A new generation of automated smart vending machines, including refrigerators and coolers, is taking its place within stores (e.g., food, pharma, convenience) and in public spaces (e.g., train stations & airports, malls, service waiting lounges). There is variation in their models and features, but they have some common characteristics: they are AI-augmented, data-driven, and often have cameras (empowered with computer vision) and biometric sensors installed. One of the distinctive features in this transformation is applied to refrigerators or coolers: a large digital screen installed on the door is displaying the products offered instead of viewing the products through the glass door. The display screens are meant, nonetheless, to provide smart and personalised service via interactive interface.

  • Note: A ‘full size’ smart screen covering the facade of the vending system is not mandatory. An interactive touch screen (e.g., in tablet size) can appear to the side of the ‘window’ display of physically visible products (as in traditional vending machines) and offer the main advantages of a smart vending machine, fridge or cooler.
  • The models of smart fridges or coolers differ in whether physical products are visible through a glass front or the facade (door) is covered by a full-size (touch) screen; if item selection is made on a large screen or a smaller screen next to the ‘window’ (or neither) ; and if the door can be opened by the shopper to pick up an item or a robot inside the machine collects and delivers the item through a cabinet. Enabling a shopper to open the door may be contingent on introducing at first a means of identification or payment.
  • The different types of smart vending systems have implications in interface possibilities, physical size of the machine or fridge, operation, and additional components of the system (e.g., interior and exterior cameras). The type of model most suitable truly depends on the location and context of its deployment.

The large smart screens can be applied in vending systems for food and drinks (e.g., soft drinks & juices, dairy products, sweet & savoury snacks, salads). It is suitable also in vending machines for electronics (devices & accessories), beauty products, toys and other small and hand-held items. The use of those smart screens is expected to expand to more product categories. Smart vending machines can allow the use of different modes of payment in cash, by credit/debit card or mobile payment app [1], and increasingly enable contactless payment. On vending machines in public spaces payment is usually made immediately per item bought; within stores, however, items picked up by shoppers from coolers or fridges can be identified, registered and paid for at the end of the shopping journey (cashier or more likely on self-service kiosk and directly through the retailer’s app).

The Meat Station: A Smart Vending Machine for Meat Products
(located in a mall, Tel-Aviv Area)

The collection, analysis and application of data is a major aspect of the use and operation of automated smart vending machines, fridges & coolers. Data is collected on the products chosen for purchase where in certain models (e.g., coolers with a door covered by screen, door can be opened) the choices are tracked by interior cameras (i.e., “seeing” and identifying which product items are removed). Exterior cameras may collect data of shoppers’ faces (facial recognition) and body movements (cameras may be supplemented by other sensors). Data may be used instantly to display targeted and tailored ads with product offerings on the digital screen. Purchase data is also used for inventory management, and to modify the product selections offered according to learned consumer preferences. Operators can monitor remotely the performance of the machine or cooler, track sales and purchase patterns, and update product and pricing information (applicable to both the system supplier and retailer).

The inclusion of cameras equipped with machine (computer) vision capabilities is becoming vital to deliver the promised advantages of the smart vending systems. The ‘smart’ cameras offer performance of real-time analysis of inventory levels, and of customer interactions and their preferences; they furthermore enable facial recognition (e.g., assess shopper age for eligibility to purchase) [2]. Facial recognition may be recruited for other purposes too (e.g., verification of shopper identity, fitting relevant ads, research on shopper behaviour). Nevertheless, applications of facial recognition by the advanced cameras focused on the shoppers may raise issues of privacy and the need for prior customer permission. On the other hand, consumer acceptance of the cameras may depend on the benefits such computer vision capabilities can provide to the shoppers. For instance, Digital Media Vending International (DMVI) suggests that knowledge gained of product attribute preferences (e.g., cupcake flavours) can help in adjusting inventory orders accordingly to readily satisfy customers [2]. (See this demonstration video of a smart vending machine by DMVI)

Eventually, both parties, retailers and consumers, have to gain from the utilisation of those technologies empowered by artificial intelligence (AI) in terms of efficiency, convenience, etc. The ‘new age’ of smart data-driven vending machines can contribute to maximising retail revenues on the one hand while improving customer experience on the other hand [cf. 1]. The technology provider DMVI proposes that the integration of digital vending machines with machine-vision cameras and customised software applications can create smart retail hubs that deliver enhanced interactive and tailored shopping experiences (e.g., making personalised product recommendations). However, DMVI also cautions that maintaining those sophisticated systems requires the training and deployment of professionals skilled in operating them (including remote monitoring and maintenance) [2].

Retail ventures of installing smart coolers or fridges in stores may not work out so well. The debacle of US-based pharma retailer Walgreens with smart screens mounted on the doors of coolers shows how the experience can get sour. In 2019 Walgreens entered a project in partnership with Cooler Screens to install coolers’ doors in their stores wherein the traditional doors with glass facades are replaced by doors covered by large digital smart screens. The 10-year contract was for 2,500 screens. It may be added that one of the founders of Cooler Screens was a former CEO of Walgreens (Greg Wasson, 2009-2014 — the co-founder and CEO leading today Cooler Screens, renamed CoolerX, is Arsen Avakian). In a matter of 3-4 years the parties got into dispute over different aspects in using the coolers with mounted smart screens.

Cooler Screens promised, as reported in the media, that the technology will allow collecting data on shoppers and enable an “advertising revolution” in-store. Management at Walgreens, however, became disappointed with the outcomes: Roz Brewer, the CEO of Walgreens at the time (since departed in 2023), was not satisfied with the look and functionality of the screens on top of the doors. The retailer complained about technical glitches, inconsistent information on the availability of products inside, distorted displays and even appearance of “black screens”. The provider Cooler Screens argued in return that Walgreens did not maintain the coolers as required, did not check and refresh supplies in time, and hence data was not updated properly to display correct and reliable information. [3]

Comment: Videos taken at Walgreens stores (found on YouTube, see example) suggest that doors of coolers can be opened, and shoppers may pick up the products they choose. However, several aspects of using the smart coolers are ambiguous. For example, opening a door appears to happen without selection of a product on the screen before opening it, and with no explicit identification of shoppers apparent (possibly a camera recognises them). Thus, the screen seems to simply display product images and their prices. Screens also display ads, but it is unclear if these ads are personally tailored for nearby shoppers (Cooler Screens offers services of its AdFrame advertising platform in Europe).

Inside the coolers, items such as bottles, cartons or cans of drinks placed on shelves seem to be very crowded. This could reflect an advantage for the retailer: a vending machine with glass facade for seeing through the products inside can usually store 40-50 products, but when a digital screen is integrated for product display, compartmentalising the inventory can allow twice as many products to be stored and offered inside the vending machine [1].

Walgreens and Cooler Screens/CoolerX have exchanged blames on mismatches between ‘active’ images of products shown on the screen and those actually found inside the coolers; whether staff at Cooler Screens became aware of technical malfunctions of screens; and on the responsibility of Cooler Screens staff to attend and repair technical failures in time. It is reported that Cooler Screens already spent $45m on installed screens plus $88m on ready-to-install screens, plus other expenses. Thereof, Cooler Screens filed a lawsuit against Walgreens in demand for compensation (damages estimated of $200 million). [3]

Rachel Wolff (eMarketer, [4]) identifies three key apparent pitfalls revealed through the Walgreens debacle, raising challenges for in-store retail media: (1) measurement can be unreliable (sensors on smart doors produced inaccurate, biased data); (2) having up-to-date infrastructure is vital (the equipment of Walgreens is old and malfunctioning, causing screen faults or failures, often undetected); (3) reliable technology is also a must (inner cameras did not identify out-of-stock products and did not dim them on screens in time, causing unreliable information to display).

It is hard to judge what are the advantages of the smart digital cooler screens, as installed at Walgreens, for shoppers. How ‘smart’ are they from a consumer-shopper perspective if they are not interactive? Due to the malfunctions in display (validity & accuracy of information), they did not seem to be so ‘smart’. What other features could indicate to shoppers that the coolers are smart? Additionally, from the retailer’s perspective, verification of identity of shoppers (e.g. before opening a door where possible) is intended to reduce shrinkage, that is loss of inventory mainly due to theft of products. How is that handled?

  • Other retail projects of Cooler Screens might turn out to be more successful. After a three-year pilot Kroger supermarket chain was expanding its partnership in 2023 with Cooler Screens to install digital smart screens in more stores, aiming at 500 locations. Retail Dive reports that the technology lets displays showcase product information and advertisements and also allows shoppers to interact with digital merchandising. According to Retail Dive, in 2023 Cooler Screens had 10,000 screens installed nationwide (US). [5] (see this video example in Kroger — notice that in this application a voice assistant prompts a highlight on the screen of the location of a sought product.)

The up-and-coming generation of automated smart vending machines, coolers and refrigerators, opens a door to potential new benefits and advantages for consumers and retailers. From the shopper perspective in particular, the AI-empowered vending systems should facilitate and smooth the process of choice making, accessing the chosen product, and payment, resulting in a more pleasant and productive shopping experience. If the screens on cooler doors are not interactive, one is left wondering what advantage shoppers get in seeing products virtually on a screen rather than viewing them physically through glass doors? The screens must serve more than as an attraction, a technological wonder. They can help the decision-making shopper, for example, by offering more product information on request and allow product comparisons among brands offered in the cooler, as in any smart vending machine. Delivering tangible benefits to shoppers is essential for creating an appealing customer experience.

Sources:

[1] “‘Unattended Retail’ on the Upswing”, VMSD, 4 February 2025 (Visual Merchandising & Store Design)

[2] “Revolutionizing Automated Retail: The Power of Machine Vision Technology”, Digital Media Vending International, 15 December 2023

[3] “Walgreens Replaced Refrigerator Doors with High-Tech Smart Screens, But There Is a Problem”, Lucille Barilla, RetailWire, 17 January 2025

[4] “Walgreens Ill-Fated Cooler Screens Partnership Reveals In-Store Retail Media Challenges”, Rachel Wolff, eMarketer, 16 January 2025

[5] “Kroger Brings Digital Smart Screens to 500 Locations“, Catherine Douglas Moran (Editor), Retail Dive, 30 May 2023

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