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

Author: Mark Fletcher

What data do you get when you buy a business? What data should you leave when you sell a business?

A retailer I know sold their business and scrubbed all historic data prior to settlement, leaving the incoming owner with no ability to make product purchases based on past sales, no ability to run the business to meet the expectations gained from reviewing the previous owner’s performance prior to agreeing to the purchase price.

They took legal action, questioning representations made to them prior to the purchase.

Since the data had been deleted at the source, the previous owner had now evidence to support their case.

Eventually, the dispute was resolved by the previous owner paying compensation to the purchaser. This followed a threat to report the matter to the ATO. Knowing a bit about the matter, I can understand why a settlement payment was quickly offered.

My advice is that you use only accurate data to represent the performance of the business in the lead up to the sale and that you leave the data there for the purchaser. 

There is nothing to fear from truth.

This is all on my mind today because of a new matter that looks like it may make its way to the courts. Deleting data can make you look guilty. If you do think you have a good reason for deleting data prior to settlement, talk to the purchaser and get their approval in writing.

Beyond the legal ramifications, deleting historical business data erode trust, a cornerstone of any successful transaction. The incoming owner, deprived of essential historical insights, is left to navigate the business blind, potentially jeopardising its future and the value they invested. This scenario underscores the critical importance of transparency and ethical conduct in business sales; what might seem like a quick fix by deleting data can lead to costly legal battles and a damaged reputation, far outweighing any perceived benefit of withholding information.

This is about a fundamental ethical obligation to provide the buyer with the necessary tools and information to succeed, especially when the purchase price is based on historical performance.

And to be honest, I can’t think of any legitimate reason for deleting historical sales data.

This advice from me will be uncomfortable for some. It shouldn’t be though. As I have noted: There is nothing to fear from truth.

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Ethics

Poor reporting from A Current Affair on newsagency closure

The team at A Current Affair did a hatchet job on the Aussie newsagency channel with their story about the closure of the Elenora Heights Newsagency. This is an ignorant and emotive story that has potential to harm thousands of good newsagency businesses.

Just as ABC News did last year, The A Current Affair team have failed to adequately research the story about the state of the Aussie newsagency business. And they have the audacity to bring in some bloke to talk about TikTok shop. Just stupid!

Looking at the details in the A Current Affair footage, this business in Elenora Heights looks like it has not kept up with the times. Even allowing for the fact that they are running down stock, the shop looks like a newsagency from the 1990s, when that type of business started to fade.

Smart newsagents started transforming their businesses 20 years ago. Moving into gifts, homewares, toys and more – attracting new shoppers and selling products at margins four and five times more than newspapers.

Plenty of Australian newsagencies are thriving!

This story about a newsagency closing may not about anything other than poor business decisions. A dive into the business data and their decision-making would confirm this, or not. Journalists would do this research and let the truth of the evidence speak through the story rather thaan the oemtional drivel they peddled on A Current Affair.

As I have written here many times and in emails sent to all newsagents, I’ll help (for free) any newsagent keen to work on transitioning their business from relying on legacy product categories to attracting new shoppers through product categories not common to our channel and in pursuit of growing overall business grows profit and thereby offering insulation to the disruption of change.

I know of newsagencies right around Australia that are thriving, growing. These businesses are not selling last-minute gifts. Some are selling fashion items for $300 apiece and more. Others are selling $500 homewares items. Some are doing $80,000 a year in the best coffee in town. Some are achieving 33% of revenue online selling to people interstate and overseas. Some are selling over $100,000 a year in collectibles.

I know of regional newsagencies doing $250,000 a year in gifts and more, achieving far more in gross profit each year than newspapers and magazines ever delivered combined.

A typical newsagency today should be making less than 10% of their turnover from print media products, 30% of revenue from lottery commission and 60% from gifts, homewares, books, toys and more. That is, 60% of revenue from items delivering 50% and more gross profit.

The difference between this type of transformed newsagency business and the traditional newsagency is decisions made by the business owners.

You can’t blame the decline in print for newsagencies closing. Newsagents make a paltry margin from print products. It’s disrespectful, and embarrassing how little we make. A business closing because of this is a business rooted in the past.

Smart newsagents started transforming their businesses 20 years ago. Moving into gifts, homewares, toys and more – attracting new shoppers and selling products at margins four and five times more than newspapers.

This is the story A Current Affair should be covering, a story of a channel navigating extraordinary change with plenty of local retailers, local newsagents, evolving their businesses to be relevant, vibrate and valuable. I know of newsagents doing $500K a year on online sales. I know of newsagencies growing in-store sales 20% a year and more.

While news outlets and suppliers consider newsagents a channel, newsagents are not a channel and have not been for many years. You can’t go into a newsagency expecting they will have what you want if your expectation is rooted in decades ago.

I don’t think the shingle matters. What matters is what shoppers feel when they enter a retail businesses. If they step into a shop that nurtures a feeling of comfort and happiness and offers them a treasure hunt retail experience they will tell others, and they will come back. The shingle above the door is irrelevant.

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newsagency of the future

newsXpress retailers pitched in full page ad in The Australian Women’s Weekly today

Today in The Australian Women’s Weekly you can see the first of a series of ads and media coverage supporting newsXpress retailers and their release in exclusive partnership with The Royal Australian Mint a coin program honouring The Australian Women’s Weekly Birthday Cake Book.  The QR code takes you to the newsXpress website where stockists are listed.

This is good news for the newsagency channel and, especially, newsXpress retailers. It will drive net new traffic in-store, increase sales and honour a beloved

While the coins release on June 12, the teaser campaign starts today. What is planned between now and June 12 is comprehensive, big. What is planned for June 12 and the weeks after is even bigger.

I’ve owned newsagencies since February 1996 and been actively engaged with the channel since 1981. I cannot think of any other campaign supporting newsagents that has the scale of this launch and the opportunity of the products themselves.

I am grateful to The Royal Australian Mint and Are Media for the opportunity and their support over the last two years bringing this to life.

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Newsagency opportunities

Mother’s Day 2025 is over, what’s next? What are you working on today?

Mother’s Day 2025 is done and it’s four months to the next traditional season for newsagents and other retailers. Now, this four months can be filled with the every day, or you can fill it with actions designed to attract new shoppers. If you know me you know I’m pitching the latter: make your own success through actions designed to attract new shoppers. Start today, now.

Set your goals. Know what you want from the next four months in terms of revenue or other measurement points. Develop this with everyone who works in the business. Leverage their feedback.

Declutter. Get rid of all inventory items not selling. Items not selling are wasting your time, space and money. Decluttering is also good for your soul. And while you are decluttering, spend good time on cleaning up the counter. Everything there on your side and the customer side needs to have a vital role, needs to add value to the business. 90% of counters I see in newsagencies are awful.

Create events. Decide on a series of events to bring shoppers in. They should be fun and unexpected by your regular shoppers. Build them around a new product category or at least a category for which you are not well known.

Reset. Change the front third of your shop to look different, so much so that people notice it and comment on it.

Play outside the boundaries. Using a modest amount of capital and a small amount of shop floor space, bring in a product category you’ve never stocked before.

Get advice. Ask someone you trust to take a look at your business, for them to give you their warts and all view.

Change your social media approach. If you are like many small business retailers it’s likely your social media messaging is same same. Change it up. Take a 90 degree turn. Give people fresh content.

If you’re not online, get online. Like this is urgent. There are Australian newsagents doing hundreds of thousands of dollars in sales online.

What happens in and for your business over the next four months is entirely up to you. What you want by the time you reach Father’s Day is new customers shopping with you, insights learned, people loving shopping with you and more money in the bank. The success of the next four months is yours to make.

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Newsagency management

A reminder: we are not our customers

A week ago we were offered access to a limited-mintage coin being struck reflecting on Pope Francis: Pope Francis Welcome Home 2025 Canada 1oz Silver $5 Coloured Coin. The image depicts him meeting Saint Peter in heaven. I cringed when I saw it and dismissed buying stock for a second. Then, I thought I’m not that customer but others may be. Now, $5,000 in sales on, I am glad I was able to access this now rare product.

We did this as a pre-sale, meaning the entire shipment has been paid for weeks prior to the stock arriving from Europe.

The success here comes down to a few things that any newsagent can do:

  1. Being online. This means you can sell to anyone anywhere.
  2. Not shopping as if you are your customer. Let your customers show you what’s possible.
  3. Having a previous customer database to leverage.
  4. Backing your instincts.
  5. Risking little. Our initial order was for 5 to test. They sold in seconds and we immediately ordered more.
  6. Stepping outside. Outside your usual, outside the expectations of the shingle.

The financial commitment was modest, the risk small. The $5,000 revenue result speaks to the value.

I think it’s vital we play outside what has been traditional for our channel as it is through this that we find new shoppers, and new shoppers are key to a brighter future for our businesses.

I have one more point of this: speed to market. The folks creating this coin have done so at speed and this is key to success here. We are in a moment in the world and in retail especially where speed is vital. This is speed in project concept thoriugh to manufacture as well as speed at decision making,. With only 200 of these coins to be minted worldwide we needed to make a quick decision.

Oh, and a footnote. What I have discovered is that plenty of coin shoppers are traditional newsagency shoppers, and those who are not are loyal once they have found you.

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Newsagency opportunities

The central billing difference between newsagency marketing groups

Some newsagency marketing / franchise groups operate central billing. The thing is, none of these central billing programs are the same. I can only speak for the newsXpress program as I am a direct or of that business.

Before I get into it though, while newsXpress is a private company, it has never distributed a profit to shareholders. Earnings are retailed and reinvested for members, like the $350,000 a year in seasonal in-store prized pack promotions and our soon to launch June national media campaign.

newsXpress created its central billing program in response to supplier requests. They were tired of late payment and failed payment.

newsXpress guarantees payments to suppliers, on time. Suppliers love this. They can bank on the results.

This unique approach by newsXpress to central billing is one reason the group offers so many suppliers who are not traditional suppliers to our channel.

Supplier businesses are businesses. Late payment costs money. Collection costs money. Being paid late damages the relationship.

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Ethics

Are we ready for magazines to be delivered on only one day of the week?

Single day delivery of magazines around Australia is closer than ever with a trial now underway in Melbourne. I think this is a good move, it makes sense for newsagents and for shoppers.

For newsagents, it saves time. We can roster more efficiently. For shoppers we have seen changes in how and when people shop magazines. The on sale day for weeklies and monthlies is not as important as a few years ago.

With special interest titles being of most value to those in our channel who do focus on magazines, the on sale day is of no relevance.

Back to the trial, Are Direct shared this information. I share it here as it explains well the background to the latest trial in Victoria and the objective:

Background:

  • Complex legacy supply chain generally on 2 set days with delivery overnight.
  • Magazine distribution continues to be challenged with overall product volumes decreasing 10% per year.
  • Delivery transportation costs continue to rise above inflation – ongoing focus to create sustainable distribution platform, reduce costs and deliver simplification for all stakeholders with move to single weekly delivery
  • With changing shopping habits and magazine content becoming less time sensitive, we are seeing consumers responding differently and with that national on-sale dates are less critical.
  • WA stores operate with main magazine delivery received Tuesday, 1 day after Eastern Seaboard.
  • NT stores operate with magazine deliveries received via SA up to 4 days after current national on-sale.
  • Some FNQ stores deliveries receive deliveries 2 days after current national on-sale.
  • Major weather events (Cyclone Alfred) that have delayed delivery into a state have seen no real sales variance to national as customers change buying behaviour.

Objective:

  • Stay customer focused and ensure we communicate changes clearly to protect sales. We will send posters for newsagents so they can communicate the magazine delivery change to their regular customers.
  • Create a sustainable long-term distribution network with weekly daytime deliveries.
  • Deliver simplicity for newsagents in focusing category labour (stock on/off show) to one delivery day vs two.
  • Have capability to access proof of delivery – helping to close out any problem deliveries that arise from time to time.
  • Explore other major newsagent suppliers for distribution synergies ie cards, stationery etc.
  • Plan and implement staged roll out of weekly deliveries through other areas/states through 2025.

As I noted at the outset of this post, I support this move, it makes sense. I think newsagents will benefit.

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magazines

What does the federal election result mean for local small business retailers in Australia?

Stability. Aussies like stability. I think that was a factor in how Aussies voted this federal election. The nuclear discussion was disruptive nationally. The shrinking of the public service was factor in the ACT and the, early in the campaign, call to end working from home signalled disruption in plenty of local retail settings.

Take the work from home topic. While it got some media traction, it is not play as a big news issue. However, in local shopping strips it was an issue. People working from home like it, they prefer it. Local retailers serving this more valuable local economic activity like it too. There is no doubt in our channel that there are newsagents who benefit today from folks working from home is ways they did not experience pre-Covid.

One of the most immediate topics we will see play out is the matter of payments (EFTPOS) fees and surcharges. The Reserve Bank considerations are well advanced. As recently as a month ago Assistant RBA Governor Brad Jones  speaking in Sydney said the task of looking at surcharges was complicated by blended rates. Debit card users were subsidising credit cards.

“We are looking very hard at how we get wholesale costs down,” Jones said. “If we can get wholesale costs down, the need for merchants to surcharge diminishes.

“We cannot pull one lever here and not expect it to have consequences throughout the ecosystem, so we are really trying to think holistically to make sure the outcome we arrive at strikes the right balance.”

Small business retailers, including newsagents, are well represented in discussions about and lobbying in relation to the issue of surcharging and payments fees. The Independents Payment Forum is working hard on this for us. I know because I am a Director of newsXpress and newsXpress is a member of the forum and a financial support. Also representing our channel as a member of the IPF is ALNA.

ALNA and newsXpress are supporting the work of the Independent Payments Forum because they are on the side of local small retail businesses on this vital to us topic.

What politicians deliver for us in local retail depends in part on how well we put our case. This is why having a professional, structured and well-resourced approach on matters like surcharges matters. We can each back this national activity by making contact with our local new members of parliament, regardless of whether you voted for them. send them a note – a card from your shop would be ideal, especially if it is Australian made – congratulate them. Then, a month letter, send them another note gently noting what matters to you and your community.

Now is the time to establish a link with your local politician. Each local contact works to personalising the decisions they get to make.\back to the question at the start of this post. I hope the election result means a strong a stable economy that gives Aussies confidence to shop locally.

I have asked this question, What does the federal election result mean for local small business retailers in Australia?, rather than asking what it means for newsagents as the local retail cohort is more relevant I think than looking at a considerably smaller newsagent cohort.

Our focus, in our own local shops, has to be to create and support an engaging retail experience people love so much that they tell their friends, and to embrace ways to bring that experience to others regardless of where they live.

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Newsagency management

Front page story on the transformation newsXpress Newstead

Congratulations to Ravi for the fresh and fun shopping experience he and the crew are bringing to newsXpress Newstead in Tasmania. A good news story about a newsagency business on the front page of the local daily newspaper is good news for our channel. This is from The Launceston Examiner yesterday.

This is a newsXpress business, the second for Ravi. And, as many here would know, I am a Director of newsXpress. newsXpress helps its members transform their businesses, to make them enjoyable and profitable.

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newsagency of the future

Decoding retail surcharges: what your payment fee says about your business

A payments surcharge in retail businesses is an indicator of how well the business is run and how much it genuinely cares for its customers. In my opinion.

At a local market here in Melbourne yesterday morning across 10 different butchers and fishmongers there were 8 different surcharge percentages ranging from 1% to 1.75%.

Most had a sign saying they were passing on the cost to their business. The businesses are similar in size and would, I expect, have similar capacity for negotiating with their payments provider.

To me, the surcharge percentage is a way to compare businesses. I switched an $85.00 meat purchase from one charging 1.65% surcharge to the next one along who was charging 1%. The meat I purchased was the same price per kilo in each shop, the same noted quality: hormone free, grass fed etc.

While the actual saving was only a few cents, I felt my point was worth making through my purchase decision.

All of us who own retail businesses get make choices about our cost base. Our payments provider choice is a public-facing indication of our ability to negotiate for the benefit of our customers.

I see a high surcharge (above 1%) as disinterest by the retailer in their customers, laziness even. Some providers make this pitch today: go with us and it will cost you noting since the customer is surcharged the full cost. This is the model most likely to result in a surcharge of 1.65% or higher. It’s an easy decision, one you do not have to manage.

The alternative is to shop around. Right now there are payments platforms offering small business retailers blended rates as low as .7%. Given terminal costs, you could surcharge at .85% (maybe even 1%), cover your costs and present as a more engaged and customer-caring retailer.

For all the talk at the moment about cost of living, we retailers can help our customers save money by accessing the best payments rates possible and thereby keeping the surcharge ‘tax’ applied to our customers as low as possible.

Retailers with a lower surcharge nurture trust with their customers whereas retailers with high surcharges can foster resentment and lead customers to question the value of shopping the business. In an environment where consumers are increasingly conscious of every dollar, a low and transparent surcharge can be a valuable differentiator, signalling a business that prioritises fairness and customer satisfaction over maximising profit at every transaction.

So yes, I think a payments surcharge is a reasonable comparison point when comparing retail businesses. It suits me because my own shops have a low % surcharge. Customers appreciate it.

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Newsagency management

INVITATION: 2 nights FREE at the Intercontinental hotel in Adelaide: 2025 national conference for newsagents

newsXpress is hosting its national conference in Adelaide in May.

Sunday May 18, in the afternoon is drinks and networking. Monday is all about strategic insights any newsagent can use. Tuesday is about how to make money online from anywhere and on a budget – how to attract new shoppers you;ll never see in your shop.

Newsagents are invited to the 2025 national newsagency conference in Adelaide Sunday May 18 – Tuesday May 20. newsXpress offers  two free nights (Sunday and Monday) at the Intercontinental, breakfast, a dinner on the Monday night, full conference access and lunch on Monday and Tuesday – all FREE. Limited sport are available.

Join newsagents and some switched-on suppliers, some of whom do not usually supply newsagents, to talk business.

Valuable takeaways for you:

  • How to attract new shoppers.
  • Proven ways to get shoppers to buy more.
  • How to add $120,000 in the next 12 months in online revenue.
  • How to get the best price when selling your newsagency.

I’d love to welcome you.

please email help@newsxpress.com.au. We have limited spaces available for non newsXpress newsagents.

If you are travelling from interstate, we have a very limited pool of $500 flight reimbursement opportunities for newsagents who qualify.

I’d be happy to answer any questions: mark@newsxpress.com.au

I am a director of newsXpress Pty Ltd

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newsagency of the future

The impacts of Trump’s tarrifs on small Aussie retailers

Trump’s tariffs are already impacting Australian retailers selling into the US market. The proposed removal of the $800 ‘de minimis’ threshold on May 2, which until now has allowed duty-free shipments up to $800 in value, will increase costs and compliance burdens, for smaller these shipments.

Foreign companies, now less competitive in the US, will likely divert their goods to markets like Australia, intensifying competition for local businesses.

The supply chain is also experiencing significant disruption. Manufacturers and shipping companies are adjusting their operations to absorb the tariff’s economic impact. This is leading to price increases in markets without tariffs, effectively subsidising prices in those newly affected. This price shift is a concern.

There is one other possible impact I want to raise – that of suppliers increasing prices under the cover of tariff noise. I have suspicions about a couple of suppliers in the Australian marketplace doing this.

Beyond direct impacts, the flip flop approach from the US over the last three months and fed uncertainty. This makes planning difficult for small businesses. We’re already seeing this uncertainty reflected in supplier decisions, leading to less predictable product availability.

It’s crucial that businesses assess the potential impacts of these fluctuating US policies on their supply chains and revenue. We must consider the risk of a US, Australian, or global recession and engage proactive mitigation strategies. Acting now is essential; waiting until the impact is fully realised may be too late.

Historically, businesses that thrive during recessions and economic instability are those that planned and acted before the crisis hit.

While many small business retailers will dismiss these concerns, I don’t think it is smart to do so. I know of three suppliers who have increased prices in Australia citing the US disruption as the cause. Given Trump’s initial actions, it’s reasonable to expect bigger negative economic consequences for many, driven by decisions that primarily benefit a select few.

In this moment it’s vital we build resilience and adaptability into our local small retail business models. This means diversifying supply chains, exploring new markets and new products, and strengthening financial reserves. Those who prioritise proactive planning and strategic flexibility will be best positioned to navigate the inevitable economic shifts ahead.

If you are in local small business retail, now might be a good time to step outside what has been traditional for your business, to find new customers through new products and services. Broadening your base will make your business stronger.

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Newsagency management

Cash Out Day is a puerile stunt and here’s why

Following someone can be fun, and feel fulfilling, like you belong to something. The thing is though, feeling fulfilled is different to actually making a difference.

While Cash Out Day may make you feel like you are doing something on the day, unless you actively engage with using cash all year round the day is nothing more than a childish feel good stunt.

If you want cash to have a bright future, use it. That’s all that is needed. Use cash.

Stunts like Cash Out Day are good for social media and people chasing clicks, but not much else. I’ve not seen any evidence of Cash Out Day making any real difference.

Go to a shop, pay with cash. That’s the best action you can take. Withdrawing from an ATM on a specific day is 100% a stunt.

Imagine if everyone who withdraws money from the ATM on Cash Out Day spends a bit of cash every couple of days for a year in local shops. Now that would drive a big difference and have a big impact, far more so than withdrawing cash from bank ATMs.

I hope we more beyond the superficiality of a designated day and embrace the practical power of consistent action.

The future of cash doesn’t hinge on a single, fleeting event designed for social media buzz. Instead, it lies in the hands of individuals making conscious choices to use physical currency in their everyday transactions, supporting local economies and demonstrating a genuine, ongoing commitment. This sustained effort, multiplied across communities, holds the true potential for impact, far outweighing the temporary satisfaction of a symbolic gesture.

If cash matters to you, as a retailer you can do your bit by supporting cash at every opportunity. This can include educating people about the use of cash all year round and not playing follow the leader with a Cash Out Day pitch.

Ultimately, the true power to sustain cash lies in everyday use. By actively encouraging and facilitating cash transactions year-round, we can play a vital role in fostering this habit, making a tangible difference that extends far beyond the ephemeral buzz of a single day.

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Social responsibility

If you think closing your newsagency business is your only option, this is for you…

Sometimes, the path ahead in your business can seem overwhelmingly obstructed, the air thick with uncertainty, making it difficult to see a clear way forward.

I have seen it myself in business, in my own business.

The situation can seem helpless. You can feel exhausted. You can want it over.

If this is you, there are plenty in the newsagency channel and nearby who can help. Call someone. Tell them about your situation. You’re welcome to call me – 0418 321 338. Talking to someone can help provide clarity and ease the burden, even if all they do is listen to you.

My advice is to not walk through this alone.

Before I get into this I have a note to share about why I am posting this today, on Good Friday. In my experience, breaks like Easter and Christmas are when some reflect on their businesses and fall into worry about the state of the business and, sometimes, personal circumstances.

…

If you are at a point where closing your newsagency feels like the only viable option, please take a moment to read this. It’s an updated message I’ve shared before, and I’m sharing it again today because of a situation recently where someone had made the decision to quit.

If you genuinely believe that closing your doors is your only recourse, I urge you to seek a second opinion. Myself, and many others within our newsagency community, are willing to offer this perspective, based on your business data: your sales figures, Profit & Loss statements, and other relevant information.

Often, the evidence within your data holds hidden opportunities. The challenge is that these opportunities can become obscured by the overwhelming “noise” of perceived obstacles and the fog of uncertainty.

My sincere hope is that within your business’s data, there lies sufficient opportunity to identify a path forward, both for the business itself and for you personally.

Turning a situation away from “closing is my only option” can only be achieved through one or a combination of the following strategies:

  • Attracting new shoppers.
  • Encouraging existing shoppers to purchase more.
  • Increasing profitability on some of your current sales.
  • Reducing your operating costs.

When you see it written down, it seems quite straightforward. The real difficulty lies in the execution – that’s where many retailers can feel stuck. Attracting new customers, in particular, can be challenging for small businesses with limited resources.

The most effective way to bring in new shoppers is often by introducing new product categories and actively promoting these outside of your physical shop.

I understand that finding the energy and the funds to invest in new products when you’re struggling can feel like a huge hurdle. However, if the survival of your business is paramount, you will find a way.

The most successful approach to getting your existing customers to spend more is by implementing a well-designed loyalty program and cultivating a shop environment that people genuinely enjoy being in.

To increase the profitability of your sales, you’ll need to either charge more for your products or secure better purchasing terms, or ideally, a combination of both. Don’t aim for drastic price hikes; even a modest increase in your gross profit percentage can make a significant difference.

While pursuing these revenue-generating strategies, you also need to actively work on reducing your costs. This is a common tactic when trying to save a business. While cost-cutting can certainly help, in my experience, it’s rarely enough on its own to turn things around. It can be a valuable part of the overall strategy, but it’s seldom the sole solution.

A crucial element for any successful turnaround is to start addressing the issues early, before the fog of problems and the debris of challenges completely block your path. It’s vital for all of us who own businesses to be looking ahead, over the horizon, and cultivating assets that we can deploy when we anticipate the need for change.

If you genuinely believe that closing your newsagency is your only remaining option, please reach out. There are many of us within the newsagency channel who are willing to listen and offer advice if you’d like it.

Remember, you are not alone in this.

Mark Fletcher mark@towersystems.com.au mark@newsxpress.com.au https://www.linkedin.com/in/mark-fletcher-tower/

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Newsagency management

Illegal tobacco and the newsagency channel

If you are aware of a newsagent selling illegal tobacco, report them.

Yes, it’s as black and white as that.

Any newsagent selling illegal tobacco damages the reputation of the channel, even for the majority of newsagents in our channel who do not sell tobacco.

Whether we like it or not, our shingle binds us. This is why I think we need to call out bad behaviour, like selling illegal tobacco.

With more newsagents getting back into tobacco, unfortunately, this is an issue we need to confront. The best way in my opinion is to report those we know to be selling illegal tobacco. The more they are fined the better.

You can report it to the ATO: https://www.ato.gov.au/about-ato/tax-avoidance/the-fight-against-tax-crime/our-focus/illicit-tobacco The Australian Criminal Intelligence Commission also has a hotline: https://www.acic.gov.au/contact/report-crime

If you know someone involved in importing illegal tobacco, report it here: https://www.abf.gov.au/about-us/what-we-do/borderwatch

I’ve done some searching by state / territory and here are links for reporting illegal tobacco sales:

VIC: https://www.health.vic.gov.au/tobacco-reform/making-a-report-or-complaint-tobacco-reform

NSW: https://www.health.nsw.gov.au/tobacco/Pages/let-us-know-reports-complaints.aspx

QLD: https://www.health.qld.gov.au/public-health/topics/tobacco-laws/penalties/reporting-a-possible-breach-of-smoking-laws

SA: https://www.sa.gov.au/topics/business-and-trade/licensing/tobacco/report-unlicensed-tobacco-supply

TAS: https://www.health.tas.gov.au/health-topics/smoking/selling-smoking-products/contact-us

NT: https://crimestoppersnt.com.au/ or https://pfes.nt.gov.au/reportonline

ACT: This was too hard to find.

I have heard plenty of newsagents complain about illegal tobacco recently. The question I have when I hear it is what have you done about it? Complaining to colleagues and friends does nothing. Making a formal complaint to the authorities is good action.

My advice is that you complain to your state / territory authority as well as to the ATO and to the Australian Criminal Intelligence Commission. Hitting multiple bases makes sense.

Beyond the immediate reputational damage to our channel, the sale of illegal tobacco also undermines public health efforts and fuels organised crime. By failing to report these activities, we inadvertently become complicit in a shadow economy that disregards regulations designed to protect our communities.

Taking action is about safeguarding our businesses and our channel; it’s about upholding ethical standards and contributing to a safer, more responsible retail environment for everyone.

Ultimately, reporting illegal tobacco sales is an act of self-preservation for the legitimate newsagency channel and a responsible contribution to the wider community.

If you are a newsagent selling illegal tobacco I hope you are reported and fined to the full extent of the law.

27 likes
Ethics

Advice on making Saturdays valuable again in local retail

It’s true, the retail landscape has shifted, Saturdays in retail are not what they used to be. Part of that is on us as retailers, we have let the day fade in significance and value. Maybe it is time to invest in Saturdays to make them more valuable.

The advice I share is general. What you do in your business will vary based on your local situation. The key is to make shopping at your newsagency on a Saturday a more engaging and rewarding experience. Here are some ideas to spark your creativity:

Think Fun & Engagement:

  • Be Energised. This starts with the entire Saturday crew being on board. Make it clear that the goal is that Saturdays in the shop are different. Your communication is key on this.
  • Host Monthly Brand Parties: Turn your shop into a mini-celebration! Choose fun-related brands you stock and host a themed “party” each month. Think product demos, special offers, and a lively atmosphere.
  • Nurture Local Clubs: Connect with local groups that align with your product range. Could you host a monthly knitters’ club if you sell craft supplies, or a jigsaw puzzle club if that’s a popular item? This fosters community and brings in regular Saturday visitors.
  • “New Arrivals Saturday”: Position Saturdays as the day for discovering fresh stock. Make a bit of theatre out of unpacking new products, creating excitement and anticipation.
  • Saturday Playtime: Make your shop interactive! Offer product samples to try, set up demonstration areas where customers can “play” with items, and create a lighthearted atmosphere.

Offer Value & Incentives:

  • Saturday Cake Treat: Partner with a local bakery to offer a free slice of cake at a specific time each Saturday. It’s a simple yet effective way to draw people in and create a positive association with your shop.
  • Saturday Bonus Draws: If you run a lottery second-chance draw, make the draw on a Saturday and offer an extra prize for winners who are in-store at the time. This incentivises Saturday visits.
  • Saturday Showcase: Make Saturdays a day for significant visual changes. Implement noticeable new displays to create a sense of novelty and encourage customers to browse.
  • “Saturday Savers” Promotions: Introduce special deals and discounts specifically for Saturdays, branded as “Saturday Savers” or something similar to create a sense of urgency and value.

Figure out from your newsagency software your average Saturday turnover. Put it somewhere your creew can see it. This becomes a target to pass.

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Management tip

Why a better discount offered by a card company may not make your newsagency as much money compared to going to a company that does not offer as good a discount

Beware any card company trying to win your business by offering a better discount, especially if the discount is above what is common for your size card account.

The best card  suppliers for your retail business are those producing cards that sell easily: cards that existing customers will buy, cards through which you can attract new shoppers and cards recipients love, and tell their friends about.

By trying to entice you with a big discount, the card company representative probably knows they don’t have the best cards and are pulling the only lever they can: the discount lever.

Discounting by suppliers in a competitive space is lazy and, in my experience, not financially good retailers.

Winning your business with a bigger discount and providing stock that does not perform as well as another company holds you back, it results in you making less money.

I bought a newsagency business three years ago that had a single national card company supplier. The shop was doing around $100,000 a year in card sales. We replaced the one card supplier with two different suppliers and sales jumped 45%. While the discount from the two new suppliers was less than the incumbent supplier, we easily made more money.

A newsagent I was helping had for years had one supplier. They were looking at changing. The incumbent supplier offered a bigger discount and sold them on increasing their card space. fast forward eighteen months and card revenue is the same it was before the move. The card company has more stock in the business and the newsagent is only banking more profit because of a couple of extra points in discount. Indeed, the newsagent is worse off in real terms because there is no growth in unit sales.

A newsagent who purchased their business two years pressured several card companies for their best price. The company that won the account is the company that offered the biggest discount. There was no consideration of product. Card sales in this shop have not kept up with average growth in our channel.

When considering the best card suppliers for your shop be sure about your goal. Hopefully, the goal is to achieve the best return on space and capital possible, to achieve the best gross profit contribution. The most important contributor to gross profit contribution from card sales is card sales volume, not the discount percentage.

Beware any card company trying to win your business by offering a better discount. This is a lazy sales tactic designed to take your attention away from what really matters to you” stocking your business with cards that actually sell.

Footnote: In the Tower Systems newsagency software we make it easy for retailers to compare suppliers in a common product segment. This empowers local small business retailers to advocate for their businesses based on evidence.

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Greeting Cards

Takeaways from Shoptalk 2025: AI in retail, Waymo driverless cars and local small retail vs. big business

I’m grateful for the invitation from Shoptalk for myself and a newsXpress colleague, Anthony, to attend Shoptalk 2025 in Las Vegas a week ago. Here is a video of us discussing some takeaways from the conference and trade show.

Whether you’re a retailer, a tech enthusiast, or just curious about where shopping is headed, this video offers a glimpse into the future. It highlights the importance of personalisation, the rise of AI, and the enduring need for unique, engaging customer experiences in an ever-changing landscape.

What you’ll discover:

  • The Buzz Around Personalisation: Learn how brands are using personalised merchandise, like hats, jewellry, and bags, to create engaging experience.
  • TikTok’s Unique Approach: See how TikTok created a standout, personal experience for attendees amidst the trade show buzz.
  • AI’s Growing Role: Explore the impact of Artificial Intelligence on retail, from personalised ads to tools that help small businesses analyse data and even generate blog posts. Is AI a disruption? The video delves into this question. Side note: it was great to realise that what Tower Systems offers in terms of Ai tools in its newsagency software is well advanced in this space.
  • Rethinking the Retail Environment: Discover how simple changes, like rearranging a supermarket’s biscuit aisle, can significantly impact sales and why constant change is key for small retailers.
  • Beyond the Trade Show: Hear about unique experiences like Martha Stewart’s tranquil Las Vegas restaurant and the surprisingly reliable Waymo driverless cars, connecting these to growing trust in AI.
  • The Power of Experience: Get inspired by a visit to a unique garden centre offering live music and local vendors, reinforcing the importance of creating fun, memorable customer journeys.

I appreciate not everyone can get time away from their business to learn and reflect. I am grateful to be able to do this. While the video does not get into some very cool competitive-edge learnings, we did try and provide actionable value for those who watch it.

Shoptalk is a crazy event: around 10,000 retail and tech/retail attendees and 900+ suppliers. There were conference sessions, one-on-one meetings, trade show presentations and plenty more. Being invited by Shoptalk made the event low cost for us. This did not dilute the value we are extracting from it though. Already there are some retail changes we have made.

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Newsagency management

Haigh’s wins sales with free tastings

Everyone shopping at a Haigh’s chocolate shop is offered a free tasting. They have done it for years and continue to offer it I am sure because it works.

I was at the Haigh’s in Hawthorn near the office Friday last week to pick up a gift. They offered me a piece of broken Easter egg chocolate and, sure enough, I bought several Easter eggs. In fact, I bought all my Easter gifts.

I went in intent on purchasing one product, a non-Easter product and walked out with seven products.

For sure at some point I was going to purchase Easter chocolates, not last Friday though. The free shop floor tasting offered me at Haigh’s brought forward the purchase decision and won business for them as I may have purchased elsewhere. A simple shop floor tasting changed my intended behaviour on Friday.

Yes, offering free product tastings is well-known as good shop floor engagement. Experiencing it as I did was a more powerful reminder of the value that being told to do it. Thinking about it further, the Haigh’s approach reinforces the importance of consistency. They are known for offering sample tastings at the counter – though that was not what got me shopping there. I visited Friday because I knew they would have the gift I wanted to buy. Again, the tasting is what turned a simple visit into something far more valuable for them.

Haigh’s are good about it too, generous.  I think that is important. Their generosity nurtures generosity among shoppers.

In person shopping is experiential. If we don’t leverage experience opportunities why should people visit you compared to another shop, or online?

If you sell products people can eat, be sure to offer free samples and tastings.

If you offer products with a scent, be sure to make it easy for people to smell the products.

If you offer products where the feel or touch is important, ensure people can touch the products.

Do these things consistently and with an unquestioning generosity of spirit.

If you have a Haigh’s shop nearby and have not been in for a while, go visit in the lead up to Easter. Experience for yourself the basics they get right that make theirs an excellent business to learn from. It’s inspiring.

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Management tip

How AI in your POS system can help your retail business

AI in retail doesn’t have to be complicated! I got together with two experienced retailers (Michael, Luke) yesterday to demystify AI in POS systems.

Watch our video to see practical, real-life examples of how these tools are helping businesses like yours save time and increase profitability. Essential viewing for small business owners!

While we discuss Tower Systems AI, the business advice is valuable for everyone.

Now, for an actual demonstration of the AI tools in the Tower newsagency software:

The chatter around Artificial Intelligence (AI) can be overwhelming, with a constant stream of news and social media buzz. However, beyond the hype, a genuine shift is underway as businesses embrace AI to streamline operations and enhance decision-making. For local small business retailers, smart AI technology, when combined with accurate data and insightful prompts, can be a valuable ally.

Tower Systems has integrated AI into our Point of Sale (POS) solutions. It’s the first in newsagency software to do this. Indeed, the company released its first embedded Ai tools in mid 2022. These AI-enabled tools offer practical assistance in various aspects of retail management.

I am grateful to so many of Tower customers who are accompanying the company on this path. Their in-store feedback from lived experience using the Tower AI enabled POS software is helping Tower better serve their needs.

The Tower AI POS software empowers retailers to optimise their online presence by generating compelling product names and Search Engine Optimisation (SEO) ready descriptions. Furthermore, it simplifies administrative tasks by effortlessly converting PDF supplier invoices into import-ready electronic formats. Retailers can also leverage AI for price comparison, identifying opportunities to improve profitability and stay competitive.

For any local small retail business, AI is crucial for both in-store and online success. Tower Systems is here to provide you with the necessary software tools. When assessing other POS solutions, it’s essential to verify AI capabilities firsthand, as marketing claims may not always align with reality.

This is a must-watch for local newsagents considering how AI can benefit your operations.

How we conduct business has changed forever. These videos are designed to show real world examples of tech on which you can rely.

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newsagency of the future

Strong sales in March 2025 in the newsagency compared to March 2024

In 0ur suburban Melbourne newsagency, March 2025 was a good month, up on 2024 and some terrific results for previously challenged categories.

But first, some context: this is a high street shop in Malvern, Victoria. It does not sell lotteries, candy at the counter, tobacco or any convenience lines. When I bought the business three years ago it was traditional, without gifts, toys or anything outside of papers, magazines, cards, stationery and transport tickets.

Overall sales in March 2025 over 2024 were up 2%. Gift revenue is up 100%. Toy revenue is up 70%.

Here are the surprises: magazine unit sales (we never compare revenue) were up 4% (2,569 magazines sold in the month) and newspaper unit sales were only down 3% (a third of the national trend) to 2,937 units sold. These results are despite us further educing magazine space and placing newspapers in a lower cost space further into the business.

The high value growth in the business is coming from good margin products achieving more than 50% gross profit. This is what I like to see in a transitioning newsagency, a shift in gross profit contribution from low GP categories into high GP categories.

In the business a conscious decision has been made to focus on toys. The close to $4,000 in toy revenue in the month shows this focus paying off.

I am writing this at 6:25am on Tuesday April 1. We have now reviewed March and made some decisions for April and beyond. The analysis time was under ten minutes and decisions quickly flowed from that. I mention this to remind folks here that there is little to be gained from overthinking decisions you make about your shop.

The focus is simple, do more of what is working and less of what is not working. As soon as something that is working shows that it is not working, retreat. Oh, and always have ideas ready for when space and capital are available to make a new move.

I need to mention stationery. Sales were down 20%, by $1,500.  What we have found in this business over the last three years is that stationery revenue is unpredictable. Of I do a 3 or 6 month year-on-year comparison, it’s up nicely. Then, as we saw in March, there are odd months in which we see a drop. In this situation we take a quick deeper look at stationery. What hurt us in March is that we completely moved the location of stationery. The move cost sales. In the latter part of the month we see the move paying off.

In this moment in time where news outlets and commentators are yelling about the cost of living and talking down retail and focussing on store closures, there are businesses doing well. 2% growth in March is good for our small business. I’d note that for this analysis I am only looking at in-store purchases and not online.

I know from others I have talked with there is plenty of good news in Aussie newsagency businesses.

Take a look at your March 2025 sales versus 2024. Look for opportunities. I am sure there will be plenty.  For reference, the report I used for the above data is the Monthly Sales Comparison Report in the Tower Systems newsagency software.

If I can help, please reach out: 0418 321 338 or mark@newsxpress.com.au.

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Newsagency management

Local retail done well: The Potting Shed by Carlisle

I was in orange County, California, a few days ago and happened see The Potting Shed by Carlisle. I’d never heard of the shop before and was drawn. It looked appealing. Anyway, I soon found myself in an excellent local retail business.

Takeaways for newsagents from what I saw are: playing outside your shingle is a smart move, upcycling everyday items for product placement and display is smart, not collecting all products from a category in one space is good and working with local makers to provide tastings and viewings reinforces your localness.

While The Potting Shed by Carlisle is a garden centre, it is a type of local retail business that any newsagency could evolve into. Visiting was a reminder that we should not restrict ourselves by what people assume about our ‘type’ of business.

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retail
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