For years, major supermarkets have operated under a magazine distribution model that newsagents can only dream of: Scan-Based Trading (SBT). From the era of Gordon and Gotch to the current Are Direct landscape, the big players have enjoyed a system that is efficient, fair, and fiscally responsible. It is time for this same respect to be extended to the local newsagency.
The current approach disadvantages newsagents, making us less competitive as a result.
The SBT Advantage
The mechanics of scan-based trading are simple. The retailer pays the distributor only for what is actually sold. The distributor or publisher carries the cost of shrinkage, theft, and damage.
For supermarkets, this means:
- Guaranteed Margins: Profit isn’t eroded by shoplifting or damaged stock.
- Administrative Ease: No time-wasting credit claims for unsold or mangled goods.
- Risk Mitigation: The financial burden of “failed supply” sits with the supplier, not the shopfront.
The Newsagent Burden
In contrast, newsagents are tethered to an antiquated, high-friction model. When stock arrives damaged or fails to appear, the burden of proof rests on the small business owner. The current Are Direct claims process is cumbersome, often operating on the assumption that the newsagent is incorrect. Consequently, many newsagents simply absorb the loss rather than fight for a credit. It’s not worth it.
This isn’t just an administrative headache; it is a competitive disadvantage facilitated by the industry’s own distributors.
Debunking the “Data” Myth
The standard rebuttal from Are Direct is that newsagents lack the data accuracy of major chains. As the leader in newsagency management software, I can state clearly: this is nonsense. The technology exists, the data is accurate, and the infrastructure is ready. If Are Direct activated SBT for the newsagency channel, the drive for data precision would only strengthen. The “data issue” is a convenient shield for maintaining an unfair status quo.
A Call for Practical Support
Are Media continues to spend son “old-school” display competitions and marketing gimmicks. While these have their place, they do not address the systemic unfairness at the heart of the distribution model.
True social responsibility and support for small businesses look like:
- Parity: Giving a local newsagent the same trading terms as the supermarket two doors down.
- Efficiency: Eliminating the “guilty until proven innocent” claims culture.
- Respect: Acknowledging that the newsagency channel deserves a modern, low-risk trading environment.
Are Direct has the power to make this change today.
Turning on scan-based trading is a simple, fair step that would prove they value the newsagency channel as much as their big-box competitors.
Why are they committed to keeping small business newsagents less competitive?