In the decades I have worked with newsagents across Australia, I have seen many changes. However, I have never seen such a significant gap between successful newsagencies and those that are failing as I am seeing now in January 2026. This divide is not a matter of luck; it is a direct result of the business models and mindsets being employed by owners today.
I have been in this industry for a long time. I started Tower Systems in February 1981 to develop newsagency software, which is now used by nearly 1,900 businesses nationwide. While I sold the company in 2024, I remain active in the business. I also bought my first newsagency in 1996 and have been involved with newsXpress since 2005. Through these roles, I have seen the industry from the perspective of a supplier, a marketing group director, and a retail owner.
A Tale of Two Performances
As I review the benchmark data comparing 2025 performance to 2024, the contrast is stark. On one side, there are businesses enjoying double-digit growth. These newsagencies are focusing on high-margin categories where they achieve more than 50% gross profit. They are thriving in terms of revenue, gross profit, and bottom-line net profit.
On the other side, I see businesses down by 10%, 12%, or even 15% year-on-year. These are typically traditional newsagencies focused almost exclusively on low-margin “agency” lines: lotteries, newspapers, magazines, and greeting cards. This traditional model is dying.
The Danger of the Agency Model
The agency business model, where you take a small commission on a product or service controlled by someone else, has no upside. Whether it is parcel services, bill payments, transport tickets, or lotteries, the controlling companies will always keep your margins as slim as possible to maximise their own profits.
Lotteries can be a good foot-traffic driver, but that value diminishes as more customers move to online platforms. As a retailer, you will always make more money on products where you have control. For example, if you sell unique gift items, you set the retail price and achieve a healthy gross profit. This is the shift from being an agent to being a true retailer.
Mindset and Responsibility
The difference between the two groups I mention here often comes down to the person behind the counter. Successful newsagents tend to be forward-thinking and willing to take calculated risks. They make decisions based on broader retail trends rather than just what they see within our specific channel.
In contrast, declining businesses are often run by individuals who are doing the bare minimum. They may feel stuck in the business or expect someone else to solve their problems for them. Our industry began in the 1800s as a network of agents, but some have not yet realised that they must evolve into innovative retailers to survive.
Moving Forward
No marketing group can “make” you successful. A good group will provide opportunities, data, and unique products that offer better margins and area exclusivity. However, the owner must be the one to engage with those ideas as their capacity allows.
If your business has not seen growth this year, it is likely because of the decisions you have made rather than external factors. Your success is your responsibility, as is your failure.
The good news is that it is not too late. I have seen newsagents completely turn their businesses around in just a few months. The first step is acknowledging that the old way of doing business is no longer viable and taking proactive steps toward becoming a modern, independent retailer.
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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.