I know of six newsagents who are each advanced in opening additional retail locations, newsagency locations, or their version of newsagency locations at least.
I mention this today as an indication of six different individuals who have food knowledge of our channel and who are confident enough in key parts of the channel and their own business acumen to invest in opening additional locations.
Kudos to them.
This is a good story. It reflects a confidence that has always been there but may not have been as obvious.
Sure, there are businesses under duress and some closing. But here we have new business opening because the newsagents see growth opportunities. These are moves to celebrate as they contradict the narrative of some.
In each case the newsagent has embraces a shop space opportunity made available to them, in true entrepreneurial spirit. Starting from scratch, with a clean slate – the best type of slate of all.
I am interested in the different questions they ask of themselves. For example, if I am going to have magazines, how many different titles do I need? Or, if I am going to have magazines does it really matter if I am only a sub agent?
There are many more questions than these. This is not the space to document them.
I know from my own experience earlier this year that opening a new business is a wonderful experience in terms of the decisions you can make, because of the clean slate, especially if the business does not have any agency requirements such as lotteries. This is where there is real flexibility, starting afresh without any supplier demands. It puts you 100% in control as the retailer rather than as an agent.
From product location to shop look and feel to fitout, you can create something fresh when you have a business with fewer restrictions than the last generation of newsagencies had when they were created. This is even more true if the business is outside a major shopping centre where landlords make some tough demands.
But back to the six who are expanding their businesses. Good on them and well done. This is good news for our channel and good news for the local communities. I am excited to see how far they evolve their own models.
Are these additional outlets really in the channel. To my knowledge only one newsagency has opened in SA in last few years and it closed shortly after.
I think we are seeing the emergence of newsagents who are seeing a way out of the channel. Business entrepreneurs who can leverage their efforts with second sites that have aspects of current business but without traditional newsagency lines.
The activity I see is not confidence in the newsagency channel, it is success in those finding their way out.
Colin, yes they are, as I say in the post. In each case, the business is a newsagency at its core but quite different outside of the core.
Call it what you like, these are businesses expanding under the shingle we know as newsagency.
This is good news. Let’s leave it as good news rather than trying to make it about something else.
Yes it is good news. I congratulate those making these strides forward. I am aware of this trend in SA and am yet to see any second opening that can be considered to be a newsagency.
My point is that this good news is not a sign of strength and growth in the newsagency channel. It is the opposite, it the successful transitioning to a new business model that is not newsagency.
The channel will survive and evolve but it will not be a newsagency channel.
Colin it will have its roots in the channel. That is one of the points I make.
I have written here often and comprehensively about the need to diversify away from the traditional. My benchmark studies document the success of this.
My own businesses, too, document the importance and success of this.
There are successful models delivering double digit growth and 45% and more GP% where the businesses retain a core base of newsagency products.
All good news, all positive.
Don’t know where you are Colin, but I had a new competitor open last year year at Playford Alive. The same owner opened a new Newsagency at Gawler Green a year prior to that, so now has a stable of 4 Newsagencies.
There is also a relatively new one, less than 4 years old, at Blake’s Crossing, a member of Mark’s Group.
Perhaps all the growth is happening out here in the North. 🙂
I think it’s just that whereas once a Newsagency was once a great stand alone with it’s core business that is now no longer the case. A Newsagency however can be a great dovetail with another business however even if in a minor role.
David,
Admittedly I don’t get out of Adelaide much. I did see one open at Brickworks, now closed. I have seen many others closed in the last 3 years, several drop all magazines and papers, another and one of the most successful has renamed itself to drop all reference to newsagency.
Maybe regionals are doing better. Although there are a number of regionals without competition that have been for sale for several years, no takers.
I am aware of new opening soon (maybe already open) north of the city (maybe Mark’s group) …will be interesting to see how “newsagency” that one is.