Every week I hear from one or two people looking at buying a newsagency asking about the process or whether I think newsagencies are good businesses to own.
A it happens I do think that newsagencies are good businesses to own. Sure, print products are challenges. However, they are not dying any time soon. Indeed, traffic from newspapers and magazines is excellent … good enough to build strong sales of other products. Lottery products generate excellent traffic. Greeting cards generate excellent traffic. Business services like photocopying generate excellent traffic.
So, my first reason for saying that newsagencies are good businesses to purchase is the traffic opportunity. Smart newsagents can achieve good things with this traffic. they can lead the business through change which attracts new customers and gets existing customer spending more.
The challenges we face as a channel and , more importantly, individually, present opportunities for us to play considerably outside our traditional model. There is where good retailers wille xcell. not so much good newsagents of the old school variety, but good retailers.
This is my second reason for saying that newsagencies are good businesses to purchase … the opportunity to profit from change. Take an old school newsagency and turn it into something fresh and bright. Use the core traffic and get out of what is not making money. I have seen newsagencies take on cafe, book, printing, gift, homewares and even haberdashery products. The changes of today and tomorrow present excellent opportunities.
many newsagents are tired, some are lost, some are not retailers. Replacing these folk with fresh retail-focused ideas can refresh a business and help it turn a profit.
This is my third reason for saying that newsagencies are good businesses to purchase … to bring in new blood and turn a tired business around.
Almost every newsagency in Australia is connected to the community in some way or another. Through supporting sports groups, participating in community groups and helping other local charities, the local newsagency is the quintessential local business. In some locations, the newsagency defines the local character. In others, it is the local meeting place.Even in capital cities, newsagencies are the places people go when big retailers let them down.
This is my fourth reason for saying that newsagencies are good businesses to purchase … to better leverage the community connection.
While there are plenty of reasons for buying a newsagency, these are four I would highlight. I think that the channel has a bright future if we embrace change and attract more buyers with good retail skills.