Commenters writing on my Do newsagencies have a future? post have been discussing average basket size with some publishing their number. Basket size can be measured in dollars or units. Good newsagency software reports this easily for you. There is a considerable difference in basket size, beyond the size and performance of the business, depending on what you include. For example, lotteries, transport tickets and other volume agency lines can skew the results. This is why I recommend not including these high volume low margin items in such analysis.
I check the basket numbers in my own newsagencies every couple of weeks as basket depth – units and value – are a key indicator in what I’d call the small steps strategy for successful newsagency management. These are a range of small steps, measurement points, on which to focus to build a healthier business.
The current channel average basked size is 1.43 items with an average basket value of $3.65.
Easy access to good data is the most common reason I see for newsagency success or failure. There are no excuses. You don’t need to be IT savvy. You don’t need a lot of time. It’s not about business size. All you need is a desire to be successful in your newsagency. Do you check your basket data regularly?
Click on the image to see a a larger version year on year comparison of basket size (dollars and units) as well as a comparison of average item value and total items. This is the final analysis in what’s called the Monthly Sales Comparison report – my favourite report