Port Macquarie News reports on a second newsagency closure in two weeks
For the second time in a fortnight a Port Macquarie newsagency has closed its doors.
Westport Newsagency, which moved to the Grower’s Market shopping complex recently, has shut its doors.
Port News management received notification of the owners’ intentions on Monday night.
Owners Scott and Gale Oxenford cited “ongoing family health problems” as the reason behind the closure.
“There are issues we need to work through – just the same as we tried to help our readers affected when Lighthouse Beach Newsagency shut last month,” Port News general manager Janine Buesnel said.
“The Port News will be available from newsagents in the CBD and also from our offices in Milton Circuit.”
While I can’t comment on the reason why this newsagency has closed it is quite clear that many more will follow. Given the lack of understanding by publishers as to the costs associated with delivery of their product. The customer is receiving further discounts which are truly subsidised by the newsagent.
Letter in todays Tele from a person complaining that their paper won’t be delivered for a while. Neither customers nor publishers seem to be concerned that 2 families may have lost everything.
My family has a unit in Port and I’m a regular visitor. My brother also owns a business in the town which serves as a subagent to one of the newsagencies (still trading). Port Macqaurie has always had too many newsagents and several have been revived several times in recent years. I think at one stage there were 6 servicing a town of 30,000. And several of these had multiple locations.
It’s natural selection in the business world. Only the fittest will survive. The business I sold three years ago (regional NSW) went out of business 18 months later.
The margins are so slim and the support from industry partners, associations and government so poor that only those with minimal debt (eg. own the premises) and the sharpest practices will survive.
And that’s not even addressing the future of print media which is an added challenge.
It’s a shame that these businesses have gone to the wall but Mark will probably have to start another category soon dedicated to this topic as it’s only going to get worse.
you are right former newsagent..
I would blame the buyers who pay high prices for these businesses without understanding the margins involved specially people who bought newsagencies after 2008.
mark i wonder if you have any stats on how many newsagencies have closed over the last 2-3yrs and how many of them were bought within last 5 years.
Former, The margins on traditional lines are slim but on newer lines they are excellent.
Yes it’s tough but so is all retail. It’s up to us, each of us in our own businesses, to make our own success.
Suppliers and associations owe us nothing in terms of the structural change we are going through. They owe us respect in day to day trading but nothing else.
I agree more will close because there are too many and because some are not making their own success. Some of those who will lose will not have had to.
I agree we can point to the government and suppliers for being the cause through deregulation. That won’t get us anywhere.
We have to own our own situations.
Mark, we completely endorse what you say about the business model swithcing to retail.
The reality is that we spend a disproportionate time compensating for the inefficiencies and incompetenece of our traditional suppliers. We seem to be forever chasing or mopping up after a continuing series of late supplies, shortages, damages, credits. A lot of this is caused by their antiquated systems and method of communications.
We spend far too much fire fighting problems related to key newspaper and mgazine supplies.
kevin, you hit the nail on the head, my new products have a better margin and easier to manage, older lines like mags are a pain in the arse mainly to to pig headed attitude of the suppliers. me and staff spend more time on mag issues than any other single thing in the shop. this is really holding my business back, and the industry as a whole, shame on them and shame on us for ending up in this situation
BUT I so HATE that I have to turn into a gift shop to survive………
I gather that no-one is interested in defending home deliveries any more.
I have discovered that Julia has appointed someone to a portfolio called Minister for Social Inclusion (the Hon Mark butler, sworn in on 14 Dec 2011), I am going to send him a letter about services re newspapers for the aged who still read papers and are discriminated against by lack of home deliveries.
Then after that I’m going to contact the new $25 million Centre of Excellence for Human Emotions (it’s in WA) – for advice on how to cope with the upcoming economic deluge of 2012
aaaah how good it is to see my tax dollars at work !
H, no you don’t. Find a been, a commercially viable need, and fill it.
Dis, newspaper home deliveries ceased to be economically viable for many newsagents when publishers took control by pushing customers to prepaid subscriptions. This drove down newsagent margins and it stopped the service from being something of which we could be proud to an anchor weighing our businesses down.
Talking of Discrimination Dis, I have more then one oldie cry foul that the new ese2c calendars do not include pension days and they are writing to vet affairs to lodge official protests. Another old dear complained that the small print on crosswords were discriminating against the age and will no longer buy the paper because of it.
Have a good day everyone.
h, you are right! The ‘paper shop’ is not the paper shop anymore. You’d have to have rocks in your head to buy a newsagency these days when the core line may not even be around in 10 years time. Selling ink, mobile phone gadgets and soft toys is only shuffling deck chairs on the Titanic. I hate to sound like a negative Nellie but I also hate to see families losing their family home becuase they couldn’t see the light.
Former, you’re wrong. A profitable newsagency delivering a health return on investment is a good business to buy. They exist. Your comment about ink, gifts, plush is ignorant.
Disallussioned
Nice one!
Whilst the Federal Small Business Minister carries a huge responsibilities of multiple Portfolios. It tells me nothing will be done for the sinking ships througout the small business communities in Australia.