The security risk of an ATM in a newsagency window
This report of theft of an ATM machine, k from a newsagency in the UK:
Gaping hole in Milnthorpe newsagents' after cash machine pulled out of shop front in early hours. @BBC_Cumbria pic.twitter.com/RoDS3P31pL
— John Bowness (@JohnBowness) January 10, 2019
Beware retail business consultants who have all the answers
There are some retail business consultants pitching their services and ideas to newsagents and others in our channel.
My advice is to beware, approach with caution, question the suggestions and advice from business consultants and self-proclaimed retail experts. Ask for evidence that supports their suggestions. Seek our references from indie retailers who have benefited from their advice. Ask the basis on which they make suggestions. Most of all, ensure they understand the channel and what is being confronted.
What newsagency businesses is experience is unique. It goes beyond ‘traditional’ disruption. There are multiple factors at plays, each impacting the other and the whole picture resulted is what I think is best describes as super-disruption.
I say super-disruption because we hear plenty about super-storms, super-cyclones and the like. They are bigger, more ferocious, more confronting versions of the singular. That is what we are dealing with, disruption on a level not often seen elsewhere.
I have heard from consultants working with newsagents and read some of their suggestions. While their ideas are okay, they do not consider the bigger picture, they do not deal with more of what newsagents are confronting. This is why I say about consultants and advisors…
My advice is to beware, approach with caution, question the suggestions and advice from business consultants and self-proclaimed retail experts. Ask for evidence that supports their suggestions. Seek our references from indie retailers who have benefited from their advice. Ask the basis on which they make suggestions. Most of all, ensure they understand the channel and what is being confronted.
Some of the disruptors playing into each there in our channel include:
- The decline of print media.
- Migration of lottery purchases online.
- The decline in physical stationery use.
- Migration of the stationery shopper to online and big business.
- Migration of local school stationery business to online and big overseas businesses.
- Growth in corporate convenience businesses.
- Migration of transport ticket top-up to online.
- The closure of many newsagencies and the resulting impact on channel suppliers.
I don’t see these disruptors as problematic … if you engaged early and transitioned your business. The opportunities for change and growth in a ‘newsagency’ business remain considerable.
My key concern about the consultants and retail experts who are plying their trade in our channel is for those yet to transition, those keen for advice and guidance. Unless the consultants and retail-experts do thorough homework, I fear their advice will be of little real value.
Like anything, buyer beware.
When your building is sold: a challenge for the small business retailer
A newsagent friend is dealing with a new landlord following the sale late last year of the building in which they trade.
They have eighteen months on their lease and were hoping too extend as the business is well established and there is a shortage of as well situated retail space nearby.
The new landlord has made it clear they would look the newsagent out as soon as possible so they can rent the space to a family friend.
Their actions toward the tenant, while within the terms of the lease, have been aggressive, creating considerable stress for the family that owns the newsagency business. The landlord is in the shop regularly. The landlord shops in the business and disrupts trade when doing so.
The newsagent has considered taking action against the landlord to refuse them entry but they are concerns that such action would only make matters worse. However, they have tried a gently approach and that hard failed.
In the state in which the business is located there are a couple of legal avenues available. However, as with any legal action there is the risk of failure, added to the cost of the action itself.
Their current approach is to be as small a target as possible by paying the rent on time and not asking the landlord for any support, even for building repairs that are the landlord’s responsibility in the lease.
One option is to document to the landlord what has been happening, the disruption in the shop and what the landlord has said to them, to show that a body of evidence is building. They don’t want to do that because, again, of fear of inflaming the situation.
They know how this will end – with them out of the shop. I have suggested they actively look now and make changes to the business now to reflect what could be a very different business in a different location, maybe off the main street in town … less convenience and more destination retail. In other words, create the business today that they will want in the future, in a new location. I have also reiterated my suggestion that they get legal advice, in case the disruption to their business by the new landlord increases.
Gifts are not what they used to be, and that is a good thing
There was a time when gifts were easy to stock for newsagents. There were wholesalers who offered access to spinners and packs that fit with the key seasons as it is those seasons that we all focussed on for ur gift stories through then year.
That all started to change ten or so years ago. Slowly, the gift opportunity evolved to a point today where plenty of newsagents do not purchase season specific gifts, leaving that space to discount variety and other similar mass retail businesses, including c-stores, which are playing more and more in this space.
Gifts today are more carefully purchased by newsagents in the space, to appeal to unique local interests or to use as a lure to a specific and valuable demographic for the business. Often, the best gifts are those you would never expect to see in a newsagency. In my own situation, I put pursuit of a demographic ahead of season and other factors s that can provide buying guidance that is ore useful than some hard and fast rule on price.
In my experience, terrific gifts today come from suppliers who to not make calls on retailers as that means you are less likely to have another local retailer following you, or at least not following you as easily as if they spoke to the same rep visiting the town.
The short version of this is that the days of mediocre cheap gifts as the standard in newsagencies has passed. We now see less of the forks bent into art for guys and colourful oven mitts or gaudy soap packs for ladies. We see more short run products, locally made products and higher priced art like pieces … that you would never have seen in a newsagency a few years ago.
The gift space is strong and have plenty of opportunity to get stronger. I am optimistic about this category for our channel.
Product sampling key to success with food
I have seen terrific examples of success with product sampling over the Christmas / New Year period, including this sampling of locally made jam. The owner made some scones for the sampling.
With more transitioning newsagents selling food products, I thought it worthwhile to remind about the sampling opportunity.
While best dine on the shop floor, near the front of the shop to attract people, it can work equally well at the counter.
Make sure people can engage without touching food with their hands. This also gives confidence that it is safe. napkins or similar are often appreciated.
Keep sample portion sizes small, it is for a taste after all.
Have a card or small flyer pitching the product being sampled.
Consider an offer for those who buy following a sample.
Suppliers will often support a structured sampling program that features their products. Ask the question.
The best product to sample are those that are new and are unique to your business in the area. It is all about introducing customers to new things after all.
A good magazine for your back to school pitch
This issue of Australian healthy Food is an excellent title to add to your back to School pitch. It’s small format and covers topics relevant to school food prep. Plus, it leverages the strong current interest in healthy / clean eating. Also, it’s Aussie and that’s something to feature.
Adding magazine to seasonal and other feature product displays is a way to subtly remain shoppers of magazine purchase opportunities.
More news outlets quitting lotto
In New York over Christmas I saw more news outlets with a sign like this: No Lotto. The terminal was not down. No, they had removed Lotto from the business. The move is a surprise in that the footprint commitment to offering Lotto is small. The small format shops offer newspapers, magazines, tobacco and convenience style gifts.
As Tatts extends its reach and demands on its retail network I wonder if we will see more in Australia quit its products.
If their recent handling of employee wage record keeping and pay conditions is anything to go by I suspect more Tatts franchisees will consider a business without the intrusive overlord as one retailer called them recently when we were talking about Tatts’ demands on them.
Weekends are what matters next for Nine/Fairfax print newspapers
Fairfax is promoting the weekend only print and anytime digital access to The Age and The Sydney Morning Herald. Here is the pop up currently running on the website for each masthead:
It makes sense as shifting to weekend only print editions is a common move among daily newspaper publishers who have retreated from seven day publishing.
A cross at The Australian Financial Review, their pitch is less in four face, but clearly focussed on weekend only publication.
I am not looking forward to Nine/Fairfax or any published reducing or cutting print editions as when it first happens the disruption to the channel will be considerable. However, since it will happen, the best thing for all is for it to happen sooner so we get out the other side.
I say the disruption to the channel will be considerable because of the psychological impact I suspect it will have on many, newsagents who have not started to transition their businesses to rely less on print media.
Given the weekday circulation for the Fairfax titles and considering moves made by some daily newspaper publishers overseas, I am surprised we still have the seven and six day products being published. The losses most weekdays must be considerable.
Tatts Powerball ads on TV
If I was a Tatts retailer I’d be frustrated to see them advertising the Powerball $50M jackpot for last night on TV after 6pm. It makes a mockery of the purchase pitch that includes in-store when, by then,. stores are closed.
I suspect this is all about online customer acquisition as those who do purchase online are less likely to purchase in-store again.
Officeworks in strong back to school pitch
These two photos, which I took in an Officeworks in Sydney a couple of days prior to Christmas, tell the story of an engaged, fierce competition for back to school business. This first sign is what you see as you enter the business:
This is places deeper in the business, with a terrific range of school supplies:
They make it look easy, like they have everything and that their prices are competitive.
What hope is there for a shingle?
On Twitter, someone was looking to buy stamps and asked Australia Post about whether certain outlets would sell them. No mention of newsasgencies or newsagents. Instead, the reference used was tatts lotto.
@auspost do you know if tatts lotto or coles sells stamps?
— giveaways are pinned (@daddiejimin) December 31, 2018
I have said at conferences and elsewhere that having lottery products in a shop, and all their associated collateral, do more to define a ‘type’ of business than any shingle. The presence of lottery products set shopper expectations in terms of product mix, hours and customer service.
I think this tweet supports that.
No, I’m not criticising lotteries or lottery products. Rather, I am making an observation that a major product category sets shopper expectation in independent retail.
Announcing: new newsagency sales benchmark study
Here is an email I sent yesterday to newsagents using the Tower Systems software, announcing a newsagency sales benchmark study to look at business performance over the last three months:
Q4 2018 NEWSAGENCY SALES BENCHMARK STUDY.
I invite you to provide data for the Q4 2018 newsagency sales performance benchmark study. The benchmark provides data against which you can compare your business performance. Click here for my last report.
How to participate.
- Please run a Monthly Sales Comparison Report for 01/10/2018 – 31/12/2018 compared to 01/10/2017 – 31/12/2017.
- Tick the category box. IMPORTANT.
- Tick to exclude home delivery and sub agent data.
- DO NOT tick the supplier box.
- Preview the report on the screen. Save as a PDF and email this to me at mark@towersystems.com.au.
- Read the report yourself and see what it shows you about your business.
- I will email the results to all participating newsagents and publish the results on the Australian Newsagency Blog as a service for all newsagents.
My work with this channel goes back to 1981 when I wrote newsagency software to manage newspaper home deliveries. That software evolved into Point of Sale software and has been rewritten as software technology has changed.
I own and run three newsagencies. Over the years I have had three others. I am a 50% shareholder in and CEO of newsXpress, the newsagency marketing group.
Tower Systems serves 1,750+ newsagents with best practice newsagency software, We are thrilled to note that our customer base is growing. Overall, Tower Systems serves in excess of 3,500 small business retailers.
Mark Fletcher
M | 0418 321 338
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