Thank you to the diverse group of newsagents across rural, regional, and suburban locations who participated in this latest benchmark study by providing their sales data. This contribution, facilitated by Tower Systems newsagency software, provides an invaluable look into the current state of our industry.
The results reveal a stark contrast between businesses maintaining a traditional model and those that have embraced transformation.
Benchmarking the Results: Traditional vs. Transformed
Breaking the Cycle of Tradition
This is a perfect headline, because the future relies on newsagents breaking the cycle of tradition.
These figures above highlight fundamental differences in product offerings, pricing strategies, customer demographics, and overall business approach. While traditional categories like magazines and newspapers continue to decline across the board, transformed newsagencies are leveraging new opportunities to drive significant growth.
Interestingly, transformed businesses are even outperforming traditional ones within core categories like greeting cards and stationery. This success is not the result of increased supplier support or adherence to traditional product demands. Instead, it stems from a more dynamic business environment, a positive in-store atmosphere, and a broader customer base.
Diverse Revenue Streams
Beyond the standard metrics, we are seeing newsagencies generate substantial revenue from non-traditional segments. It is not uncommon to see businesses approaching $100,000 in annual revenue from:
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Coffee and related products
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Clothing
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High-end collectibles
While inconsistent categorisation makes direct benchmarking for these segments difficult, the trend is undeniable: moving away from the traditional model is both profitable and vital for survival.
The Challenge of Change
Transforming a business is hard work. While many cite concerns over cost, in my experience, the financial investment is often not the greatest hurdle. The true challenge lies in making the decision to leave tradition behind.
Many entered this industry because of the perceived ease of the traditional newsagency model. However, traditional suppliers would now benefit from actively supporting newsagents as they diversify beyond the traditional shingle. The data proves that for those willing to act, the opportunity for a thriving, valuable business is there for the taking.
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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.