Wow: The Rotten State of Newsagents
The Rotten State of Newsagents – Is it any Wonder Publishers Are Pushing Digital? By John Freeman is an indictment of the state of newsagents in the UK. While I have challenged him on some points, he makes other points all newsagents need to consider.
Freeman needs to look at why newsagents cram magazines into less and less space. Next, he needs to talk about how to address the issues to respect newsagents and publishers. His article misses some key facts.
I agree with what much of what Freeman has written about UK newsagents. Plenty of shops are tired and not up to current retail standards. However, part of the problem could be the return achieved from the category by retailers in the UK. My experience with retailers is they invest based on the financial return.
newsXpress marketing to newsagents
Here is the content of an email sent to newsagents last week promoting newsXpress:
Innovation for newsagents.
If you want new traffic, a higher than average gross profit, a fresh in-store look and excitement about the future of your business, consider newsXpress. here is just some of what we have delivered this year:
- National e-commerce strategy. newsXpress members are offering products for sale through a variety of websites connected to newsXpress member businesses. Members are thrilled to get news of sales overnight, while their shop is closed, sales with 100% of GP being retained by the members.
- Magazine incident reporting: an exclusive time-saving approach to handling magazine under supply, over supply and more.
- National Unicorn season. This innovative season, right after easter, increased traffic and drove excellent sales. With no competition.
- An interactive online calendar – never forget any deal, opportunity or season again. Delegate more easily. be more in control.
- Exclusive good margin dollar traffic generating product lines.
- The launch of an exclusive range of niche cards to be sold outside the card department to new shoppers.
- National catalogue strategy – 10 years old and still making good money.
- Full page advertisements in national magazines.
- Launch of a new local supplier in-store strategy.
- Regional member meetings – networking and business growth opportunities.
- Newsagency shop floor restructure for your Newsagency of the Future.
- Free access to labour rates and other HR assistance.
These are just the highlights. We have also engaged on behalf of our members with the ACCC on Tatts related matters and with senior management at Bauer and Gotch on the transition.
We would love to welcome you to our newsXpress community. Click here to read what newsXpress offers. Contact us:
- National Sales Manager: Peter Francis. 0423 298 020.
- WA Sales Manager: Lynn Martin-Brown. 0412 665 822.
- Managing Director: Mark Fletcher. 0418 321 338.
- Director: Graham Randall. 0419 711 153.
Four videos were also included in the email:
Promoting magazines to magazine lovers
Check out the ad being run by Mildura newsagent John Klemm in a glossy magazine being widely distributed in the area. I like the ad because it pitches quality and customer service in the headline and then focussed on magazine enthusiasts and also pitching a strong commitment to newspapers. It is rare to see such a commitment to print.
Having seen the newsagency for myself on the weekend, the in0store experience matches the pitch in the ad.
Costco now sells magazines in Australia and other magazine retailers will not be happy
I am not sure when this happened but US warehouse retailer Costco is now selling magazines in Australia. Their price is 20% off the cover price. Yes, 20% off. Here is a photo I have been sent from someone visiting a local Costco store.
Costco currently has eight locations in Australia with plans to grow to 25 sores within four years. While it would be easy to dismiss eight stores as not a large enough footprint to hurt magazine sales in other retailers, with revenue of $1.3B in 2015 (source: SMH), Costco is a force to be reckoned with.
While I have never shopped in a Costco, I am told some days the warehouse is packed with shoppers. Each person passing a magazine rack promoting 20% off is being told magazines can be discounted. If these people see the discounted magazines occasionally in supermarkets and regularly at the airports, the message soon sticks to not pay full price of magazines.
Magazines being available in Costco and at 20% off cover price ought to concern us. It demands a response, in-store.
From what I can tell, Costco US started selling magazines around ten years ago. I found this photo promoting 20% off cover price in the US at the Time is Money Mommy blog.
FYI, here is the blogger’s comment:
I used to subscribe to several magazines, but have cut back over the years since I don’t have time to read them. I’ve realized even though subscriptions are cheaper, it makes more sense to just buy the issues I’m interested in. Costco is the place to do it, as they give a 30% discount off the cover price. And yes, I totally bought the US Weekly with Princess Kate on the cover. Chase is golfing tomorrow, and I’m going to sit in the yard and relax while the kids nap!
While we can be angry about what is happening at Costco, that would achieve little. We are better off responding commercially, in our businesses.
I good response from newsagents would be to actively and consistently promote their discount voucher, magazine club card or similar good-value loyalty program. This is what I do in my newsagency. I mention discount vouchers and magazine club cards as they are differentiating offers whereas loyalty points are not – they are not understood and of dubious value, and shoppers get that.
The Costco range is small and magazine purchases will be on impulse. Our best pitch remains to be the destination magazine specialist and to to this in cost effective and commercially viable ways.
Sunday newsagency challenge: check your audit log
Look at the audit log maintained by your newsagency software. Look for patterns of misbehaviour. Look for fraud. If you are not sure, ask your software company and they will help – as there are patterns easily identified that can reveal theft from your business.
This is a challenge as most will not look, preferring ignorance.
Sunday newsagency marketing tip: promote what is different about your business
While it is good to see newsagents using Facebook and other social media platforms to talk about and promote their businesses, too often the pitch is for product available everywhere, including outside the newsagency channel.
Marketing most noticed is that which stands out, is different to what everyone else with a similar business is doing, unless you want to stay in the chorus and not be noticed.
My marketing tip today: promote what is unique to your business.
Sunday newsagency management tip: hiring from the window
I love this employment available poster I saw in the window of a Hong Kong store last week. I love the style, the pitch and the opportunity. From the outset, prospective candidates would understand the opportunity and plenty about the business.
This sign is better than the old: Casual position available, enquire within we see in too many shop windows. Note the commission opportunity and staff discounts. Inspiring!