Historically the appeal of newsagencies in Australia has been broadly based. Our 4,600 stores are well located so we’re convenient. We have had an excellent and exclusive range so we have been a destination. As a result of more competition, the impact of technology and changes in consumer buying habits, newsagencies are losing (in my view) their destination appeal. Whereas previously our destination appeal was due to lack of choice, today it’s what we make of it.
Newsagencies are laid out and designed for the convenience shopper. The counter best illustrates my point. We all too often surround our counters with candy and other impulse items which customers can buy elsewhere. They are items under margin pressure. If we were more destination focused we would surround our counters with items more unique to our businesses and which are under less margin pressure.
Newsagents ought to stop listening to reps who knock on their door every day pushing product to the counter and make decisions for themselves as to the message they want at their counter for the good of their business. While some newsagencies in transit traffic locations will want convenience items at the counter, others in shopping malls and high street situations could be better served making their own choices.
If we make our stores look like a convenience stores they will think of us that way when considering stationery and other items whereas if we ‘own’ categories such as art supplies, greeting cards, stationery, specialty papers and stationery related gift lines they will think of us when they need these.
This has been on my mind these past few days because of a discussion I am having with someone entering the newsagency space in Brisbane. They want to push the newsagency they are buying into the convenience space even though there is a national brand convenience stores a minute from their front door. If they make the mve they;re no longer a newsagency and the channel loses one more outlet. nice stores they will think of us that way when considering stationery and other items whereas if we ‘own’ categories such as art supplies, greeting cards, stationery, specialty papers and stationery related gift lines they will think of us when they need these.