Moving magazines easily
I love the magazine stand in the photo. Sent out to support the latest issue of Better Homes and Gardens, it enables us to promote this title in various locations around the newsagency.
Getting titles away from their usual place is good for business. This week we have it next to weekly newspapers, behind foreign language newspapers. Next week it will be somewhere else. Each move finds new browsers.
Given our constant moving of stock, including magazines, a unit like this makes the task easier and helps us provide a fresh retail experience.
How many F1 titles?
We have three F1 titles on the shelves now. One is the regular title and two special editions. This seems overkills to me. We have a certain amount of space allocated to racing titles and we have had to lose one title early to accommodate one of the special editions.
Maybe I am sensitive about this because I am far from a fan of formula 1 racing – I think it’s a waste of money and Victoria would be better off without the drain on our public purse. I don’t see any economic benefit other than corporate types getting suppliers to pay for a day of noise and booze.
On the magazines, maybe they will sell. I suspect that the F1 brand is over represented and that the special editions pull focus from the magazine itself.
Magazine audit full of red ink
The latest Audit Bureau of Circulation data for magazine sales in the three months to December 2007 is not good news for top selling titles:Woman’s Day: -7.6%; New Idea: -2.0%; NW: -10.5%; OK!: +24.9%; TV Week: -12.2%; Take 5: -2.6%; That’s Life: -1.4%.
This supports the November / December benchmark data I have seen from 50 newsagents I benchmarked. The question from many back then was am I alone is experiencing this? The Audit results show the answer is no.
The sales slump in weekly titles is significant and ought to act as a call to arms by newsagents to work harder on driving sales.
There is some good news (but not much) in the Audit results: Better Homes and Gardens: +4.5%; Donna Hay: +13.5%; Men’s Health: 10.2%; Country Home Ideas: 14.1%.
One title of interest to me was Good Health & Medicine from ACP. Sales are down 4.3%. Given the rationing of this title and late promotion (see earlier post), I wonder if titles like this miss growth because of supply chain related issues and or because the publisher is tight on print run.
Part of the challenge with magazines is that they have become a commodity in recent years – more types of retailers carry them today than when newsagents were the specialists. If someone gets the magazine they want from a convenience store or petrol outlet, they are not presented with the up-sell opportunities one sees in a newsagency. Publishers, in chasing other outlets, may have done themselves a disservice by facilitating fewer people visiting newsagencies. I’d like to see effort put into rebuilding newsagencies as the go to magazine specialists – on economically viable terms.
It’s the cover
I helped a customer find Women’s Day this morning. She could not see it. The photo below shows how the masthead for New Idea this week pops.
While people more skilled than me will have other analysis at their fingertips, given that most newsagents have fixturing like mine, I suspect ease of finding the title is part of it – especially for older customers.
Valentine’s entry
One of our customers treid extra hard to win the $400 bear we gave away as part of our Valentine’s Day promotion – they mounted their entry on a plastic heart and begged to win.
We loved their effort so much we created a second prize (as they didn’t win) and gave them chocolates and a smaller bear. It’s great when customers engage like this so we felt the effort was worth special reward.
Newsroom cuts
File this under sobering news item of the day: The New York Times is shedding 7.5% of its newsroom workforce. PaidContent has more. The January 15, 2005 edition of Business Week quotes Arthur Sulzberger, Publisher of the New York Times:
“Within our lifetimes, the distribution of news and information is going to shift to broadband,” Sulzberger says. “We must enter the broadband world having mastered the three key skill sets — print, Internet, and video — because that’s what’s going to ensure the future of this news organization in the years ahead.”
Newsagents can read stories like this and feel no connection. Or, they can read stories like this and think, we’re doomed! Or, they can see the waves, grab the surfboard and ride the wave. This latter alternative is the choice to make.
For over 100 years the direction of our channel has been set by suppliers. In 2008, the direction is entirely up to us. The future for entrepreneurial newsagents is wonderful. That future can include newspapers and magazines, greeting cards and lotteries. It can also include other categories which enhance our relevance.
These are the challenges newsagents need to talk about today.
New benchmark project for newsagents
Following success of the November and December newsagent benchmark projects I have decided to benchmark the seven months to January 31, 2008 to the same seven months a year earlier.
I have chosen seven months to get the most up to date data and include back to school 2008.
For Tower Newsagents, please send a Monthly Sales Comparison report: tick the box (lower left corner) to exclude home deliveries, and tick the box, lower right corner, to get the category breakdown. Set your first date range (on the left) to June 1, 2007 to January 31, 2007 and the date range of the right to June 1, 2006 to January 31, 2006. Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au.
Newsagents not using Tower software wishing to participate should email me for a spreadsheet template to complete.
I’d like to complete the benchmark by mid next week so data by February 19 would be appreciated.Â
I’ll publish the benchmark results here and elsewhere so all newsagents can benefit. This benchmark project will provide a ood understanding of trends in newsagency sales data and those trends may help us make decisions for the future.
Change and instant film
It was inevitable, the news that Polaroid would get out of the instant film business. Disruption of traditional (old) media and mediums continues apace. Polaroid could see that instant film was a dead medium and cut it loose to protect the company.
Newsagents will face similar decisions – getting out of dying segments of their businesses to protect (or set free) the broader business. We need to be unafraid of these challenges. We need to make our assessment, having considered information from suppliers which may be affected.
Already there are opportunities for newsagents to make important decisions about products they cut. I continue to see many stationery items on shelves which do not sell. In one case recently 25% of the stationery investment was in items which had not sold in six months. Quit, quit, quit!
In stationery, magazines, newspapers and even greeting cards, we need to be prepared to make tough decisions and stick by them – as we pursue the newsagency of the future.
Price fixing on candy?
A dark cloud hung over Valentine’s Day for some German candy makers, the German Federal Cartel Office raided the offices of seven of them. The International Herald Tribune has the details. This follows similar activity in Canada three months ago. Very interesting.
In the meantime, back here, newsagencies I have spoken with tell me it’s been fantastic Valentine’s Day sales wise.
Valentine’s Day is here
It has been fascinating watching the different waves of Valentine’s Day card customers over the last month. First it was the older customers, often in a long-term relationship, then it was the hopefuls and this week it’s been more of the oh, no, it’s Valentine’s Day and I don’t have anything. We are supporting the season with gifts as well as chocolate. The gifts include the collectible Momiji doll, a singing frog and this cow. Surprisingly, the cow is a hit! Not sure what message that passes on.
Happy Valentine’s Day. Trade well!
Australia Post offer compelling
The offer from our local government owned Australia Post store was compelling. Reflex for $4.95 a ream. This is around $1.50 a ream less that newsagents pay their wholesaler today. But, wait, it gets better! Spend over $50 and Reflex is delivered free.
I have a couple of issue with this: Newsagents ought to be able to buy better through their warehouses; Australia Post should not be able to use its government protected monopoly to take business from small businesses, it’s not why they were created. I am hopeful that Kevin Rudd’s new team in Canberra will look at this and Australia Posts pursuit of newsagents.
Given that the brochures offers up to a truck load of Reflex, maybe I should take the opportunity and grab the cheap stock while I can. Checking the fine print, I can’t as I don’t have a fork lift to receive it.
Gifts in newsagencies
We have changed the fixturing we use to display gifts at our newsXpress Watergardens location, drawing on learnings from our Sophie Randall business. The table in the photo below, buried by part of our plush range, offers multiple level and angles for displaying stock in an easily accessible form.
Beyond efficiently displaying gist related stock, the table offers more efficient use of floorspace and maintains a low profile in the business, thereby supporting retail friendly sight lines.
ACCC clears way for Borders sale
The ACCC has announced that it will not oppose the acquisition of Borders by A&R Whitcoulls Group. The A&R Whitcoulls group operates the Whitcoulls newsagency/bookshops in New Zealand, Angus & Robertson bookshops in Australia and Supanews newsagencies in Australia.
UK NW and First magazines to close
Bauer Consumer Media, new owner of Emap UK has closed two magazine titles: NW and First. Times Online has the details. First is sold in Australia so it’s handy to know of its demise.
Retail tenancy inquiry
I spent the best part of the morning at the Melbourne hearing of the Productivity Commission Inquiry into Retail Tenancies in Australia. My presentation was one of four scheduled for today. I covered, in part, the follow-up submission provided to the Commission earlier this week. While this has been put on behalf of newsXpress, I’d expect it to reflect what newsagents more broadly would want put.
I’d note that the ANF, NANA, QNF and VANA have all actively participated in the process. Plenty of newsagent voices are being heard.
I was particularly heartened by the questions from the Inquiry. I felt a genuine effort to understand the challenges faced by newsagents with current shopping centre lease arrangements. I look forward to the next draft report from the Commission on this matter.
For a brief moment this morning I got to touch on a topic dear to my heart, Australia Post. This was in response to a question and my departure from the terms of relevant to answering the question. The more we seize opportunities to tell the story of how this government owned retail network is stalking newsagents the better.
It is not too late for newsagents to seek to make in-person submissions. If you have a lease store which is relevant to other newsagents, consider applying to be heard at a public hearing. The details are on the PC website.
Digital photography feature
Digital photography is the category we are featuring in our counter display this week. We have changed our approach and gone for six titles with two pockets allocated to each. We felt it looked better than what we have been doing. Actually, we are thin on the ground in range so it made sense.
We are really getting into the groove of these displays, thinking a week or two ahead of the category we will push. Others in the business are chiming in with their ideas.
The better the planning the faster we can create a new display an that’s what we are after: small investment and high reward.
Every display we have done this year has been worthwhile in terms of sales. It’s almost like there is no such thing as a dud category if you display it right and have magazine titles which support each other.
What I like most about the display is that we are showing off our depth of range beyond the popular titles. This is our point of difference.
Technology news for newsagents – Feb 2008
Click here to download a copy of the latest technology news for newsagents newsletter being sent this morning to all newsagents. It’s been a busy month on the IT front since the last newsletter with new standards in a couple of categories imminent and an incredible response to the free online training being delivered by Tower Systems.
Free razor pushes FHM
Even though it was a challenge to display on regular magazine fixturing, the free Gillette Fusion shaver on the front has driven an excellent sales result for the current issue of FHM magazine. It’s the perfect add-on gift.
We have had more success selling this issue of FHM at the counter than in its usual spot with men’s magazines.
A cup of cookies
I came across this new product in Australian Convenience Store News. magazine. This cup of cookies is brilliant for newsagents playing in the convenience space, a perfect up-sell for a driver or commuter picking up a newspaper or a magazine. I can see these working in a newsagency in a transit situation or where fuel is sold. I especially like the packaging – ideal for putting in the cup holder in a car.
Grabbing the magazine up-sell
At the risk of upsetting publishers we have taken the two two pockets of waterfalls from three busy magazine titles permanently to display six other titles. We place the six titles based on colour and appropriateness for the women who mainly shop in this part of our newsagency.
Sales of Australian Women’s Weekly, New Idea and Women’s Day have not been affected. Sales of Money, Your Mortgage, Better Homes, Women’s Health, Burkes Backyard and Good Health are up thanks to more eyeballs seeing them.  We refresh the mix of titles weekly and often make decisions based on title covers – we want covers which draw attention of those looking at the main display.
For years newsagents have been told to full waterfall high volume weekly and monthly titles. By taking back the two two pockets we can lift other titles while not hurting the feature title. This is a win win isn’t it? certainly the basket data we’re looking at suggests our efforts are rewarded.
Newsagents are too regulated by some publishers and distributors and this stifles those of us who want to be entrepreneurial in chasing magazine sales. I appreciate it’s easy to call for freedom and harder to implement. I wish publishers would be more encouraging rather than chasing a common, lower, goal.
Promoting fresh magazines
Further to my earlier post today about Good Health magazine, here is evidence of the value of promoting early in the sales cycle.
The new issue of Women’s Health came out yesterday, with posters and other material from the publisher. We created an aisle end display and sales kicked as a result.
I want my business to be known for promoting fresh product. The display for Women’s Health does that. People who see the new issue of a magazine first in my newsagency will be more likely to respect my store as the go to place for magazines.
Publishers need to understand the need for newsagency relevance and support us with in-store marketing material accordingly.
The early bird and Good Health
The early bird gets the worm, or so the saying goes. Good Health magazine came in a week ago and we duly displayed it in several locations and sold 60% of our allocation in the first five days.
Yesterday, we discovered that Good Health is the feature magazine for the ACP Connections marketing promotion this week. Too late I say. We’re now low on stock and while we could order more, they won’t come until Friday at the earliest by which time the promotion opportunity is lost since we would be a few days away from our next promotion.
Marketing promotions for specific titles need to be scheduled for the on sale day and not a week later. While the publisher will see this as me complaining, the alternative, and more appropriate, view would be that I want to maximise sales and that for most magazines this is early in the sales cycle.
A window of love
Simon Frost at our Frankston newsagency executed one of the Valentine’s Day marketing suggestions I posted here last week. He created a window of love on our front window. While the photo below looks a bit scrappy, in person it works a treat!
We have the pens behind the counter. Customers ask for one, write their message and return the pen. This is interactive retail and it’s fun. The buzz at the front of the shop as a result is excellent.