This photo shows how we are using the floor space saved from when the magazine fixture was removed two weeks ago. The new dance floor is currently home to a good boxed Christmas card display. Focus will change as the seasons move. What we have is considerably more flexibility than the old fixtures permitted.
While we are barely two weeks in, magazine sales appear to have been unaffected.
It is important that we look at space allocation in our newsagencies. Return on floor-space is a good metric. Given that cards have a margin which is three times that for magazines and, this time of the year, come close to magazines in sales revenue, the move is financially rewarding.
Having less magazine space has meant that we take more care with placement. This is an outcome we wanted. Too many magazine pockets makes us lazy – we do unnecessary waterfall displays to fill the space. I see this in many newsagencies. We now have fewer waterfall displays.
I may be too close to the changes to assess, but the magazine space feels energised from the changes. Shelves are more full and this makes it feel more professional – if that makes sense.
Whereas previously we have the traditional long magazine aisles which ran two thirds of the length of the shop, we now have this open space where a magazine shopper gets to see more title facings. It is like removing blinkers from the shopping experience.
Mark,
May have missed it from earlier post but how much space did you cut back and what did it leave in pockets. we are also very close to axing about 400 pockets of mags to make better dance floor space.
Brad, we cut 30% of space, around 360 pockets. The title cut will be closer to 15% thanks to better use of remaining space.
On a side issue, what is everyone’s average rate of return for Mags? Being that we are a new store we have a high return rate. Is this normal?
I expect that until we find our customers niche that returns will be a little higher than normal but was just curious at other’s rate of return.
Sell through rates used to be (about 1 yr ago), G&G 46-52% NETWORK 49-55% and RDS 25-35%
These may have changed or could be narrowed as circulation in the past 12 months has declined especially in the high turnover weekly, monthly popular ‘soapies’
This drop has also affected cash flows considerably.
B,
A 50% sell through rate is the industry benchmark. This is not high enough but it is the current benchmark.
Thanks guys. We are pushing put-aways and trying to encourage people to come in regularily with the NewsXpress Magazine Club Cards but that just gives me somewhere to aim.
In the past 12 months I have sold 60% of Network, 49% of NDD and 52% of Gotch. I keep a simple spreadsheet of moving averages and go by monthly dollar value of supplied and returns. I have found it extremely difficult to budge these figures in teh right direction – when you cut titles, they throw more your way.
Mark
Does that mean you now have 840 pockets?
Close to that, yes.
Mark do you have a table for how many pockets you should have to turnover?
Andy,
Space Allocation works on sq mtre return of sales and therefore Gross profit. I t is entirely based on rent of the floor space for without knowing that the rest is a useless excercise. Take the rent per sq.mtre then the salkes and profit per sq mtre per annum less the overkeads and you have your return. The trick is to understand YOUR store FIRST before you compare with others for your whole work practices may be terribly wrong or those that you caompare with may be terribly wrong. Be careful of generalisation.
If you want a booklet on Space Allocation I have printed such for newsagents that wish to understand space efficiency.
Send me your address and type of shop in shopping centre etc by email and I will post it to you F.O.C.
Andy,
The space you allocate will depend on the return you can achieve from it. With magazines, given that you already have them, it is a matter of working the numbers back, trimming space to the point where the department is profitable in terms of stock, real estate and labour costs. This takes time and care.
That said, my sense is that an optimum pocket mix in a shopping centre based newsagency is around 800.