The headline of this post is a direct lift of the headline of a report published by mUmBRELLA yesterday. While I urge newsagents to click on the link and read the article, I will post portions here and comment.
The boss of publishing house NewsLifeMedia has said newsagents need to be more critical about the range they stock and emulate the way that supermarket giants Coles and Woolworths operate.
I am not sure what Ms Sheffield is reading but I think newsagents have been vocal for years. Look at the recent comprehensive submissions to the ACCC, copies of which were provided to NewsLifeMedia as well as other publishers and the distributors.
What we learned from this and previous experiences is that being critical achieves nothing. The lesson from the ACCC and other recent experiences is: complaining gets you nothing.
Speaking at Wednesday’s Publish conference, Nicole Sheffield said: “Every time there is a range review [at a supermarket] it’s got nothing to do with anything emotional, social, digital – it’s what that pocket is yielding me and if it’s not doing it, you’re off the range,” she said.
As it should be I say. Retail is tough for supermarkets and for us. If a product does not pay its way it ought to be removed. The challenge for newsagents is we are not permitted the same control of supermarkets. This disadvantages us and advantages supermarkets. The model agreed by publishers and supermarkets is a model that makes newsagents less competitive.
“Newsagents are under enormous pressure. There’s a lot less of them. Running a newsagency today is a very difficult, challenging business. You’ve got print products that are in decline and you’re heavy reliant on lotto.
Nicole needs to get out more and understand there are now considerable differences between newsagencies.
“People used to go there for a lot of different reasons and we have to be a reason to make them a destination again.”
Yes, I agree. Magazines ought to be a reason for newsagencies to be a destination. I have a proposal regarding this and will submit it to mUmBRELLA for publication consideration. More on that later next week.
Sheffield’s comments followed those made by Ash Hunter, the chairman of Publishers Australia and CEO of Hunterfive Group, who said the influx of new, poorly trained newsagents is causing problems and it is something the print publishing industry needs to address.
“There is a fundamental failure that’s taking place within the newsagency network and part of it is quite challenging, it’s around cash flow,” he said.
“Many of the new newsagents coming in don’t understand the business as well as they should and they have to manage cash flow.
I’d love to know Hunter’s evidence for these statements, especially the last statement. Sure, there are some who don’t understand the business. That is a failure of the parties that approve entrants: Tatts, magazine distributors, newspaper publishers – any supplier agreeing to open an account. That said, under needs to back the statement with evidence.
Hunter then picked up his game and got to a core issue:
“The issue is reducing range and sending back their returns. This is an area where part of the (print) decline is due to neglect to that distribution network.”
He said it was handing the power to the likes of Coles and Woolworths who typically stock magazines from the larger publishers like Pacific Magazines, NewsLifeMedia and Bauer Media.
What I am submitting to mUmBRELLA to consider publishing next week is one option I think could address this issue.
Publishers can complain all they like. If they want the situation to change, they need to change. They also need to engage commercially and not through the industry associations as that has proven to be a waste of time for years.
I do have a plan to put out there for suggestion. More on that next week. Hopefully, too, more plans from others on this critical issue for smaller publishers and newsagents.
