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

Author: Mark Fletcher

Newspaper sales collapse for some titles in March

March quarter newspaper circulation numbers are out this morning and they show sales in fee fall for some titles. The Age, The Sydney Morning, The Sun-Herald, The Australian Financial Review (Saturday) all reported double digit declines in circulation. Click here for the full numbers as published by B&T.

While reporting declines for most titles but nowhere near the same extent as the Fairfax reported declines, News Limited would have to be happy with the numbers reported, especially for South Australia where thanks to the migration project the company has more control than ever on home delivery circulation. The challenge here for newsagents is the reduction in real-terms of revenue from newspaper home delivery.

Overall, the sales declines are a sobering reminder for newsagents that newspapers lack upside and many instead continue to deliver a sales decline despite continuing investment in marketing.

I wish the a breakdown between retail and home delivery sales.

A question for newsagents: what’s your plan for a newsagency without newspapers? This is at the heart of my Newsagency of the Future discussion.

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Newsagency management

More information on the PMP takeover offer

A couple of media outlets yesterday reported on the PMP (parent company of magazine distributor Gordon and Gotch) takeover offer. The reports offered on a little more than we know already. here is the key additional information from Business Spectator:

PMP still hasn’t told us who is responsible for the $253 million takeover proposal that it informed us about almost two weeks ago. The Australian Financial Review believes that it’s a Brisbane-based, family-owned company that’s behind the conditional, non-binding proposal, which is being backed by US private equity.

On Gotch, it seems the company is looking at its operations and processes following recent staff losses. Hopefully this leads to a more equitable magazine distribution model for newsagents.

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Uncategorized

Products newsagents own: learn to drive books

Newsagency businesses own many products which we do not treat any differently to those products which other retailers sell. These products we own, products which we almost have alone, present us with several opportunities.

We can price these products based on a scarcity of competition. We can use the certain traffic generated to sell other items. we can promote our businesses as the go to places for these items.

Road rules books are a good example of the products I am talking about here. They are a product people know newsagents carry. They would know that asking someone in a newsagency about one of these would be far easier than navigating any other retailer.

So, we need to know about all products like the road rules books. We need to embrace the opportunities in terms of sales, margin and allied sales we can achieve. We can do this by:

  • Checking our prices for these items.
  • Looking at product adjacencies.
  • promoting the products to remind shoppers that we sell these products.

We bemoan that newsagencies have no products unique to the channel while there is a small coup of products which, in the minds of shoppers, are exclusive to us.

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Newsagency opportunities

It’s the simple Mother’s Day gifts which sell

We are finding that it is the simple Mother’s Day gifts, like the Best Mum sign as shown in the photo, which is selling best this Mother’s Day.

Talking with a male shopper earlier this week, he said he liked the Best Mum sign because the message was simple and would let him mum know what he thought every day.

It’s not something I would buy but I am not my customer. It seems that butterflies are in right now.

Mother’s Day 2012 is working a treat for us. Sales are up on 2011, up more than customer traffic. This is an indicator of improved basket depth. We’re happy with that. The next couple of days are set to drive the year on year growth we are achieving for Mother’s Day cards as well as Mother’s Day gifts.

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Gifts

Free cookbook detracts from Delicious magazine cover

The free cookbook which comes with the latest issue of Delicious magazine obscures the cover shot of a delicious pasta dish.

Free mini cookbooks as bonus gifts appear too frequently with magazines now to have the value they once had. This is why I question the covering of Delicious in this way. Will the free cookbook drive enough of a sales increase? I doubt it.

While I am no magazine publisher I wonder why publishers invest in these gifts when investing in a better base product should drive more consistent business. Maybe there is something I don’t get about publishing and driving consumer demand. I know publishers I speak with say that free gifts drive sales. Maybe so but do all these bonus cookbooks work today as they used to?

Show me a compelling cover any day. That’s my retailer perspective.

My rant aside, we are supporting this issue of Delicious with good full cover showing placement.

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magazines

Speaking at the GNS sales conference

I had an opportunity to speak at the GNS national sales conference at Cypress Lakes in the Hunter Valley yesterday. My presentation was a variation on my recent Newsagency of the Future presentation.

That GNS would find time in the conference agenda for its national sales team to consider the challenges and opportunities facing newsagents is terrific.

The stationery department in a newsagency is one over which newsagents have complete control yet which they rarely seize the opportunity to exert that control. The result is often a poorly focused stationery offer which does not make the most of the opportunities newsagents have available to them.

For example, newsagents tend to hang on to under-performing stock for too long because they want to ensure they can serve even infrequent shopper needs. However, they do not price stationery for this slower turn long shelf life product.

Australian considers think newsagents are expensive when it comes to stationery. Most of us aren’t as we compete price-wise against most of the majors. However, if shoppers think we are expensive regardless why not increase our prices? Given perception we won’t lose sales.

I urge newsagents to read a blog post I published on June 20 last year. In The Stationery Challenge for Newsagents I listed twelve actions newsagents could take to get on the front foot for stationery and to own this department.

Every day newsagents do not act on stationery in their businesses is another day lost for the business, newsagent-owned GNS and stationery suppliers … oh, and your customers.

GNS is working to help newsagents and the conference this week is helping to refocus the energies of the sales team and the entire company.

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Newsagency management

Diabetic themed magazine opportunity for newsagents

Newsagents should consider placing the new mini Women’s Weekly cookbook from ACP, Diabetic Recipes, next to Diabetic Living from Pacific Magazines. The two work well together given the common topic. Price-wise it’s an easy purchase for shoppers to purchase both.

We have the placement in the photo in our women’s health section. I’d like us to try it elsewhere but space is a challenge right now with Mother’s Day and several other promotions running. Maybe next week as this is a timeless placement.

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magazines

Free gifts with Marie Claire magazine sure to drive sales

We are promoting the latest issue of Marie Claire magazine with this placement at the entrance to our main women’s magazines aisle.

The free hair magazine and the TRESemme hair product are nice gifts and are sure to drive interest. This is why it’s important shoppers can see the gifts without having to lift the product out of traditional magazine filtering.

Another reason for promoting the magazine is the coverage. Last night on Australia’s Got Talent on the seven network they gave the magazine an excellent plug thanks to Dannii Minogue being on the cover. I’d expect people to be looking for Marie Claire in-store today.

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magazines

Promoting Dolly magazine to our One Direction shoppers

We are promoting the latest issue of Dolly magazine in its regular location in-store as well as this column-based location which is adjacent to the counter.

We wanted to promote Dolly to shoppers as they enter … especially so that One Direction fans who purchase one of our One Direction titles from the front of the newsagency. Hopefully they will browse Dolly and pick the title up. Leveraging this 1D traffic is crucial.

The free make-up kit is a nice premium gift and is sure to appeal to the Dolly crowd. This is another reason for making the magazine easy to see and shop.

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magazines

A change from some shopping centre landlords

I have noticed a change in lease terms being offered to newsagents in shopping centres by some landlords. A couple of landlords who were being inflexible on rent are now offering at a more competitive rate. Their approach suggests to me that they better understand the typical newsagency operation and have now factored this into their lease pricing model for our type of business.

This change, if it is more than a one or two off, would be a good news indicator for newsagents and would-be newsagents.

The other change I have noticed is that landlords are more interested than ever in what a tenant will bring to the centre in terms of retail offer and new traffic. They are listening to and considering this. They are starting to discern a difference between the various newsagency banner groups as well as the difference between a newsagency unbranded and one being part of a group.

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retail leases

Newsagents – get behind this new magazine

International Traveller magazine launches today. This is from the people behind Australian Traveller magazine.

I urge newsagents to NOT early return International Traveller. Billing of newsagents will be delayed by three months. There is no financial reason for newsagents to early return this title.

Plus the launch issue has a margin of 30%.

The publisher asks three things of newsagents:

  1. Scan the magazines editorial and see the quality and practicality of the editorial
  2. Recommend the title to their customers who they think may be interested ort have never considered buying a travel magazine because they see them correctly as inaccessible or biased (compromised)
  3. Place the title in the first week of on sale in a prominent area of their store

The growth in travel is outbound by a huge margin. This magazine appeals to that growth sector. Tourism Australia’s own numbers show that outbound travel is growing at just under 10% per annum and is forecast to continue at this rate for some time.

International Traveller is filled with real practical editorial, inspiration and entertainment for the target readers women 33 to 55.

I love that the publisher pays their way when travelling for reviews. This is important and delivered more objective editorial.

I urge newsagents to get behind the launch issue of International Traveller.

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magazines

Tapping into buzz for Prometheus

The buzz for Prometheus is the new Ridley Scott film is tremendous so it made sense to us to give the latest issue of Empire magazine time in the spotlight with this placement with our men’s magazines.

This spotlight placement is in addition to placement with our entertainment titles.

I love this simple and free-standing display because it makes the magazine the hero and it does so by separating it from the traditional magazine shelving.

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magazines

Better Homes and Gardens magazine as a Mother’s Day gift

We have repositioned our floor unit promoting Better Homes and Gardens in the lead up to Mother’s Day. We know form past years that is a popular magazine as a Mother’s Day gift. Our placement of Better Homes and Gardens at the front of the newsagency facing shoppers coming in from one of our entrance aisles is sure to drive purchases.

We also have the magazine in its usual location as well as with newspapers.

These floor units are terrific in that they can be easily relocated. Further, they are strong and withstand the challenges of being situated in a newsagency with high foot traffic. The units are something Pacific Magazines does well.

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magazines

Excellent cover for Time magazine

I love the cover of this latest issue of Time magazine. Visually it is very strong. It’s also right on topic with stories these past few weeks out of China. We can’t seem to lift sales for the title out where we are. We don’t have enough traffic for news magazines. That said, we are supporting this issue of Time with placement with newspapers as well as full cover display in the usual location.

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magazines

Attention newsagent suppliers: Today is not a day for chasing newsagents

Newsagent suppliers need to take care in contacting newsagents today for those who sell lottery products will want every resource in their businesses focussed on selling tickets in tonight’s $70 million OzLotto jackpot. Where there are some newsagents who do not sell lottery products many do. They need respect from suppliers so they can make the most of today’s opportunity.

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Newsagency management

New Girlfriend magazine One Direction Aussie Tour special

The Girlfriend magazine One Direction Aussie Tour special has been out one day and is already selling well. Clearly One Direction fans knew it would be out as they came to the shop from school with pocket money ready to go. The youngest customer I saw would have been seven or eight. Amazing.

We have One Direction Aussie Tour at the front of the newsagency, on the lease line. This is to attract shoppers to our newsagency. We also have a waterfall next to Girlfriend magazine in its usual location plus a pocket located with our weekly magazines.

We have ordered up big with this title and so stock is not an issue right now. We are making sure that our customers know this, so they tell their friends.

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magazines

ACP cookbooks make for a good Mother’s Day gift

We have filled our ACP basket builder unit with a selection from the current range of ACP cookbooks and placed this with our range of Hallmark Mother’s Day cards.

Even as the display was being put in place we sold a cookbook. “Oh perfect” said the shopper as they grabbed one of the cookbooks to go with the card being purchased. This is exactly what we setup the display to achieve … easy impulse purchases from Mother’s day card shoppers.

I’d urge other newsagents to do this if they have not done it already.

 

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Gifts

Mother’s Day initiative drives sales

The initiative by the team at one of my newsagencies to decorate one of the Hallmark Blooming Expressions flower pots has worked with sales of the post and crayons. A very nice sale across two product categories.

Giving this Hallmark product a seasonal focus makes it more easily understood. That we can sell the crayons with which to personalise the gift is a bonus.

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Gifts

Putting Country Style titles together

We have taken care to place the two Country Style titles currently on there shelves together. One is the usual Country Style title and the other is a special issue on gardens and might reasonably be placed in the garden section. We figured that we are more like to sell the garden title by placing it with the parent magazine – hence our placement decision. It’s working for us as we have now ordered more stock.

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magazines

Respecting confidentiality

Thanks to the high profile of this blog, my work with newsagency software company Tower Systems and my work with newsagency marketing group newsXpress, plenty of information is shared with me on a confidential basis both formally and informally. I appreciate the insights I am given and the opportunity to discuss these with those sharing the information.

I don’t publish that which I am asked to keep confidential – even and especially where to publish some confidential information would be commercially advantageous. To do so would be unethical.

I mention this today because I want my position on confidentiality on the record for today and in the future.

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Ethics

Do you know your competitor in stationery?

I was talking with a newsagent last week about stationery and in the conversation asked about their competitors. They said they had none as they were in a country town and were the only business selling stationery. I suggested they look at the Staples website.

Click on the image to see the home page in some detail.  I urge you to go to the site and check it out.

While it is very early days for the Staples brand in Australia, they are already making their presence felt. They are the most serious competitor in the stationery space for newsagents because they are usually ignored by newsagents. Newsagents would ignore them at their own peril.

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Stationery

Can Gina Rinehart sell magazines?

Gina Rinehart’s image owns the cover opt the latest issue of The Monthly magazine. She’s been in the news plenty over the last year so recognition should be high. I like the look of the cover … it’s a strong image and sits well against other magazine covers which are more colourful.  We have been promoting The Monthly in the usual location as well as with a placement next to newspapers. It is  title which needs extra promotion as sales can be considerably affected by the cover. hence my question: Can Gina Rinehart sell magazines?

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magazines

Being aware of what’s hot helps us sell magazines

We can’t just put magazines out in their usual locations and expect to achieve growth. Average behaviour delivers average results. If we consider ourselves to be magazine specialists we need to act like magazine specialists. This means we need to be aware of what’s hot and to react to magazine covers with stories about hot topics and hot people.

Take the latest issue of OK! magazine, out last Friday. The cover features a story involving Joel Madden, one of the stars of the runaway hit TV show The Voice. This story alone could be enough to get someone who does not usually purchase OK! to purchase this issue. This is what we have to chase, sales from people who are not our regular customers for a title. This is where growth comes from.

We have this issue of OK! is a couple of high-traffic locations. We’re ahead on sales … we’ve achieve growth from the tactical placement.

If you’re not a TV watcher or all that up with popular culture how can you be aware of opportunities. You have to find a way – either by becoming more aware yourself or replying on employees and even customers to make you aware of opportunities.

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magazines

Stuck-on ad too heavy for newspaper front page

The ad for Dick Smith stuck to the front cover of the Sunday Herald Sun yesterday was too heavy, causing covers to tear. The photo shows the tear on one copy of the newspaper, the top of the bundle. the tear starts at where the stuck-on ad is stuck. This ad is different as it is triple the usual thickness of these types of ads.

Outside of the thicker ad, I wonder how the AFL feels about football editorial being covered up by an ad. It demeans the newspaper in my view as regulars here would know.

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newspaper masthead desecration
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