Australian Newsagency Blog

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

Reclaiming magazine space in the newsagency

Mark Fletcher
February 25th, 2016 · 4 Comments

IMG_7104I was in a newsagency this week where a magazine relay resulted in this four square metres of retail space was reclaimed from magazines delivering 25% GP for gifts delivering 50%+ GP. No titles were cut. Rather, a more efficient allocation of space was achieved through smarter space management. This is smart newsagency management – respecting a core low margin category in a way that lowers the overhead cost of the category on the business.

Magazine publishers should look at this as newsagents have to make moves like this given the margin dollars being achieved from magazines continue to fall in a marketplace where rent and labour costs are increasing. Are you listening? 

15 likes

Category: magazines · Newsagency management

4 responses so far ↓

  • 1 Glenn // Feb 25, 2016 at 11:30 AM

    Are they listening indeed!!

    Yesterday I came across 2 newsagencies that have completely got rid of magazines altogether. These are big newsagencies in large centres.

    Is the ultimate move from being a newsagency to a specialist retailer?

    5 likes

  • 2 daniel // Feb 25, 2016 at 7:53 PM

    Get rid of papers before magazines!

    well I guess its an option to rename the business and forget about papers and magazines!!

    2 likes

  • 3 Mark F // Feb 27, 2016 at 9:07 AM

    Mark

    This is a fairly significant saving in space without the need to cut title. Would you care to elaborate further on what was actually done to achieve this outcome?
    Regards

    Mark Fa

    0 likes

  • 4 Mark Fletcher // Feb 27, 2016 at 10:07 AM

    Mark this was a deliberate move to not cut titles but to achieve more efficient use of space. It’s something I have written abut here often and provided examples of from my own business.

    The key elements are a relay followed by no longer full facing titles people will look for. I think an average newsagency can cut around a third of floorspace allocated to magazines without cutting titles. Given the usual space allocated to magazines, this could free up around 10% of total retail space. That is a real cost to any business if they have more valuable products to place in that space.

    2 likes

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image