hours, assign new managerial tasks, or expand existing responsibilities.

In closing, consider one additional use of technology with many possible ramifications for chain drug stores. Using the electronic technology described with a telephone/computer connection, it is possible for customers to shop by telephone at any hour of the day or night. Will chain drug stores serve the needs of these customers? How?