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

Author: Mark Fletcher

Christmas books at Christmas

christmas_cards_gifts.JPGWe have a selection of Christmas themed books mixed in with our boxed Christmas cards.  from the fun to religious, these books are part of our Christmas book sale.  As covered in the previous blog post, we have books in different locations in the store depending on the interest represented.  We figured the Christmas books will go better in our Christmas department.

Books are great this time of the year, especially when customers bring in the catalogue with the books they want circled.

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Book retailing

Books at Christmas gifts – easy sales, good margin

copier_books.JPGThe team at my newsXpress Forest Hill store continues to move stock around to create a fresh shopping experience.  While this is a challenge with the store full of Christmas stock, they find time and ways to achieve this.  The tables around our copier no longer promote diaries.  Now, they promote Children’s books which are part of our Christmas catalogue.

The books are very popular and have been sourced at a good margin and on good terms.  Christmas is a great season for selling books, especially in our demographic where grandparents want to give a gift they like and which does not involve batteries.

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Book retailing

When magazine gifts are the same

magazine_gifts.JPGMagazine publishers use gifts (tip-ons they are called) from time to time to drive sales.  Unfortunately, there are two women’s health titles on the newsagent shelves at the moment with the same gift – Oxygen and Health & Fitness.  In each case, however, the gift is not evident until the magazine is lifted from the shelf.  They should have found a way for the gift to promote the title without it being picked up.  Detail like this is important if you want to drive above average growth.

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magazines

Since when are maths books magazines?

fhn_network_learning.JPGNetwork Services sent us these kids maths books this morning.  We don’t want them because we already have kids maths books from which we achieve a 50%+ margin.  The stock we already have is part of a bigger retail story.  These two titles from Network are not part of a bigger story.  They have no place in our newsagency and are therefore being returned.  This is the second example of disrespect of the newsagency channel by Network.  This is my money being sucked up on non magazine product by a magazine distributor.  This must stop if we are to make the magazine department viable.

Network wonders why newsagents early return product.  Sometimes, they early return a successful title in a knee-jerk reaction to receiving stock like we did today which has no place in our shop.

I don’t care if network has data showing I will sell these titles.  I have this niche well covered with better margin product which I choose to stock.

Newsagents need more product in their stores which they choose to stock.

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magazine distribution

Newsagents ripped off with travel pads

fhn_network_travel_pads.JPGNetwork Services this morning sent our stock of the Pirates Travel Pad and the Princess Travel Pad.  I don’t want these products.  I have similar products which I choose to stock and from which I earn 50% margin.  Why would I want copycat product for a 25% margin – and with a three months onsale?  This product should never have made it to newsagencies.  I am early returning mine but still have to waste time and money on this.  And magazine distributors wonder why newsagents get angry.  While I am sure there will be reasons (excuses) for newsagents being supplied this product they will not wash.  These are not magazines.  They should not have got through any reasonable assessment for access to our channel.

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magazine distribution

Small publishers ponder a direct relationship with newsagents

The question independent small publishers most often ask is what alternative do they have to the current magazine distribution model in Australia.  The reasons they give for wanting an alternative are:

  • A disconnect between them and their retail partners (newsagents).
  • Untimely sales data – they can wait months.
  • Cash flow challenges – i.e. when they get paid.
  • Fees – the various fees they pay for distribution and returns.
  • Product mix – where their products fit compared to others distributed by their magazine distributor.

It is interesting comparing their concerns with concerns often voiced by newsagents.  Newsagents and independent publishers could work more closely together.  There are some titles which would work well outside the traditional sale or return model as long as we establish appropriate processes between publishers and newsagents for their respective businesses to work.  This is why I have been meeting with independent publishers recently.

Publishers and newsagents make money from retail sales.  Magazine distributors do not make money from retail sales.  there are some titles where a direct publisher / newsagent relationship would benefit both sides far more than the tri-way relationship we have today.

We are moving closer to a publisher offering to supply newsagents direct.  I am all for this and would gladly participate in a well organised and managed trial.

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magazine distribution

Co-location strategy for AWW drives sales

fhn_aww_back_basil_dec09.JPGThe photo shows our use of the back of the ACP Magazines basket builder stand to promote Australian Women’s Weekly to shoppers as they leave the women’s magazine aisle.  This is the third location promoting AWW – the others are at the front of the shop and the with our weekly magazines. In many newsagencies, the back of the basket builder stand is dead space.  We have found it to be a most useful merchandising position even when we move the stand around.

All of this effort around AWW is paying off with good sales which, of course, is why we put in the effort and give up prime space.  The first week is when most sales are made.  Next week, we will pull back but still keep the title in the spotlight.

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magazines

Chelsea Lately and reinventing Australian newsagencies

chelsea_lately_australia1.jpgI was fortunate to be in the audience at Fox Television Studios in Sydney last night for the taping of Chelsea Lately, a hit US late night talk show. Star Chelsea Handler, and a team of comedians, writers and producers have been in Sydney for a week taping shows.  Last night’s was the last for this Australian trip.

Watching the show being produced was a hoot, an absolute guilty pleasure.  Yes, I am a fan, my photo with her is a trophy I’ll keep.

After the show I shared a cab back to the city with someone who had just been interviewed on a Sky Business Channel program and we got talking about newsagents, the challenges of print media – especially newspapers, competition, Australia Post and the economy.  It was a fascinating discussion with a business analyst who can look at the channel without the emotional and other overheads we often bring to a discussion about our future.  It reinforced the importance of us reinventing ourselves.

On the flight back to Melbourne I found myself thinking about Chelsea Lately taping and the discussion in the cab afterwards.

Chelsea Handler and her team have created a new and very successful genre of TV show out of the decades old tonight show format. Their reinvention has found a new audience while also bringing along some of the older audience for the ride.  We need to do the same thing.  We need to reinvent our model to find new customers while bringing older customers with us. We need to create a retail experience which is relevant to today’s audience.

While some newsagents and marketing groups are doing this, not enough of our channel is engaged.  Newsagents who do the same in 2010 that has been done in their businesses for decades will miss opportunities.  There is a new audience out there and we need to evolve our offer to find them. We start this by being business people and not acting as superannuation guardians.

Chelsea Handler takes risks with her show.  We should do the same with our newsagencies.  In among these risks lie ideas which will bring great success.

The Chelsea Lately show is on E! Network on Foxtel at 10:30pm weeknights.

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Newsagency opportunities

Is the ANF to announce a deal with Corporate Express?

I have heard from several sources over the last few weeks that the ANF is close to announcing a partnership relationship with Corporate Express – the company now owned by Staples, the US stationery retailer with 1,500 outlets. While I am certain that the ANF has been in negotiation with Corporate Express, I am not aware of how far they have got.

Newsagents own Group Newsagency Supplies (GNS) and the majority of Australian newsagents purchase their stationery from GNS. I would have thought that a closer relationship between the ANF and GNS would be good for the newsagency channel rather than working with a competitor.

While nothing has been announced, I’d expect to see Staples stores in Australia soon.  The model and brand is too strong in the US for it not to be tried here.  This would put Staples (Corporate Express) in direct shopfront competition with newsagents.  Maybe this is where the ANF discussions have got to.  I hope not.  If non marketing group newsagents are to sub-brand stationery they should do this working with GNS.

It will be interesting to see if an ANF / Corporate Express deal is announced and, if so, what form it takes.

I’d note that I am not in the ANF communications loop so they may have announced something in the last 24 hours of which I am not aware.

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Newsagency challenges

Dueling bathroom and kitchen titles

fhn_kitchbath_nov2509.JPGThe two kitchen and bathroom magazines in the photo look similar. Price is a key differentiator.  Melbourne Kitchen & Bathroom Design at $6.95 is a better price deal than Kitchens & Bathrooms Annual (Victorian Edition) at $9.95. The other differentiator is that Melbourne Kitchen & Bathroom Design is published by a Victorian  publisher. Our hope is that customers will buy both titles – this is why we have them next to each other.

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magazines

Double facing for Australian Women’s Weekly

fhn_aww_nov2509.JPGWe have given the Australian Women’s Weekly a double facing for the first week of the on-sale.  This gives the free bag with the magazine a better opportunity of driving sales from this regular location for the title.It also allows us to fit two titles per pocket.

We do this for magazine issues with a free gift which folds out in the same way.  It works better than hiding the gift.

We have AWW is three locations: in its usual spot (as per the photo), at the front of the shop and on a display for shoppers to see as the leave our women’s aisle.

early indications are that this issue of AWW will sell well for us.

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magazines

Too many the Picture titles?

picture_magazines.JPGI understand the strategy of brand extension but do wonder whether ACP magazines has taken it too far with picture magazine. We have three additional the Picture branded packs – on top of the regular weekly title. The latest Picture extension which went on sale yesterday was supplied in almost the same quantity as the main title. Besides challenges for sales, these extra titles are demanding space we do not have. To make space, given that we cannot early return ACP titles, we have had to cut titles from lower profile publishers.

I know some folks at ACP will be disappointed that I have published this blog post.  I’d ask them to take a look at the issue, consider the space, cash-flow and other challenges with three brand extensions in an already full segment.  They should ask if they would be happy if it was their space, labour and cash involved.  I’d be happy to take anyone through the numbers.

The key frustration is lack of control.  I cannot choose to be in or out not only with ACP brand extensions but with titles from from other publishers too.  I’d like more respect for my space, more control.  I’d like to choose whether to participate in brand extensions.  This would help me make decisions which could lead to sales elsewhere.

ACP has many excellent brand extensions which I often blog about here. Picture extensions are frustrating because of my low sales and space challenges in the segment.

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magazines

Lost sales for Burke’s Backyard

Our Burke’s Backyard stock went missing in transit and when we called Network Services early Monday morning we were told that they were out of stock. I pulled some strings and got a commitment for replacement stock. This was due to arrive yesterday. Hopefully it will turn up on Friday.

My frustration is that Burke’s sells well for us early in the on-sale. Not having stock is costing us business. Had I not pulled strings we would have lost the business this month. Our regulars would have had reason to try somewhere else.

I am not sure who is responsible for the last of floor stock to address shortages but someone needs to address this. There are shortages of every title somewhere in the system. Magazine distributors need to better handle these if they want the newsagency channel to remain their preferred retain channel.

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magazine distribution

Promoting Australian Women’s Weekly Christmas issue

dsc00457.JPGThe Christmas issue of the Australian Women’s Weekly went on sale this morning.  We are promoting the title in three locations including the front of store display shown in the photo.  The tote bag, while a gift done to death this year on other titles, has been well packaged with the title to make it look special.

Kudos to ACP for sending spare bags for use in displays.  This kind of detail in the VM pack is helpful.

I expect this issue of AWW to sell well.  The cover looks stunning.  By promoting in three locations we are chasing sales from passers-by, regulars and shoppers of other titles.

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magazines

The problem with some imported magazines

late_halloween_magazine.JPGThe Halloween magazine sent to newsagents today by Gordon and Gotch has arrived a month too late.  Their system ought to have stopped this $15.50 title being sent to newsagents.  I could have sold this title had it been supplied in August or September.  November 25 is way too late.  This is 2009, surely there is smart technology to stop this happening!

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magazines

News Corp moves on online contact gain traction

The position put by News Corp a couple of weeks ago that it may pull access to its content from search engines like Google is gaining traction.  Read what Robert MacMillan has published overnight at his MediaFile blog at Reuters.  He has moved from being a skeptic to seeing possible sense in the idea.

The debate is fascinating as newspapers struggle to find ways to monetise content online as they have done in print with classified advertising.  Once they achieve this and can deliver content through a game changing device line the iPod was for music, the scale tips for online and away from the more expensive print.

The debate is even more interesting as Australian newsagents contemplate what the future of newspapers may be for them.

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Media disruption

Top Christmas stationery items for 2009

Check out Staples’ Top Christmas Products list for 2009.  It provides an excellent insight into the US stationery market throught Staples and their 1,500 retail outlets.  Staples owns Corporate express Australia.

The list is about trusted brands, technology products and products for busy families.  While many of the items would work here, most are not among those we will promote in newsagencies this Christmas.

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Newsagency opportunities

The front of the newsagency

fhn_zones.JPGThe photo shows the offer across the front of our newsagency. Customers enter between the zones: boxed Christmas cards, calendars and Darrell Lea Christmas candy. We move categories around but always present the offers in a defined space and right at the entrance. The result of attention to this part of the newsagency is that sales of these categories so far this year for the season are up on last year.

While I am sure that there are far more attractive displays out there, we have found that our approach works well for us. The keys are: daily refresh, moving stock and having a good range in each of the categories.

Two of the three categories at the front of our newsagency are the best margin products we sell.

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Newsagency opportunities

Cookbook holders popular

fhn_acp_cookholder.JPGThe free cookbook holders provided by ACP Magazines to drive sales of their cookbooks are working well. We have noticed a sales lift. Unlike some gift offers with magazines, customers want these – they bring them to the counter with their cookbook. The offer is well timed since we have a number of new ACP cookbooks in stock.  I like the offer since it sits with the magazines on the shelves and passively (and successfully) pitches the sale.

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magazines

Oz Lotto hits $30 million

Oz Lotto did not go off tonight meaning that it hits $30 million next week.  This is great news.  The $30 million jackpot will drive extra traffic for newsagencies and better sales from regular traffic.  This jackpot is happening at a good time in the Christmas sales cycle.  It gives us an excellent opportunity to get good margin business: calendars, boxed Christmas cards, end of school year gifts, graduation gifts, diaries as well as more regular products such as magazines, newspapers and stationery.

We plan to make the most of the opportunity, promoting the $30 million prize and placing carefully considered impulse items in the area of our lottery counters.

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Lotteries

Newsagents put their customers first

The decisions of good newsagents reflect of their community – in terms or customer service, range and visual merchandising. It is visual merchandising which has been on my mind this weekend.

Comments I have published here about not pushing some titles because of concerns for my customers have led to a couple of calls telling me that it is a privilege to sell certain products and that I must honour this by promoting the titles as I am told.

I can’t do every display how and where I am told for to do this would upset my customers.

My customers come first.

This means no feature display if the title being promoted relies on breasts on the cover to attract interest. I’ll display it somewhere, just not where every customer sees the display.

Publishers and visual merchandising representatives need to understand that our customers come first. This commitment is good for us and our suppliers.
If we do as told, and promote titles which may not speak to our customers, we risk turning people away and no one benefits from that.

I wish newsagents were served by more suppliers who trusted us to make good business decisions for our businesses and the businesses of our suppliers. Treating us like robots is disrespectful of us and our customers.  Thankfully, not all suppliers do this.

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Newsagency challenges

Promoting Men’s Health with newspapers

fhn_menshealth_nov09.JPGWe are pitching the latest issue of Men’s Health next to our newspapers having discovered last month that it works well for us in this location.  We’re using the side of a Duracell battery stand for the posters.  Magazines are an easier impulse purchase with newspapers than batteries – well, the right magazines at least. Men’s Health is that it is a title which would not usually be given front of store space.  My goal is to educate customers to look for it regularly in our shop.

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magazines

Refreshing the Twilight new moon display

fhn_acp_nov2309.JPGWe refreshed our Twilight new moon themed display yesterday by adding TV Week into the mix this week.  The free unauthorised calendar free with the latest issue makes it eligible.  We should sell out of Dolly, also in the display, by the end this week (we will have achieved excellent growth on our usual sales) meaning it will be time to move on from new moon for the moment.  Twilight is proving to be an amazing franchise for retailers – I am glad we have had an opportunity to participate not only through magazines but also with calendars, the board game and other merchandise.

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magazines

Famous at the counter

fhn_famous_nov23.JPGWe are pitching Famous magazine in primt position between our two busiest sales points this week for two key reasons: it is achieving excellent sales growth and this week has a good value giveaway.  The audited sales growth reported a couple of weeks ago was excellent.  It certainly responds well to in-store promotions.  We will leave this display up until Wednesday by which time we’d expect to have moved almost all stock.

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magazines