Australian Newsagency Blog

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

Cards and wrap driving traffic and basket depth growth

Mark Fletcher
June 24th, 2017 · 8 Comments

We are experiencing terrific year on year growth in card sales. The May numbers on a same-store year-on-year comparison basis are terrific.

Looking across this you have May 2017 in the numbers to the left. next, you have May 2016. Then, you have the variance.

Unit sales and revenue are tracking very well.

Unit sales are up 24% and revenue is up 30%. These results are more than four times the industry average right now.

Looking at the business, which is in a highly competitive space, I see the results as being driven by:

  1. An easily shopped display located from the entrance of the business, offering a good view of the products.
  2. Engaged staff.
  3. Shop floor service.
  4. regular social media promotion.
  5. Instant gratification loyalty.
  6. Longer term shopper loyalty.
  7. Counter offer for impulse purchase of cards.
  8. Store exit offer pitching cards.

Cards are an easy sell in newsagencies if they are done right and maintained daily to be best-practice. My view is the list above reflects what I see as being done right.

Too often newsagents rely on card company reps to manage cards. They are not retailers. They rarely have the skills necessary to drive the success you can have with cards.

The more you engage yourselves in-store the more success you can have.

There is growth here for the taking by engaged newsagents.  This is an opportunity for a self made good new story for all of us, in every situation, regardless of location or population.


Category: giftwrap · Greeting Cards · Newsagency management · newsagency marketing · Newsagency opportunities

8 responses so far ↓

  • 1 Amanda // Jun 25, 2017 at 9:42 AM

    How old is the store Mark?

    Is the smaller figure Wrap?


  • 2 Mark Fletcher // Jun 25, 2017 at 9:49 AM

    Amanda, in this location, five years. In the previous location, thirty years – under different ownership. What do you mean by smaller figure?


  • 3 Colin // Jun 25, 2017 at 9:01 PM

    Interesting stuff.

    The %’s of total sales indicate that overall sales were up just under $8k or 13%. Card and wrap increased $4.4k so were 55% of the overall increase. The revenues for the rest of the business increased by 8%. There will be a story behind this – more space for additional cards or movement to better position in store.

    The discounts are also interesting, either instant gratification loyalty is not being used or is ineffective in this store.

    Whatever …seems to be working.


  • 4 Mark Fletcher // Jun 25, 2017 at 9:14 PM

    Colin, no increase in space or range, no change of location either. This store uses discount vouchers, effectively – as I noted in the post. I’ve not reported the revenue for the rest of the business.


  • 5 Amanda // Jun 25, 2017 at 9:41 PM

    The $720.05 figure?


  • 6 Mark Fletcher // Jun 26, 2017 at 6:11 AM

    Sorry, the 720.05 figure is the discount given in the month – the value of the immediate rewards, which drive sales. The image is the total for cards: units / discount / revenue % of total sales. Repeated for previous period. Variance.


  • 7 Colin, Malvern SA // Jun 26, 2017 at 7:45 AM

    Discounts are unchanged year on year with sales up 30%, cannot see they are driving sales.

    Industry average comment indicates growth of 7%. Anecdotal evidence in SA suggests far different scenario. Across the board we are seeing card suppliers with stock shortages, reduced hours for merchandises, rep departures and rationalisation of employed staff. All signs of poor revenues and financial stress. Not convinced sector is experiencing growth year on year.


  • 8 Mark Fletcher // Jun 26, 2017 at 8:28 AM

    The type of discount has changed. More immediate redemption. While cards are challenged there are plenty experiencing growth, as this line of data points for one of my stores shows.

    This is a good news post.


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