What is it with news outlets today? A shop closes and they run a story about doom and gloom for retail relying on what the owner of the shop closing has said. reading the articles, journalists appear to do little journalism.
Of course someone closing their business will tell you their side of the story. Of course it will have a bias.
A search on line this morning brought up six stories in recent months of newsagencies closing. Often, headlines scream gloom.
“Supermarket delivery trucks and road closures” Newsagency closing doors amidst dire retail landscape
The stories offer little evidence to support their claims. Let’s take a look at the state of retail today, the state of newsagencies. before I look at a good sample size of the channel in my next post on this topic, I want to look at my own shop. It’s in a high street setting. It doesn’t have lotteries. I have owned it now for three years.
In the three months to yesterday:
- Total revenue (excluding online): up 15%.
- Average sale value: up 30%.
- Cards: up 11%.
- Collectibles: up 1,350% (off a low base).
- Gift: up 118% (off a modest base).
- Magazines: down 3% (off annual $400K in sales)
- Newspapers: down 5%.
- Plush: up 252% (off a good base).
- Stationery: down 35% (we are reconfiguring our offer).
- Toys: even.
This business is run on a frugal budget with a tight roster, no capex and no external marketing.
When I bought it, the business was a traditional newsagency with an element of convenience retail. Today, the focus is on smart gifting with a skew to pop culture.
The single most valuable move in the first year was to switch out the card company that had been in control for more than a decade. The positive impact on card sales and profitability was immediate.
What we are doing in this business is something I see replicated in many newsagencies around Australia. It is certainly not unique.
Journalists should look at this and consider this and similar evidence before writing about retail being in a dire situation or that newsagencies are declining because print media is declining.
We make our own success in local small business retail. People have money and they are spending. This may not be the same cohort that spent with you last year, but they are there. Our job as retailers to find them, to appeal to them.
If you read stories about newsagencies closing and find yourself agreeing with them, stop and think about an alternative, positive, narrative you can create for your business.