Magazine sales decline 4% in September quarter

The latest newsagency sales benchmark study indicates that magazine sales declined 4% in the September quarter compared to the same period a year earlier.  Of equal concern is the 4% decline on greeting cards and a 2% decline in stationery.

These declines appear to be partly attributed to a decline in overall customer traffic. I put this down to suppliers pushing their products into more outlets and on terms which are more attractive than in newsagencies.

The continuing magazine decline is concerning given that overall supply by the magazine distributors to newsagencies continues to increase.

The average overall basket size has not altered, maintaining newsagencies as one of the least efficient retailers for the basket size metric.

In the benchmark study data I see plenty of success stories, newsagencies trading against the trend as well as categories trading against the trend.  for example, newsagencies with a consistent ink offer can often see double digit growth against a decline in stationery overall.

Here are the key takeaways for newsagents based on this latest benchmark data and that for the previous two quarters this year:

• Diversify.  Leverage your existing traffic into business for other categories.  The easy extensions are gifts, ink, office services.  Look beyond these.
• Manage your floorspace.  Consider reducing your space allocation for categories which are in long term decline.
• Make your business attractive. The days of the old school newsagency of ten and fifteen years ago are over. Take a serious look at your store layout, range and appeal to new shoppers.
• Exert more control.  Embrace opportunities to exert more control over your business, even in areas where you think you make have little control.

My view is that the newsagency channel has a good future if we, individually and collectively, get serious about what the newsagency shingle stands for.