Thinking about the year ahead and resolutions and hopes in particular over the last few days, here is what I would like to see in 2010 for the newsagency channel:
News Limited pauses the introduction of their new newspaper distribution and retail contracts and undertake greater group consultation with newsagents and consumers on issues surrounding newspaper distribution.
Magazine distributors agree on new trading terms with newsagents which reduce the costs to us for failed titles (<50% sell through) and long on sale periods (>30 days), recognise the increased cost of retail space and labour, and, give us genuine control of the titles we receive. There are newsagents who struggle to expand specialisation because of the failure of the current system and others who will close this year due to the financial distress of the current system.
Newspaper and Magazine publishers realise that the retail newsagent network is a valuable asset and finally engages with them on customer acquisition in a way which financially respects the network and rewards them handsomely for success.
Card companies stop ten years of inaction and finally release the common data structure for cards to enable better business management by newsagents.
Newsagents realise that they have more control over their businesses than they use. They experiment more with new product categories, new layouts and new ways to grow their businesses. Too many newsagents are waiting for others to lead them. They need to lead themselves, store by store. Some are, but not enough.
More newsagent associations realise that newsagents want strong representation. Associations competing with GNS for the supply of stationery, for example, is ridiculous.
Newsagents understand that GNS is a key asset of the channel. Like it or not, the health of the channel is dependent to some extent on the health of GNS. Buying from them strengthens our buying power.
This is by no means complete. While there are many more points I could add, the points above are those I see as vital to the core health of our channel.
In terms of resolutions, I’ll continue to use this place to champion the place of newsagencies in the Australian landscape and to lobby for fairer treatment by suppliers.
While I don’t have a crystal ball, I do know that 2010 will see considerable change presented to newsagents. Probably more than 2009. The best way for us to engage with change is to encourage it, to ride atop the wave rather than being dumped by it.
Here’s to a successful 2010!
Can you expand on the data structure from Card companies?
Around ten years ago we started a conversation with card companies which aimed to agree on a common category and segment structure. It has been a stop start project since – the card companies have not co-operated as well as they could have.
The goal is to make it much easier for a newsagent to report on card sales regardless of the supplier mix in store.
Through Tower Systems we have participated in many meetings over the ten years. The final steps are up to the card companies.
That would be benefit sales but it’s up to them. We regularly look at whats selling and whats not, and increase/decrease pockets manually.
Conversely, Id like to see GNS operate on a more commercial level with newsagents and their marketing groups. While their attitude is somewhat changing, they still very much rely on a “buy from us because we are GNS” approach.