A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Author: Mark Fletcher

A hard truth about magazine margins

There is a persistent myth that newsagents are “raking it in” from every glossy title sold. When a customer hands over a $9.20 gold coin and change for a monthly staple like The Australian Women’s Weekly, the assumption is that the shopkeeper pockets a healthy chunk of that transaction. However, once you peel back the layers of the Publisher/distributor model, the reality for the small business owner is far more sobering.

To understand the business of magazines, you have to look at the gross margin. For us, that figure sits at 25%. From a $9.20 magazine, the newsagent receives $2.30. This is the starting point. That $2.30 must carry the entire weight of the physical retail operation before a single cent can be considered actual profit.

THE ANATOMY OF A $2.30 MARGIN
Running a brick-and-mortar store in Australia is expensive. The costs are fixed, but the income is increasingly variable. Here is how that $2.30 gross margin is eroded by the unavoidable costs of doing business:

Cost Category Allocation Amount per Copy:

  • Labour Costs (Staffing/Wages) 45% $1.03
  • Retail Space (Rent, Rates, Fit-out) 30% $0.69
  • Shrinkage (Theft, Damage, Returns) 8% $0.18
  • Operating Overheads (Power, Insurance, Comms) 8% $0.18
  • Operating Profit 9% $0.21

SURVIVAL ON 21 CENTS
After paying the staff to unpack, check, price and put out magazines and keep them tidy and take them off and count them and handle them for return, the landlord for the privilege of the floor space, and the electricity company to keep the lights on, the newsagent is left with approximately 21 cents. It is important to note that this is “Operating Profit.” This is not money in the owner’s pocket. Out of these 21 cents, the business must fund its own debt, pay interest on loans, and finally, provide an income for the owner.

Magazines are labour intensive. The supplier management process is out of date, amplifying the labour costs imposed on newsagents. When you consider the labour of  receiving stock from the Publisher/distributor, managing the display, processing the sale, and handling the returns process for unsold copies and dealing with delivery errors, the return on effort is slim. A newsagent has to sell five magazines just to clear a single dollar in operating profit.

The next time someone suggests that newsagents have it easy, show them these figures. We aren’t just selling paper; we are managing a high-volume, low-reward logistics operation. For the local newsagent, the magazine category is a service to the community, sustained by tight discipline and very thin margins.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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magazines

Is the Traditional Sales Rep Model Still Viable?

The role of the traditional sales representative is evolving. In 2026, the retail landscape demands greater efficiency from every partner. Regulars here will know this has been on my mind for a while.

Here’s a new short video from me about it: https://youtu.be/Df3umeh8M0Y

With more newsagents running their businesses under management, the value of the rep visit is considered through a different lens to if they were running the businesses day-to-day themselves. I think suppliers need to consider.

Okay, let’s get into this in the context of what I discuss in the video:

The Cost of the Traditional Model
Every representative visit carries a significant cost burden. This includes salaries, vehicles, travel expenses, and commissions. On average, a rep may only be customer-facing for half of the year. This traditional approach can be slow and expensive for suppliers.

Speed to Market
Launching a new product through physical visits can take weeks. In a digital world, this delay is a disadvantage. Many suppliers now use software and AI to reach retailers instantly. One business replaced fifteen reps with two head-office staff. After an initial adjustment, their sales exceeded previous levels.

Valuing the Retailer’s Time
Independent retailers often see multiple reps in a single day. Each visit consumes valuable time that could be spent on the shop floor. Modern retailers prefer suppliers who respect their schedule. Efficiency in the back office helps keep margins sustainable for everyone.

Digital Integration
The future of retail relies on seamless data. Manual orders and paper invoices are becoming obsolete. Retailers need automated systems for importing invoices and placing orders directly through point-of-sale software.

Looking Ahead
Suppliers must reconsider how they represent their brands. This might mean leveraging technology or finding new ways for reps to add genuine value. As retail changes, our partnerships must also adapt to remain competitive.

Efficiency is no longer optional. It is the new standard for doing business.

Now, to the reps themselves. What I am discussing here is not new. It’s not an agenda from me, either. The writing is on the all four the rep role. Consider this in your own career planning. I would if I were you.

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Newsagent suppliers

How much do newsagents really make from each newspaper they sell?

Why can’t you put newspapers right at the front of the show?

They can’t afford that prime space?

Really, at $3.50 you’d be making good money.

This conversation got me thinking about how I could show what I make from each newspaper sold.

It is a common sight in any Australian suburb: a customer walks in, grabs a daily paper, and walks out. To many, it looks like steady, reliable business. The reality is a tougher story of paper-thin margins and rising costs.

While many believe newsagents make good money every newspaper sold, the gross profit (GP) is generally fixed at 12.5% (or less) of the cover price. On a $3.50 newspaper, that leaves just 43.75 cents in the till.

The Real Cost of a 43.75-Cent Margin

That 12.5% is the “gross” figure, but it quickly evaporates when the operational realities of running a local business are applied.

  • Labour Costs: Every paper has to be counter, checked off, displayed, and, if unsold, processed for returns. In a high-labour-cost environment like Australia, the time spent managing these low-margin units often exceeds the profit they generate.
  • Rent and Floor Space: Newspapers take up physical space. When you calculate the rent per square metre, allocating that space to a 12.5% margin product is often a loss-making exercise compared to high-margin gifts or stationery.
  • Operational Overheads: Lighting, power, and insurance don’t get a discount just because you are selling a low-margin product. These fixed costs bite hard into the cents remaining from each sale.
  • Shrinkage and Damage: A single stolen paper or a copy damaged by rain or coffee can wipe out the profit of the next ten sales.

This “margin squeeze” is precisely why the most successful newsagents are actively decoupling from the traditional newsagency model. Relying on a product where you have no control over the price or the margin is a precarious strategy.

The future for independent retailers lies in categories where the business owner has the power to set prices, manage margins, and build a unique local brand. Whether it is high-end gifts, specialist stationery, or niche collectibles, the move is away from being a low-margin distributor and toward being a high-value destination.

The next time a customer mentions the “big money” in newspapers, it might be worth a gentle reminder: in modern retail, it is the quality of the margin, not just the volume of the foot traffic, that keeps the lights on.

This infographic represents real numbers. I used AI to date the data and a copy of Friday’s Herald Sun to create it.

You’re welcome to use this image.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newspapers

Why Discount Vouchers are the Ultimate Loyalty Play for Newsagents

For decades, I have seen first-hand how loyalty tools can transform a newsagency. While many retail trends come and go, the right loyalty strategy remains a bedrock of a healthy business. In my experience, newsagency businesses are the ideal environment for a discount voucher-style program.

Real Results Since 2013

I first started using discount vouchers in my own shops when they launched in February 2013. The impact was immediate. We saw measurable growth in revenue that was directly attributable to the vouchers. It wasn’t just a “feel-good” exercise; it was a clear win for the bottom line.

As the retail landscape shifted and magazine sales declined, these loyalty tools became even more critical. By allowing shoppers to accrue loyalty value from higher-margin card purchases and redeem them on magazines, we managed to drive sales in a low-margin category. This strategy has consistently delivered a better-than-average magazine sales result compared to the rest of the industry.

The Power of Flexibility

Flexibility is essential in my experience. You shouldn’t be locked into a “copycat” model. The Tower Systems newsagency POS software allows you to pull different levers to guide shopper behaviour:

  • Discount Vouchers: Offer cash off the next purchase to encourage a return visit.
  • Point Accrual: Allow customers to build value over time, which you can then convert to cash rewards.
  • Frictionless Options: Reward your locals without requiring them to sign up for anything, reducing counter wait times.
  • Digital Cards: Modern versions of the classic “clip-the-ticket” for high-frequency items.

Lessons from the Counter

Data show that you don’t need to give away the farm to see engagement. A 50-cent voucher can be just as effective as a $50.00 one at bringing a customer back through the door. I have seen this myself many times.

We also see clear patterns in how people shop. Men often redeem their rewards on the same day, while women are more likely to return about a week later to spend their voucher. Understanding these habits helps you make better management decisions.

My Advice: Don’t Overthink It

If you aren’t running a loyalty program yet, my best advice is to just start. The beauty of the Tower Systems toolkit is that where you begin is rarely where you end up. You can start with a simple voucher, learn from your shoppers, and adjust your strategy as you go.

Newsagencies are unique, and our loyalty should be too. Let’s use the flexibility of these tools to keep our businesses thriving.

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Management tip

Journals are a HUGE opportunities for retailers right now

For too long, newsagents and others have seen journals as a female purchase and stocked flowery journals that have narrow appeal.

The journal market has chan ged. have you kept up?

What I show in this video is one range from hundreds of ranges of more broadly appealing journals through which you can attract new shoppers.

Traditionally, journals have been marketed with a feminine-focused, floral, and hard-cover aesthetic. While these remain popular gifts, I argue that this limited view ignores a massive, growing demographic: younger men and non-traditional journalers. There are more people putting pen to paper today than there were even a year ago, and their tastes are shifting toward the unconventional.

I showcase a series of “naughty” and edgy journals from Brainbox Candy, first discovered at the Spring Fair in Birmingham. These products swap out the flowers for humour and raw, relatable language. By stocking items that appeal to a 12-year-old, an 18-year-old male, or even a 90-year-old with a sharp sense of humour, you create an environment where even those who don’t consider themselves “journalers” are tempted to make a purchase.

In this video, you’ll learn:

  • Why the journaling category is expanding beyond traditional demographics.
  • The importance of stocking “left-field” products to attract new customers.
  • How to use platforms like Faire to source unique, high-margin stock.
  • Why “edgy” content can be a powerful tool for retail differentiation.

Journals are selling well, if you have the right stock pitched in an appropriate way. Achieving that requires you to think outside of what has been traditional in the journal space.

By diversifying your inventory and moving beyond the “beige,” your business can capture opportunities that your competitors might be overlooking. It’s time to think outside the box and give your customers a reason to smile, and spend.

There is so much opportunity here for newsagents and other retailers in the journal space. It starts with making bold inventory purchase decisions, experimenting beyond the traditional and what may be expected of you. The investment is not big and the opportunity of success discovery wonderful.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

If you are focussed on papers, magazines, lotteries and tobacco in your newsagency, this video is for you

Sales data and data from other reputable sources tell us something about the future of papers, magazines, lotteries and tobacco products when it comes to over the counter purchase.

Here I made a video for newsagents whop are focussed on papers, magazines, lotteries and tobacco. The video referenced evidence, data.

In the video I reference sales data and data from The Lottery Corporation to support the position that these legacy categories are not a strong basis on which to business a shop with a bright future.

Evidence matters as it points to a path forward.

In the video, I break down the “four walls” of the legacy newsagency and reveals the stark reality of their decline.

In Australia, newspaper and magazine sales are dropping by double digits year-on-year. Simultaneously, the lottery landscape is shifting, with over 40% of sales now moving online, bypassing physical shopfronts entirely.

If your business plan relies solely on these “dying categories,” you aren’t just facing a slow period; you’re facing a fundamental economic shift. However, there is a path to thriving. The secret lies in the pivot.

I discuss how newsXpress helps independent retailers break free from the “agent” mindset and become proactive retailers. By leveraging a network of over 130 preferred suppliers, successful owners are transforming their floor space. We are seeing newsagencies evolve into destination hubs for boutique clothing, high-margin books, unique games, and artisan homewares.

I look at:

  • The Data Trap: Understanding the real-world decline in print media and tobacco.
  • The Digital Shift: Why online lottery sales are eroding traditional foot traffic.
  • The newsXpress Advantage: Accessing suppliers that traditional newsagents can’t reach.
  • Success Stories: How shifting to high-margin “want” categories like home and giftware creates sustainable growth.

Don’t settle for a business in decline. Learn how to look over the horizon and build a retail brand that is both profitable and relevant for the community.

I worry about those buying newsagencies because they like the structure of newspapers, magazines , lotteries and tobacco. There is no upside, no future and I say that based on the evidence.

I urge newsagents to not run a business that is tomorrow’s news story about another newsagency closing.

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Newsagency management

Levelling the Playing Field: It’s Time for Scan-Based Trading For Magazines

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:

  1. Guaranteed Margins: Profit isn’t eroded by shoplifting or damaged stock.
  2. Administrative Ease: No time-wasting credit claims for unsold or mangled goods.
  3. 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:

  1. Parity: Giving a local newsagent the same trading terms as the supermarket two doors down.
  2. Efficiency: Eliminating the “guilty until proven innocent” claims culture.
  3. 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?

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Ethics

The Cost of Connectivity: Why the XchangeIT Fee Should Be Ditched

It’s 2026 yet small business Aussie newsagents have to pay a tax to access data for magazines, a low margin and dying category in their businesses.

Electronic Data Interchange (EDI) is the standard for efficient supply chain management. It reduces manual entry, minimises errors, and speeds up the “store-to-shelf” process. However, for Australian newsagents, this essential tool comes with a specific burden: the XchangeIT subscription fee.

I think it’s time XchnageIT access was provided free of cost to newsagents.

An Uneven Playing Field

Most retail sectors view EDI as a cost of doing business for the supplier, not the shopfront. Large-scale competitors, including supermarkets and major petrol & convenience chains, typically do not pay a per-platform fee to receive digital invoices or send sales data.

For newsagents, this creates a frustrating financial disparity. While competitors enjoy seamless, cost-free data integration, the local newsagent must pay for the privilege of receiving data from major magazine and lottery distributors.

Why the Fee Persists

The primary argument for the fee is the maintenance of a centralised hub tailored specifically to the unique complexities of the newsagency industry, such as returns processing and magazine distributions. Yet, this raises several questions:

  • Integration vs. Accessibility: Why is the financial weight of this infrastructure placed on the small business owner rather than the large distributors who also benefit from the data?
  • Competitive Disadvantage: In a tightening retail market, does an additional overhead for digital compliance make newsagencies less competitive?
  • Industry Standards: If EDI is the global language of retail, why is its “translation” in this specific sector locked behind a paywall?

A Need for Transparency

Digital transformation should streamline a business, not act as a recurring tax. As newsagents continue to diversify into giftware, stationery, and parcel services, sectors where EDI is often provided without additional platform fees, the justification for the XchangeIT model becomes increasingly thin.

Back in the day we needed it to manage complex invoices. Today, AI can handle these invoices.

It is time for a broader industry conversation regarding who truly benefits from these data exchanges and whether the current fee structure remains equitable in today’s retail landscape.

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magazines

PAYDAY SUPER STARTS 1 JULY. HERE IS WHAT YOU NEED TO DO BEFORE THEN.

From 1 July 2026, the way you pay your employees’ superannuation changes completely. This is not a small administrative tweak. It is a fundamental shift in your payroll obligations, and if you have not started preparing, you are running out of time.

I am writing about this today because it needs to be on your radar, you need to be prepared.

What changes on 1 July

Right now you pay super quarterly. Under Payday Super, super must be paid on every payday, the same day as wages, and the contribution must be received by the employee’s super fund within 7 business days of that payday. Not 7 days after the end of the quarter. 7 business days from payday.

The super guarantee rate also lifts to 12% from 1 July 2026. Check with your accountant or payroll provider if you are uncertain what that means for your specific payroll setup.

The SBSCH closes 30 June. This affects you.

If you currently use the ATO’s Small Business Superannuation Clearing House (SBSCH), plenty of small newsagents do, you must switch before 30 June. The SBSCH cannot handle Payday Super and the ATO has confirmed it will not be updated.

The SBSCH closed to new registrations on 1 October 2025. Existing users can submit through it until 11:59 PM AEST on 30 June 2026. After that, your login is disabled. Any super payment you attempt through the SBSCH after 30 June will not be processed. You will be non-compliant from day one.

Your replacement options: integrated payroll software with a built-in SuperStream-compliant clearing house (Xero, MYOB, QuickBooks all have this), a commercial clearing house, or direct payment via your bank using SuperStream. The easiest path for most small businesses is integrated payroll software that processes super automatically as part of the pay run.

The cash flow reality

The total annual super bill does not change. What changes is the timing. Instead of four payments a year, you may be making 26 or 52 smaller ones.

For most businesses with steady revenue, this is manageable. But if your business has months where cash is tight — post-Christmas, or whatever your slow period is — you need to model this now. A payment that used to go out quarterly needs to be on hand every single payday. Run the numbers for your lowest revenue month. If the cash is not there, you need a plan.

Do not assume you will sort it out in July. By the time July arrives, the obligation is already live.

What the ATO will do if you get it wrong

The ATO has said it will take a softer approach for employers making a genuine effort to comply in the first year, July 2026 to June 2027. From July 2027, the full regime applies. Late payments attract the Super Guarantee Charge: the unpaid super, plus daily compound interest, plus an administrative uplift of up to 60% of the unpaid amount. And unlike the super itself, penalties are not tax deductible.

Three things to do right now

  1. Check whether your payroll software is Payday Super-ready. Contact your provider if you are not sure. Do not assume.
  2. If you are on the SBSCH, choose your replacement, set it up, and run a test payment before June. Do not leave this until June.
  3. Run a cash flow model for your low months. Identify the paydays where you will need the super cash on the day, and make sure you have a plan.

The ATO’s full guidance is at ato.gov.au/businesses-and-organisations/super-for-employers/payday-super. Dynamic Business covered the practical implications in April 2026 as well.

1 July is not far away.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagency management

WHY YOU CAN’T FILL THAT CASUAL ROLE (AND WHAT TO DO ABOUT IT)

I hear this from newsagency owners and other small business retailers often: They have a casual role to fill and nobody decent applies. Or someone applies, starts, and is gone within three weeks. Or the right person gets the job but six months later leaves for the supermarket down the road.

Hiring is harder than it was five years ago. The ABS reported in March 2026 that Australia’s unemployment rate is sitting at 4.3%. That is historically low. There are fewer people looking for casual retail work, and you are competing for them against businesses with bigger advertising budgets and more hours to offer.

That is the environment. You cannot change it. But you can change how you operate within it.

You are competing against supermarkets and fast food

A casual looking for weekend work can choose between your newsagency, the supermarket or fast food outlet nearby, and other big businesses with structure and, often, more hours.

You are not going to win on hours alone. You win on other things, a better working environment, less chaos, a manager who actually knows their name.

You have to deliberately create these points of difference.

Where owners go wrong

I have seen the same mistakes across many businesses I work with.

The job ad says something like “casual retail assistant, apply within.” That tells a candidate nothing useful. What days? What hours? What will they actually do? Will they be opening the shop at 5:30am? Will they handle lottery sales? Do they need to lift stock? A vague job ad gets vague candidates, or no candidates.

The induction is either non-existent or consists of following someone around for a day and hoping they absorb things by osmosis. A new casual who is confused and unsupported in the first two weeks will find somewhere less confusing. They will not tell you that. They will just stop showing up.

There are no regular check-ins. The owner is busy. The casual never raises issues because there is no space for it. Small problems compound. Six months later, they hand in notice and the owner is surprised.

What actually works

Write a job ad that describes the job. Like, for real! “Saturday and Sunday, 6am–12pm, lottery and magazine sales, some stock work, must be comfortable with early starts.” That filters in the right people and filters out the wrong ones. Post it on community Facebook groups. Put a notice on the local school or TAFE noticeboard. Ask your existing staff , referrals from people who already know what the job involves are often the best source.

Build a simple, written induction. Not a corporate manual. A one-page document that covers: what time to arrive, who to call if sick, how the register works, what the opening routine looks like, and where to find things. Two hours to create. Weeks of confusion saved.

Do a check-in weekly. Not a formal review. Just: “How is it going? Anything confusing? Anything I should know?” Most of the time the answer is nothing. But occasionally you will catch something early that would have become a resignation.

People leave managers, not businesses

I know a newsagency that has turned over three casuals in twelve months. The owner says the local labour market is impossible. The real issue is that every one of those casuals felt ignored, unclear on expectations, and invisible from the second they were hired.

The same wage, the same hours, a different manager, that person stays.

The General Retail Industry Award sets your minimum rates. Know what they are. Pay them. It costs more to advertise, interview, hire, and train someone new than it does to pay a decent casual fairly and make them feel worth keeping. Current minimums are at fairwork.gov.au.

Retention is cheaper than recruitment. In a tight labour market, that calculation matters more than it ever has.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Management tip

YOUR LANDLORD COULD BE WRONG ABOUT THE RENT. HERE IS WHAT THE LAW SAYS.

Rent is one of the biggest costs in any retail business. It is also one of the most misunderstood. I have seen newsagents and other small business retailers accept rent increases they did not have to accept because nobody told them they had options.

That stops here.

You have legal rights. Most small business retailers don’t use them.

Every state in Australia has a retail leases act. These laws exist to protect small retail tenants. They set out what a landlord can and cannot do during a lease term, how rent reviews work, and what happens at renewal.

In April 2025, the Victorian Supreme Court confirmed that CPI-based rent caps under the Retail Leases Act 2003 (Vic) are legally enforceable. If your lease in Victoria provides for CPI-capped rent reviews, your landlord cannot demand an increase above CPI during that lease term. They cannot declare that the market has moved and expect you to pay more.

That is significant. If you are in Victoria and your landlord has been pushing increases that outrun your lease provisions, you have grounds to push back.

State by state (a brief version)

Victoria has relatively strong tenant protections. The Victorian Small Business Commission (vsbc.vic.gov.au) can assist with retail lease disputes and offers free mediation. I’ve used them, with success.

NSW has the Retail Leases Act 1994. Rent reviews are regulated and market rent determinations can be formally contested. NSW Fair Trading (fairtrading.nsw.gov.au) is a starting point.

Queensland, South Australia, and Western Australia each have their own legislation. Western Australia is the least prescriptive, retailers there may need to lean harder on what is actually written in their lease.

Know which state you are in and which act applies.

Lease term vs renewal — this distinction matters

Rent cap protections typically apply during the lease term. When the lease is up for renewal or you are negotiating a new one, the landlord can propose market rent. Market rent sounds objective. It is not. It is a figure someone made up and called market.

You can contest a market rent determination. In most states there is a formal process. An independent valuer can be brought in. If you think the number is wrong, you do not have to accept it.

Know your options before you are sitting across from the landlord’s agent in the final weeks before your lease expires. At that point you have very little time and very little power. Six months out, you have both.

What to read in your lease before your next renewal

Read the rent review clause. Find the mechanism, CPI, fixed percentage, market review, or a combination. If it says CPI and your landlord is asking for more, ask them to explain the discrepancy in writing.

Read the options clause. Options do not exercise themselves. There are usually notice periods. Miss the window and you may lose the option entirely.

Read the assignment clause. This matters if you ever want to sell. Some leases make assignment nearly impossible without landlord consent at their discretion. That affects the value of your business.

Get the right professional

Going into a lease negotiation or renewal, get a retail lease specialist lawyer involved. Not a general commercial solicitor who does a bit of everything. The difference in outcome can be worth tens of thousands of dollars over a lease term.

My view

I have watched small business retailers hand back margin to landlords they did not have to hand back. Not because the law required it. Because they were not sure of their rights, or they were worried about damaging the relationship, or they simply accepted what the landlord’s agent put in front of them.

The lease is a negotiation. Every clause in it was put there by someone for a reason,  usually the landlord’s. You are allowed to push back.

Know what is in your lease. Know what the law says. Find out before your next renewal. Not after.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagency management

ARE YOU RUNNING ON EMPTY? THE BURNOUT BEING FELT BY TOO MANY NEWSAGENCY OWNERS

I want to talk about something small business retailers don’t talk about. Not supplier margins. Not lottery digitalisation. Not AI. Something that sits underneath all of those things and quietly makes every one of them harder to deal with.

Burnout.

It is happening to newsagency owners and other small business retailers right now. Flying Solo reported in March 2026 that workplace distress has become the norm in Australia, with small business owners under intense and sustained pressure. The Nightly covered it in December 2025 too – a leading burnout specialist told them Aussie workers are “absolutely cooked.” That reporting was about employees. The situation for owners is worse, as there is no one above you to notice.

The pressure I write about here is a direct burnout accelerant

Think about what I have been documenting on this blog over the past year: AI adoption, The lottery digital shift, Supplier consolidation, Margin squeeze from card surcharge reform. Every one of those things lands on the business owner. You have to understand it, decide on it, implement it, and train your team on it, usually without a support team, without an HR department, and without the option of waiting until next quarter.

That is a lot of mental load stacked on top of the ordinary work of running a shop: rosters, he invoices, customers who argue, the casual who doesn’t show up on Saturday morning.

The load does not stop. Most owners do not stop either. That is the problem.

Burnout is a business risk, not a personal failing

Burnout is not a sign that you are weak or that you chose the wrong business. It is a signal that sustained pressure has outpaced your capacity to recover. And it is dangerous for your business in concrete, measurable ways.

Burned-out owners make worse decisions. They avoid opening the mail. They defer the hard conversations with staff. They miss the opportunity on the shelf that a clear-eyed version of themselves would have spotted in five minutes. They lose good people because they are too exhausted to notice a valued staff member quietly looking elsewhere. They run down the goodwill they spent years building — because they are just getting through each trading day rather than actually showing up.

A business cannot perform better than its owner’s mental state allows.

The warning signs

I am not a medical professional. But I have worked closely with retailers for a long time, and I have seen this enough times to recognise it. Watch for:

  • Not sleeping, or waking at 3am running through problems
  • Dreading the trading day – that feeling used to show up once in a while, now it is most mornings
  • Snapping at staff for things you would normally let slide
  • Avoiding the paperwork – the mail, the BAS, the invoices – because it all feels too heavy
  • Stopping things you used to do outside the business: exercise, seeing friends, even watching a game
  • Making decisions on autopilot because you do not have the energy to think them through

If you recognise more than two or three of those, pay attention.

One concrete thing to do this week

Don’t try to fix everything at once. That is not how recovery from sustained pressure works.

This week, do one thing. Take a full afternoon off, not a working lunch, not checking your phone in the car park, and go somewhere that is genuinely not work. Tell your staff. Leave it to them. The shop will not fall over in four hours.

If you are in a worse place than an afternoon off can reach, talk to someone. Beyond Blue at beyondblue.org.au has resources specifically for small business owners. Lifeline is available 24 hours on 13 11 14. Using those services is not weakness. It is risk management. You would not ignore a warning light on a machine. Do not ignore this one.

The transformation pressure is real. I document it here because it is real. None of the strategy matters if the person driving the business is running on empty.

Breathe.

…

Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Small Business

The future of newspapers

Crikey yesterday had an interesting article by Christopher Warren: How much longer can the living dead tabloid newspaper survive — in print or digital?. Regulars here will know this is a question I have wondered about for years.

I think many Australian daily newspapers are losing money on more days of the week than they are making money. I know newsagents lose money from them due to the paltry 12.5% (or thereabouts) GP the publishers pay.

But back to the Crikey article.

A big moment broke in the history of journalism last week, when the ever-serious Financial Times asked with its usual tentativeness: “Can the traditional British tabloid survive the digital age?”

Spoiler alert: No, it can’t, and it’s not just in Britain; it looks like the format that made our media “mass” in the 20th century — the tabloid newspaper — is, finally, done.

It’s part of the bigger question about the continued struggle of daily newspapers in print, and even in digital. The “British” type of tabloids like Murdoch’s Sun or Rothermere’s Daily Mail — or News Corp’s Australian tabloid chain — have stumbled into a twilight, zombie world. They’re only part-alive. They’re still printing (some), yet culturally, politically, they’re wholly dead.

Locally, this past weekend saw another blow to the survival of print, with the report that Racing NSW was pulling its $1.5 million placement of form guides from The Sydney Morning Herald. Absolutely “a commercial decision on value received”, the AFR reported, and nothing to do with the paper’s reporting of a NSW auditor-general’s look at the organisation’s management of taxpayer-funded projects.

It’s a good article, well worth reading.

The “tabloid sensibility” remains alive through aggressive campaigns and provocative content. However, the business model is failing. High prices and AI-generated content have further alienated audiences.

You only have to look at what the publishers have done to understand their disinterest in the long term of newspapers.

They have ripped newspaper home delivery from newsagents, corporatised it and backed it with poor customer service. Subscribing is easy, cancelling is hard.

The products themselves are thin, loaded with content that is stale by the time it arrives in the shop to be sold. I just don’t get why someone pays money for old content and clearly biased content.

Smart newsagents have newspapers at the back of the shop, in a low cost location.

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Newspapers

An unfair and smart advantage: AI tools built for independent retail

newsXpress has deploying purpose-built AI tools to help member businesses make faster, smarter decisions — without needing a consultant or an IT team.

Margins are tighter than ever, consumer expectations keep rising, and the big chains have access to data and technology that most small operators can only dream about.

It can feel lonely and stressful when you see what others are doing to be more competitive.

I think that gap should close for indie retailers, especially newsagents. It’s why I have why I have invested in a suite of AI-powered tools — built specifically for newsXpress member businesses — that put professional-grade analysis and strategic thinking directly in the hands of small business retailers.

These are not generic chatbots. They are purpose-built AI skills, each trained to handle a specific challenge that independent retailers face every day.

It’s taken months of assessment of different LLMs, consideration of prompting options and the capacity for niche retail channel training. Then it took time for deep testing, refining, and more testing.

The result is an initial kit of AI skills that make expert insights far more readily available for our channel.

“The same quality of strategic advice that used to require a consultant and a five-figure fee is now available to every newsXpress member.”

Three tools making a real difference.

Why this matters for your business

Independent retailers have always competed on service and community connection. AI doesn’t change that. What it does is remove the bottleneck of time and expertise when it comes to analysis, strategy, and planning.

A financial health report that once took days — and a trusted accountant — can now be generated in minutes. A rebrand strategy that required a branding agency can be explored instantly. A website audit that demanded specialist knowledge is now a URL away. These are just some of the examples.

This is not about replacing good judgement. It’s about giving you better information to act on — faster.

What’s next

These tools are live and available to newsXpress members now. There is no cost. We’re continuing to build out the suite based on member feedback, with more category-specific and seasonal tools coming throughout 2026.

No gimmick, this is practical use of AI

While there are plenty of AI gimmicks out there, including in our channel, what I am sharing here is real. These tools have already delivered commercial value to newsXpress members. They are making a difference at a time when that matters.

Oh, and I have used these tools to help newsagents not in newsXpress.

…

Here’s the pitch

These tools are just one part of what newsXpress offers independent retailers across Australia. Members also gain access to preferred suppliers, marketing support, seasonal campaigns, and a network of like-minded business owners. If you’re running a newsagency, gift shop, or garden centre and want a genuine edge, it’s worth a conversation. Visit newsxpress.com.au to find out more.

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Newsagency marketing group

Why some newsagents will outperform others this Mother’s Day

Major seasons are important in newsagencies and card shops. Customer traffic spikes as infrequent card shoppers visit for their seasonal card. Mother’s Day is the second best season of the year.

This year, some newsagents will do better than others. I say that based on the sales data I have seen from major card seasons over the last two years.

Businesses running an appealing in-store competition with good collateral and backed by social media content will be the winners. This video speaks to the newsXpress Seasonal Edge program and it shows why it works: https://youtu.be/Ll3rrtT6WSs

So, it’s the curated gift pack, in-store promotion, social media support and backend management advice. All of this comes together supporting 10%, 15% and 20% sales lift of cards for the season. There is plenty to this that makes it hard to copy.

It’s free for the retailers. Hassle-free, too.

Yes, I’m pitching newsXpress here. No other marketing group offers anything like this local in-store activation program. I’m doing so because I want to see more newsagencies thrive.

newsXpress handles the curation, the supplier relationships, and the logistics, so newsXpress members can focus on what they do best: serving their customers. Watch to see the newsXpress difference in action and learn how we empower independent retailers to achieve extraordinary results.

Since everyone gets the same prize pack, there is an opportunity to compare engagement, compete on the best display, drive the best commercial outcome. members also provide feedback on future promotions.

The Seasonal Edge program drives foot traffic and increases card sales, a high-margin category for traditional newsagencies and gift retailers.

newsXpress Provides participating members with professionally curated prize packs for major events like Mother’s Day, Father’s Day, Valentine’s Day, and Christmas. These packs, which retail for up to $500, are provided to members at no cost, allowing them to run high-impact competitions that excite their local community.

The Father’s Day prize has already been announced and it is the best yet.

Ultimately, the newsXpress Seasonal Edge program is more than just a marketing tool; it is a testament to how independent retailers can level the playing field through collaboration and innovation. By removing the logistical hurdles of sourcing and setup, we empower our members to deliver high-impact, community-focused experiences that drive 15% to 20% category growth.

Whether it is through luxury curated prizes or the seamless “strut card” system, newsXpress ensures that local stores can stop worrying about the “how” and start focusing on the “who”, their customers.

Does Seasonal Edge save a newsagency? No, not of itself. But, it is a piece of a broader jigsaw that provide a business with opportunities through which they can thrive, and that;’s got to be the focus of 2026 – thriving, for sure!

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newsagency marketing

Thinking of Buying a Newsagency? Here is Your Due Diligence Checklist

Buying a newsagency or any retail shop is a big step. The channel offers both opportunities and challenges right now. You must ensure the price is justifiable.

It should not be an emotional decision. You are investing your hard-earned money. You need a return on that investment.

When I assess a business, I want specific evidence. If a seller cannot provide this, I remain sceptical.

Here’s a new video from me about this:

Here is the kit of information you should request, as covered in the video.

The Financial Evidence

Demand the profit and loss (P&L) statements for the last three years. These should come directly from their accounting software. Do not accept “ad-backs” or “magical” broker adjustments at face value [00:39].

Match this with sales data from their point of sale (POS) system. I also suggest asking for their tax returns for the same period [00:55]. You are looking for a consistent narrative between what they tell the tax office and what they tell you.

Stock and Staff

Check the current stock on hand. I also want to know the age of that stock. I will not pay full wholesale for items older than six months [01:34]. That is not your problem to fix.

Review the roster and employee details. Understand their long service leave and other legal obligations. You need to know exactly what you are taking on [01:48].

Assessing the Risks

Consider how much the business depends on external factors. Lotteries are migrating online [03:45]. Newspapers and magazines are seeing annual declines [03:50]. Factor these risks into your valuation.

Determining the Price

A business is only worth what someone is prepared to pay. Do not focus on the asking price. Focus on what the evidence tells you it is worth [04:44].

Some owners hold out for high prices based on what they paid years ago. That is their issue to process, not yours. Your goal is to pay the least amount possible for a viable future [06:18].

Final Advice

Ask for all this information to be delivered at once. Avoid being drip-fed data [07:28]. Take your time. Be thoughtful.

New owners are the future of this industry, no matter what we call our businesses. I want to see you start on the best possible terms.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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buying a newsagency

AI Literacy is the New Computer Literacy

In the 1990s, the “computer literate” newsagent had an advantage. They embraced POS systems while others stayed with paper ledgers. In 2026, we are at the exact same crossroads with AI Literacy.

The gap with AI is between those who use it for play or curiosity and those who use it as a core business competency.

We use it every day in my businesses.

The world has moved from search to promoting / asking questions.

For decades, we “Googled” by typing keywords. In 2026, we “Prompt” by giving instructions. This is a fundamental shift in how a business owner interacts with information.

  • Old Searching for “how to increase gift sales” and reading ten generic articles.
  • AI: Prompting your AI agent with your specific POS data by loading your sales history and current stock on hand data: “Analyse my sales and stock and advise what I need to cut and why.”

Why AI is the new computer literacy

If you can’t “speak AI,” you are effectively locked out of the most powerful productivity tools ever created.

Make sure everyone in your business knows how, when and why to use it. Set ground rules. Train people. Be clear in the outcomes you are chasing. This focus has to start with smart prompts. If you are not sure where to start, start – doing is the best way to learn here.

  • Clean your data: AI is only as good as the information you give it. Accurate POS data is the “fuel” for your AI’s literacy. Like stock on hand. if it is inaccurate, AI results will be worth less. Let’s be blunt here: if your stock on hand data is shit, the AI results for and about your business will be shit.
  • Stop Googling, start instructing: Treat AI like a highly capable, slightly literal intern. Give it context, a persona, and a clear goal. If you’re not happy with a response, say so, and be clearer about what you seek.
  • Empower your team: AI literacy shouldn’t stay in the back office. Train your floor staff to use AI tools for customer enquiries and gift recommendations.

The Bottom Line

In 1995, you didn’t need to be a programmer to use a computer, but you did need to know how to turn it on and navigate a menu. In 2026, you don’t need to be a data scientist, but you must be a master of the prompt.

The newsagents, and all retailers, who lean into AI literacy today will be the ones running the most efficient, high-margin businesses tomorrow. The rest will be left wondering how the world moved so fast.

This is not a game.

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Newsagency management

Streamlining Splosh Australia Invoice Management with AI

Manual data entry of supplier invoices takes time and, too often, results in mistakes.

The Tower Systems POS software AI tools make importing supplier invoices easy, and accurate. here’s a new video demonstrating an import of a Splosh invoice:

Processing a large invoice from a supplier like Splosh Australia can often take hours, especially when balanced against serving customers and managing a busy shop floor. By leveraging AI-driven invoice recognition, we have made it possible to process complex, multi-page invoices in a matter of minutes.

What the video demonstrates is just one of many AI tools in the Tower software that save time, offer fresh business insights and help you make more money. Tower has been delivering embedded AI tools to retailers since 2023.

Now, let’s get into the Splosh invoice example I share here.

Automating the heavy lifting

In our recent demonstration, we processed a four-page Splosh invoice containing 87 individual products. Historically, entering this much data manually—including barcodes, stock codes, descriptions, and pricing—could take the better part of a day.

With the new AI Import feature, the process is simple:

Upload the PDF: Drag and drop your Splosh invoice directly into the system.

AI Analysis: The software reads the document, identifying the supplier, invoice number, and every line item.

Automated Setup: If the supplier is new, the AI extracts their contact details from the header to create a new profile automatically.

Smart Categorisation: You can nominate default departments, such as ‘Gifts’, ensuring all 87 items are correctly categorised instantly.

Why this matters for your business

The primary goal of this technology is efficiency. By reducing the time spent in the back office, you can spend more time on the shop floor. The AI doesn’t just work faster; it reduces the risk of human error in pricing and stock code entry, ensuring your inventory remains accurate.

Whether you are receiving a small delivery or a massive seasonal order from Splosh, the system handles the complexity for you. What used to be a tedious administrative task is now a streamlined, two-minute process.

Are you wasting time?

If you are manually typing invoice in from suppliers, you are wasting and, likely, making mistakes. You’ll be less efficient, less competitive.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

8 likes
Newsagency management

Retail advice: in your product markup strategy right for your business today?

Rethinking your retail markup strategy

Small business owners often feel pressured to be the cheapest in the market. I know I do. There is a common belief that lower prices are the only way to attract and keep customers. However, competing on price is rarely a sustainable strategy for independent retailers. Instead of following the crowd, it is time to evaluate how your pricing reflects the actual value you provide to your community.

I know of many local small business retailers who price compare to big competitors who advertise plenty claiming they are the cheapest, and adjust prices to be competitive.

Value beyond the price tag

People shop with local businesses often for reasons that have nothing to do with the lowest price. Convenience is a significant driver. If your shop offers easy parking, longer trading hours, or a central location, you are providing a service that saves your customers time.

Consider the pricing at a cinema or a convenience store. Consumers understand they will pay more in those environments because the items they need are available exactly when and where they want them. This is essentially a convenience tax. Independent retailers should feel confident in applying a similar logic to their own markup policies.

Challenging the recommended retail price

Suppliers often provide a suggested or recommended retail price (RRP). This figure is based on a general national average and does not account for your specific overheads. If your business is in a regional area with higher freight costs or limited local competition, your pricing should reflect those realities.

Take the time to review your inventory category by category. If your supplier agreements allow for pricing flexibility, use it. You may find items where you can increase the margin by a few percent without affecting sales volume.

Navigating rising business costs

The current economic climate includes rising fuel surcharges, increasing rents, and higher labour costs. These expenses occur annually and can quickly erode your profit margins if your pricing remains static.

Many suppliers are already passing on their increased costs to you. Because customers hear about these economic pressures in the news, they are often more understanding of price adjustments. Adjusting your markup helps create a financial buffer. It ensures your business remains viable when external costs inevitably rise.

Avoiding the race to the bottom

Trying to match the prices of national chains is often a losing battle. Large retailers spend heavily on marketing their low prices while using internal tactics, like home brands, to recover their margins elsewhere.

Independent shops in sectors like fashion, gifts, homewares, or pet products have more room to move than those selling high-ticket white goods or basic groceries. Consumers generally expect to pay a bit more at an independent store. Meeting that expectation is not being cheeky; it is sound commercial practice.

Small steps for long-term health

You do not need to make drastic changes to see a benefit. A small increase in gross profit across several categories reduces your reliance on sheer sales volume or finding new customers. It allows for steady, incremental financial growth.

Review data from your POS software and your current markup settings. Don’t blindly follow what you have always done. By taking control of your pricing, you build a more resilient and professional retail business.

This works.

I have done this with plenty retailers who have subsequently increased prices. Unit sales did not fall. The businesses banked more money as a result.

Try it for yourself. There is no point in denying your business additional margin dollars.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative local retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

8 likes
retail

RBA Card Surcharge Reform: What It Means for Small Business

The Reserve Bank of Australia has handed down its long-awaited review of merchant card payment costs. The ban on card surcharges takes effect 1 October 2026. Here is what retailers need to know.

What the RBA Has Decided

The RBA has recommended three key changes to Australia’s payment network.

  • Surcharge ban from 1 October 2026 — applies to Visa, Mastercard and eftpos. Businesses must absorb card acceptance costs into their sticker price rather than passing them on separately at the point of sale.
  • New interchange caps on domestic cards — also effective 1 October 2026, intended to reduce the fees businesses pay their bank for processing card payments.
  • Greater fee transparency — large acquirers will be required to publish wholesale fee data and interchange pass-through rates on the RBA website.

Politicians, of course, aided and abetted by lazy media outlets in service of the banks, crowed for the last week about how good all this is for Aussies, ignoring small business completely.

What this actually means.

If bank fees remain high after the surcharge ban, small businesses will absorb those costs rather than recovering them at the terminal. The cost does not disappear — it becomes embedded in prices, affecting all customers regardless of how they pay.

Who is lobbying on your behalf.

The most effective lobby group on behalf of newsagents and small business retailers is the Independent Payments Forum. Only newsXpress and ALNA are members of the IPF from our channel, financially supporting the IPF work in this vital area.

Key Dates

  • 1 October 2026. Surcharge ban takes effect (Visa, Mastercard, eftpos). New interchange caps on domestic cards begin.
  • 30 October 2026. Large acquirers begin quarterly publication of wholesale fee data. Card networks publish aggregate scheme fee and rebate data.
  • 30 January 2027. Large acquirers publish their interchange pass-through rates.
  • 1 April 2027. New interchange caps on foreign cards take effect.
  • 31 July 2027. Reporting compliance for interchange fees and updated requirements for monthly merchant statements.

Ongoing Concerns for Small Retailers

While the RBA acknowledged many of the problems faced by small businesses, a number of risks remain:

  • Bank and scheme fees are not capped — businesses cannot surcharge to recover them.
  • Corporate credit cards (which carry high interchange costs) remain common, including a large Government fleet of NAB corporate cards.
  • Least-cost routing (LCR) — which directs transactions through the cheapest network — is not yet mandated.
  • Foreign card interchange caps are delayed until April 2027.
  • Some fintech terminal providers may exit the market as their business models become unviable under the ban, potentially reducing competition.

My personal view is that the RBA screwed us over, ignoring genuine concerns about small retailers, especially those with minimal control over prices and margin.

The ACCC v Mastercard Case

The ACCC is returning to the Federal Court in a four-year case against Mastercard. The case alleges Mastercard struck a deal with major retailers to defeat the RBA’s least-cost routing rule, in exchange for cheaper credit card fees. The outcome could have significant implications for card fee competition in Australia.

Further Reading

Why this matters.

As things stand, you have a cost recovery option available today about to be ripped from you, adding to your operating costs and, I think, empowering the banks.

You need to support organisations representing you. If you are in a marketing group, ask what they are doing, ask for the receipts (evidence) of what they are doing. If you are in an association, ask the same question.

Again, as of right now, newsXpress and ALNA are the two organisations in our channel involved with and supporting the vital work of the IPF on this matter. Their website lists their member organisations.

Come October 1 you might well be angry and wondering who let you down.

9 likes
Newsagent representation

Small business retail advice: Embracing Intentional Disruption: A Strategy for Local Retail Growth

When customers walk into a newsagency, they expect to see lotteries, magazines, and stationery. When they visit a garden centre, they look for plants and mulch. While these categories provide a helpful framework, they can also become cliches that limit our potential for growth and creativity.

In a this video, the concept of “intentional disruption” is explored as a powerful tool for small business owners. This strategy involves stepping outside the boundaries of your traditional retail channel to offer something entirely unexpected. The goal is not just to change for the sake of change, but to learn, attract new foot traffic, and discover untapped opportunities within your community.

The Power of the Unexpected Disruption can start with personal habits. The video shares an anecdote about a commitment to reading banned books. By intentionally choosing material that others sought to restrict, the reader discovered new genres and perspectives that would have otherwise remained hidden. This personal exercise in breaking cliches serves as a metaphor for business: by doing what is “not allowed” or simply not expected, we open doors to new ideas.

Real-World Examples of Retail Disruption Successful retailers are already putting this into practice. Consider these examples of businesses playing outside their traditional roles:

  • A newsagency that has found significant success selling garden bulbs and outdoor products.
  • A pet shop that has become a go-to destination for high-quality calendars, a category traditionally dominated by bookstores.
  • Overseas models, such as bookstores that operate as late-night bars or homeware stores that run professional smokehouses in the evenings.

Why Should You Disrupt Your Own Business? It is far better to disrupt your own business model than to wait for a competitor or market shift to do it for you. Intentional disruption offers a win-win scenario:

  1. If it succeeds: You have found a new profit stream and a way to attract customers who might never have entered your shop otherwise.
  2. If it fails: You have gained invaluable data about your local market and your own professional capabilities.

Taking the First Step For local retailers, the challenge is to pick one thing—one product line or service—that is completely outside your “expected” inventory. Execute it with the highest level of professionalism and see what it teaches you about your business’s potential.

New people walking through the door are the lifeblood of retail. By breaking the cliches of your channel, you give your community a fresh reason to visit. If you are looking to thrive rather than just survive, it may be time to embrace the unexpected.

…
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.

10 likes
Newsagency management

Rethinking Retail Markup: Why Being the Cheapest Isn’t Always the Best Strategy

There is a common trap that many indie retailers fall into: the obsession with being the cheapest. We often convince ourselves that price is the only factor driving customers through the door. However, if your entire value proposition is based on having the lowest price, you are likely leaving significant profit on the table and making your business more vulnerable to economic shifts.

The Convenience Factor

When was the last time you truly reviewed your approach to markup? Often, retailers are so fixated on competing with national chains that they forget why people shop with them in the first place. If your shop offers easy parking right out the front, remains open longer hours, or provides a curated experience, you are selling convenience.

Think about the cinema or a local convenience store. Customers know they will pay more for candy or a soft drink in those locations than they would at a supermarket. They accept this “convenience tax” because the product is available exactly when and where they need it. As an independent retailer, your location and service levels provide similar value. Your pricing should reflect that.

Navigating Rising Costs

We are currently operating in an environment of fluctuating overheads. From fuel surcharges to rising labour and rent costs, the pressure on small businesses is constant. Many suppliers are already applying fuel surcharges to their deliveries. This provides a legitimate “cover” to explain price adjustments to your customers.

Because consumers see these rising costs on the news every day, they are generally more accepting of commercial decisions to adjust pricing. If you aren’t adjusting your markup to account for these external pressures, your business will eventually slip behind.

The Power of Incremental Changes

A successful financial model is often built on a series of small steps rather than giant leaps. You don’t need to overhaul your entire price list overnight. Instead, look for opportunities to increase margins by just a few percent in specific categories—especially in “non-essential” or gift-related items like fashion, homewares, or jewellery.

By building a better buffer into your gross profit, you become less reliant on high sales volumes or a constant stream of new customers to stay afloat.

Take Control of Your Pricing

Stop blindly accepting the Suggested Retail Price (SRP) or the defaults in your point-of-sale software. Your suppliers set those prices based on what they think a product will sell for, but they don’t know your specific local market or your unique costs.

Take the time to look at what you sell and ask: “What are my customers prepared to pay?” Even a small shift in your markup policy can create the financial resilience your business needs to thrive in the long term.

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Newsagency management

Beyond the Shingle: Redefining the Future of Australian Indie Retail

Traditional retail labels are obsolete in indie retail. For decades, the “shingle” over a shop door dictated exactly what a business should sell. A chemist sold prescriptions, a newsagent sold papers, and a bike shop sold parts. However, as we navigate 2026, these rigid industry boundaries are fading. Successful Australian retailers are no longer staying in their lanes. They are embracing a “treasure hunt” approach to commerce.

Breaking the Industry Label

The name of your business does not need to define your inventory. Traditional labels often restrict the owner more than the customer. While you may feel your shoppers expect a certain product range, modern retail is actually built on discovery. Customers enjoy being drawn into a store to find something unexpected. This element of surprise creates a unique experience that big-box competitors cannot easily replicate.

Consider the evolution of major brands. Pharmacies now stock extensive gift and baby ranges. Large hardware chains have dedicated pet aisles. Independent retailers must adopt this same mindset. A newsagency in Tasmania is currently thriving by selling garden bulbs. In Central Queensland, another is famous for serving the region’s best coffee. These businesses have moved beyond their original purpose to become community destinations.

The Power of Surprise and Discovery

Surprising your customers pushes the boundaries of how they perceive your business. It generates conversation and encourages repeat visits. To achieve this, your shop should feel like a curated experience. Garden centres are excellent examples of this evolution. Some now incorporate workspaces, high-end giftware, and chocolate or wine tasting. They have transformed from simple plant nurseries into lifestyle hubs.

The “Bucket of Cash” Strategy

Experimenting with new categories does not require a massive investment. You can start with a “bucket of cash” dedicated to low-risk trials. Set aside a small amount, perhaps $300 to $500, to purchase a product category entirely outside your usual range.

The ideal test products should meet three criteria:

  • They are completely different from your known inventory.
  • they are impulse-buy items that customers understand immediately.
  • They are visually striking enough to sit in your front window.

A non-traditional window display can arrest the attention of passers-by. It drives fresh foot traffic from people who might otherwise have walked past your “shingle.”

A Resilient Retail Future

Small business retail is about providing a curated experience. Whether you run a toy shop, a jeweller, or a bike shop, you have the freedom to play outside the box. By diversifying your offering, you build a more resilient business model. Do not let a traditional label limit your growth. Use your space to surprise, delight, and sell efficiently.

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Newsagency management

Is A $150,000 Shop Fit a Strategic Asset or a Sunk Cost?

Traditional retail wisdom often insists on a professional shop fit. Many independent retailers believe a high-end renovation is the only path to success. While professional shop fitters provide exceptional craftsmanship, the associated costs are substantial. In 2026, these overheads can become a significant financial burden. High capital expenditure does not always guarantee a return on investment.

The Shift Toward Authenticity

The modern High Street is undergoing a transformation. Local shoppers are moving away from the polished, corporate aesthetics found in major shopping centres. There is a growing preference for “real” experiences. A sterile, “faked up” environment can often feel cold and uninviting. Customers today value warmth and unique character over clinical perfection.

Our own journey illustrates this shift. We previously invested hundreds of thousands of dollars in stores at Westfield Knox and Southland. These fit-outs were professional but incredibly expensive. We eventually discovered the power of “frugal” dressing. By using everyday items, we created spaces that resonated more deeply with our community.

The ROI Reality Check

A $150,000 shop fit requires significant sales just to break even. These costs can crush the margins of an independent business. Before committing to a massive quote, consider the “smell of an oily rag” approach. We recently observed a magnificent shop in Mount Morgan. It looks world-class, yet it was achieved without heavy capital investment. This proves that creativity often outweighs a large budget.

Creative Solutions for Your Space

You can create immersive displays using items you already know. Consider these alternatives to custom cabinetry:

  • Dining tables for central product displays.

  • Lounge chairs to encourage customers to linger.

  • Secondhand finds to add history and texture.

These pieces make a shop feel like a home rather than a showroom. They create a comfortable environment that makes customers smile.

Choosing the Right Location

Location influences your freedom to experiment. Major retail hubs often mandate strict fit-out guidelines. Conversely, local landlords on the High Street typically offer more flexibility. This freedom allows you to test new ideas without seeking corporate approval.

Your shop’s primary job is to sell products efficiently. It does not need to be an altar or a shrine. It should be a functional space that supports your sales goals. Before you sign a contract for a major renovation, pause. Consider how you can refresh your space yourself. Authenticity is often the most effective sales tool you have.

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