A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Month: December 2013

Pressure to retain small business tax break

I’m pleased to see pressure building on the federal government to retain the small business instant asset write-off. Killing the tax break with just a few weeks notice is poor policy in my view given that plenty of far greater and more direct financial assistance is not being cut or even reviewed.

The ACCI made a strong pitch yesterday for retention of the break and that story has been picked up by a bunch of media outlets today.

I understand the government pursuing its ideology but part of their election pitch was that they would support small business. This move has the opposite effect.  An economist I heard this afternoon said that scrapping the benefit would have a higher cost to the economy than keeping it.

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Newsagency management

The challenge of a newsagency with two entrances

I am doing some work with a couple of newsagencies at the moment with two entrances: one at the front of the shop facing onto the high street and one at the rear facing onto a car park.

Each shop is long, has two counters, lotteries at one entrance, newspapers and top weekly magazines at both.

I’d be curious to read how others have dealt with the challenge of splitting products and employees between the two entrances. While register data from each entrance can help, I wanted to throw the topic open here to see what others have done.

Over to you

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Newsagency management

Great initiative from a fresh newsagent

LNS_03-12-2013_EGN_07_LIS021213LOTTO01_t460Well done! to Dan Wickham and Rita McLennan the new owners of newsXpress Wollongbar for selling what is claimed to be the longest lotto ticket in the world (a fact currently being checked with the Guinness Book of Records). These first-time newsagents have attacked their business with energy. This very long lotto ticket is just one example of their approach.

Their local newspaper, The Northern Star, picked up the story of the long lotto ticket and featured it  yesterday. other media outlets are chasing the story. The photo is from The Northern Star.

This is a great story for dan and Rita and their business. It’s also a great small town Australia story and a great story for newsagents all over.

Please pass on tips about stories like this – they’re inspiring!

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Lotteries

Leading shoppers with a retail trail

trailxmasSpace is a challenge this time of the year. You want to put just about everything out the front of the business to attract shoppers and sell but there is a shortage of room. Here’s something that I find works. We make a seasonal statement at each entry point and change this regularly. Then, a few steps away, we build on the statement. Then we build some more on it and so on. This invites customers to walk the path of the season without making the front of the business too top heavy. The last thing I want is my newsagency to look like a discount variety store as people who shop those are not loyal.

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Gifts

Making staples appealing as a gift

stationery-coolI love this staple pack I noticed at David Jones in the menswear department – it makes staples sexy, something to give as a gift … of course, that’s why David Jones had it placed there with a bunch of other items they are pitching as gifts for guys. this is something we could easily sell – in our gift departments, not stationery. It’s something that would also command a higher margin than traditional stationery.

I encourage newsagents looking for funky gift ideas to visit David Jones – there are plenty of ideas for next year.

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Fun

Refreshing the newspaper placement

papers-compactThe team at one of my stores moved newspapers to create more space for Christmas and in the process repurposed an old fixture. I like how they incorporated magazines with top selling papers and the gift cards above the newspapers. This is a compact home for newspapers yet it allows easy shopping the range we carry including foreign language titles.

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Newspapers

Excellent card sales an opportunity for newsagents

christmascardsxData from several newsagencies comparing November 2013 with November 2012 indicates excellent card sales results. In six newsagencies, card revenue is up: 28%, 18%, 13%, 12%, 8% and 7% respectively.  For perspective these businesses did between $10,000 and $25,000 in card sales in November 2013.

Looking deeper at the data, the good news is that in all six the growth is across the board: Christmas singles, Christmas boxes, everyday and lifestyle. This is important – that the growth is not just in seasonal product.

While each of the businesses was operating a loyalty program the cost to sales was 1% or less.

Three of the businesses are 100% with one supplier – this includes two with the highest YOY growth.

The other interesting comparison is the percentage contribution of cards to overall revenue. The highest is 31% and the lowest is 6%. Outside of lottery sales, the benchmark I target is cards accounting for close to 30% of revenue.

There is opportunity for all newsagents in these results. here was have newsagencies in shopping centre, high street and rural situations growing card sales. The common factor among all is their engagement with the category. They own the category in-store rather than leaving it for the supplier to own.

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Greeting Cards

Ty Beanie Boos the hit of Christmas so far

beanieboosxmasWe’re heading to 100 of these cute Christmas-themed Ty Beanie Boos sold. While some have been purchased as a result of catalogue marketing we have undertaken, more than half have been purchased on impulse. Around a third of purchases were with other plush items.

In this newsagency our plush sales in November were up 22% on November 2012. Plush accounts for 10% of all sales. This business does not have lotteries products – I mention this to give perspective to the % of sale stat.

Part of our success with this and other plush items is off-location displays. While we have the Christmas Beanie Boo on the stand, we also have placement with boxed Christmas cards. This off-location work really helps impulse purchases.

A side benefit of such strong plush sales is that plush products attract happy customers.

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Plush

Trash pack of Uncensored

uncensored-junkI heard from several newsagents yesterday about the bagged pack of old copies of Uncensored magazine before I got to see it for myself. I  call the pack trash because the magazines inside had not been prepared for sale -old  labels had not been removed. The publisher should have paid to remove the stickers and at least make the product look more presentable.

On a side note: it’s interesting comparing stickers. They speak volumes about the differences among newsagents. I saw a hand written code on one cover, a price gun sticker on another and several different types of labels covering varying degrees of professionalism. These stickers demonstrate the extraordinary differences between newsagency businesses.

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magazines

A new newspaper for Sydney, Melbourne and Canberra

TSP_ImageMelbourne, Sydney and Canberra are set to get a new print newspaper in 2014 – The Saturday Paper. Published by the team behind The Monthly, this new newspaper is to be distributed exclusively through newsagents.

I met some of the team behind The Saturday Paper a couple of months ago to discuss newsagent engagement. Their support for our channel was excellent. They are keen to get it right – from an excellent quality newspaper product to distribution through the channel Australians trust and love.

This launch is an opportunity for newsagents to embrace.

Here is a copy of the press release announcing the newspaper:

The Saturday Paper – A new newspaper from the publisher of the Monthly

Morry Schwartz, publisher of the Monthly and Quarterly Essay, is announcing the launch of a new weekly newspaper called The Saturday Paper. The first issue will be published in the first quarter of 2014.

The paper is being launched exclusively through newsagents. It will not be distributed to supermarkets. “I have always loved walking into a newsagent,” The Saturday Paper’s publisher, Morry Schwartz, said. “We want this paper to be important business for you because you are important to our business. We will give newsagents a 27 per cent commission on sales. We will do everything we can to make this work for you. While other publishers might have forgotten you, we want to launch as the newsagent’s friend.”

Like its sister publications, The Saturday Paper will publish long-form journalism on the country’s most important issues. It will be fiercely independent and offer the definitive news source for readers who want depth at the end of a cluttered weekly news cycle. Everything about the paper has been envisaged to make it a luxury product, from its marquee contributors to its heavy stock and crisp designs by Studio Round.

“This is something I have wanted to do since I first got into publishing 40 years ago. Now is the perfect time,” Morry Schwartz said. “I believe in quality journalism. I believe in print. While some in the industry have convinced themselves of terminal decline, I believe an audience exists for a new player to come in and do journalism better than anyone else. I am launching this newspaper because I know it will work.”

The CEO of the Monthly and The Saturday Paper, Rebecca Costello, said: “The Monthly has been recognised by the Australian Magazine Awards as one of the best magazines in Australia, and advertisers have been asking us to produce our quality content more often – to reach an audience that is not available anywhere else. The recent significant growth in revenue at the Monthly and themonthly.com.au confirms this and has put us in the perfect position to launch a new title.”

The Saturday Paper will be edited by former Sydney Morning Herald journalist Erik Jensen. Erik’s work has appeared in the Monthly and New Statesman and he is a winner of the Walkley Award for Young Print Journalist of the Year. He has also won the United Nations Association of Australia’s Media Peace Award and is the author of a forthcoming biography of the painter Adam Cullen.

“Erik is a gifted young editor. He has impressed me with his innate feel for news and his deep understanding of what makes a story,” Morry Schwartz said. “He is a natural provocateur and he will ensure we have a paper that is lively and important – that sees through the flaws in current newspapers and makes print vital again.”

In addition to news and politics, the paper will offer innovative lifestyle content and deep arts coverage. But the core of what it does will be what other papers struggle to do: long-form, investigative accounts of key stories. Like the Monthly – which has been publishing for eight years as the country’s leading current affairs magazine – it is launching because it is confident a gap exists in the market for quality long-form journalism.

The Saturday Paper’s editor, Erik Jensen, said: “The Saturday Paper is a chance to remake print journalism for a new generation. Morry and I have spent 18 months breaking apart newspapers and putting together a new kind of title that reconsiders how newspapers should do news. This is the sort of newspaper people want to read, but which doesn’t currently exist.”

The Saturday Paper will publish 48 times a year and will be distributed initially to metro areas in Sydney, Melbourne and Canberra. In addition to its tabloid print edition, it will launch with a fully responsive website and apps for mobile and tablet.

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Newspapers

Supanews launches online newsagency

Supanews, the full-franchise newsagency group, has launched an online newsagency at supanews.com. The very slick site, with the tag line – Australia’s online newsagency –  offers magazine subscriptions, stationery and lottery products – all available for online purchase.

This is the best looking newsagency website I’ve seen. Newsagents with online stores will want to check out this new competition. Supanews franchises probably have some questions, I can think of several.

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Newsagency challenges

A new tobacco retailer masquerading as a family-friendly gift shop

cigstobaccoCigarettsTocabboCigars opened in our shopping centre last week. Except for the name above the door and the cabinets of tobacco products behind the counter this looks and feels like a gift shop that is targeting to women and kids as customers.

The Tobacco Station store that has been in the centre for ages offers gifts aimed at guys that you could say sit appropriately with tobacco products. CigarettsTocabboCigars is the first tobacco store I have seen that is appealing to a completely different shopper to that which would usually see being targeted by a tobacco business. It feels to me like the products are a bait to attract a different shopper.

While I doubt they are breaking any laws by targeting young kids, I do think there is a question to be considered given the steps already taken to cut tobacco consumption and take-up of tobacco products by first time smokers. They are using brands that appeal to kids to bring them into a business that is primarily focused on selling cigarettes and tobacco related products. While the shop floor does not reflect this, the business name does as does the cabinets behind the counter.

The question for society and regulators is: what if all tobacco retailers switched to this model of looking and feeling like gift, plush and toy shops with a prime focus of selling tobacco products?

A reasonable comment would be what about newsagents? Newsagency businesses are kid friendly but they have a far broader appeal.  I’d say that newsagencies selling tobacco – a number that is falling by the way – have a far broader appeal than that of what looks in the photo like a toy / gift / plush shop. Our businesses have not been set up with the bait I’m seeing in this new shop.

Click on the image for a larger version.

For the record, I don’t see tobacco products. I quit the category in 1998.

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Ethics

Woolworths using newspapers to promote Zoo cards too

wool-torongaThe back page of The Herald Sun on Saturday carried a full-page ad promoting the Aussie Animals cards that were the subject of much discussion here over the weekend. This ad proves that it’s a Woolworths driven campaign and that it’s broader in reach than the coupon in this week’s New Idea. It’s about a product exclusive to Woolworths in association with the zoo.

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Newspapers

Sunday newsagency marketing tip: Use a chalk board to feature products and deals

With newsagencies and other retail businesses packed with products and the colour of these and accompanying posters, try a simpler approach to promoting feature products and deals. Use a  blackboard out the front of your store with today’s feature product or today’s deal. It could be that this simple blackboard notice is noticed more than a stunning and colourful display.

Sometimes the simplest ideas are the best.

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marketing

Sunday newsagency management tip: compete against yourself

pest-practice-pos-software-reportingOn the first day of every month I look at the Monthly Sales Comparison Report for my business, comparing year on year performance by department, category and supplier. Looking at revenue as well as unit sales where appropriate. Every good newsagency software package, every good retail business software package, will have a report like the Monthly Sales Comparison Report to enable easy year on year comparison.

Your most important benchmark is how you have done for the most recent period compared to the same period a year ago.

Click on the image to see a larger version. The data in the example is not as important as the layout. I have removed the business name to avoid identification.

On this report you have the most recent period on the left, the older period in the middle and the variances on the right. In seconds you can see how you are doing. This is the report I use most of the time in my businesses. I look at the back page first where I compare traffic, basket value, basket depts and overall sales growth. Next I look at key departments and compare revenue and unit sales performance. For example, with magazines I compare performance at the MPA magazine category level using unit sales as the measure. With stationery, I look at revenue.

I also look at the percentage of revenue by department because balancing the business is important to me. I don’t want too much revenue to come from one department. I manage balancing revenue by growing others rather than shrinking one that is too big.

I urge newsagents to find this Monthly Sales Comparison Report or similar in their software and to use it regularly to track performance. Do this, live by the results reported – and your business will improve.

Footnote: the Monthly Sales Comparison Report is a key report I use when undertaning newsagency business performance analysis. It’s also the report I would look at for any newsagency I was considering purchasing.

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Management tip

Cutting 140 magazine pockets but not magazine range to drive newsagency performance

magsunitgoneWith the newsagency full to capacity for more stock arriving this week I bit the bullet yesterday and removed the first of two magazine units. I’d been thinking about the move for some time and how it could be done without cutting the number of magazine titles carries. So, yesterday was the first of a two step process. This first photo shows the space reclaimed by removing the first of two free-standing 70 magazine pocket units. This reclaimed space will be used for gifts / toys / plush.

magsnewcrosnov2013This photo shows the new home for crosswords, entertainment, travel and kids titles. The crosswords are facing the entrance to the plush aisle you can see in the first photo of this post. These titles are now in the same aisle as newspapers. Crosswords will now be seen by every newspaper customer. This move is part of a series of moves to drive greater value from newspaper customers. You can see that we have used new collateral provided by Lovatts to anchor their titles.

magswomessectThis photo shows the new home of top welling women’s monthlies at the entrance on the left. This whole aisle will be relayed in the next couple of days once we remove the second fixture. With crosswords moved from this site we had more space to play with and so have given more attention to frankie, yen, Peppermint and other titles for the younger female shopper.

These are all conscious choices I have made, respecting key product categories that define a newsagency like newspapers and magazines while working to relay floorspace allocation to drive shopper visit efficiency (value) and to continue to improve the overall gross profit of the business.

We should never look at the layout of our businesses as done. Constant change is good for us and our customers.

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magazines