Coinstar Considers Beauty in a Box

The parent company of the successful Redbox is thinking about a new venture in cosmetic kiosks.

August 03, 2010

BELLEVUE, Wash. - Coinstar Inc. might transform beauty care much as it did DVD movie rentals, Dow Jones Newswires reports. The parent company of Redbox is currently hiring a vice president to head a new enterprise in cosmetic kiosks.

Signs point to Coinstar developing partnerships within the beauty industry and vending machines for those products. "We are continually looking at new opportunities in the self-service, automated retail space and plan to have a number of seed businesses that we??re testing and evaluating at any given time," said Coinstar in an email statement to Dow Jones Newswires. "It would be premature to provide comment on any of these early concepts."

Coinstar is continually testing automated retail concepts in order to grow beyond coin counting and movie rentals, said analyst Eric Wold of Merriman Curhan Ford & Co. "They definitely need to get into something to diversify the company," he said.

Redbox "still has a pretty good, solid three or four years of growth left in terms of new machines before starting to hit a wall," said Wold. The DVD rental kiosks are in around 22,000 locations, such as supermarkets, McDonald??s and convenience stores. Its automated coffee kiosks with Seattle??s Best coffee have been brought back to the drawing table for more work.

Sephora has some self-service vending machines in J.C. Penney stores, malls and airports. ZoomSystems also has inked a deal with The Body Shop to sell personal care products in kiosks at airports and supermarkets in the United States.

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