A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Newspaper distribution model alternative

I’ve put the entire draft distribution newsagent business plan online for comment.

There is no doubt that the current business model of 4,000+ independent newsagents handling the home delivery of newspapers and magazines is ripe for change. With cost pressures from publishers and consumers, newsagents are carrying an increasing loss or cutting corners to break even. The CFA business model is designed to help newsagents pool resources to create a bigger distribution business. In many cases, where the newsagent owns a retail outlet, they will be freed to concentrate more on the retail side of their operation.

My view is that newsagents need to take the initiative and consolidate otherwise publishers and external commercial pressures will force an unpalatable consolidation on the small business owners.

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