Following the release of the latest newsagency sales benchmark study, I did a new short video sharing my thoughts on change opportunities for Aussie newsagents in 2026. Here’s the link: https://youtu.be/uucSE2LNAmo
As I note in the video, the traditional newsagency model is undergoing a significant shift. For decades, these businesses relied on a predictable mix of newspapers, magazines, lotteries and basic stationery. However, recent data confirms that a reliance on these legacy categories is no longer a viable long-term strategy. To thrive in 2026 and beyond, owners must embrace a broader retail identity.
Insights from the 2025 Benchmarking Study
Recent sales data and basket analysis reveal a stark divide between newsagencies. Businesses that continue to operate as they did twenty years ago are facing a difficult future. Conversely, those that have transformed their product mix are seeing double-digit growth. This transformation involves moving beyond the role of a traditional “agent” who handles bill payments or parcel collections for small commissions. Success now stems from becoming a destination for innovative and high-margin retail categories.
The Power of Diversification
The opportunity for growth lies in categories that offer higher gross profit margins. Innovative newsagents are now finding success with products such as high-end homewares, collectible items, trading cards and mint coins. Some have even ventured into clothing, coffee and books.
A notable example of this shift is the introduction of apparel. Five years ago, the idea of a fitting room in a newsagency might have seemed misplaced. Today, many successful stores include them. These items often command gross profit margins of 50% to 65%. Furthermore, these new categories attract a different demographic, bringing fresh foot traffic into the store. It is increasingly common for a customer to enter seeking a basic item and leave having spent significantly more on a high-value gift or unique collectible.
A Flexible Approach to Business
The sign above the door does not need to dictate the inventory inside. Customers are less concerned with the “newsagent” label and more interested in the value and variety of the products offered. Flexibility is the most important tool for a modern business owner.
Transitioning does not require a massive investment in shop fitting. Significant revenue growth can be achieved through a frugal and strategic approach to stock. In one instance, introducing pop culture products and gifts accounted for over 25% of total revenue and 50% of gross profit within three years, all without changing the physical layout of the store.
Moving Forward in 2026
The goal for any newsagency owner today is resilience. While newspapers and magazines still have a place, they must be managed cost-effectively so they do not drain resources. The focus should remain on seeking new opportunities and giving yourself permission to evolve. By looking beyond the historical expectations of the industry, newsagents can build businesses that are not only profitable but also essential to their modern communities.
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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.