Magazine sales are down across the newsagency channel since the start of the year yet magazine distributors are yet to adjust supply except for major publisher titles with tightly managed print runs. Given that we are twelve weeks into 2009, I would have thought that the distributors would have had sufficient sales data with which to adjust allocations.
My concern is for titles outside the top 200, titles which, in most newsagencies, are borderline profitable. With magazine sales down in newsagencies, on average 12%, magazine distributors ought to be cutting supply and therefore not expecting newsagents to act as their bank until the economy (and magazine sales) improve.
While distributors will argue that they do adjust to reported sales volume, I am only seeing this with titles from ACP Magazines, Pacific Magazines and one or two other publishers. Supply for the majority of titles has not been adjusted to reflect sales data. While I am sure there are instances where adjustments are done to reflect slower sales,this is not widespread.
I’d like to see the major publishers engage with the distributors on this issue. Supply at the current level starves newsagents of cash and this challenges their ability to professionally serve the needs of the top selling titles. The major publishers could use their economic muscle to help newsagents and help themselves.
Through the work I do with the Tower Newsagent community I see data from many newsagencies each week – I know what I am talking about when it comes to current sales data and the worsening, by inaction on sales data, supply situation for many magazines. I’d be happy to work with suppliers and provide evidence to support my claims.
Newsagents can easily see the situation for themselves by printing a Magazine Sell Through Rates report. This will show the fall in performance – due to supply at 2008 levels – for many titles.
The magazine distributors can fix this situation easily by not using newsagents as their bank – by adjusting to reflect current sales data.
This is on my mind this morning because of another email from a newsagent in trouble. They are losing money on magazines and the main distributor at fault is making it hard for them to adjust supply.
We are seeing excellent results from each part of our stationery department which has been planagrammed. Among the best results are those we are achieving around the 3M brands. Not only does the display look stunning, it is appreciated by our customers – as reflected in sales. Planagrams are easy to implement and can be done without outside involvement: block vertically, by brand within category. The goal is to make a bold visual statement and it make shopping easier.
