Analyzing the Potential for a Fully Automated Convenience Store in Switzerland

In this paper, the author develops a dynamic simulation of three different degrees of automation for convenience stores in Switzerland within a time frame of 15 years. The simulation uses Migrolino/Coop Pronto as base case and adds more complexity from there on. Firstly, a causal-loop diagram is developed in order to shed light on the key variables and their interactions. This information provides the basis to build a dynamic stock-and-flow model. Through this model, the author found that there is a large potential for automation in the Swiss convenience store market. The most promising simulation projects an increase of total profits by more than 110%. The model also shows that this increase in profits was mainly due to a decrease in costs. The 24/7 opening scheme allowed for some additional revenues, however, it was mainly the substitution of labor through capital which increased profits. Particularly the substitution of labor through software has shown to be cost-effective for a large network of convenience stores. This paper is insofar important as it shows that there is, from a purely financial perspective, a clear incentive to introduce automation in Swiss convenience stores for large companies like Migrolino and Coop Pronto.