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

Month: March 2020

Is your retail business ready for a Coronavirus nearby diagnosis?

Carey Grammar in Melbourne closed yesterday on the news of a teacher being diagnosed with Coronavirus.

A Walmart store in the US remained open after a staff member was diagnosed with Coronavirus.

The Coronavirus situation is fluid and challenging. A check of state, federal and local government websites for what businesses, like retail shops, should do in the event of a diagnosis nearby, of a staff member or a customer does not provide clear advice.

It is important we in business have contingency plans. They are part of any disaster planning. At my retail POS software company, a month ago we worked through how we’d handle the whole business operating from home. It is the type of business where we can do that. retail is different. Retail needs customers.

Retailers with a strong online business are better positioned as there is this on which to fallback to a certain extent.

I think it is important that you have a plan in the event an employee is diagnosed or a regular customer is diagnosed.

I think it is important that you have a plan should your shopping precinct be closed for a time.

I think it is important you have a plan should shopper traffic decline significantly, 25% or more, as a result of the virus.

  1. Can your business cope with closure for a day, week or month?
  2. Do you have an action plan in the event of closure? Supplier notification, employee notification etc.
  3. Do you know what deliveries are planned by day, a month out?
  4. Do you have what you need to be able to work from home?

If you think this reads as unnecessary, think about what has happened in Italy in the last few days. There are plenty of big businesses in Australia this week testing different approaches of working from home, working from another location. It’s prudent business practice to be prepared. That is all I am suggesting here.

For suggestions for shop management, see my post from Jan 29. My suggestions for the shop itself remain – stay positive, offer a clean and upbeat experience, don’t engage in herd mentality retail, don’t try and profit from this.

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Newsagency management

Dog and cat range attracts shoppers to the ‘newsagency’

This small front of store dog and cat range is working a treat at attracting shoppers to the business. It’s an unexpected pitch for the business. The range includes some homewares as well as dog fashion – bandanas.

We were not concerned about product price point when choosing product as we are not of the view that we can only sell low price point gifts.

Every time we play outside what is expected from the business we find new shoppers, which is mission critical in retail today.

The opportunities to play outside what is expected are endless given the broad range of suppliers from which we can draw products.

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Gifts

Creative customers

I love the creativity of the customers in a stationery shop I was in last week. The first photo is the testing sheets they have for pens and the next photos are close-ups of customer creativity.

This interaction and the opportunity for it differentiate the shop.

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Uncategorized

A good time to promote Easter cards

With people spending more time at home rather than socialising, now is a good time to pitch easter cards. History has shown this season to be popular outside the religious significance – as a season for people to reach out to loved-ones to say hey… Here is a new video produced by newsXpress for its members to use on social media.

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Greeting Cards

ALNA representing small business lottery retailers on credit card ban

ALNA is active in making representations to government on the ban on using credit cards for gambling, as reported by Rob Harris in the Nine papers yesterday.

Newsagents have launched a pre-emptive strike on a potential new crackdown on the use of credit cards for gambling which could also ban the purchase of lottery tickets and scratchies on credit.

The Australian Banking Association is considering new recommendations for financial institutions to minimise their role “gambling related harm” which could lead to tough new restrictions on using lines of credit for online gambling.

Despite bans on credit for gambling and cash advances on credit cards in casinos, on racetracks and poker machines, gamblers can still use most credit cards for online gambling, betting apps and purchasing lottery tickets.

The Australian Lottery and Newsagents Association argues any measures should not extend to buying lotto tickets which it says are “extremely low harm” and “very different to other forms of gambling”.

The peak body has become increasingly powerful within the corridors of power, having led a successful campaign against controversial “fake lotto” website Lottoland which led to it being banned from accepting bets on Australian-based lotteries.

Ben Kearney from ALNA has done other interviews on this issue, representing newsagents to the public as well as to government.

Click here to access to ALNA newsflash from yesterday afternoon oon.

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Social responsibility

A practical, small business and local economic stimulus package for suburban and regional Australia

Every election, politicians say that small business is the lifeblood of Australia. Then, after the election, they forget about small business. No wonder trust in politicians by Australian voters is low.

Small businesses are the lifeblood of our economy. Not just retail businesses, but all small businesses. Oh, and by small, we mean locally owned businesses turning over $2M or less that are not part of a larger group.

Small business retailers are nimble and able to lift local economies faster than big businesses and certainly better than online businesses.

Here are six tips for politicians on steps they can take, decisions they can make to help lift retail, especially small business retail, as well as those local businesses with which small business retailers can quickly connect.

  1. Local shops refresh grant. Give every local retail business a grant of at least $25,000 with the stipulation that it is spent locally on capital works for the shop, to improve the shop. It could be for paining, carpentry, electrical, staff training or similar. Proof of local spending is to be in the form of an invoice from a local tradesperson or small business company with and ABN and more than a year of trading as recognised by the ATO – to avoid fraud. Spending could be focussed: painting, electrical, carpentry, flooring, repairs. The management of this should be online with quick approval and payment. Note: the $25,000 is suggested to provide sufficient local economic stimulus.
  2. Local visual merchandising supports. Keeping in-store displays can be a challenge for small business retailers. Fund a network of merchandisers to make a 2 hour call weekly on qualified independent small retail businesses, sub $1M turnover, ABN registered, trading for six months or more. With each visit to be about visual refresh of the shop. Cap the cam pain at three months assess the economic value. Only local merchandisers to be used – i.e. to an overseas agency who hires local contractors.
  3. Direct all politician electorate spending to be with local small businesses. For printing, subscriptions, gifts, parties, cards, everything for a year. Have the results assessed independently. Ensure that spending is fair, too, to benefit a variety of local businesses, and not dolled out as political favours. Shop local, shop small.
  4. Run a national shop small shop local ad campaign. Make it educational, smart, encouraging …, guiding Aussies on the value to them from shopping local, shopping small. Help to understand the true value of shopping local, shopping small compared to the alternatives. The ad campaign should run regionally across multiple media platforms, giving preference to locally owned platforms with a track record for not managing their business to minimise tax.
  5. Local artists grants. Offer cash grants to fund buskers for local high streets, to make shopping locally more entertaining. Make the application easy. Focus on local artists entertaining in their local community. This serves the dual purpose of injecting cash locally as well as fostering the local arts. The application process should be online, approval fast and payment immediate.
  6. Establish local currency systems. These work overseas on regional towns where local currency has more value than the national currency. It supports shopping local through a smart value structure. the government role could be on the tech back end to manage the currency – taking away capital cost from local councils. To find out more ab9out this, read up on the Bristol Pound.

This list could be much longer. It is offered here as a start, to gets people thinking of practical ways to support shopping small, shopping local.

The current disinterest by politicians in practical support for local small businesses has us on a path of business closures. Urgent action is needed to engage locals in supporting local businesses.

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Small Business

How Amazon is redefining everyday stationery purchasing in Australia

We are starting to see Amazon playing in categories that will affect newsagency and similar businesses. As more an more categories fill and the company leverages better pricing deals and connects with online purchase levers, their success is growing and will grow further.

Take this simple pack of 4-colour Bic pens:

Beyond the price, there is the subscription offer, making re-purchase on a timed program easy, convenient. 10% off is compelling. As is free delivery on orders of $39.00 our more. This is an easy threshold to achieve when buying stationery.

The product information online for this item is terrific, making it easy for the online shopper. This is what newsagents are competing with when it comes to online sales of stationery.

In capital city situations it is challenging. Not as much in regional Australia. however, with online, geography is not a challenge in that the free delivery offer is there for all who meet the requirements.

What it is taking a while for Amazon to reach critical mass in Australia, they are having success by getting their online pitch right. This Bic pen offer is, to meta good example of them getting it right, creating compelling price, product information and service experience that will be a good foundation for long term success.

Right now, the Amazon everyday stationery experience is  better than others in this space in Australia. That, of course, can change quickly.

This does not mean you would give up chasing online stationery sales. However, it does mean that in Amazon  you have a formidable competitor.

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Competition

Preferred magazine delivery day survey

In anticipation of significant changes in magazine distribution as Ovato seeks to arrest a collapsed share price, I thought it would be good to ask newsagents about their preferred magazine delivery day:

Create your own user feedback survey

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Newsagency management

Newsagency software is helping newsagents to transform their businesses

Back in the day, newsagency specific requirements such as magazine and newspaper management were hallmarks of channel specific newsagency software. While those needs continue today, good newsagency software is playing a key role in helping newsagents transform their businesses.

While still part of the business, magazine management and newspaper home delivery management are not as commercially valuable and, as you might expect, chasing value is key and this is where evolving newsagency software works a treat.

I’ve seen newsagents evolve into coffee and food, homewares, niche gift, unique in-store services, clothing and, even, classes.  Each of these has unique needs. Plus, I have seen newsagents leverage seamless POS software connected online as well as buy now pay later and other fintech solutions.

My point I that the newsagency software that is working well for newsagents today is that which plays outside the minimal margin history of the channel and helps newsagents, through niche tools made for this purpose. The software is like the skeleton of the business, offering a strong and flexible structure off of which the business can evolve into valuable areas while also handling the old school requirements.

I’m a big fan of leaning into, chasing, change, and this is what my newsagency software company has done, as I have in my own retail newsagency businesses. It’s what I did when I sold off my home delivery run at the top of the market 14 years ago.

Good software will work with you on embracing change.

Now, more than ever, change is critical for newsagents.

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newsagent software

The automated Amazon locker experience

I was with a colleague, Anthony, a couple of nights ago when he collected 2 parcels late at night at an Amazon locker. Here is how it went – I’m sharing this for those considering the Amazon pitch. This self serve locker approach is the company’s standard.

It started with Anthony receiving an email that pickup was available.

We went to the locker, which was located at the rear of a RiteAid drug store in New York. Armed with the email here’s how it went.

What is interesting is that each locker was from a different transaction. Amazon linked them under one barcode and the one locker location, to make the process seamless, easy.

The Amazon parcel locker model is 100% about their service of their customers. While I am sure they like conveniently located locket locations, I doubt they care at all for those businesses.

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Newsagency challenges
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