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Another UK newsagent closes

Reports like the one you will find here in The Press and Journal appear almost daily somewhere in the UK, reporting the closure of a local newsagent. It concerns me that complacency here in Australia – individually and collectively – could see us see these stories appearing in our newspapers here. Economic challenges, disruption to print product and failure to pursue a better future would be the cause if it happens.

After reading this article, we each have to ask ourselves – what do we stand for? Put another way what is unique about our businesses? If we don’t know then we are lost. This was the topic of a presentation I gave at the ANF conference earlier this year. You can see the slides I used here:

Newsagency of the future

View SlideShare presentation or Upload your own. (tags: itunes digital)

I don’t have the answers. I have some ideas as do others. My key concern is that we are not talking about these concerns. Maybe in small groups, occasionally, but as a national channel of retail and distribution businesses, we are not talking about our future.

The answer to what do we stand for? has to come from us, not an association or a supplier. We have to find our own way to the future. That was the purpose of my ANF conference presentation and others I have given on this topic since. We have to engage in debate, research the challenges and work out what we ant from our businesses in the face of considerable change. This is a time of terrific opportunity!

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  1. Derek

    Mark

    I enjoyed the presentation, that is a whole lot of work in that. The message is clear and not at all ambiguous. By any chance did you have a Tobbaco figure of hand? up or down, mine are down about 30% over the week .The latest rise and economics I believe people are making a effort to buy them at a Tobacconist or Major, Minor Supermarkets, along with the New legislation in my case coming next september where tobbaco products must be out of sight all together.. We are in the midst of changing it to in my case because of my locality a hanging lolly bag stand and other profit making opportunities (Still thinking).

    Enjoyed reading this post, no need to keep reading my views other than I support what you are saying, wishing some other Newsagents Nationwide would publicly share their views. Thanks Derek

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  2. Mark

    Thanks Derek. The data I have for tobacco is not as comprehensive as magazines and other categories sold in more newsagencies. Having said that, the indication is a decline of 7%. Some are showing double digit growth. It comes down to the obvious: positioning – those who decide to carry a good range and are competitive on price and are situated in a high traffic location do the best.

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  3. Michael

    Great slide show Mark, it highlights the need for a strong national association that will make it easier for non-entrepreneurial to move forward and get more out of their businesses.

    Entrepreneurial newsagents will be the forrunners in terms of taking risks and getting results that everyone else can follow. A National Assoc would help everyone’s interests.

    Derek, my sales have slightly risen, I have a good range and sell at RRP.

    Last Saturday 25/10 was my best day ever for sales of non-weekly magazines – I don’t know how that happened?

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  4. Jarryd Moore

    Michael,

    Non-entrepreneurial newsagents are going to find it hard to move foward with or wthout an association. No association is going to provide the plethora of commercial knwoledge, tools and strategy needed to spark growth – any small benefit they do provide would most likely only be delaying the inevidable colapse of many old-school newsagents.

    Everyone else won’t be able to follow the lead of entrepreneurial newsagents. The market moves far too quickly. By the time much of the industry has figures out that they actually need to change their ways, entrepreneurial newsagents will have changed their strategies multiple times.

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  5. Michael

    Jarryd, I agree with you that “Non-entrepreneurial newsagents are going to find it hard to move foward with or wthout an association”, but if we had a great association,organised in the right way it will make it a lot easier for them, therefore letting them “keep with the times” using products/services proven by “entrepreneurial newsagents”.

    By doing this our whole channel moves forward, rather than going idle.

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  6. Derek

    Thanks Mark & Michael, I sell mine @ 17.5% more than a Tobacconists, I always have. In saying that its not cheap. I am attempting to change and have begun and have done so through contributors insight via blogs. Demographic is also a big factor, horses for courses.

    Agreed Jarryd although i would like to think the future National Association would in time provide a big benefit Australia wide to Newsagents particularly with all publishers & distributors of printed matter.

    But if i hold my breath I am doomed and have to change now no matter how small I am, I cannot wait. Hope that makes sense.

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  7. Michael

    Derek, I know it’s horses for courses, I’m next to a supermarket and what I also do is get the reps to tell me what they haven’t got in there. I then stock it. It’s worked well.

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  8. Andrae

    What is needed is greater information sharing, this blog is a great example of that. So while we patiently wait for a National organisation to be formed that will actually work for its members and supply them with promt, reliable and useful information and help, maybe the more entrepreneurial newsagents could create a help blog or even a website for Newsagents only to list ideas and suggestions (under various categories)that have worked for them.(naturally, if users are interested they could ask for more details/info). This would be a positive, constructive step forward for the ‘non-entrepreneurial’ businesses and would go a long way to helping the channel survive and thrive.

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  9. Mark

    Andrae,

    I don’t see an association sharing marketing ideas. This is more suited to the marketing groups. In the meantime, I’ll keep posting ideas here.

    Mark

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  10. Michael

    Mark, I think we need an association that can share some simple ideas, whilst this in no way would be it’s priority.

    The newsagency you took a photo of in King Island, might not suit being a newXpress/supernews, but if it had a national membership it should get a few hints- as to what the industry is doing.

    What do you see an association doing?

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  11. Mark

    Michael I just don’t see it an as association focus. I have learned the best ideas from travel – local and overseas. Looking at what a neighbour newsagent or a local hardware store is doing can set off some of the best ideas.

    We have to become more business like.

    Mark

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  12. Jarryd Moore

    Michael,

    Marketing/merchandising has to come from marketing groups – that what they specialise in. As soon as associations get into this territory they tend to go “off the rails”.

    Sporadic ideas aren’t anywhere near enough to save part of the industry. Entreprenurial newsagents have larger synergystic marketing and merchandising plans. 1000 different ideas that don’t gel together is what we have now – we certainly don’t need more of it.

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  13. Jeff C.

    Where can I see this presentation. The slides are good but I want to hear what you say. Will you come to Sydney to make the presentation?

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  14. Michael

    So what are we?

    I’ve looked around Brisbane, Sydney and Melbourne recently and have noticed a lot of independant newsagents that seem to be dependent on lotto – these aren’t part of a marketing group. But could do with a little help.

    So correct me if I’m wrong and I’m just going from what I’ve seen, that around two thirds of newsagents aren’t part of a marketing group and because of this miss out on communication that would help their businesses and our channel.

    This communication would make the industry more business like. At the moment it’s not a good look haveing a BE sign taking up a quarter of your shop front, but the newsagent doesn’t know it due to a lack of communication and not being business like. This is affects the image of all of us.

    This is the style of information sharing I’m talking about. I know you’re both NewsXpress fellows and might be concerned a little, but the extent that I’m trying to say wouldn’t effect you, just help out the example above.

    I’d rather an association provide this care to members. Maybe the state associations should get involved with this type of stuff?

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  15. Jarryd Moore

    Michael,

    Newsagents that aren’t part of a Marketing group miss out on a lot (including communication). That’s what marketing groups provide. If newsagents want these things then why are they not part of a marketing group?

    There has been communication on Bill Express. Why would a newsagent still have the signage up? But there would not have been the need for this communication if associations had stuck to policy and information dissemination.

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  16. Michael

    Jarryd, you’ve summed up what the ANF does for us and what other industries see when they look at ours.

    That’s why we need some form of change.

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  17. Jarryd Moore

    Michael,

    Not sure how I have summed up what the ANF does?

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  18. Michael

    We’re all different in the way we do things. But nothing really ties us together, if all 3500 or so of us had a strong national body our voice would be heard. We need better comunication between all of us so the voice is heard. The ANF don’t chase that up.

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  19. Jarryd Moore

    Its the old quantity vs quality game. I see 3500 newsagents without a collective strategy, goal or systems as less effectie than 350 newsagents with such ties.

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  20. Derek

    Jarryd

    If that is your view, I am assuming you are a member of the NSW association, is their any possible way that the NSW Newsagent Association could say for example negotiate with major suppliers in this case Publishers and distributors for an increased commission on the various products we sell from them.

    Thats where I am coming from, that is why i am passionate for a United National Association with 3500+ Newsagents so they can represent all States.

    I am not confidant that this can be done by an individual state.

    Derek

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  21. Jarryd Moore

    Derek,

    We are not part of any association.

    I don’t want any association negotiating any commercial terms. That isn’t their function – there are other mechanisms for negotiation.

    How can newsagents possibly negotiate better terms though assocaitions when they bring nothing to the table? Associations telling the publishers/distributors that ‘we wan’t more commission’ isn’t going to achieve much (if anything) if newsagents have nothing additional to offer.

    I would rather see marketing groups and franchises absorb the functions of the associations. They are far better positioned to represent their members than an association.

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  22. Derek

    Jarryd

    I appreciate what you are saying and of course I do not have a closed mind on things, Newsagent Unification Australia wide to put it plainly as I can is what I want. You may ask why one wants an association that represents all newsagents, firstly put to bed fragmentation, its is killing the channel, its also directionless and secondly is carry out the wishes of its members, and your idea could be what road the members want to take regarding the creation at arms length of a National Marketing group. But to me it is one in all in.

    I dont want to belong to a political party that spends members time in power struggles, building empires and lacks transparency. So any state association is out for me.

    I dont have answers just strong opinionated ideas, stagnation will in today’s deregulated competative retail environment will see many business’s go down if we do not act today collectively.

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  23. Jarryd Moore

    Derek,

    I am all for frangmentation if such division of the industry is able to leverage the benefits of this. I too don’t want to “belong to a political party that spends members time in power struggles, building empires and lacks transparency”.

    As I see it, we can act collectivly, but in a few seperate groups. Other industries have thrived from seperating into marketing groups and franchises. Unlike associations, these groups have the mechanisms to achieve better results for their members. It doesn’t mean that sometimes the groups can’t work together (eg. taking the same stance on plastic bag legislation), but if there members needs are different from that of another groups they can reflect that in the positions they take and the advice they give.

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  24. Derek

    Jarryd

    We are on the same page mostly and I am learning much, thats right your quote “I am all for frangmentation if such division of the industry is able to leverage the benefits of this”.

    Of course it wont happen! The question is where to from here, why and then how. As you know their has been much information documented, I just want to know when?

    Thanks for your views Derek

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