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

Month: September 2019

Make birthdays happy

This video I made for social media has been terrific at getting people engaged with cards.

Our channel needs to do more to promote cards outside our shops, to draw attention to occasions we cover that others don’t and to shine a light on cards people can see themselves giving others.

The more people think about cards the more they become a thoughtful purchase. We play better in that thoughtful purchase than an impulse purchase.

Supermarkets and convenience stores are all about impulse. We are all about destination. For too long, however, we have relied on simply having a product category to drive traffic. That world is gone. We need to engage in myriad ways to attract shoppers and we do this by pitching categories outside our shops.

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Greeting Cards

Explaining the move to cashless

I was in a coffee shop that had recently switched to cashless. I like how the framed the move in this poster on the wall behind the counter:

No, I am not saying these reasons all work in a newsagency. Security and speed for sure do work. If I was going cashless, I think I;d use a sign like this as it is simple and cuts through.

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Newsagency management

AFL Grand Final

On AFL Grand Final days past we have traded through to the usual closing time, filling the time after the game starts with planned changes to layout and product placement. This year, we have opted for a different approach. We are closing early.

We have completed significant floor changes already. Being open for significantly diminished revenue while Melbourne all but shuts down for the Grand Final does not make sense this year. So, we will try closing. We have let customers know I advance so as to mitigate disruption.

With each store earning significant online revenue, we will accrue sales that we can fulfil Sunday and Monday.

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Newsagency management

How the new approach to newspaper home delivery fails customers

I was talking with a newsagent who had handed back their newspaper home delivery runs to the publisher as few months ago. They were telling me about customer experiences. They handed back the run because it was not financially viable and because representations to the publishers for fair compensation were unsuccessful.

Now, months after handing there run back, their old home delivery customers tell them that in the event any paper is missed, it is never replaced. The publisher provides a credit to the account as the only solution to them missed paper complaint.

What this experience demonstrates that the demand by publishers on newsagents that they take out a paper in the event of a reported miss is not a standard to which they hold themselves when they take over a run.

The publisher is demonstrating double standards. For decades they unleashed relentless pressure on newsagents in terms of home delivery service levels, demanding a c retain standard, a standard they themselves fall short of when they take over a home delivery service.

This failure by the publisher shows that the decades of demand were a big business bullying a small business because they could, not because it was right for the customer. I think this is poor social responsibility boy the publisher.

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Newspaper distribution

Christmas ornaments a hit

We are having terrific success with the Hallmark Keepsake ornaments this year and we are still 12 weeks from Christmas. By terrific, I mean revenue that is about to hit what we did all of last year through the season. This is a niche product that people travel for – it broadens the catchment area of the business, thanks to online.

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Gifts

Is lottery fatigue impacting lottery sales?

Several newsagents have reported sales lower than expected sales from the $150M Powerball jackpot last week. Sales for the $100M the week before were good but the expected jump for $150M did not happen.

A couple of those I spoke with raised the question of lottery fatigue. That is, tiredness among lottery shoppers for jackpots.

Lottery fatigue is a real topic of discussion as you can see at the LA Times, USA Today, KOLO TV and MarketWatch.

While the big jackpots get all the media attention, every day there are winners of smaller am punts who are thrilled with their win. Even low prize wins of $10,000, $1,000 and less are a thrill for the winners, they are something worth celebrating.

One way to combat lottery fatigue at the shop level is to celebrate all the wins, no matter how small, and to pitch the thrill of each price being circulated back to the community.

I think focussing on the everyday when it comes to lotteries would be wise rather than the obsession of recent times on the massive jackpots.

Footnote: to any who say this post has been written to downplay or denigrate lottery sales – you are wrong. I hope newsagents have a bright future from lotteries.

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Lotteries

National Police Remembrance Day

September 29, 2019, will be the 30th anniversary of National Police Remembrance Day, an important day in the calendar of serving and past-serving officers and their families.

We are grateful for the opportunity to connect with the day through the sale of specially minted commemorative coins. The interest has been terrific. Because of how they are packaged, they have proven to be an excellent gift for customers to post to loved-ones.

What I particularly like about this day is the opportunity to reinforce niche gifts and to offer cards that support the niche gift giving opportunities. Through this we get to pitch our business as being more useful than many other gift related retailers. If you look around, it is easy to find plenty of niche opportunities for which we can pitch gifts and cards.

More broadly, from a category perspective, coins are proving to be valuable in revenue and the new traffic they attract.

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Gifts

The newsagent corner in a local UK supermarket

This photo is the newsagent corner in a Sainsbury’s Local in Greater London, which I saw a few days ago.

Opposite this placement of magazines, papers, stationery and lottery products and our of shot is a small stand of cards.

Sainsbury Local is a small format, high street, supermarket. All the major UK supermarkets have small formal high street offerings, squeezing indie retailers out of this convenience space.

Given how much Coles and Woolworths follow UK supermarkets, we have to expect fine tuning of their small format high street offering. We see it in Australia already in fuel and in some city high street locations, but not to the extent of the UK.

Differentiation is key in retail. Always has been and remains so today.  When it comes to the convenience space in the UK, the major supermarkets all look pretty much the same. From what I can see they rely on their loyalty programs and myriad price-based offers to drive traffic through their doors.

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Newsagency management

Newsagencies…

The Flinders News has published an opinion piece on the future of local milk bars and newsagencies.

While I get that the topic is interesting, I am yet to see any piece look at it thoroughly and shine a light on the many in the channel innovating and creating more value in and for their businesses. There is much good news out there if only people would look.

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newsagency of the future

Newsagents welcome at free e-commerce workshops

10% of revenue earned by Myer now comes from online. 23.5% of lottery revenue for Tabcorp comes from online. Now more than ever, online is critical for retailers.

In this free workshop I will look at trends, share real-life newsagency case studies and explore:

  • The latest retail trends and how online and physical store intersect.
  • How to free up capital through smart tech use.
  • How to improve the quality of business data, and from this the quality of business decisions.
  • How to leverage online hot opportunities like omnichannel, click and collect, buy now pay later, price comparisons and SEO.
  • How to leverage online to drive in-store traffic.

Each workshop will be live and interactive and relevant to your type of business. This will not be a sales pitch. We will share what we know having done this work ourselves for the retail businesses we own in the homewares, pop culture, collectible, plush, gift and games segments of retail.

I will also cover: SEO, shipping options, free shipping, the role of social in online sales, returns, bundles, branding and a plan b for your web strategy.

Click on your preferred city below to book. Each workshop (except for online) will be in an easy to get to capital city location.

  1. SydneySept. 30. 10am. @ Hilton in the city.
  2. AdelaideOctober 1. 10am. @ Atura Adelaide airport hotel.
  3. PerthOctober 2. 10:30am. @ DoubleTree by Hilton.
  4. HobartOctober 3. 11am. @ Rydges.
  5. MelbourneOctober 4. 10am. @ Hawthorn.
  6. AucklandOctober 7. 10am. @ Pullman.
  7. BrisbaneOctober 8. 10am. @  Hilton
  8. CanberraOctober 9. 10am. @ Vibe at Canberra Airport.
  9. OnlineOctober 10. 10am. AEST.
  10. OnlineOctober 10. 2pm. AEST.
  11. WellingtonOctober 14. 10am. @ InterContinential.
  12. ChristchurchOct. 15. 10am. @ Chateau on the Park DoubleTree by Hilton.

With these workshops a key goal is to help you enjoy a more successful and valuable business.

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Newsagency management

Is the cover price of individual weekly magazines redundant?

The bagging / bundling of magazines started in the UK years ago. Then, it came to Australia.

In London over the last couple of days I’ve seen bundled offers easily available, begging the question: Is the cover price of individual weekly magazines redundant?

This bagged pack in the photo offers four titles for £2.95. My understanding is that in this bundle, OK! is the hero product, the one on which the bundle price will be judged. We see similar moves in Australia with the hero product leading the bundle.

With magazine sales continuing to be challenged, I suspect we will see more bundling and less reliance for individual cover price.

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magazines

The Stat stationery range from GNS is a terrific opportunity for newsagents

The recently launched Stat house brand of stationery from GNS is a terrific opportunity for newsagents to grow stationery sales.

I say that having looked at a range of the Stat products, listened to how the brand came about and the quality guidelines set for the products in the range and after looking at similar house brands offered by key competitors of newsagents in the stationery space.

From the bold and well-defined packaging through to the each product in the range Stat is an excellent opportunity for newsagents who want to compete in a competitive stationery marketplace.

What I particularly like is the education offered to newsagents, to understand that Stat is not about replacing current known brand stationery. rather, it is a brand through which to broaden the appeal of the newsagency as an outlet for a value stationery offer.

I am grateful to the CEO and GM of GNS for the time they have provided recently to facilitate understanding of the work done to bring Stat to the market and the opportunity this affords newsagents.

If you are encountering tough competition at the value end of stationery, I suggest you look carefully at Stat and consider ranging it with all Stat products placed together in-store for a visually impactful display and supporting this with an out of store campaign to position you to the target shopper.

Our channel used to dominate stationery sales in Australia. Stat offers an opportunity to reclaim some lost ground.

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newsagency marketing

Gentle sarcasm proving popular in the newsagency

We are having terrific success with a thoughtfully curated range of gentle sarcasm products sourced from six different suppliers.

The pitch in-store is encouraging existing shopper engagement while individual product pitches out of store are working too.

It is ine thing to have access to good products through which to attract new shoppers and another entirely to craft a narrative across produces from multiple suppliers that appeals to a specific co-hort, heeling them to see purchase opportunities in your business they have not considered shopping with you for.

I think engaging like this is critical – broad range glued together with an appealing narrative but with a stock weight that is not burdensome … selling through and freeing the space for the next story.

Change is wonderful.

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Newsagency management

The magazine wall in the newsagency

This magazine wall we have in one of my shops remains an important part of the business. While it is on a black wall, it can be seen from outside the shop, in the mall. The range works for us and only rarely are we asked for titles we do not stock. It is a busy part of the business, one we will maintain.

I mention this as I am regularly asked about plans for magazines in my own businesses.

This next photo is from the Woolworths George Street Sydney store. It’s upstairs, on level 1. I visit it every time I am in Sydney, usually every couple of weeks. What Wass once a busy section ra4rely has shoppers when I visit.

Their range is not as deep. It does not have the specialisation you can find in most newsagencies.

I think specialty titles are more important to our channel now than the weeklies and major Aussie monthlies. While these titles do matter, it is the niche titles our competitors do not carry that will keep shoppers shopping with us.

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magazines

News Corp and Nine announce the end of newsagent-led newspaper home delivery in Sydney

The Australian and Mumbrella are reporting the end of newsagent led News Corp and Nine newspaper product home delivery by newsagents in Sydney.

Australia’s two biggest newspaper publishers, Nine and News Corp, will cease newsagent-led home delivery for their print titles in the Sydney metro area. This excludes CBD delivery.

According to a Nine spokesperson, the move is necessary to ensure the model is sustainable.

The move means newspapers will still be delivered to subscribers’ homes, however the service will not be provided by local newsagents. Instead, News Corp will appoint a single distributor for its deliveries as of early 2020, while Nine will use two.

Nine announced its plans to change the distribution for The Sydney Morning Herald and The Australian Financial Review in a letter to newsagents last week, while News Corp announced its plans in June. News Corp is the publisher for The Australian and The Daily Telegraph in New South Wales.

Some online have read this as the end of print delivery altogether. It is not.

It is almost seven years to the day since the News Corp T2020 project was announced to newsagents. The decision by News and Nine to have newspaper home deliveries managed by a distributor is the next step in the roll out of the remnants of that project.

On one hand, this move is another attack by these big businesses on the businesses of small business newsagents, businesses that have faithfully and cost effectively served the publishers for decades. On the other hand, it is an opportunity for newsagents to be done with newspaper home delivery and thereby rid their businesses of a service for which they received a fraction of minimum wage to fulfil.

To those outside the channel, yes, this has been seven years in the making. The main impact will be from ignorant accountants and bank managers who think its will negatively harm the value of businesses. For the most part it will not.

The publishers are doing this because they think it will save them money and / or help them maintain newspaper home delivery for a while yet. I don’t see that happening. There are too many days of the week when delivering newspapers to homes are loss-making. Business managers with an eye to profitability will prevail and at some point, home delivery seven days a week will cease. That will be a sad day.

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Media disruption

The conviction of the anonymous online comment

One measure of strength of conviction of an online commenter here or anywhere is whether they own what they say. By own I mean are prepared to put their name to what they say. Here are two comments from last night. Neither made it through as they were the first by each email address used. While I don’t moderate comments, the first sits in a queue for approval as part of the blogging platform protocol.

If this commenter would care to provide real details, the comments can run as everyone is entitled to their views.

I’d be happy to meet and introduce them to plenty of retailers in this channel who are doing well, growing and navigating to bright futures.

I am in Cairns at a newsagency conference and there are plenty here who would disagree with the comments.

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Ethics

Fresh face of the newsagency attracts new shoppers

This is what shoppers walking past the newsagency have seen for the last few days. Wow! The new people this display is attracting is terrific.

Oh, and to the nay-sayers / critics … I am not saying you should do this. No, that is 100% up to you. What I am saying is that I am glad we did this.

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Gifts

UK supermarket’s register-free shop experiment brings back the register

The experiment by UK supermarket group Sainsbury’s of register-less retail has resulted in the return of the register the company has announced.

Back in April, we trialled the UK’s first till-free grocery store. The three-month experiment put our SmartShop Scan, Pay & Go technology to the test in a bespoke food-to-go store.

We know our customers’ lives are changing and so too are their shopping habits. We’re changing with them to make sure they can shop whenever, wherever and however they want. We know our customers value their time and many want to shop as quickly as possible. Developing and testing new technology is key to making sure we’re bringing our customers the very best shopping experience.

Our SmartShop app – where customers can scan and pay with their phone with no need to queue or pay at a till – was already live in eight convenience stores. An experiment, rather than a new format for us, we wanted to put the technology to the test in a till-free environment to understand how our customers respond to the experience.

The experiment created excitement amongst customers, with many keen to check out the store, download the app and test out this way of shopping. Lots of customers loved how quick and simple the SmartShop app is to use and many are choosing to shop this way regularly.

We’ve listened closely to feedback, learning and adapting the experience along the way. For example, some customers found the QR codes when leaving the store could have been easier to scan, so we designed new ones and adjusted how they were placed in store. While most customers are happy to use their mobile data to download our app and shop, many signing up to use the store Wi-Fi found the journey took a little long, so we changed it to a one-step process.

The only place I am seeing register-less retail working and growing currently is the Amazon Go model. I have seen five of their stores and each was busy with real customers.

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retail

Tips on promoting Set For Life

A newsagent recently commented about me on a private Facebook page of The Lott retailers. Mentioning me, they said:

he hates Tattslotto, & thinks he’s the king of retailing. He’s a VERY nasty individual, who loves to incite hatred for anything Tatts, or anything not branded ‘newsexpress’. If he had his way we would all become gift shops, selling bug-eyed soft toys, bobble heads, & jigsaw puzzles. Financial reports need to be read in context with what was happening at any given time.

A friend told me about is as I am not in that group.

I reached out to the person who wrote this, to discuss their opinion. They refused. It got me thinking and researching. While I am on the record calling for better, fairer, treatment of newsagents by Tabcorp (formerly Tatts), I am also on the record with plenty of instances of providing advice supportive of the sale of lottery products. I sought to discuss this with the above correspondent, but they didn’t want to listen.

Here is one of many available examples of my support for lottery products. It is from August 3, 2015. Here is my post from then:

Making the most of Set for Life in the newsagency
Mark Fletcher
August 3rd, 2015 · 1 Comment

While I don’t have lotteries in my newsagencies, I have been helping a few newsagents engage with Set for Life to make the most of the launch opportunity. This is important regardless of Tatts also offering it online.

Here are my tips for launching this new game in your business:

  1. Know the target demographic. All I have read suggests this game will appeal more to a younger audience than traditional lottery games in Australia. Play to this demo in your marketing.
  2. Talk about the game online, on Facebook and other platforms where you represent your business.
  3. Tell stories about what the $20,000 a month could mean.
  4. Run a competition on how would you spend $20,000 a month.
  5. Consider launching with a competition or promotion where one customer wins a $8.40 Set for Life ticket – run this for four weeks.
  6. Look for stories from the US where major prize winners have been able to take prizes monthly for many years.

It is not too late to go big and loud in promoting Set for Life as it will take some time to build interest in the new product. It is essential you do more than sell the game across the counter.

I have two points to make in writing about this: 1. Set For Life is a game that benefits from promotion. The above advice is useful today and, 2, I am not against lotteries. Rather, I am against any supplier that treats retailers in the newsagency channel unfairly.

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Lotteries

Mental health is about more than one day of the year

While today is RUOK? Day and media outlets will focus on it, the mental health challenge for businesses owners and, indeed, the whole community is a 365 day a year challenge.

Recent Bureau of Statistics figures reinforce why this is a 365 day a year challenge:

As an employer of many 15-34 year olds, the stat for suicide is horrifying. The broader suicide rate in Australia is horrifying.

I have written a few times here about mental health. Not as an expert, because I am not an expert. rather, my interest is as an employer and as someone who craves for a healthier and happier country.

Today, RUOK? Day, I share here a revised version of information I have shared here before on this topic, and in particular about the mental health of newsagents and those in our businesses.

Despite all the ads on TV, despite the work of R U OK?, despite the work of agencies like Beyondblue, despite the stories in the media, mental health, especially mental health within the small business community, and especially the newsagency community, is not talked about.

The challenge is that we cannot always see unhealthiness. If someone is physically unhealthy, we can usually see it, but not mental unhealthiness. For sure there are occasional signs like behavioural outbursts that don’t make sense but you can’e be sure and often you don’t want to ask for fear of making it worse.

In small business retail and in our channel there are challenges that can make things worse: bullying landlords, overbearing suppliers, demanding customers, relentless competitors. These and other factors can make someone see the road ahead through clouded eyes. For some of those on the other side, however, how they handle a situation could be driven by how the small business has dealt with it up to then.

I am all for personal accountability and often say we need to own our own situation – we sign our leases, we sign magazine contracts, we go into business. However, we do these things expecting fairness. Too often there are people on the other side of a commercial relationship who do not act with fairness.

Social media is a factor with mental health as it gives everyone a megaphone and the ability to publish an opinion without thinking it through. I know in schools social media is a big focus in mental health awareness, especially around bullying.

It is hard to know the mental health of anyone. That person smiling at you or joking with you could be in a dark place in their mind. This is why it is important we talk and ask colleagues how they are doing and why we all need to help when we think help could be what is needed.

In the workplace, I think being open with each other so that everyone has a shared and open experience. If there are business performance issues, rather than keeping them secret, talking about them could help ease tension: a problem shared and all that…

There are wonderful resources from government departments available. For example, The Victorian Government has a page online on this topic, which includes good practical advice:

  • Make time to exercise each day: For example, a simple daily lunch time walk can help maintain a positive outlook.
  • Practice mindfulness: Mindfulness means being aware of your reactions/feelings/thoughts as you have them. This helps you choose how to manage matters as they arise. Mindfulness is a great tool to help lower stress and anxiety levels.
  • Adopt work/life boundaries: Don’t let work overtake your life. Set some boundaries to ensure you have time for both work and a social life. You might decide not to discuss work from 5pm Friday night to 8am Monday morning because weekends are for family time only.
  • Connect with others: Find someone worthy of your stories – a confidant or mentor you can talk to about your business experiences. Make sure this person is supportive, a good listener and someone whose opinion you value.

This website also lists indicators:

  • Physical signs: For example, a constant knot in your stomach, tense neck and shoulders, feeling nauseous, heart palpitations or chest pains.
  • Changes in behaviour: For example, being unable to sleep, crying regularly, feeling moody or often irritable, increase or loss of appetite.
  • Unclear thinking: For example, not being able to make decisions, not understanding directions, not being able to focus, being inattentive.
  • Feeling sad or anxious regularly: We all have bad days – they’re a normal part of life. This flag needs attention if you begin to notice feeling like this regularly.
  • Disconnecting from others: This may include not joining in social activities, choosing to spend time away from family and friends or stopping hobbies/sporting activities.
  • Feeling overwhelmed: It is difficult to find solutions to problems, and in some instances it feels like they are insurmountable. Problem solving becomes difficult

And it lists useful resources:

  • Business In MindBusiness In Mind is an online resource specifically designed to support business owners who may be experiencing mental health challenges.
  • Beyond Blue beyondblue provides information and support to help everyone in Australia achieve their best possible mental health, whatever their age and wherever they live.
  • The Ripple Effect: A resource for rural communities that addresses suicide in rural areas.(Ph: 03 5551 8587)
  • Sane provides online information, support and connection for every Australian affected by complex mental illness through its website, peer-to-peer forums and helpline. SANE also has a range of factsheets on managing mental health in the workplace. (Ph: 1800 18 7263)

Our approach to mental health as business owners has to be continuous, on-going. It can’t be a one day of the year focus or a stunt. It has to be part of how we run our businesses, everyday.

In my own experience, talking is key – offering an environment where people can talk, where they know it is safe to talk, where they are encouraged to talk and where active listening happens. While it is not always perfect and does not always achieve what is hoped for, it is documented as being valuable.

While RUOK? Day today is important for awareness, that awareness and engagement need to be year-long.

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Management tip

Updated tips on how to grow greeting card sales in your newsagency

Greeting cards remain one of the most financially and traffic valuable product categories in any newsagency business. Newsagencies are top of mind for major seasons as well as for less popular card giving captions.

I know from experience that engaging with the category can increase traffic and sales for the category. Here are my refreshed top tips for engagement if you want to grow card sales:

  1. Pitch at the counter. Always have a two or three cards for impulse purchase at the counter. If they don’t work in two days, change them. Otherwise, change weekly.
  2. Make it easy. Setup a small writing desk. Let people write o the card. Sell them a stamp and offer to post it for them.
  3. Pitch at the entrance / exit. Follow the national approach by Coles. They do it because it works. You choose the cards. Do not purchase extra cards, use existing stock.
  4. Train and engage the team. Ensure every staff member understands your cards and knows how to approach shoppers. Reference cards in every team meeting.
  5. Staff picks. Close to the counter have a selection of staff pick cards. These should change regularly.
  6. Include cards in every gift display.
  7. Include licenced cards with other products in-store form the same licence.
  8. Be a specialist. Leverage low volume captions that most other retailers do not cover. Captions like Thank You Coach and New Home give you the opportunity to remind people about giving cards.
  9. Reward loyalty. Ensure every card purchase is a step toward a loyalty bonus. Differentiate your business through this.
  10. On social media. Promote a single card or a single licence or a single theme in posts. There should be at least 3 card related posts every week.
  11. Promote to businesses. Businesses send cards – if they do not they should – pitch bulk purchase at an offer.

I think we as retailers carry the prime obligation to drive card sales and to attract new shoppers to our businesses looking to purchase cards. We are on the front line. This, to me, is what sets our obligation. We need to do this by being engaged with the category, loving it for its high margin and traffic generation and being creative in our pitch. Our influence is greater than we and suppliers have allowed it to be over the years.

What I have written here is a subset of a much larger piece on greeting cards.

I hope you find the suggestions useful.

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Greeting Cards
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