While newsagencies have a permanent place for magazines, newspapers, stationery and other products, all too often there is not a permanent home for plush or gifts. This can give the business a feel of not being serious about the department, it can cost sales.
Once you give a department a permanent home you anchor it and provide a place where you can build and show off your point of difference.
Retail today demands that we get serious about all categories in with we trade. There was a time where newsagents could focus on the core – magazines, papers, lottery, stationery and cards – and let the rest fit in where they can.
Today, with gifts accounting for 20% (and more sometimes) in revenue for newsagencies and plush often pushing above 10%, these departments need a home if they are on offer all the time – i.e. not just out for seasons.
The photo shows the plush department in one of my newsagencies. Yes, space is tight, very tight. I bet you think it’s hard to shop based on what you see in the photo.
The numbers tell us that this space is the most profitable floor space we have in the business right now. It is delivering a net profit return, after allowing for cost of goods, floor space and labour, well in excess of other departments. It’s a wonderful success.
One reason for the success is the creation of a space that gives off the feeling that shoppers will be satisfied. This is what allocating space to a department is all about – giving shoppers faith that they will find something to satisfy their need.
If you sell gifts and or plush and do not have a department, consider creating one, a permanent place where you can build your point of difference in these vitally important categories.
Nice display. Bright and colourful and I am sure a magnet for kids. Good job!