The world of retail is constantly evolving, and for newsagencies, the pace of change can feel relentless. Traditional revenue streams are shrinking, and it’s easy to feel like you’re fighting a losing battle. But I’m here to tell you that there’s a vibrant and profitable future for the Australian newsagency – it just might not look like the one you’re used to.
In a recent industry presentation, I broke down the current state of our industry and, more importantly, the incredible opportunities that are waiting for those who are willing to adapt and innovate.
But first, the reality we’re facing
Let’s not sugarcoat it. We’re seeing some challenging trends in the traditional pillars of the newsagency business. In 2025, we’re looking at:
- Magazine unit sales are down by around 9% year-on-year.
- Newspaper sales have dropped by 11%.
- Stationery revenue has seen a 3% decline.
- Tobacco and convenience candy sales are “pretty much dead.”
- Parcel service revenue is flatlining or declining.
These numbers paint a stark picture, but they don’t tell the whole story. While these areas are in decline, others are experiencing phenomenal growth.
Where the growth is: a path to a thriving newsagency business
The key to a successful future is to shift your focus to where the customers are. And right now, they’re looking for products that cater to their passions and hobbies. Here’s where we’re seeing significant growth:
- Toys: Up by 15% year-on-year.
- Cards: A solid 8% growth.
- Games: An impressive 18% increase.
- Jigsaws: A resurgence in popularity with a 10% rise.
- Plush Toys: Another strong performer at 15% growth.
- Gifts: A healthy 9% increase.
The demand is out there. Consider the millions of online searches each month in Australia for terms like “Pokémon,” “Minecraft,” “Lego,” “Barbie,” and “Hot Wheels.” These aren’t just fads; they represent passionate communities of consumers eager to spend.
From agent to retailer: a fundamental shift in mindset
For too long, we’ve operated as “agents” for suppliers. It’s time to reclaim our role as “retailers.” This means taking control of our stores, curating our product selection, and creating an experience that draws customers in.
Experimentation is key. You don’t have to overhaul your entire store overnight. Start small. Dedicate a small “experimental fund” to bring in new and unexpected products. You might be surprised at what resonates with your customers. I’ve seen newsagencies have success with everything from high-end giftware and coffee to books, homewares, and even niche categories like haberdashery and sensory products.
Transforming your space and engaging your customers
Think about the environment of your store. Is it a welcoming and exciting place to be? Or is it cluttered and stagnant?
- Declutter: Get rid of dead stock. Anything that hasn’t sold in the last six months is taking up valuable space and tying up your cash.
- Change your displays: Keep your store fresh and interesting by regularly changing your displays. Don’t be afraid to get creative with your fixtures.
- Engage with your customers: A simple, friendly welcome can make all the difference. Create a space where people want to spend time, not just make a quick transaction.
Know your numbers and take control
Ultimately, the success of your business comes down to financial accountability. You need to be looking at your profit and loss statements regularly, not just once a year when you see your accountant. If your business isn’t making money, you need to be the one to drive the change.
The future is bright
The Australian newsagency is not dead. It’s evolving. By embracing change, focusing on growth categories, and taking control of your business, you can build a profitable and sustainable future.
If you want your business to change, you have to change. Let’s make every day our payday.
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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.
Every gift fair we set ourselves a challenge to buy at least 2 different product ranges we never thought we would or could sell. It tests boundaries and opens new horizons. Not all of it worked, but a lot did and this approach continues to fundamentally change what we stock. From it we have learned a lot of valuable lessons.
Daily we are selling gift, art or fashion pieces >$200 each, it is not unusual to sell items up to $1,000. Our best is $1,600 for an esky! We never thought our little newsagency could do that. It does, and it has changed the future of our business.
We just had to look beyond what we expected and have a go, and experimenting with what does work has renewed our enthusiasm for our business.