Australian Newsagency Blog

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

The revised gift to card revenue ratio for indie retail newsagents

Mark Fletcher
August 7th, 2019 · No Comments

There was a time when newsagents would aim for a dollar in gift revenue for every dollar in card revenue. Back then, cards pulled shoppers and gifts were the add on.

Today, there are engaged newsagents who achieve a gift to card revenue ration of 2:1 and 3:1. That is, they are easily achieving $2 in gift revenue for every $1 in card revenue. I think this is the starting point benchmark for gift to card revenue. Anything above that is bonus.

I have seen data this week from several different newsagency businesses, city and country, achieving gift revenue of more than $175,000 a year with card revenue sitting at $80,000 and with both growing.

Growth is the other piece of this. Growing gift sales sets you up for terrific growth in card sales. North in both good margin categories can provide a GP$ base that helps the business deal with rising lease and  labour costs.

We make our own success.

8 likes

Category: Newsagency management · Newsagency opportunities · Optimism

0 responses so far ↓

  • There are no comments yet...Kick things off by filling out the form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image