Australian Newsagency Blog

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

Reducing magazine floorspace allocation in the newsagency

Mark Fletcher
December 30th, 2017 · 7 Comments

We have moved magazines off the floor, to the back wall of this newsagency. While it is the back wall, it is a feature, and easily shopable. It is also not too far from the front of the shop. This magazine wall can be see from outside the shop – this is important to us.

To cover the range of magazine titles we want we have, in some sections we have three titles where we would usually have two, and four sometimes where we would have two.

This move reduces the cost overhead of magazines to the business. This is essential with any product category that is at the low end of product margins in the business.

This latest most is another step in the regular dance of shop floor changes. In this shop, over the last three years, we have changes magazine floorspace allocation six times. Each was considered based on the data and reflecting what we want the business to become.

The days of traditional floorspace allocation based on traditional newsagency layout and operation are over. We are in a world of ever-increasing rent and labour costs, tougher competition from other retailers and tougher competition from online.

The extent and pace of change in our businesses needs to reflect these factors. It also needs to reflect how we pitch our businesses.

In the case of the store I am writing abut here, it identifies as a newsagency. Hence the extent of the magazine offer on the back wall. However, it is clearly a newsagency that is some distance from traditional as the majority of the floorspace is allocated to gifts, collectibles, cards and other high margin lines.


Category: magazines · Management tip · Newsagency management

7 responses so far ↓

  • 1 Colin, Malvern SA // Dec 30, 2017 at 6:15 AM

    I like the look and the absence of traditional pockets. My concern would be that customers will continually trash the display and the labour cost of merchandising will be higher. Magazines consume too much time with labour cost outweighing other overheads.


  • 2 murray // Dec 31, 2017 at 6:35 AM

    looks cluttered and unprofessional. very poor display in my view


  • 3 Mark Fletcher // Dec 31, 2017 at 10:38 AM

    Murray I’d expect that response from you, for reasons unrelated to the post.

    The display is proving a treat with this business performing ahead (in a good way) of the channel average. The results speak for themselves.

    Colin, we are lucky. The display remains tidy with no significant increase in labour required.


  • 4 murray // Dec 31, 2017 at 12:40 PM

    reasons unlrelated to the post ? there are magazines overlapping and in my opinion it looks untidy. if you cant take constructive criticism onboard then why bother posting pictures.


  • 5 Mark Fletcher // Dec 31, 2017 at 2:16 PM

    Murray you said: looks cluttered and unprofessional. very poor display in my view. For other reasons I think you take opportunities to criticise. However, you are entitled to do that. Comments are not moderated.

    However, I will not take your comment on board as the magazine wall is working a treat. You are a rural newsagency with a very different occupancy cost model than I have in a Westfield in a capital city. In my case, space costs play a role in decision making more than whether something looks attractive.

    As I have noted, this wall is outperforming magazine results in the majority of newsagencies. That is the only measure that matters.

    I posted the picture as I thought other newsagents would find it interesting and useful as they contemplate changes for magazines in their businesses. It is one type of post people come here looking for.


  • 6 Matt // Jan 1, 2018 at 4:56 AM

    Most newslink shops in train stations have a similar display and customers should not have a problem, I suppose.As long as similar category of magazines arranged together finding them may not be a hard task.


  • 7 Mark Fletcher // Jan 1, 2018 at 11:32 AM

    Yes Matt, the key I think is flow. It’s working for us.


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