UK corporate newsagent business WH Smith is to open three retail outlets in the revamped retail offer at Southern Cross Station in Melbourne.
This move reflects further expansion by the 1,000+ store strong UK based group. I suspect it is only a matter of time before we see their stores in Australian shopping malls.
The WH Smith model in the UK includes shopping mall and high street operations. There is a big difference between their model and the traditional independent newsagent model in the UK.
The three new outlets in Melbourne are part of an expansion into transit locations here.
Mark, can you list the differences between the models? Perhaps there are some learnings. The bottom line is this, a corporate has masses of overhead. If they can operate 1000 outlets and provide their shareholders with a profit, perhaps we need to consider their model.
Since newsagenst can’t afford to be in shopping malls, naturally they will cary newspapers and magazines ?
For those not familiar with WH Smith, Newslink in Australia was developed from the WH Smith model. In my opinion Newslink do a better job. Wh Smith may target some larger shopping centres but will not compete with the majority of newsagents – they will be Newslink’s (Lagardare) direct competitor looking for major transit sites like airports and train stations. Publishers and distributors will not have free-reign in those stores and margins will be negotiated.
There will be no light bulb moments when WH Smith opens. Every Newsagent in Australia has the opportunity to sell the same products but supply superior service.
’20yr’ I’ve seen the model they are using here and it’s sexy retail. Designed for high volume which is what this location will be. Suppliers will love their consistent approach, just like they love the consistent approach by Newslink.
“Sources” tell me they do “sexy retail” very well in Amsterdam
Might be worth organising a study tour Peter.
Were’nt they at the airport and then Newslink took over?
Wouldn’t we all love high volume locations, the no brainer customers that just want something to read or the quick gift without the intense study that we get now for the sake of a $1 newspaper to see if it worth buying or not.