The gap between newsagencies is wider than I have ever seen it.
At the top end, our channel has professional looking newsagencies making a clear newsagency pitch around core lines and offering brand name products in a retail environment which competes with any major retailer.
At the bottom end our channel has what can be best described as junk shops, newsagencies dominated by cheap China product in dump bins and on tables spread across the front of the shop to the detriment of core newsagency lines.
Both types of businesses call themselves newsagencies, unfortunately.
The junk shop newsagency is more of an endangered species given the number of other junk shops out in the marketplace. It seems that shopping malls and high streets are cluttered with shops pushing cheap China product.
There are fewer newsagencies focusing on the core and offering strong, logical, shoots off each side of the core. Yet many of these newsagencies are flourishing. It surprises me that more to not take what is clearly a successful path.
While newsagents can run their businesses how they choose, those in the junk shop space, where more than half the floor space is taken up with cheap China product, ought to find a new name so as not to confuse shoppers looking for a newsagency.
The alternative is that the proactive newsagents shift focus away from the newsagency shingle.
Thankfully I’ve actively seen many of the “junk shop” newsagencies around me close or reformat themselves in the past couple years. The format was definitely worryingly common about 3 to 4 years ago, where often you’d see a newsagent that just had no sense of direction, selling all kinds of product. Ironically a lot of AusPost LPOs also have a “junk-shop” strategy, which is ironic considering how much other crap the Government-owned ones sell..
What are “core” newsagency lines now?
They used to be newspapers, magazines, cards, cigs, lotto and Stationery but these are now offered in most 7/11, supermarkets and general stores you come across.
The problem with newsagencies is that we are no longer a destination as you can buy most of our lines along with your weekly shopping. I agree with your last statement Mark, proactive retailers are shiftinf focus away from calling themselves newsagents and are standing up as just retailers.
The joke that is our associations is making this more apparent then ever.
If you rely on lotto as a traffic puller then look at NSW, in three yrs it will be gone. You need to create your own identity not rely on a shingle to pull people in.
we will promote more disount books now instead of mags
This forum is starting to get a little disappointing for me. Though I agree in principle to a lot that’s said here I am starting to see a divide between large Newsagencies and small Newsagencies. I own a small Newsagency in a small NSW Country town. I have all the problems associated with the large Agencies but a small customer base to manage these issues. Try a little empathy. Small agencies are doing everything possible to stay afloat, not to make loads of cash, just to stay afloat. You have to do whatever you can to get the customers in the door. The only time I hear from any suppliers is when I’m late with payments, the exception is John Sands who we see every 2 weeks for our cards and associated products. I understand you may be talking about metro agencies regarding junk but a sale is a sale. Don’t get to stuck up as most small country agencies are in a position that you couldn’t manage and yet they have been doing it for years. It amazes me when I see metro agencies whinging about merchandisers and what the other blokes selling, whinging about Australia Post etc, etc, etc.
I have a LPO in my Newsagency and both businesses complement each other and yes I am the only newsagency in town. Australia Post have shown more interest in growing my business than all the Newsagency suppliers put together. We also get a lot of our gifts line from travelling salesmen from the back of a transit van (literally) and frankly if it sells I don’t care where it’s made. Nor do my customers. By all means continue to whinge and hopefully get good ideas and feedback to improve your business so before you keep bitching about issues remember other Newsagencies. My two cents worth is that Metro Newsagencies have to concentrate more Customer relations. Try coming out to the bush sometime where you will see good customer relations and service and maybe you learn a little more. Bit of a ramble I know but I’m still waiting for my new Ideas which ended up in a town 140kms away yesterday. At least I have a customer that is going there today and will pick them up for me. Country folks, got to luv em.
Peter, my post about Junk shop newsagencies has nothing to do with size. Indeed, the worst junk shop newsagencies I have seen are big stores – 200 square metres plus. So, size is not the issue.
My post is about newsagents who have lost their way and focus primarily on cheap China product to the detriment of branded stationery and high profile newspapers and magazines, often when they are surrounded by retailers who pitch brand.
Peter S…..
Couldn’t have said it any better myself.
Cheers mate
Mark i do agree with you but i think a lot is driven by the networks and co pushing towards other outlets, not enough supplies some time back and if they do not support newsagents a lot more agents will be going this way, we have to eat .Then we will here from them that newsagents do not look like newsagents,all their own work
Got my New Ideas….customer are better delivery drivers than from the Distributors.
D R, I agree that suppliers started the changes by going elsewhere. If I was them i would have too. This does not mean we need to go down market. Customers like quality brands and nice retailing.
I think it depends a little on your demographic. If you are in a low socio-economic area, you will probably find that the cheaper bulk made products will sell better than those that are more expensive even if they are of better quality.
Our demographic is varied however by reducing our margin we have developed a reputation for stocking quality gifts at reasonable prices.
Customers do like quality products and nice retailing however a lot of the time they want them at bargin basement prices and it can sometimes be hard to find a compromise between the two.
Perhaps the “junk shops/newsagents” are those who are trying to diversify (to be able to keep the doors open) and are still finding out what works for them??
I think more small newsagencies will be gone in another few years and the big one or those in better location will survive, but mags and newspapers will be less than 50% of our taking, we need to find more new products to survive ,cause mags market is not improving and i don’t see it will bounce back , the people ‘s habits are changing too.
Eric, I disagree. bad newsagencies will be gone. Good ones will thrive. Size does not matter.