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News Limited delays announcement to newsagents

NANA last night advised newsagents in NSW of a delay to the announcement from News Limited on their future newspaper distribution plans.  Here is part of the NANA announcement:

Following the announcement by CEO Kim Williams, News Limited’s Director of Retail Circulation, Catrin Thomas, advised the postponement of the anticipated “T2020” announcement originally scheduled for 28 June 2012.

“In light of the announcements across the industry this week, and following a long discussion with the Australian Newsagents Federation (ANF) this afternoon, we have decided that it is prudent to delay the timing of the T2020 announcement.

“This will ensure that we are putting forward a plan that builds in all the latest information. Our concern is that if we do not pause to consider the impact of the week’s announcements, that we could end up with a shorter term solution and be back at the drawing board much sooner than we would like. We are committed to creating a commercially viable and sustainable distribution network for newspapers and we will confirm an announcement date as quickly as possible,” said Ms Thomas.

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  1. Steven

    These bastards have been delaying progress for the last 2 years, so this should come at no surprise. Perhaps instead, on the 28th, newsagents should “announce” to NewsLtd. that we will no longer stand for their BS. Maybe with a non-delivery day?

    16 likes

  2. Ted

    I’m with you Steven.

    9 likes

  3. ricky

    Ho Hum! SNAFU lah! There seems to be a lot of personal agendas behind the scenes here. Will it be survival of the fittest or survival of the nastiest ?

    2 likes

  4. Chris

    Bastards indeed, when they “need to pause to consider the week’s announcements” do they mean Fairfax’s? ie are they in reactive mode now? or do they have their own clear vision? Utterly pathetic and useless both of them.

    12 likes

  5. Blake

    News Ltd plans have obviously been shifted with the Fairfax announcement.

    There is a 2 way swing for News Ltd vs Newsagents. News Ltd has the opportunity to take the remainder of the print market if Fairfax drops to digital only. (Though News Ltd still has to fix their own digital strategy)

    On the same bar, if News intends to either take over or drop home delivery – Fairfax actions will have an impact on profitability for both Newsagents and News Ltd.

    They are right in saying if they went ahead with their current plan (though unannounced) it may end up being a short term move that doesn’t delivery any certainty to newsagents. I’m sure it would be just as annoying for newsagents if a plan was set in place now, and only to have the whole thing up-ended in 2 years time.

    3 likes

  6. Mark Fletcher

    I have no quarrel with News delaying their announcement as long as its is not for too long (it’s been long enough already) and the delay demonstrates better value.

    3 likes

  7. June

    I don’t think it is fair of either FF or News
    to delay telling newsagents, contractors,
    etc of their “real plans”.
    Nobody can move forward with a business
    plan until they know what is happening.
    Typical of both companies that only editorial gets any airplay.
    Circulation and advertising are just as important but they (the two companies)
    both have a “hierarchy” and editorial always comes first.
    It is vital that they come clean at once not
    “in the near future”.
    We all need to know what is happening.
    Our employees need to know what is happening and we all need to know for business reviewing for the future.
    Naturally the companies only think it is about them and the downward infrastructure (advertising and circulation)
    are the poor relations in their decision making.
    5000 newsagents and their staff (probably 25,000 at least) also need to be
    “in the loop”.
    We know we are self-employed but when
    we are talking about our core product it
    is incumbent upon the supplier of that
    product to keep us informed of decisions
    that might/will impact adversely upon us.

    9 likes

  8. June

    I meant to observe the reactions of the
    ANF to the delay of the News announcement. They have “agreed” to the delay.
    Once again, newsagents are paying a burgeoning bureaucracy to do zilch for them.
    They should have demanded that we have
    an answer and then told News Ltd there would be “consequences” for not complying.

    It is incredible to me that these people are
    employed (by newsagents) for no outcomes.
    I’m not implying that they can change NEWS Ltd decisions but they should be
    demanding a decision so that the newsagents who have paid their fees in good faith should have some time to change their modus operandi within a reasonable time frame.
    I state that I do NOT have a membership
    with the ANF for all the above reasons and
    more.

    10 likes

  9. BruceH

    Maybe the persons behind the T2020 Project are worried about their own future after yesterday?

    1 likes

  10. Chris

    The Associations can only do so much, if they recommend we strike (which I think is against the law for them to do), how many newsagents will actually go through with it?
    We have to make our own business decisions relevant to our own business relating to their products. If more and more Newsagents drop their products they will get the message.

    4 likes

  11. June

    Bruce, none of us are exempt from this.
    I liken it to being a blacksmith when the
    horse became unfashionable and the car
    made its grand entrance.
    We are all a part of history. It’s exciting,
    and scary but it is roaring locomotive and
    we are almost powerless to stop it – BUT
    FOR GOODNESS SAKE TELL US THE TRUTH. I don’t think that’s too much to
    ask of these people but they don’t want
    to throw the baby (us) out with the bathwater (them) until they are absolutely
    sure that we have been drowned and no-one will be left to tell the tale.
    It is immoral to be left in this situation.
    I personally, don’t have any rounds any more but here in SA 93% of agents are
    round only and their considerable investments in this industry are in the line
    of fire so they need to know the truth so that they can get on with their future.
    They don’t need to be dangled on a string for another couple of years.
    When the “News” shut here in SA there were no pre-announcements – they just
    shut their doors and Elvis left the building.
    That’s all we are asking for now – just tell us your timelines so that we can make alternative arrangements for our businesses. Newsagents need to be talking to their MP’s and this needs to be debated in Parliament.
    We should not be left dangling like this.
    Reporters are not the only people at risk
    here but they are the only ones being “reported” upon – FUNNY THAT

    13 likes

  12. Mark Fletcher

    June, politicians will not engage on this and I think that’s probably appropriate.

    We own our own situation.

    Our future is up to us.

    Associations can’t fix what we don’t resource them to fix.

    1 likes

  13. CraigL

    Mark, the word delay without timelines is poor. Their statement should have been that News Ltd have delayed the announcement until “Date” or “Month”. I am sure that the associations will now go back and ask the WHEN question.

    3 likes

  14. SHAUN S

    The thing is what are we , us newsagents going to do about the delay and the no fixed date hmmmm nothing of course .So they will do just what they want to do ,drag it out . For those that have there newsagency up for sale what do you tell potential buyers , well i do have a run well maybe not to sure and yeah i have direct supply well maybe not . Yeah well actally i do not know a great deal so how the hell do you put a price on something you have no clue about .

    8 likes

  15. Derek

    Nice one Shaun – What you said and more, Business decisions are hard to make in this environment. Some may not be affected however I am sure some will be. for example shop fits, lease renewals, Buying & selling and that is just our channel – there are flow on affects from uncertainty.

    3 likes

  16. Y&G

    Yep, same old, same old.
    I really think a change of channel name is in order. Not ‘newsagency’. I really think that term is obsolete, and has been for a long time.
    We saw no end to this situation when it first arose a couple of years ago.

    We knew that News would continue to string agents along for as long as it took them to decide what their next long-term move was with the least impact on themselves. We all did.

    Since the outset, we’ve done everything we can to distance ourselves from the ‘newsagency’ tag, culminating in becoming sub-agents, stocking print on a much smaller, and less important scale than we did as a primary. As a subbie, a 10% commission kinda makes you do that..

    I do understand, however, that we are tiny, and there is great power in that, if you’re brave enough to stand up to the ‘bosses’. In that, we also get that, while everything we have, including our hearts and souls, is in our little shop, there are much greater personal and financial investments under a cloud here for the larger stores. And News et al are very well aware of that also. They’ve used it as their trump card to date. It is unconscionable conduct, but that’s never stopped them from operating the way they always have in the last few years.
    So, it was easy for us to simply say goodbye.

    I do hope that many of you are able to shake off the ‘newsagent’ label and go in a completely new direction. I’d love to hear some ideas on what a new label would look and sound like 🙂

    6 likes

  17. Brendan

    Community Store, Variety Store, General Agency, Agency Store? Nah, I’m not rapt in any of these either but that’s the feel I believe we need for what are basically local, community based businesses. Let the ideas flow.

    0 likes

  18. ricky

    No need to change the name.
    When did you last buy milk at a milk bar.
    When did you last buy gourmet sausage at a delicatessen.

    We just need to make sure we continue to offer products and services that customers want – and that we become famous for those products and services.

    Thats what I want to see suggestions about.

    6 likes

  19. Brendan

    When did you last go into a milk bar full stop. I could not remember the last time I did and that what I want to avoid for my business. newsagents already have a huge range of product to choose from with newish departments like gifts, toys etc not to mention technology based product, a lot of which are superceding stationery. The trick is trying new product, marketing it very well and moving on if it does not work. This is where the groups come into their own.

    2 likes

  20. Mark Fletcher

    I think the most important change is around brand. The shingle – newsagency – is meaningless.

    1 likes

  21. Angelo

    I’m in the process of updating my street signage in the shopping centre at the moment and have been debating what to tell the signwriter to put on it in terms of the main name.

    I don’t like Newsagency anymore either as I believe it conjures mental images of old school type shops rather than something more progressive. Most of the Gen Y and younger customers tend to think of the Newsagency as the place where mum & dad buy stuff. I’m all about trying to change that view and the naming has to come into it.

    I know it’s been mentioned before but if you belong to a group then your simply (name of your suburb/town/shopping centre) Nextra, Newspower, Newsexpress etc. which I suppose is already the case for those that are part of those groups.

    Notwithstanding the above this does not resolve what to call yourselves if you choose not to be part of a group. I’d like to read more views from others.

    3 likes

  22. Chris

    Angelo, it is a dilemma for all of us i believe – those part of a group still have the “News” component in their title cojuring up images and perceptions from the public of just being a fancier type of newsagency and the others like you (and me) have to rename our business to attract the Gen-Y’s

    3 likes

  23. Luke

    We have been Scott’s News for as long as we have owned the business (over 23yrs) and the only time we confused people is when we changed the start of our name to a group and we got changed in the phone book, it had nothing to do with the group but we disappeared from the “s” in the book.
    Your name is your brand so pick it and make it stand for something. If as a business you do not want to be known as being another newsagency then don’t be, be unique. If your customers are confused then fix it by looking at what is confusing and change it. Blaming the name on your shop is an easy option. When I walk past a shop I look at the shop first and decide to go i or not then the name above the door after not the other way round.

    3 likes

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