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

Month: March 2015

WH Smith announcements coming?

With senior management from WH Smith in the UK here to meet Australian franchises – Wild and Supanews – I’m told there will be announcements relating to these businesses and maybe other business activity they are considering for Australia.

My expectation is there will be movement on their Australian retail footprint as the Wild and Supanews footprint is not sufficient a retail footprint for the WH Smith model of wholesale supply to work as they expect. While I have no inside information, I speculate that they would need around 500 retail outlets here to achieve the level of efficiency in the supply chain they should be looking for. If I am right, considerable more acquisition or new store activity would be needed.

2 likes
Newsagency challenges

Strong Darrell Lea branding drives sales

dleeI like the Darrel Lea Easter packaging this year. It’s bold and colourful. It cuts through visually in a way which works for the season – separating it from other Easter products this year.

Darrell Lea lost plenty of newsagent outlets when the company was sold and their retail footprint considerably expanded. I know of some retailers who started stocking the product as changes from new management flowed through and a more compelling retail offer emerged.

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confectionary

Fairfax article presents inaccurate message about newsagencies

The article published this week by Fairfax with the headline: Do we still need newsagencies? is inaccurate and reflects poor research. It is written with subtle support for newspaper home delivery, a part of many newsagency businesses which loses more money today than years ago.

There are quotes from newsagents which are not supported by evidence. I am surprised Fairfax editors let them through – but they do support the pro newspaper stance. For example:

but I would say that in the last 12 years magazine sales have fallen approximately 50 per cent, way more than newspapers

I don’t see this supported in the data I see in my benchmark studies.

Another newsagent is quoted as saying:

People are buying cards rather than gifts.

If this is the case the business needs to look at its card supplier and its gifts mix. I know of plenty of newsagencies where dollar for dollar gifts match cards and both are experiencing double digit year on year growth.

A real estate anger is quotes as asking:

It is a dying industry and unless they find a way to re-invent themselves, I can’t see the traditional newsagent surviving.

I agree with this 100%. However, reinventing should have started ten years ago.

Later in the article is an ignorant quote from a newsagent:

For 10 years I have been in the business and the trend now is move more into the gift business,” he says. “There are higher profits and higher margins.

No, gifts are not a trend now, they were a trend ten years ago and more. Now, the trend is beyond gifts.

The article finishes only with a supporting statement about home delivery. Newspaper home delivery is declining. Newsagents make less in real terms today than five years ago thanks to paternalistic publisher behaviour.

Newspaper publishers have a history of selfishness when it comes to newsagencies. This narrow-focussed poorly researched article reinforced that view.

Do we still need newsagencies? Yes, but not for the mixed message reasons Fairfax outlines in this sloppy article.

12 likes
Newsagency challenges

Japan Post / Australia Post game on

With the Treasurer announcing his approval yesterday for the take over of Toll Holdings by Japan Post, he has set the stage for intensified pressure on government owned Australia Post.

While much of the pressure will be felt at the delivery end of the Australia Post business, there could be implications for the retail side of the business including licenced Post businesses.

The acquisition, even the proposal of the acquisition, is a reminder that things change and we need to be prepared for change in our businesses.

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Australia Post

#5 of five provocative suggestions to challenge how you view and manage your retail newsagency

This week I will publish five deliberately provocative suggestions on aspects of retail newsagency management and operation. My goal is to challenge newsagents and their suppliers to break free from the past and engage in more present day retail

Suggestion #5: trash your counter.

When you are closed, take everything off your counter and from behind your counter. By everything, I mean everything: all products, stickers, posters, signs, technology, EVERYTHING.

Next, put on music you love. Turn the volume up.

Clean the counter from top to bottom and inside out.

Now, place the essential items back on the counter: technology and mandatory signs.

Finally, place product at the counter but to it from the customer’s side. Make conscious decisions with the goal of driving impulse purchases at the counter. In placing products, place less, tell a consistent story, constantly think of your shoppers. Create a fresh offer at your counter, something which causes your customers to comment on the change.

Oh, and fill any shelves or drawers at your counter which items which must be there.

Your counter is probably one of the most active places in your business. make it relevant, efficient and profitable by rebuilding your counter (and behind) offer from scratch.

Don’t delegate this job to anyone else.

While I am publishing the suggestions I am not necessarily advocating them for all newsagents. I see this blog as playing a role in challenging how we look and manage our businesses and from that encourage newsagents to think carefully about decisions they make.

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Management tip

Sportsmen promoting newsagents

sportsradioI caught an ad on radio last night promoting The Sportsman newspaper as being available in newsagents. It was a clear call to action and/or channel was the only channel promoted. We ought to appreciate this newsagency channel specific support by providing deliberate support of our own: through smart placement where more shoppers are likely to see the title and remember hearing the ad on radio.

6 likes
magazines

Unfortunate AWW cover up

awwbattyI think the latest issue of The Australian Women’s Weekly would sell better without the free chocolate mini cookbook suck over the terrific cover of Australian of the Year Rosie Batty. While the cover mount would have been planned months ago, it’s unfortunate to see it as Rosie is news and has been taken into the hearts of Australians – maybe even more so than chocolate.

4 likes
magazines

Inviting all Perth based newsagents

Screen Shot 2015-03-18 at 12.26.48 pmIf you’re in Perth and are interested in considering what your future could be, I encourage you to book for the first Newsagency of the Future workshop. It’s on in Perth next Thursday at 10am. Attendance is free.  I promise you will be challenged and encouraged.

Perth. Thursday March 26. 10am.  Country Comfort Inter City. Great Eastern Highway Perth.

Any newsagent is welcome to attend.

Click here for the booking form, or email your details to bookings@towersystems.com.au.

I will share insights relevant to newsagents and detail opportunities available to newsagents to attract new shoppers and to improve what we make from existing shoppers. I’ll back this with data from some newsagency businesses growing against the channel average.

This will be a practical session from which you will have ideas you can implement right away. It is for newsagents who want to improve their businesses.

This Perth event is the first of a national series that will include Melbourne, Sydney, Brisbane, Canberra, Adelaide, Hobart, Cairns, Townsville, Gold Coast, Sunshine Coast, Newcastle, Parramatta, Geelong, Launceston.

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Newsagency management

#4 of five provocative suggestions to challenge how you view and manage your retail newsagency

This week I will publish five deliberately provocative suggestions on aspects of retail newsagency management and operation. My goal is to challenge newsagents and their suppliers to break free from the past and engage in more present day retail

Suggestion #4: mark your stationery up by 125%.

We are often told that people think stationery in a newsagency is more expensive than elsewhere.

My advice today is for you to meet their expectation. If you mark your stationery up by 100% or less, increase your mark up. I suggest you go as high as 125%.

I know of newsagents who have done this and not dropped any sales.

People shop for stationery in newsagencies because of convenience in most cases. This also gives you permission to charge more.

If you are not sure about this suggestion, do it for a category and track sales for three to six months. I am certain you will soon mark all stationery up by more than you have in the past. It’s money in your pocket.

While I am publishing the suggestions I am not necessarily advocating them for all newsagents. I see this blog as playing a role in challenging how we look and manage our businesses and from that encourage newsagents to think carefully about decisions they make.

12 likes
Management tip

Unhappy with news coverage

newsnewsTalking to a Sydney newsagent today, they expressed frustration at the commentary News Corp. is running during the state election campaign. Rather than sticking to news, News Corp is “meddling” and therefore giving newspapers a bad name. I tend to agree with this view considering the front page of The Daily Telegraph yesterday.

I get that News is trying to set the agenda. This cover story and the headline especially disrespects politicians (okay they may deserve some of that) but it also disrespects a section of voters.  The Tele should stick to reporting news. Inside the paper they had terrific stories which should have been on page one.

2 likes
Newspapers

News Corp Woolworths magazines offer

wwofferHere is the display unit funded by News Corp. into Woolworths in support to the terrific gift with purchase with a number of their magazine titles. It’s frustrating to see a publisher invest in such an extraordinary point of difference. For the odd title I get it but across all these titles with a good gift and excellent inspire support. I wish this was in the newsagency channel. I’d give it prime front of store location. Sales would boom!

2 likes
magazines

Newsagency of the Future – A FREE business building workshop for newsagents

Perth. Thursday March 26. 10am.  NEXT WEEK.
Country Comfort Inter City. Great Eastern Highway Perth.

Join me for a look at the state of the newsagency channel, trends impacting on us and how we can create stronger and more valuable businesses.

I will share specific insights relevant to newsagents and detail opportunities available to newsagents to attract new shoppers and to improve what we make from existing shoppers. I’ll back this with data from some newsagency businesses growing against the channel average.

This will be a practical session from which you will have ideas you can implement right away. It is for newsagents who want to improve their businesses. Content will be challenging and truthful. Practical opportunities will be shared including changes you can make right away without having to join a group or deal with a specific supplier.

If you are doing it tough, not sure of future plans for your newsagency or not making what you want / need to make from your business, this would be a good workshop to attend.

Participation is FREE. The session will run for around two hours.

Any newsagent is welcome to attend. Click here for the booking form, or email your details to bookings@towersystems.com.au

This Perth event is the first of a national series. Later in the series, the workshop will be videoed and this made available. Future locations will include Melbourne, Sydney, Brisbane, Canberra, Adelaide, Hobart, Cairns, Townsville, Gold Coast, Sunshine Coast, Newcastle, Parramatta, Geelong, Launceston.

I own Tower Systems which has its newsagency software in 1,800+ newsagencies and owns 50% of newsXpress with 180+ newsagency locations. I also owns two newsagencies and writes at www.newsagencyblog.com.au. I’ll draw on all this in the context for the sessions

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Management tip

Is Network Services loading you with Naplan books tomorrow?

I’ve heard from a newsagent who is being loaded with Naplan books from Hinkler via Network Services tomorrow. These are books the newsagent can source direct for substantially more margin.

This is an example of an action by Network no covered in the code of conduct which is part of the trial set to be authorised by the ACCC. It is an action which disadvantages us. It is an action applied to us and not our competitors. It i an action which ought to shame Network and Hinkler.

I’ll be early returning all my stock.

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magazine distribution

Newsagents invited to comment on ACCC plans to authorise magazine supply trial

The ACCC has proposed to authorise Magazine Publishers Australia to conduct a trial of an alternative magazine supply model.

As I wrote here in November, I think the proposed code of conduct changes are ill conceived and will not address the unfairness for newsagents compared to others with whom we compete.

I encourage newsagents to read the ACCC proposal and respond if they feel so inclined. Folks, this is an opportunity to have your say direct to the ACCC.

17 likes
magazines

#3 of five provocative suggestions to challenge how you view and manage your retail newsagency

This week I will publish five deliberately provocative suggestions on aspects of retail newsagency management and operation. My goal is to challenge newsagents and their suppliers to break free from the past and engage in more present day retail

Suggestion #3: stop your card supplier putting out new stock, do it yourself.

Learn how to correctly put out new card stock when it arrives. Ensure all your employees business learn this. Start doing it.

Your employees will be more knowledgeable. Card sales should grow as a result.

New stock will spend less time in boxes and more time on your shelves.

It will also mean your employees can better serve customers.

If you’re like me you will find it liberating.

This suggestion is about taking ownership of the department and freeing your card company associates to work more creatively on your business. It is about you and your people knowing more about what you sell.

Are you up for this revolutionary suggestion?

While I am publishing the suggestions I am not necessarily advocating them for all newsagents. I see this blog as playing a role in challenging how we look and manage our businesses and from that encourage newsagents to think carefully about decisions they make.

8 likes
Greeting Cards

Point of difference vital in the Easter chocolate offer

rabSurrounded by majors with brand name Easter chocolate offers we knew we could not match their offer. Checking the reject Shop and the discount sweets shop in the centre reinforced this – their discounts on brand name easter products are deep. Instead, we have focused in very different product which cannot be compared as no other retailer nearby has this product. Our approach is in line with our focus to play outside but not too far from what people expect from us.

0 likes
confectionary

Promoting Family Circle in the newsagency

mfcWe are promoting the latest issue of Family Circle magazine with newspapers as well as in food. It’s already working well from this newspaper location. We will leave it here for up to two weeks as it performs. We created this single pocket with an opportunity of an acrylic pocket next to The Age. Free space like this next to papers works a treat.

2 likes
magazines

BATA streamlines tobacco ordering

British American Tobacco Australia is moving to electronic orders, further driving tobacco retailers to engage with compliant technology for managing the tobacco category.

Newsagents will see more suppliers reduce their costs associated with harvesting orders.

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Tobacco sales

Shock: Modern Wedding oversupplied

mwWe still had stock of the initial supply of Modern Wedding on the shelves when the allocations system at Network Services decided we needed more stock. This is a dumb and resource wasting move. It costs us time and space and disadvantages us compared to other magazine retailers.

8 likes
magazines

Are newsagents being assisted out of the Hubbed contracts?

I hear often from newsagents seeking advice on how to get out of their Hubbed contracts. While getting out of Hubbed itself is usually achievable, the associated finance agreement for equipment and / or software has reportedly been the challenge.

I’m told that Hubbed will now pay out the finance agreements. If this is true, newsagents who want to get out of Hubbed can do so without being left with the burden of a finance contract.

Newsagents wanting to quit Hubbed and who have not found a way out of the finance contract should talk with those who endorsed, promoted and operated the service: the ANF and Hubbed.

8 likes
Hubbed

Disappointed to see News Corp. make Woolworths look better

newscorpshameI was disappointed to see this as in The Australian yesterday promoting an exclusive to Woolworths gift opportunity with Delicious, Australian Country Style, Taste and other News Corp. magazine titles. News Corp. should be investing in the newsagency channel instead of Woolworths. We do more for their magazines than this supermarket giant.

5 likes
magazines

#2 of five provocative suggestions to challenge how you view and manage your retail newsagency

This week I will publish five deliberately provocative suggestions on aspects of retail newsagency management and operation. My goal is to challenge newsagents and their suppliers to break free from the past and engage in more present day retail

Suggestion #2: get rid of your newspaper stand.

For decades newspaper publishers required newsagents to place large corporate image stands at the front of the shop. Often, we were required to hand a light box above or include it as part of the stand.

With newspaper sales in decline, free fall for some, the value of the stand for a retail newsagency is less today than a few years ago – even with the recent price rises on cover prices.

While gross profit contribution from major capital city newspapers is good, traffic to the stand is declining. There is no point in giving prime front of store space to a declining category.

Get rid of the stand. Replace it with a more space efficient fixture to the rear of the shop. Use the released space at the front of the shop for anew ad more relevant product category – to attract new shoppers to the business and around which to redefine your business.

Even if you don’t have a firm plan, remove the stand from the shops you can see the new space you have to deal with. This process alone should be liberating. Indeed, the process of removal is about much more than the stand itself. The action is a metaphor for a bigger move you can make on your business.

To those who would say that moving newspapers away from the front of the store will speed decline I;d say no. I have seen such a move done in several newsagencies with no impaction sales attributable to the move.

Are you up for this revolutionary suggestion?

While I am publishing the suggestions I am not necessarily advocating them for all newsagents. I see this blog as playing a role in challenging how we look and manage our businesses and from that encourage newsagents to think carefully about decisions they make.

14 likes
Newsagency management
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