Month: August 2012

Someone at the GNS Market Fair in Perth yesterday drew a distinction between shopkeepers and retailers, commenting that there are too many newsagents who are shopkeepers.

The shopkeepers are those buying they products they used to buy (mainly), the way they used to buy them. Retailers are those with new departments in their businesses and buying for them in new ways.

Walking around the GNS Fair I couldn’t help thinking that suppliers to newsagents are not doing enough to lead them to being retailers operating best practice businesses.  We have too many suppliers operating in the old school way, happy to serve shopkeepers.

The News Limited announcement should be a wake up call for all involved with newsagents.

The world has changed and all of us in the newsagency channel have to change with it. It could start on the floor of the GNS Market Fair … I’d love to see radical change driven by suppliers.

The thing is, based on what I have been seeing happen at gift fairs in recent years, retailer newsagents are moving and working those trade shows more than the traditional newsagency show.

I am not talking about GNS here – it’s the warehouse through which newsagents access products.  No, I am talking mroe about the product manufacturers and developers themselves.

But it comes back to newsagents taking the initiative and leading in their businesses.

Look at newsagency software. It has changed dramatically over recent years yet the majority of newsagents are not using the new facilities. The tools are there to drive more efficient and competitive businesses, managing by best practice KPIs, working on business costs, reducing poor decisions. Yet too many newsagents prefer

Under performing stock kills retail businesses including newsagencies. Items on the shelfs, the shop floor and in the back room which do not sell in the time necessary to generate a profit for the space they take, the labour involved and the cost of the stock are harming the business – unless they generate traffic which results in sales of other items.

While newsagents often complain bout parts of the business over which they have less control and for which they make slim margin – newspapers and magazines – it is in the areas where they have the most control that I see the worst performing stock.

I often find stationery, gift, confectionery and tobacco departments grossly under performing … holding businesses back.  yet newsagents have complete control over these.

Here’s my tip – use your computer system to actually manage your inventory for profit.

To discover $15,000 in under performing stock in a business which is struggling is frustrating. With the tools available to newsagents today this should not happen. It’s poor business management.

What is even more frustrating than what I have written above is that some newsagents will read it and not do anything.

I was fortunate yesterday to participate in a small group lunch with Federal Member for Lindsey David Bradbury, the Assistant Treasurer and the Minister for Deregulation.  Also at the lunch in Sydney was a senior representative from Coles, Just Group, music retailers, toy retailers, Visa, Google, Deals Direct and EPAL (eftpos).

While the discussion was around regulation and the impact of online on high street businesses, there was also good discussion on penalty rates. Indeed, it was suggested that an EBA could fix the issue of crazy rates for casuals on a Sunday until it was explained that you could not move an employee from an award to an EBA which financially disadvantaged them.

I was interested to hear of the impact of online purchases from overseas on fashion, music and toy retailers here.  Of course those connected with online – google and Visa at the table – don’t want to see the $1,000 threshold lowered. They say Australian high street businesses need to adjust to the new conditions.

The discussion considered the bugger picture of the download business as these items don’t come through usual customs channels. The downloading of books, music and movies is cutting hundreds of millions out of taxation.  Indeed, the discussion on this exposed a a broader debate than I had considered on this topic.

I was fortunate to have a one on one discussion with the minister. We talked about newsagents and, in particular, regulation. He thought we operated under a regulatory framework for newspapers. I asked why and once he explained – that he can’t control which newsagent delivers papers to his home or office – I got to explain that this was not regulation … that it is as a result of contracts each newsagent has with their supplier.  I took him back over 1999 and reassured him that we have not been subject to or protected by regulation since then.  I asked him to pass this on to Bill Shorten.

I was impressed with David Bradbury. Him empathy for the positions of his fellow diners, his listening and the understanding he demonstrated of some of the broader structural issues the world economy is grappling with.

The annual ACP Connections conference ended with a 70s themed dinner and party last night at The Park Hyatt in Melbourne. From early in the evening the dance floor was packed with newsagents, decked out in full 1970s gear. Newsagents were having a good time … I mean really having a good time and not faking it as often happens at awards dinners.

I’ve been to many Connections conference dinners and this was the best. It was an excellent theme, a good theme, on a good day for relaxing and unwinding.

What made the night was that formalities were kept to a minimum.  Successful newsagents were recognised, wonderful food was eaten and too many wigs were worn and plenty of dodgy moves were strutted on the dance floor.

A fitting end to a day of extraordinary change for newsagents.

Kudos to Nextra Chermside for taking out the ACP newsagent of the year on top of the ANF newsagent of the year.

If you work in a newsagency and are not being paid the award rate you should approach the business owner.  If they do not address the issue, report the matter to Fair Work Australia.

I received a call yesterday from a newsagency employee being paid seven dollars an hour less than they should be paid.  I refused to call the newsagent on their behalf. The newsagent must know what they are doing, the under payment is too great for them not to.

I hope the employee does call FWA. This is the only way to deal with employers who underpay and refuse to address the matter.

While the vast majority of newsagents pay according the award, a small number are selfish enough to act in a way that puts a cloud over the rest of us.