News was lost at the Illawarra Mercury at the weekend
This is not a newspaper.
Visual merchandising advice for newsagents who think they know northing about visual merchandising, and for blokes who always try and get out of creating a display
Everyone can do VM!
Visual merchandising is about display products in a way that attracts people to them, top look, touch and feel. Ultimately, it is about displaying products so you sell more.
Anyone can do visual merchandising.
Here is our advice.
- Start with a clean space, a flat surface, in a good location.
- The best display looks like a pyramid.
- Your hero product is at the top of the pyramid.
- If the display is for a season or some other sign-post event, the poster should be placed with the display so shoppers can see it without having to look for it.
- Flowing from the hero product down to the base of the display are other products. But not so many that you can’t see what you want people to see.
- The display is balanced, even.
- A display of gifts always includes cards.
- If the display is promoting homewares the pyramid approach is not needed. Instead, go for something that looks more natural, like in the home.
- Use coloured paper to highlight certain products. But don’t go for a rainbow.
- From a colour perspective, a good display has no more than two core colours as the focus.
- A display can look untidy and that is okay in some circumstances. For example, a box of Beanie Boos exploding from a box .
- Mistakes are okay.
- Oh, and don’t treat this as an engineering challenge. Keep it simple and fun! :
Take your time, have fun.
Remember, the alternative is no display at all.
A note to others who may be around when someone is doing their first display – we all did our first display once … be gentle.
Now, here are some more notes about displays:
In my opinion, the best displays have a narrative relevant to the business, a story or purpose. This is code for saying I am not a fan of single product or single supplier displays. suppliers love these, of course, as they are a billboard for them. What suits them will likely not suit you.
A good display is a collection of items from multiple suppliers, categories and segments that make sense together, from which a shopper could choose several for a gift, or for themselves. Choosing the items for the display us you curating the display, making editorial choices to tell the story you want to sell.
Don’t leave the display up for long. My advice is one week, two at the absolute maximum. Having a length of time for which a display will be live helps you allocate appropriate time for the creation of the display. if you are not sure how long to spend on it, set yourself and hour tops. Get it done within that time.
Once you’ve done a display, if you are new to this, ask for opinions. Learn. Each display will be an improvement on the last.
Whole the opinions of others can be nice, what matters from any display is the sales it achieves for you. be sure to track this as that data will inform your next choices.
Lottery moves from a newsagency to a real estate business
A newsagency business in Australia is closing next week and the lottery part of the business is moving to a local real estate agency.
This move is another example of The Lottery Corporation significantly relaxing its approach to what makes a good retail fit for its products. I expect there are plenty of existing lottery retailers keen for similar relaxing of the rules that apply to their offering of lottery products – like space allocation and use.
Inspiring retail: newsXpress Sarina, Queensland
I am grateful to Shelley and Mark Petersen for the opportunity to discuss their journey from purchasing a traditional newsagency in Sarina, 25 minutes out of Mackay in Queensland and their transformation of the business into a loved gift and homewares destination.
This discussion is a deep dive into how to approach change and thrive in a local retail business in a channel that itself is experiencing considerable change.
Neither Mark or Shelley had experience in this type of business when they bought it in 2001. Today, they are experts because of the experiences they have embraced and continue to embrace.
Their pragmatic approach to business is inspiring. Their success is well deserved. Any retailer watching the video will discover how they can evolve their business in ways Shelley and Mark have.
newsXpress Sarina is seen by plenty as a newsagency and Post Office. While it is those things, it is primarily known in Sarina as the place to shop for gifts and things that will surprise. It’s a business of which Shelley and Mark can be proud.
For context, Sarina has a population of around 6,000. I mention this as there are newsagents I have spoken with in bigger towns who think they don’t have enough population.
Any newsagent can embrace the scope of change reflected in the video. It starts with that first step. If it works, do more of it. if it does to work, take a different step.
Best practical advice on allocating space in your shop: analyse gross profit contribution by floorspace
The advice I share is something anyone can do. You don’t need a retail specialist. You don’t need advice from a supplier. You don’t have to rely on a mentor. You don’t need to use one of the overpriced business advisors governments often pitch to small business retailers.
Spend an hour on this and I am sure you will discover things you will wan t to change in your business. It’s advice I have been pitching to newsagents for 15+ years. It works.
ANALYSE GROSS PROFIT CONTRIBUTION BY FLOORSPACE ALLOCATION.
This advice outlines one of the first assessments I ask to be done when asked to review the performance of any retail business, including a retail newsagency as it provides an understanding of the return being achieved from floor space allocation.
With space usually costing between 11% and 15% of (non agency) revenue in a typical Australian newsagency, it is usually the next highest cost outside of the cost of stock itself. How you use space matters to the financial health of the business.
Spend an hour on what I suggest here and the result should be a different view of the performance of your floor space allocation. This is not advice you will get from your accountant or from reviewing your P&L or computer reports. It is designed to be practically helpful in managing your business, practically useful to those in the business.
here are the simple steps I recommend you follow:
- Take a blank sheet of paper, ideally A3, and roughly sketch out the layout of your shop, marking in display units, wall shelving, the counter – everywhere you have product. There is no need to be 100% accurate.
- The floor plan layout should also include your back room if you have stock there.
- Colour-shade the layout by department and major category. For example, shade all areas with magazines in yellow, all floor space for gifts in blue, stationery green but pens in a different colour etc.
- List the departments and categories shaded on the side of the floor plan.
- Calculate the percentage of total space taken by each department or category. This does not need to be accurate to two decimal places. List this next to each department you have listed.
- Use your computer system to report on gross profit earned by each department and category over the twelve months.
- Calculate the percentage of total gross profit contribution earned by each department and category and list this next to the floor space allocated to each department.
- Circle in green those performing the best and in red those performing the worst. A best performing department will typically be responsible for a significantly higher percentage of gross profit than percentage of space allocated whereas a worst performing department will be contributing a percentage of overall gross profit considerably lower than the percentage of floor space allocated.
- Right away note down action items while the data is fresh in your head.
- Have the shortest gap possible between writing down your action plan and taking action.
Once you have the marked-up floor plan with the space percentage and percentage of total gross profit, think about your current floor space allocation.
Are the results what you expected?
What would you change?
What do others in the business think?
The steps suggested do not take into account product size and the average gross profit percentage from each dollar of revenue for a department. For example, ink is a lower margin product than stationery, gifts are a higher margin magazines. Typically, the analysis will highlight challenges with lower margin product.
The objective of the analysis is to provide you with fresh insights you could use when considering floor space change.
You can take the analysis a step further by looking only at one department and analysing performance by all categories in that department.
For example, in one business I saw pens taking 7% of stationery space while they contributed more than 40% of gross profit earned from all stationery. This raised the question of what might happen if more space was allocated to pens?
Every business I have worded with that has done this analysis has made changes as a result. Everyone involved has discovered things they had not expected. That’s the goal, to introduce fresh insights.
My advice here is not overly sophisticated. This is deliberate, so that anyone can do it.
Our channel has many suppliers full of opinions as to what we should do in our businesses. Most of those offering the advice don’t own and run retail businesses themselves. The best advice you can rely on for your business is that which you discover for yourself from performance data for your own business.
If you do the data analysis I have suggested here and have questions, please reach out to me. I’d be happy to look at your results and discuss these with you. You can reach me at mark@towersystems.com.au.
I’d add that the advice here works for any type of retail business, not only newsagencies.
Now for an important footnote: it’s common for local small business retailers to put off work like this. I have seen it happen many times. In some cases I think it is because they think they know best while in other cases there is a fear of what they may discover and then there are some who say they don’t have time. None of these excuses are valid in my book.
Spend an hour and either have your current floorspace allocation validated or come out with a list of changes that pursue better business results. Either is a win.
The advice I have shared here is pare of the newsXpress knowledge base of advice to while all newsXpress members have access.
Here’s a quick walk through one of my shops
I shot this video on my iPhone on Wednesday last week. What was once a newsagency has evolved.
I bought my first newsagency in February 1996, to provide practical experience for myself and others in my newsagency software company, Tower Systems. I’ve owned newsagencies ever since. It’s been wonderfully useful, and enjoyable.
Mount Waverley is a small formal high street store in a regular suburban shopping strip. It competes with Chadstone for shoppers, and does well.
This business used to identify as a newsagency. Not any more. Today, it’s a place where people can find hugs and celebrate those they love. What it offers is covered in the website we built for the shop: www.hugsandlove.com.au.
From Squishmallows to Jellycat to ravensberger jigsaws to awesome blind boxes to Nee Doh, this shop is packed with many categories of adorable and fun items people can buy for themselves and for others.
Placing the right cards at the counter can drive impulse purchase
I am tempted to place this next to newspapers some days.
Update on self checkout in the newsagency
Use of the self checkout POS software terminal we have setup in one of my newsagencies continues to grow. Without any encouragement shoppers are happily scanning purchases and paying.
The mix of products continues to surprise: cards, gifts and stationery with the odd magazine or newspaper. Prior to installation we expected it to be used primarily for papers and magazines. We also expected it to be for single purchase transactions. Most transactions are two items and even more. Average transaction value is $25+.
We installed the self checkout terminal as a trial for my POS software company, to play with new tech. It was not installed for a newsagency specific reason.
My interest was to see if shoppers in an independent local retail business might use self checkout. Sure, we are wired to use these types of terminals in the major supermarkets. It’s rare in independent local retail businesses. So for our trial we needed to install the tech without fanfare or encouragement, to see how shoppers behave.
The $4,400 hardware and software solution is a lower cost than what the major supermarkets install. It’s a smaller footprint too.
I know from research that shoppers are turned off by self checkout POS software that is hard to navigate. We have made sure this is simple. The in-store experience has shown this to be the case. People of all ages are engaging. There is no tech barrier like we wondered there might have been.
A factor I had not considered that much is that there are shoppers who like a more private transaction of business. Self checkout works for them.
The supermarkets have crashed through with this tech and educated people to embrace it. This certainly does make it easier for local small business retailers to embrace if it is right for their own businesses. There is less pushback than would have been the case five years ago.
Tower Systems released its self checkout solution last year. It was developed for other retailers. Now, based on the experience in my own newsagency, we will keep the terminal. It is playing a good role in the business.
SEO advice for your business website
On Tuesday I hosted a session for some Tower Systems customers on tips for improving search results for your website. This non-tech session provided practical advice anyone could follow. I am sharing it here following feedback from plenty who have watched the video of the session. If you have a business website or planning one, this free to access video might be useful:
News Corp continues to fail newspaper home delivery subscribers with road-block customer service
Complaints about News Corp management of newspaper home deliver subscriptions to newsagents who stopped home delivery months and years ago continue. regulars here would have seen the comments by many subscribers.
From my own experience when I signed up for a subscription to The Australian and then sought to cancel after the initial period, the News Corp process is clearly structured to frustrate to a point that people give up. That is how it felt to me.
Subscribers ought be able to go to a website and cancel their subscription with one click. News Corp does not offer this service.
You have to call them. The first response after wanting to know why you want to cancel is to offer a deal. I’ve heard of people being offered an even better deal. The call process is layered with road blocks.
This is appalling customer service from News Corp in my opinion, and in my experience. For a company so invested in shouting at Australians and trying to tell us what to think, they appear disinterested in providing a good customer experience.
It’s as if the call centre mandate is to keep a subscriber at all costs – financial and emotional.
My advice for News Corp newspaper subscribers experiencing difficulties in cancelling their subscription because of road blocks by News Corp is to complain to your local office of consumer affairs and to email the ACCC. If you are owed a refund or the company has charged more than they should have in your opinion, and if you have the time, consider a claim to a small claims tribunal, like VCAT in Victoria. The more state and federal government agencies are made aware of what is happening here the better.
Art exhibition in the newsagency
I love this pitch for an art exhibition being hosted at Strand Newsagent in London:
EXHIBITION ANNOUNCEMENT
STRAND NEWS
ATHEN KARDASHIAN & NINA MHACH DURBAN
EDEN CHAU-MORROW
MARCUS JEFFERSON
XOOSETPARTY THURSDAY 20 JUN 6-10PM
VIEW 21 & 22 JUN145 THE STRAND WC2R 1JD
“THERES LOTS OF ART IN THE CITY BUT NOT MUCH OF IT FEELS LIKE ITS FROM THE CITY” pic.twitter.com/syNKG5nEzM
— tom mouna ʬʬʬ (@tommouna) June 6, 2024
tom mouna ʬʬʬ
@tommouna
EXHIBITION ANNOUNCEMENTSTRAND NEWS
ATHEN KARDASHIAN & NINA MHACH DURBAN
EDEN CHAU-MORROW
MARCUS JEFFERSON
XOOSETPARTY THURSDAY 20 JUN 6-10PM
VIEW 21 & 22 JUN145 THE STRAND WC2R 1JD
“THERES LOTS OF ART IN THE CITY BUT NOT MUCH OF IT FEELS LIKE ITS FROM THE CITY”
I can’t sell gifts in my newsagency, I have a gift shop nearby, it wouldn’t be fair to them
A newsagent said this to me a couple of days ago. It’s something I heard 20 years ago, not that much today.
The gift shop near then is a small shop with a narrow focus. They carry less than .5% of all available gifts in Australia.
It’s an out of date view for a newsagent to say they can’t stock gifts because they have a gift shop nearby.
Think about your newsagency for a moment. You have competitors for every category. Your exclusivity in circulation products and lotteries was ripped from you. It’s not your job to protect another shop nearby.
Then, think about online. That gift shop nearby is being competed with by thousands of online businesses, many of which are delivering to your town.
What newsagents owe is a commitment to their business for all those supported by the business.
My advice to the newsagent is to put irrational emotion aside and explore gifts in a way that is not in direct competiton with the nearby gift shop.
- Offer different categories. There are many categories a nearby competitor will not have covered.
- Source from difference suppliers.
- Display differently.
- Differentiate as to the how: your customer service, add-on offerings.
- Be up front with them about your plans.
A newsagency without gifts is likely a newsagency sliding toward closure. Gifts are essential. Typically, today in 2024, gift revenue can easily be 5 and more times your card revenue. It takes time and commitment, you can get there.
Use your gift engagement to differentiate your business. Leverage your current shopper profile. Indeed, your card and magazine data provide the best starting point to understand the gift opportunity in the business. That’s where I start when working with a newsagency making this move.
If you’re put off by a big business competitor in the gift space, don’t be. They do their thing, you can be different in a way that locals appreciate and give you money for.
I get that you want to get on with local shops. You can expand into areas they cover by being different. You have to put the needs of your business first. Survival of the fittest and all that!
The Australian Cars The Collection launch has been a hit
Newsagents are selling out of the launch issue of Australian Cars The Collection. The distributor does have some stock and newsagents needing stock are urged to contact the call centre.
I said this would be a hit when first writing about it here. The new shopper traffic being generated is most welcome.
The success of the launch is a reminder to newsagents that shoppers will spend money on what they love.
The difference in the performance of cards in newsagencies is considerable
Looking at card sales year to date, their average for 2024 verses 2023 is 2% growth. That average does not tell the real story though.
I’ve seen data for newsagencies achieving 20% year on year growth in 2024 over 2023. Those achieving this are working on their card department, usually with two card companies in place and on the back or a store level data-driven pocket / caption review.
I have also seen data for plenty of newsagents lies reporting a decline of 10% and more. One was as high as 30%. Typically, the stores experiencing decline have these attributes:
- One card company dominating supply.
- Orders are done by the card company without store level consultation.
- The card company has provided cash or fixtures for the business to lock them in.
- new cards are put out by a merchandiser and not staff in the store or the business owner.
- There is no card shopper loyalty program.
- Cards are only pitched in the card department.
Our channel has the best range of card captions in Australia. It’s a foundation category for each newsagency and needs to be managed as such.
If your card sales this year so far are not up more than 2% on last year, you need to take action. If they are in decline, you need to take urgent action.
I see terrific upside for card sales in our channel if we manage the category ourselves and engaged with it daily in our shops.
Inspiring Christchurch gift fair
I am grateful for the opportunity to visit the Christchurch Gift Fair last weekend. It’s the smallest gift fair I have ever attended I think. Size, however, is not a measure of a good gift fair experience.
While the fair did have some of what we at gift fairs back here in Australia, there was plenty of new product to see. I have ordered from two already and excited for the opportunities those products bring.
If I had a shop in the Christchurch area, I think I would have spent at least $15,000 on products. The locally made products were particularly interesting. I liked the food and crafts as they would support the local narrative. Since my shop is not local I focussed on what I could use to reach new shoppers back home.
Since the Christchurch gift fair was small and not overloaded with visitors it was a completely different experience here in Australia. There was more time for the stands of interest and a better connection from the vendors, in part I think to them dealing with fewer people each day.
If you can get over to one of the New Zealand Gift Fairs, I think it would be well worth it.
If you are concerned about the 3.75% wage increase, what’s your view on 5% rent increase?
There are plenty of stories in the news these past few days quoting retailers and some other business owners complaining about the 3.75% increase in award wages as determined by the Fair Work Commission.
While I understand retailers with break even or loss making businesses being unhappy at a cost increase, it’s likely these same retailers have a lease for their premises that locks in an annual increase that is higher than what the Fair Work Commission has just decided.
My point here is why contract for one guaranteed annual increase and complain about another, lower and often less consistent increase?
People are often an important asset in any retail business, at least they should be. A 3.75% increase is modest in this economy, and modest for an important asset for the business.
I suspect the cost of the 3.75% will be under $100 for most retail newsagencies. Here are some ways you can cover the cost:
- Mark-up what you sell to reflect the convenience of local shopping. Stationery, for example, should be marked-up 105% at least. The majority of newsagents mark it up 100%. Moving to 120% will not hurt sales, and you’ll make more money.
- Pitch good margin easy to purchase impulse items at the counter. These should be items not found in convenience stores or supermarkets. Include 2 of your funniest cards – but change them every week.
- Configure the front 3 metres of your shop with good margin winners. Have as little as possible of low margin (less than 50% GP) product here.
- Make your front window awesome and different every week.
- Fine a new product category you can carry, something you’d never expect to see in your shop that could attract new shoppers.
- Lead to achieve a productivity gain from mall who work in the business, including yourself.
- Work in your card department. Depending on your card supplier, there could be some easy wins here using your own business data to better manage your card supplier actions. I have seen newsagencies boost card revenue 20% by taking the action I suggest here.
This is not rocket science. In every retail business there are easy moves you can make to make that extra $100 or so. All it takes is a bit of time and focus.
Complaining and saying poor me is easy. I think it’s a waste of energy and not a reflection of being a good retailer.
Prices go up. It’s not a surprise. I think local small business retailers can be smarter in terms of how we engage with this.
If you’d like to discuss this or any suggestions I’ve made, you can reach me at mark@towersystems.com.au.
The challenge of employing school students part time
This email I received represents the challenges for retailers in giving work to school students:
My name is Joe, I am 14 years old, currently in my first semester of year nine at high school. I don’t have any past work experience, but I am very optimistic on getting a job with you! As I am a student, I can offer you minimal shifts unfortunately, but I can do afterschool shifts starting around 5, following bus routines, however I can be there around, 4 on Thursdays as school ends early. Wednesdays and Saturdays won’t work for me as I have already adopted the responsibility of playing netball, which, although takes up work time, has taught me how to work with people while under pressure, and I can make quick rational decisions. Please shoot me a response if you’d like to see my resume. Kind Regards, Joe
I have changed details to fully anonymise the email.
I love their confidence and clear communication. The challenge is the restrictions on hours. With the cost of training and limited hours availability, I think ‘Joe’ will struggle to find work.
There has been an uptick in school students seeking work this year in my experience. Looking back on email approached, it’s up more than 100%.
Bluey coin madness in the newsagency
newsXpress stores had access to the Bluey coins the released yesterday morning at 8:30am. It was crazy in-store and online thanks to terrific news coverage leading up to the release.
The coins sold out in a minute and retailers spent the rest of the day fielding questions. Some had to take their phone off the hook.
While there for sure is frustration about selling out so fast and not having enough stock to satisfy demand, there is the upside of new shopper traffic in-store and online. Plenty of this traffic flowed into other purchases, even by those who missed out on the Bluey coins.
Some of the additional purchases were for new coins releases exclusive to newsXpress. These products help drive stickiness of coin shoppers. By that I mean they’re repeat purchases back at the same shop. Coin shoppers are like that and basket data indicate they purchase other items.
newsXpress stores are now authorised retailers for the Royal Australian Mint, Perth Mint, New Zealand Mint, New Zealand Post Office and a couple of others.
In a moment in time when net new shopper traffic is vital in retail and in our channel in particular, coin shoppers are most welcome, and appreciated.
Australian Cars The Collection TV commercial
Here is a link to the TV commercial, which you can download and use to promote this new title launch: https://www.gordongotch.com.au/ggweb/Australian-Cars-The-Collection
Over the counter newspaper sales down 8% year on year
Looking at data for a selection of newsagency businesses in the city and regionally, unit sales of newspapers over the counter declines 8% in January – May 2024 compared to the same period in 2023.
While the data pool is small, the businesses have been a good indicator for years as to what is happening nationally.
It’s challenging to compare with publisher data because they don’t report audited sales the way they used to.
I mention it today to encourage newsagents to look at the data for their businesses, to calculate the gross profit value of newspapers and consider this in the context of the value of the space they occupy and the labour involved. If your newspapers are in a higher valued position in-store and the grow profit contribution is declining, move them to a less valuable location and use the freed space for higher margin products you are likely to gain a sales boost from given a better position.
Where you place product in your shop should be based on a the financial value to you. That’s why I say look at your data.
In one shop I was working with recently, they moved newspapers from prime position front of store to a lower cost location part way down the shop. There was no negative imact to newspaper sales from the move. They are making more money fro the space newspapers used to occupy.
Australian Cars The Collection set to drive traffic to Aussie newsagents
Newsagents are tagged in the TV commercial for Australian Cars The Collection, a new partwork series launching June 10. Newsagents are the exclusive retailers of this title.
I am grateful to have seen part 1 of Australian Cars The Collection. It’s a terrific product. It feels good. We already know how much car lovers like buying magazines. This new series is sure to appeal to to current car lovers, those who appreciate nostalgia, those who love collecting and people collecting for young kids.
Each issue in Australian Cars The Collection comes with an authentic 1:43 scale die-cast metal car model. The series will feature of some of the most iconic Australian cars from the 60’ to the ‘90’s.
My advice to newsagents is to display each issue of Australian Cars The Collection in prime position at the front of the shop, to leverage the considerable spend on the TV commercial, which tags newsagents. If there is room, put it at the counter. I am confident this will be a traffic driver for our channel.
And, yes, I hear the argument about the paltry margin. We have to suck it up while we do everything we can to leverage the traffic boost. If you are tempted to early return the title, my advice is don’t. Get behind it and sell out. The launch of Australian Cars The Collection is an opportunity for us to show what our channel can do. I suspect people will be watching us to see how we handle the opportunity. It’s up to all newsagents receiving the title to not let the channel down.
Use your newsagency software to offer a putaway service, to lock those early shoppers for this title into buying future issues from you. Good newsagency software makes putaways easy with the result being a personalised label for each cutaway customer. It’s the best approach to managing any partwork series as it provide you with control and the customer with a good experience.
This launch has been almost 2 years in the planning with a company in the UK and a company based in Asia that produces diecast cars for the world market. I know that the folks at Are Direct have used their own sales data to develop the allocation model for the title. This has taken considerable planning.
It’s been a long time since we have seen a partwork launch like this. Many newsagents in the channel today would not have experienced it before. That’s one reason I am writing this post – to share that this is a good opportunity. The TV commercial alone tagging newsagents is an opportunity for us to leverage. It should land people in your shop who are not regulars. This is the opportunity.
We should use our socials to talk about the launch, leverage the front of the store as I have already noted and ensured that everyone in the business is aware of the launch and the broader opportunity for the business.
If you are one of the 1,800+ newsagents using the Tower Systems newsagency software, please click here to access to knowledge base articles on managing cutaways.
Retail transformation: newsXpress Mount Waverley
newsXpress Mount Waverley is a corporate store, it’s one of our own shops where we experiment with tech and retail. It’s a shop we run on a tight budget.
In this video, Anthony from our newsXpress head office and Mark Fletcher our CEO discuss the transformation of the Mount Waverley business from 2018 to today. We also cover how this business spawned a second business, and online business, that outgrew the shop, and how it’s just launched its second online business – www.hugsandlove.com.au.
While the business identifies as a newsagency, it’s far removed from what Aussies consider to be a newsagency. It’s a gift shop, a haven for collectors and a place to shop for young kids.
This video shows how to go about changing a local high street shop on a small budget and the importance of being flexible to pivot when the world presents opportunities.
I am grateful for the opportunity to take you behind the scenes of one of our corporate stores, to show the value we harvest from being a POS software company that owns and runs retail businesses.
After slashing their margin and years of poor treatment, Nine Media expects WA newsagents to promote their digital subscriptions
Nine Media provided this to newsagents in Western Australia, asking them to display it in store. If I received it, I’d bin, or make it into a dart board.
Their treatment of newsagents have been appalling.
Newsagency transformation (part 3): completely change the first 3 metres
The first 3 metres of your shop from the front windows and door in represent your headline.
If you want to transform your newsagency and have people see your business as changed, change this space, dramatically, completely. Leave nothing as it was.
It’s this first 3 metres people will see and decide the type of shop you have. This is where you get to play against expectations, it is where you have to disrupt. Don’t give them what they expect.
Products, fixtures – they are all up for grabs in terms of the changes you bring.
If your counter is located in this space, it needs the same dramatic attention.
I think the best way to do this is one day when the shops is closed, take everything away from the first 3 metres, remove it so you have a blank slate. Set a rule for yourself that you cannot put back into the space anything that was there. It will be difficult. You’ll have the urge to put oe thing back into the space, then another. Resist this urge.
What you really want from the experience is for customers to tell you there are surprised to see you stock something you always have stocked but that they only notice now because of what you have done in the first 3 metres of the shop.
Here are four principles for making the first 3 metres of your shop work:
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Declutter and Create a Visual Feast: As you place new products, keep the entrance free from clutter. Make it visually appealing. Try and not use traditional retail fixtures. Use clean lines, captivating displays, and well-maintained fixtures.
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Sensory Experience: Consider incorporating subtle elements that engage other senses. Play upbeat music at the front of the shop – music people will know, showcase beautifully scented products, let people smell your type of business and enjoy it.
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Storytelling Through Displays: Don’t just display products, tell a story. Create thematic displays that showcase how your products can be used or benefit the customer. Don’t have too many of an item in a display. Show less quantity but more range of products – to tell that story you want.
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Interactive Elements: Make it easy for people to engage with what you sell, to touch and smell. Having products on display in a box of so old school. Take products out. Encourage touching and engaging.
The first 3 metres of the shop is the most valuable retail real estate in the shop if you make good use of it. Be in charge. Set the tone. Make a statement. Keep changing it. Show that yours is a transforming business.
Newsagency transformation (part 2): if your data sucks and want an easier way to start
If you know you need / want to transform your newsagency and your business data is not in good shape, there are steps you can take on the shop floor to drive change in the business.
In my experience, businesses often in this situation often have a traditional shop floor layout.
The advice I provide below is all about disrupting what you have as I have found this can help retailers see what they could see. It’s radical and rough, designed to seriously change things up in the business.
It is important to know that whatever you do is forever. Make these moves, watch, learn and adjust. Shops needs to be continuously evolving.
First: the old newspaper and magazine unit
If you have a traditional magazine fixture running down the business of the business with newspapers on the front facing shoppers and they enter the business: take all the stock off and rip it out. Don’t overthink it, rip it out.
This is prime retail space you should be using for products with 50% gross profit and more. Giving this space to products from which you make 25% GP and less is a bad business move.
Rip the whole unit out.
Now, using low cost basic everyday shelving, put your magazines on the back wall of the shop. What ever was in that spot needs to go somewhere else.
Basic strip shelving with brackets that hold the shelves will suffice.
Put your newspapers below, on a bottom flat shelf.
If you’ve ben putting out newspaper or magazine posters, stop. They do not increase sales.
Second: fill the freed up space.
Grab a couple of old tables, or some old wooden boxes. Create display places on the shop floor and on each tell a product category story. Bring products to this part of the shop that people might otherwise not have seen.
If you don’t have tables, look at a local op. shop, in your garage or somewhere like Amart. Spend as little as possible.
Resist using spinners here in this recovered space.
Choose products you are proud to offer.
Be sure to include products you are certain would not work for your customers – it’s important you do this to figure out what you don’t know about your customers.
Be prepared to change the displays within a week if they are not working for you.
Three: watch what happens.
The moves may be a bust. It’s okay if they are, make more changes and keep doing so until you see a good result.
You may see some early success. If you do, lean into that, do more.
If your business is that traditional that it has an old magazine and newspaper unit running down the middle of the shop, I suspect you will experience good news for that’s what I have seen in every business I have seen try it.
Have fun.
One newsagent I know who made these moves hosted a Saturday afternoon sausage sizzle so people would watch as they used a chain saw to exorcise the old magazine unit from the shop.
The key point of this first move is to disrupt your view of the business. Sure, the shop floor will be disrupted. You need to be disrupted more and that’s why you need to do something radical that you are likely to want to resist. The suggested changes could do more for you personally than the business itself.