There's a vending machine for that: Why automated retail is becoming more the norm

Vending machines have taken a new, upscale form in the Canadian market, and experts say the pandemic, along with more innovative technology, have spurred this shopping trend.

Most recently, "Cake ATMs" have been installed at 25 shopping centres. Most are in Ontario and Quebec, but four are in Calgary. The individually wrapped slices are shipped daily from the United States by Carlo's Bake Shop — otherwise known as the Cake Boss.

And getting your hands on one seems like a piece of cake.

"It just seems quick," said Calgary customer Andrew Venini. "You can see all the selection right there, and all you got to do is deal with the screen."

Globally, the industry is expected to see 10 per cent annual growth each year until 2027, and big Canadian companies like Sport Chek, Canadian Tire, Rexall and The Source have all started to invest.

Shamira Jaffer is the president and CEO of Signifi Solutions, a vending machine supplier based in Ontario that has tapped into automated retail on an international level. 

Her smart machines are located across the world in hospitals, malls, airports and grocery stores.

But her Canadian clients have recently wanted more of an in on the action during the past two years, and she attributes it to customers being more comfortable with online shopping.

"Today, people are buying stuff unseen, based on a picture and some words," she said. 

"I think there's been a big shift in people's behaviours. There's a lot more trust, so they'll go and buy from [vending] machines as long as the brand is recognizable."

Jaffer says the look of the machine has also started to change and can be more curated to fit the brand, as well as be able to dispense different shapes.

"Build-A-Bear is selling bears out of our machines, but it's hard to dispense so we created a special holder that can dispense the bear without it being in a box."

What's inside has also become more upscale, with some customers spending $1,200 just to buy tech at the airport, she said.

"It took the retailers a little bit of time to realize that customers are adopting. And now I think retailers are realizing that, 'you know what, this makes a lot of sense,'" she said.