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

Month: October 2020

How much space do we need for magazines in a newsagency now?

How much space do you suggest I allocate for magazines in the newsagency? This question came to me last week from someone establishing a new newsagency.

My standard answer today is that you need between 300 and 500 titles to offer a reasonable assortment today. The more accurate answer will depend on your situation. In regional locations, for example, the number would be higher, around 700.

In capital city shopping centre locations, like this photo that I took in one of my Westfield businesses Thursday last week, we are on the low side for range.

In this business, however, this space does well. It is rare we are asked for. title we don’t have. The sales declines in the store are not outside the channel average.

This store used to have three times as many titled two years ago. That space has been given over to higher GP lines such as gifts and collectibles, better traffic drivers than magazines.

Magazines do have their place and having a reasonable range to satisfy local demand is key.

The other question people ask is display. I like the fun face approach we have in this Westfield store. It is easily shopped. The full cover gets to sell the title. Titles can be ‘browsed’ without being picked up, which matters today.

I like placement on the back wall as browsing does not interrupt other shoppers, and it acts as a beacon – it can be seen from outside the shop.

Anyone establishing a new newsagency needs to make sure they do have space allocated for magazines and appropriate shelving for pitching product. While the margin is paltry, it is a category that has some value for the shingle.

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magazines

Some retail businesses are having an awesome 2020

I wrote this article a few days ago for a publication and share it here because I know of some newsagents who are having an awesome 2020 and who feel uncomfortable talking about their success. Kudos to newsagents having a good 2020. This is success you have made for yourselves!

…

Some retail businesses are having an awesome 2020

Yes, some retail businesses are having an awesome 2020, plenty in fact. However, most of those having success this year do not want to talk too much about it. They want to keep a low profile because most of what’s in the media about business in 2020 is negative and they do not want to distract with what they think is a unique good story. Some even feel ashamed at their success.

The reality is that many retail businesses, especially local small retail businesses, are having a good 2020.

Yes, there is excellent good news out there. Here are some good news stories we see in our work with specialty retail channels, without identifying store details. These are channel-wide stories with many businesses in each channel having success.

  • Garden centres are doing very well, offering customers the ability to grow their own produce, be more self sufficient, eat more healthily. Many garden centres we are working with have been challenged to keep up with demand. They have risen to the occasion, helping many folks into their first ever veggie patch.
  • Farm supply / rural produce businesses have had a big and successful year. Sales are up as more people are living in regional and rural locations and needing more materials as they work on their properties in these locations.
  • Toy shops are doing well helping people enjoy their time at home. Those who engaged online have done especially well. Those that expanded their jigsaw, game and relaxation product ranges have done well.
  • Pet shops have done well as pets have become even more important this year, offering comfort and company, making isolation easier.
  • Bike shops are having a terrific year as they offer people enjoyable ways to remain healthy in a safe way.
  • Fishing and outdoors businesses are doing well, too, thanks to their ability to help people be more self sufficient for food.
  • Newsagents are having an awesome 2020 as they have become more relevant through offering essential services, keeping people informed and helping people enjoy home time more through their games, jigsaws, crosswords and more.

We know many small local and independent retail businesses that have done so well that they do not qualify for government pandemic assistance. Double digit growth in 2020 is real for them. They are loving being in business and serving their local community. They are loving that local shopping is more popular in 2020 too.

So, while the TV news and current affairs programs focus on stories of doom and gloom, there are many, hundreds and thousands of good stories, happy stories, stories of growth and success in small business retail … stories of success in 2020.

For many of the business owners enjoying success this year, they have made it happen through their decisions and actions, they have pursued success and for this they have every reason to be proud.

Well done to all of these small business retailers having an excellent 2020, well done!

We are grateful to be part of this, part of the community of businesses having a good year. We are thankful that through what we make we are able to play a role in helping retail businesses find and nurture success.

Now, if only media outlets could share some of the good news stories. They done;t have to look far to find them.

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retail

Spreading happiness from the newsagency counter

We have partnered with an awesome local chocolate maker to source these inspiring and tasty chocolates, which are placed at the counter.

As you can see, each chocolate is wrapped with a message of optimism and inspiration.

Customers are invited to help themselves.

We also encourage them to do this and to take some to mass on the joy.

People love the something for nothing, the tasty chocolate and the messages wrapped on the chocolate.

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Social responsibility

Reject Shop struggling with card supply?

Several Reject Shops I have seen in Melbourne have been out of stock of plenty of cards for weeks.

With their cards imported through a relationship with the Card Factory in the UK, I wonder if they have Covid related supply challenges. The empty pockets were noticed prior to the Sydney port issues.

Hopefully, the empty pockets are giving nearby newsagents a boost in card shopper traffic. I have a couple of stores in this situation – it’s how I first noticed it a week ago.

I’m told the empty card pocket situation is not evident interstate.

Somewhat related … I am surprised The Reject Shop is open during Melbourne’s Stage 4 lockdown. I can’t see anything in their aisles that denote them as essential.

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Social responsibility

Shipping delays may impact Christmas sales

As I mentioned in an earlier post, Christmas is well under way with terrific card sales already in plenty of businesses.

Some suppliers, however, are experiencing delays in shipping Christmas product, delays of 2 to 4 weeks depending on the supplier. These delays challenge business for those suppliers as retailers are already looking for alternative suppliers.

With Christmas alive right now, it’s appropriate retailers make the move.

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retail

Lotterywest and Jumbo working together for online lottery sales in WA

Lotterywest yesterday updated its retailers on a new relationship with OzLotteries operator Jumbo:

Working on a solution for WA
As you know, Lotterywest and Jumbo Interactive Limited have been discussing a solution that will benefit the Western Australian community, and see funds previously leaving WA through ozlotteries.com returned to our State.

On Tuesday 29 September, Jumbo signed a binding Term Sheet with the intent of entering an Agreement that will provide Lotterywest with its online platform and services for an initial three-year term.

This means that existing Jumbo WA online players will be given the option to become Lotterywest players after accepting the new Terms and Conditions, and continue playing Lotto games on a platform they’re used to.

This arrangement helps maintain their current playing experience as much as possible, and will also ensure all available profits from tickets remain in WA to support our community. We’ll now work with Jumbo to transition these WA online players to the new platform by 21 December 2020. We’ll keep you updated as more information becomes available.

This is an important move in WA in terms of preserving lottery purchases from WA customers in the state. It also offers the potential for a better connection for WA lottery retailers with online.

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Lotteries

Customers appreciate environmentally-friendly packaging changes

Customers are commenting positively about the elimination of plastic from boxed Christmas card packaging.

Several suppliers have made the move and it is being noticed. It is also helping drive sales as people can feel the cards. For some treatments this seals the purchase.

Full face placement leverages the tactile opportunity presented by the open boxes.

While we have used social media to pitch the better environmental story, it is in-store where the change is noticed.

Boxed Christmas card sales are strong in our experience, considerably ahead of this time last year. I think Covid is a factor in this. Indeed, I suspect Covid will be a factor in Christmas card sales overall to be up this year compared to last year. I know we are not alone with this experience, which is terrific.

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Greeting Cards

Covid assistance from Lotterywest for WA retailers extended to March 2021

WA Lotterywest retailers received more good news this week:

Dear

In March, the Lotteries Commission Act 1990 was amended to allow specific measures to be taken in response to the COVID-19 pandemic. As part of this, Lotterywest suspended terminal and service fees for all retailers for the duration of the emergency period.

The Premier recently announced that the legislation would be extended for a further six months, which means that the suspension of these fees will continue to be in effect until Monday 15 March 2021. Please note you’ll still be charged for PI Insurance.

I’d also like to take this opportunity to thank you for your ongoing contribution to our strong sales results. We’re confident that upcoming initiatives, including the exciting improvements to Saturday Lotto next month, will further strengthen sales.

If you have any questions, please contact your Retail Relationship Officer or Customer Services on 133 777.

Finally, the health and wellbeing of you, your staff and customers are important to us, so please continue to take care and to follow COVID-19 safe practices advised by the Department of Health.

Thank you.

Kind regards

Susan Hunt PSM
CEO Lotterywest and Healthway

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Social responsibility

This is what online can look like for a newsagent

On Friday last week at 4:45pm we put a gift pack up online. It included 4 low-cost products and a couple of simple things we’d made ourselves to add value and differentiate. It was priced at $34.99 delivered. By 5:30pm we’d sold 19 and a few hours later sold the last of the 20 we’d created.

That’s almost $700 in revenue for $0 advertising investment and minimal labour.

We did it on the back of one social media post, to our own Facebook page, a post we did not boost.

Half those buying used a buy now pay later service.

Having the website for online sales, easy purchase, was key … just as was the sense that the package (call it a hamper if you like) was unique enough to warrant swift action.

I talk here from time to time about the need to make our own success. What we did with this gift pack, to me, is an example of that. We put together a small collection of products, found the right packaging, told a visual story with tissue paper and some other low-cost items, added a couple of our own items for the value-add and put it online.

Not a single customer purchasing was local.

We expected most to be bought by someone for delivery to someone else. We were wrong. All but one were ordered for delivery to the person ordering.

The thing about online is that there are no borders.

7 likes
newsagency of the future
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