Michael McQueen, writing for news.com.au in a report published this morning says, among other things, newsagents will be gone in five years:
Newsagencies were once a gold-plated business. They had a bulletproof revenue model centring on the exclusive rights to distribute and sell the magazines and newspapers we all purchased on a daily basis. Then came 1999 — the year of deregulation. From this point onwards, newsagents no longer enjoyed the protected market they once did and business began to get tough.
Today, newsagents have one remaining cash cow — lotteries. With increasing noise from governments that lotto could also be deregulated in the coming few years just as it has in other countries, this may be the last nail in the coffin.
It is entirely likely that the only newsagents still standing in five years time will be those who have diversified to the point where their business model is almost unrecognisable by today’s standards.
I have written here many times over many years about this – the need for diversification, the need for new traffic generating products and services as well as the danger in relying on a single product or service like lotteries.
The stronger newsagent retailers are more likely to not have lotteries as they do not have the considerable labour, space and capital demands that come with this.
I know of newsagency businesses today that are growing. Maybe News could publish some reports about these.
I am optimistic, not out of desire but out of what I see some doing. Our channel will continue to shrink but those remaining and those entering will be stronger and more successful.