Yes, here we are again. I’ve written about this before and will likely write about it again. It’s important, and urgent.
The newsagencies most likely to close are those who ignore this advice or advice similar to it. Now, let’s get into it.
The Australian and New Zealand retail landscape is shifting beneath your feet. For the local newsagent, the message from the 2025 data is blunt: the traditional model is failing. We will see more newsagency closures in 2026. Your business does not have to be one of them, but survival now requires a radical departure from “business as usual”.
Data Doesn’t Lie
My recent benchmark study of newsagencies across rural, regional, and suburban locations reveals a widening gap between two types of businesses. The traditional newsagency is in a state of managed decline. Revenue is down 3%, and transaction counts have fallen by 5%. Core categories like magazines and newspapers continue to drop by double digits.
In contrast, transformed newsagencies are thriving. These businesses have seen revenue grow by 9% and average basket value surge by 11%. They are not waiting for foot traffic to return to dying categories. They are actively hunting for growth in areas where customers are actually spending.
Look at your data. Don’t hide it from yourself. Ignorance is not bliss. Let me know if you’d like help: mark@newsxpress.com.au.
Growth is Hiding
While traditional stationery revenue is down, “want” stationery—high-end, collectable items for enthusiasts—is driving transactions of $250 or more. Transformed stores have seen gift revenue jump by 119% and greeting card revenue rise by 8%.
The most successful retailers are no longer bound by their shingle. They are generating substantial annual revenue from non-traditional segments:
- Trading Cards: Revenue exceeding $100,000 with 30% growth.
- Books and Homewares: Contributing over $75,000 each to the bottom line.
- Clothing: Generating $80,000+ in annual sales.
- Toys and Games: Seeing year-on-year increases of up to 18%.
First Steps: Start With Your Numbers
Transformation is not a matter of guesswork. It begins with financial accountability. You must have a clear picture of your business health right now. Use this checklist to assess your standing:
- Up-to-date profit and loss statement.
- Current debtors and creditors reports.
- A dead stock listing for items with zero sales in six months.
- Floor map showing gross profit contribution by category versus space allocation.
- Revenue per rostered hour calculation.
If you have $10,000 in dead stock sitting on your shelves, it is poisoning your cash flow. Clear it immediately. Set up a clearance table, apply a 50% discount, and turn that stagnant inventory into working capital.
Disrupt Your Layout
If your data is not up to scratch but you feel the urgency to move, start on the shop floor. Disrupt your current setup to force a fresh perspective. Take the traditional magazine fixture out of the centre of the shop. Move newspapers to the back.
Remove cold, clinical retail fixtures and replace them with tables or unique items from secondhand marketplaces. Add a rug. Make the space warm and inviting. Stock one or two categories you would never usually consider. This radical approach breaks the cycle of tradition and signals to your customers that something has changed.
Be a Retailer Not an Agent
For too long, newsagents have acted as “agents” for suppliers. It is time to become a retailer again. This means taking control of your store, curating your own product selection, and creating an experience.
The true hurdle is not the cost of investment. It is the decision to leave tradition behind. There is no limit to what you can sell. The future belongs to those who stop living in the past and start engaging with the passionate communities of consumers eager to spend.
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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.