I was talking a major landlord recently about the future of newsagencies and was asked what our channel would look like in 2020. I gave a vague answer and moved on to more near term issues around occupancy cost, marketing fund contributions and tenancy mix. Their question has been on my mind ever since.
What will our channel look like in 2020?
To find a possible answer to this billion dollar question I have been looking at the benchmark data I have been gathering for years as well as other trend data for key product categories we carry.
While the view I ultimately form in answer to this question may ultimately be wrong, it is important to at least consider. Every newsagent preparing a business plan must have a similar question on their mind and if not, why not?
We have spent far too long worrying about what our suppliers will do for our future. No more. 2020 is up to us and I have to say that the more I work on what my model will look like by then the more questions I have.
I suspect the newsagencies of 2020 will look like the record stores of 2010..
Hi Mark
I think that you have hit on an import question for our channel. The recent Mintel report on where retail will be in 2014 in the UK attempts to give guidance on a variety of products in cluding newspapers, magazine, stationery and greetings cards. Apart from the gloomy prediction that newspapers sales are going to collapsethey see a growth in stationery and cards. The thought that I have been having is the one about premises and position. Are independent business in the tradition newsagents sector in the right place to meet the coming challenges?
I look forward to reading your thoughts on your 2020 vision.
Steve
Steve, location is a crucial question since we have been located for convenience for the sale of circulation product. If, for example, we transition more to cards and gifts, is the current location right. Further, do we have leases which permit the level of transition?
My lease allows me to stock any products supplied by newsagency suppliers or made available through the newsagency group I am a member of. The safety of being in groups and having proactive recognised newsagency suppliers will allow me to stock a wide range of product and adapt to the future so long as the chain is moving into new and varied areas.