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

Author: Mark Fletcher

We need to grow the card shopper pool in Australia if we are to grow card sales in our newsagencies

Australians don’t buy as many greeting cards per capita as in the US or UK. I think our poor performance in per-capital greeting card purchases is, in part, due to the poor engagement of card suppliers and card retailers in nurturing the value of giving cards.

Currently, we offer cards to destination shoppers. It is only rare in retail that there is any consistent and considered effort to guide people to purchase cards on impulse, and to guide people to make their first-ever card purchase.

We have to grow the pool of card givers if greeting cards are to be usefully viable in retail in Australia.

So, how do we do that? I have some suggestions:

  • Co-locate cards outside of your usual card department: in the window, at the counter, next to a high traffic dwell area in-store, among gifts. Count what you place so you can easily check if that co-location worked.
  • Offer to write on cards: from the words to write to the handwriting itself, this offer from you could eliminate two barriers to people giving cards.
  • Show what card memories are worth: connect with some customers who have cards going back many years,. Ask them for a photo with their collection. tell their story and do so with joy. Ensure your words capture the heart warming feeling the card collection has for those who have collected them. People need to see and understand the value of giving a card beyond the few seconds of handing it over and the recipient reading it.
  • Talk about cards you love and why you love them on social media: Especially if you are a bloke. Make cards feel accessible. Give something of yourself in the posts. Show, don’t tell. And, do it in a way that people can connect with, and be encouraged by. This is especially useful it you are talking about cards outside the traditional.
  • Offer first-timer training: host an event for a first time card buyer. Throw on some drinks and food. Offer support for them in making their first purchase. Have some fun. Be sure to actively pitch this at first time card shoppers.
  • Hey check out this new card we just got in. Choose the right card, one you love, one that is truly different, one that pits a pitch you like (maybe locally made, and fun). Think carefully about the card and then, try the pitch for a day at the counter: Hey check out this new card we just got in. Hold up the card. Don’t say it to everyone as you don’t want customers hearing it and thin king it’s a script. Count the times you say it, and track the engagement., If it works, do more of it, with other cards. if it does not work, maybe re-calibrate the pitch, the card, or both and try again.

These 6 ideas are a sample of the ideas I have in this kit. They are all about trying to grow your local pool of card customers. All it takes is for someone giving their first card to see joy and delight on the face of the recipient. If they see that, they are likely to buy more cards, and hopefully do this from you.

Having your entire greeting card pitch in the newsagency in the card department is a missed opportunity in my view.

Expecting your card department and your card suppliers to take card of marketing for you is a mistake in my view.

Growing the pool of people who will purchase cards is critical.

Helping people purchase a card when their destination was another category in-store is critical.

Guiding card shoppers to purchase more cards each visit is critical.

Bringing card shoppers back more often for card purchases is critical.

For too long the Aussie newsagent channel has done well with card sales despite itself. It is time we invested in growing the card shopper pool and nurtured their efficiency for us. It’s on us to do this. We are the card retail specialists after all.

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Greeting Cards

Inspiring quotes from Mary Tyler Moore

Back in the 1970s Mary Tyler Moore was a force to be reckoned with on television around the world. She smashed through the glass ceiling, creating successful TV shows, producing them and starring.

Mary fought against the odds, she confronted extraordinary competition. She won on her own terms.

Here are some quotes from Mary Tyler Moore, published by Huffington Post, on the news of her passing years ago. Some of these quotes are relevant to our businesses today.

  • “Whatever it is, it’s OK because it’s what it is. Don’t be looking for perfection. Don’t be short-tempered with yourself. And you’ll be a whole lot nicer to be around with everyone else.”
  • “I knew at a very early age what I wanted to do. Some people refer to it as indulging in my instincts and artistic bent. I call it just showing off, which was what I did from about three years of age on.”
  • “I’m not an actress who can create a character. I play me.”
  • “You can’t be brave if you’ve only had wonderful things happen to you.”
  • “Take chances, make mistakes. That’s how you grow. Pain nourishes your courage. You have to fail in order to practice being brave.”
  • “Having a dream is what keeps you alive. Overcoming the challenges makes life worth living.”
  • “I’ve had the fame and the joy of getting laughter — those are gifts.”
  • “Sometimes you have to get to know someone really well to realize you’re really strangers.”
  • “You truly have to make the very best of what you’ve got. We all do.”
  • “My grandfather once said, having watched me one entire afternoon, prancing and leaping and cavorting, ‘This child will either end up on stage or in jail.’ Fortunately, I took the easy route.”
  • “I’m an experienced woman; I’ve been around … well, alright, I might not’ve been around, but I’ve been … nearby.”

The highlighted quotes are my faves.

Mary Tyler Moore has been on my mind recently because of the new documentary, Being Mary Tyler Moore, that shares plenty of fresh behind the scenes content of this icon.

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Newsagency management

I can’t see any value in newsagents selling vape products

I am surprised that even with recently announced plans to ban recreational vaping in Australia some newsagents have reportedly been pitched to take on the category.

The legal future of recreational vaping is all but dead in Australia, thankfully. That alone should take it off the radar of any retailer. But, as can happen with things that are challenging to access, there can be value for some in carrying the product, even if it is done under the counter.

Given the new regulations outlined by the Health Minister on May 2, 2023, at the National Press Club, there is no legal place for vape products in any retail setting other than behind the prescription counters in pharmacies. That’s the clear message.

Hopefully, this government has acted early enough for Australia to not be shrouded in a vape cloud like in the UK, where on the high street even few shops is either a vape shop or a betting shop.

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Social responsibility

Special interest magazine titles continue drive traffic

Vintage Made is an Aussie magazine for lovers of all things Vintage. It comes out twice a year. It’s a good magazine for newsagents as it reflects a point of difference. It’s not a magazine for petrol stations or supermarkets.

It’s also a magazine around which you can sell other items, which is a good way of nurturing value from a low margin low unit sale product. It’s a way to make the product more valuable.

I use Vintage Made as a title through which to reach out beyond the shop and attract new shoppers. It works for us by doing this, on Facebook especially.

Vintage is a popular keyword in Australia with more than 50,000 searches each month specifically related to vintage clothing.

Sometimes, something that can feel niche or fringe to us is big, sought after by plenty of others. This is where we can play, and find new shoppers, who will easily purchase more than a single magazine.

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magazines

Beware fake $50 notes

Fake $50 notes appear to be in circulation at the moment. The first sighting this time around was in the Northern Territory. The news is a reminder to be vigilant.

The Reserve Back website has excellent details on how to spot counterfeit Australian banknotes. I urge you to print this and ensure all team members have read and understand it.

The photo is of one received at one of my shops some years ago.

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Social responsibility

Which magazine publishers are pitching newsagents on Twitter right now?

This is all I could find on Twitter from the last few weeks.

For sure Twitter is less relevant today than last week, last month and last year. But, it takes nothing to pitch on there.

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magazines

Are Aussie shoppers more accepting of a surcharge for paying by card?

It feels like there is more acceptance of a fee for paying by card than there was a few years our so ago.

I suspect wider use of fees and the ACCC led controls on the value of a surcharge that can be applied are key reasons for this.

In our channel with low margins for newspapers, magazines, lottery products and agency lines more broadly, there is little capacity for the retailer to cover the cost. A surcharge can make accepting a card as a method of payment for viable.

Newsagents playing significantly outside the old agency space are under less pressure, especially if their product GP is north of 50%.

A surcharge also eliminates the minimum spend requirement.

The biggest challenge we have is that shoppers see us as all the same, meaning as more newsagents run with surcharges the more shoppers will expect we all do.

I’m not sitting here writing for newsagents to impose a surcharge. Personally, I don’t like them and don’t want them in my own shops. This post is an acknowledgement off the growing application of surcharges and what feels like less pushback from shoppers.

The key, like anything is business, is good communication, a narrative people understand and believe.

If you do do it, use your tech well to streamline the process and provide transparency to shoppers.

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Newsagency management

Newsagents save time and money with POS software connection for The Lott lottery tickets

Newsagents have benefited from the connection between their lottery ticket terminals from The Lott and POS software for years. The lottery ticket sales transfer automatically, without re-entering ticket values.

The link was completed by several software companies years ago. I know my newsagency software company, Tower Systems, did. Tower also made the link available for free.

I mention this today because of a story this week from one newsagent, using other software, who has been manually entering ticket purchases on their EFTPOS machine for customers who want to pay by card and to even recording the purchase in their POS – to avoid manual entry for a third time.

I know plenty off newsagents stop by this place. This post is a reminder.

The more keystrokes you can eliminate at the counter the more mistakes you eliminate and the more time you save.

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Newsagency management

For Arts Sake gone?

I first heard that For Arts Sake was closing last week. I put it down to rumour. A couple of days later I was told staff were locked out of their head office. I reached out to the CEO but did not receive a response.

It does seem like the business is in a challenging situation.

I am sure other card companies are reaching out, seeking opportunities.

I feel for those who worked at the company and for small businesses who may be out of pocket if it comes to that.

If the reports turn out to not be true or if a positive resolution is found – great news for those who do rely on the company.

For what it’s worth, what I want from a card company is:

  • Cards that sell.
  • Cards I am proud to showcase.
  • Regular range refresh.
  • Opportunities to reach new shoppers.
  • Aussie made.
  • On time delivery.
  • Good communication.
  • Differentiation compared to big retailers.

I think the Aussie card market is undergoing change. There is growth in engagement in some co-horts and this is uncovering people buying cards not traditionally offered by the biggest suppliers in Australia.

There is less price pressure, which I like because the $1 and $2 cards look and feel awful.

Shoppers are responding to smart promotion of the category.

Newsagents can shine as specialty retailers compared to supermarkets, convenience stores and Australia Post corporate stores, which tend to mediocre in their engagement with the category in my view.

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Greeting Cards

Scathing reviews for Herald Sun subscription management

News Corp’s management of subscriptions for the Herald Sun has received scathing reviews at the ProductReview.com.au website.

From 102 reviews, the company is rated at 1.1 out of a possible 5 stars.

While some reviews talk about the complex and cumbersome steps needed to cancel a subscription, others talk about home delivery, including this one that may interest newsagents:

Been receiving news paper HOME DELIVERY for over 12 years from local new agency never a problem. Once News Corp Australia took over on the 4th July WE HAVE NEVER RECEIVED A PAPER SINCE it’s now NOVEMBER. Contacted them many, many times, emailed, repeatedly asked the same questions and no follow up. NOW BEEN SENT AN INVOICE emailed and called to say NOT PAYING AS I HAVEN’T RECEIVED THE SERVICE NOW I HAVE BEEN SUSPENDED FOR NOT PAYINIG FOR A SERVICE THEY HAVE NEVER FULLFILLED. Apparently they DO NOT DELIVER OUT HERE (Yarra Valley) Very disappointed.

This reviewer is not alone in having such experiences following the takeover of newspaper home delivery by News Corp from local newsagents.

For a company that likes telling others how to think and what to do, you;d think they could benefit from investing some of that arrogance internally.

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Newspapers

Christmas in July is the new online sales opportunity for retailers with websites

Over seven days we bagged $5,708 in online sales from our Christmas in July promotion. Some of this was product we wanted to quit while some was bought in on a deal for the sale.

We spent nothing on marketing other than a small amount of time on two emails and some social media posts. $0 spent.

Looking elsewhere online in Australia and I can see that Christmas in July is being done by enough retailers online, with enough heft to say it is a thing, something that any retailer with an on line presence should do.

We didn’t pitch it in-store. Rather, this year, we wanted to try online only. We are very happy with the results.

Every purchase was made by someone hours and more away from the shop – to people who would never walk past our front door. This is one of the values of online, it opens the reach of the business, positions you to be less reliant on local even though all of us in local continue to pound the shop local drum.

Online itself is critical in retail today. Spike opportunities like Christmas in July, Black Friday and even Prime Day are opportunities to move stock that slow. They are also opportunities to connect with new shoppers.

In our situation, we won some good business because existing customers referred friends, for which we are grateful. We did this without leveraging are special tech skills or platforms. We use Shopify for the website and it is integrated with our Tower Systems POS software. Sales flow from Shopify to the Tower software and from there to Xero, another integration. For shipping management, choosing the most cost effective, we have an integration there – to reduce not only shipping costs but labour costs too.

These integrations have been closed to reduce labour cost and improve the customer experience – both critical to any online operation.

We have more sales events planned outside of the majors I have mentioned in this post. we have a terrific email database of engaged shoppers as I know if we use that with respect it will deliver more good news.

Footnote: around Melbourne plenty of businesses are pitching Christmas in July, including, of all places, KFC.

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Newsagency opportunities

Ready for wedding season in the newsagency

Wedding season,  is something our channel can easily own thanks to some awesome suppliers of bridal charms, keepsakes and more. Shoppers who find what hey want will tell others. The word of mouth for this is terrific. Customers also respond to social media posts. People buying these buy cards, bags and more. Such value there for the taking.

Like I said, this is a category our channel can own.

If you are in a marketing group, check their suppliers as wedding shopping is well under way. It’s a Winter bonus.

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Gifts

Selling VHS tapes

I was in Perth yesterday and walked past this big shop on Hay street selling VHS tapes of movies.

With growth in vinyl sales of music, I wonder if some are anticipating a return to VHS. I can’t see it myself because the playing tech is old and the playing method is out of touch with how we consume content now.

Still, the shop looked interesting, and it presented well.

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retail

Poor form by one newsagent competing with another newsagent

There is a town in Australia where one newsagent travels to the trade shows near and far, seeking out new suppliers and offers regular innovation on the shop floor. In this same town, another newsagent copies what they can, what willing suppliers let them get away with, and without the cost of travelling to trade shows.

It’s happening in more than one town though.

It sucks when you invest time and money to find new suppliers, especially suppliers who have never supplied retailers in our channel before, only to have a shop close by copy you.

It’s pathetic really, flattering to be copied, of course, but pathetic.

In my experience, these copiers don’t think they are doing anything wrong. If challenged, some have even claimed the innovation was their idea first, which, of course, it was not.

This lazy copying means the innovative newsagents work harder at their innovation, and they change their shops more frequently. This means the copiers need to pick up their pace, or give up at the thought of hard work.

Lazy retailers are ultimately found out, either by themselves when they feel exhausted at copying innovators or by suppliers who block them from copying or from local shoppers who eventually see what is happening.

If you are the retailer being copied, make a loud noise about new products, launch them so the locals know you were first, and, if you’re game, congratulate your copier on joining you in selling something you brought to town first.

If you are the copier, take a look at yourself in the mirror, know what you are doing, stop cheating.

Copying another local retailer’s innovation is like cheating on a school exam. You are the only one who loses, eventually.

It’s easy to get in your head about being copied. It’s disheartening to see your investment diluted by spoon copying you. It can make you angry. It can be demotivating. It happened to me. The marketplace can have a way of dealing with it though. When you see your business three of four times bigger than the business copying you, when you continue to innovate while they work in darkening shadows, your own dark thoughts can feel good.

The best advice I have, I think, is to not spend any time thinking about competitors. They are not relevant to what you do in your business. Since you have no control over them, there is no point worrying about them. You’re better off worrying about, investing in and working on that over which you do have control.

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Social responsibility

Retail sales up in May: ABS report – insights for retail newsagents

The report from the Australian Bureau of Statistics on retail sales in May shows growth. The newsagency channel falls under other retailing: up 2.2%.

This is a little on the low side compared with I have seen in data from several retail newsagency businesses comparing May 2023 with may 2023, but not too far off.

Given the ABS data and the data I have seen from some newsagencies, if you were down in May you have to figure out why and have a plan to reverse the trend. The last position you want to be is revenue decline while others in your sector are experiencing growth.

While, for sure, there is noise in the press about consumer confidence, I am seeing people spend on what they love: strong card, gift, homewares and self-care product sales.

The state / territory results are interesting.

This does show a different in performance between the states and territories. NT, ACT, VIC and NSW, in that order, are the places to be. Tasmania, at the other end, has challenges. These geographic results are no excuse or justification for individual store results though.

Look, this data from the ABS is already a month old, and it’s general. The best thing any retailer can do is look at the performance of their business, comparing themselves now with the same period a year ago. We truly are our best competitors. That’s why I think, for sure, be aware of the BAS results – but look at your own business in more detail as it is from that analysis that a path forward will reveal.

Now, in case you are wondering about other retailers in other and worry that other retail may skew the results enough to explain where you sit compared to others, here’s the list from the ABS:

  • Other retailing
    • Newspaper and book retailing
      • Newspaper and book retailing (4244)
    • Other recreational goods retailing
      • Sport and camping equipment retailing (4241)
      • Entertainment media retailing (4242)
      • Toy and game retailing (4243)
    • Pharmaceutical, cosmetic and toiletry goods retailing
      • Pharmaceutical, cosmetic and toiletry goods retailing (4271)
    • Other retailing n.e.c
      • Stationery goods retailing (4272)
      • Antique and used goods retailing (4273)
      • Flower retailing (4274)
      • Other-store based retailing n.e.c (4279)
      • Non-store retailing (4310)
      • Retail commission-based buying and/or selling (4320)
  • Cafes, restaurants and takeaway food services
    • Cafes, restaurants and catering services
      • Cafes and restaurants (4511)
      • Catering services (4513)
    • Takeaway food services
      • Takeaway food services (4512)
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Newsagency management

The Lott bans the use of BNPL, AfterPay, ZipPay etc for purchasing lottery tickets

The Lottery Corporation has issued an update to the manual that documents rules for retailers selling their products. The rule update bans the use of Buy Now Pay Later (BNPL) payment methods for the purchasing of lottery tickets.

While this is a matter for The Lottery Corporation to determine, operationally in retail there are implications as I covered in correspondence from my newsagency software company, Tower Systems, to senior management at The Lottery Corporation.

I have just seen the rule changes in relation to buy now pay later.

The problem is that this rule will be very difficult for retailers to enforce given that AfterPay gives customers now a virtual card on their phone and it presents across the counter as a credit card payment.

We have looked at whether we can automatically block the payment from within the POS software. With tech today, it’s the banking organisation that manages types of payments.

We could do something along the lines of what we have done with the Indue, cashless welfare card, work, check what’s in the basket and manage restrictions. But that would cost a chunk of money and it would involve tech changes from many parties.

What POS companies like Tower could do, but it would have a cost, is interrupt a transaction with lottery products in the basket where card payment is presented and require the retail staffer visually check the type of card being used before allowing it to proceed or not.

The challenge here is that your company has issued the new rules without thinking through real world implications.

I can see situations where retailers unwittingly accept AfterPay as a method of payment, costing the retailer valuable margin dollars and putting them in breach of the rules that govern their sale of lottery tickets.

With the way BNPL payments are handled across the counter today, it is only with a visual check of the virtual card being used that the retail associate can have the information required to know what type of card has been used.

In high traffic settings the time disruption for such a check will be challenging to deal with. There are also shoppers who will not want to show their phone to show the method of payment.

An integrated tech solution is better for all concerned. But, doing this properly would be expensive.

The less there is a requirement for human engagement on checking the better for all concerned.

While BNPL providers have their own rules, I think The Lottery Corporation is more likely to enforce the rules than the BNPL providers.

Hopefully, a workable solution can be found.

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Lotteries

Magazines vs. newspapers at the airport

It’s interesting seeing how magazine publishers pitch at the airport compared to newspaper publishers. My understanding is that the publisher subsidises the price offer for magazines. It’s telling that the newspaper companies do not do that for what is a pretty captive market. There was a time they’d give away papers at every departure gate.

This what I saw at Melbourne airport today.

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Newspapers

Another newspaper stand bites the dust

We moved newspapers from front of store prime position in the newsagency to a side wall barely a metre away, a less expensive space, less visually disruptive.

This is in a newsagency we bought in December 2021. We’re making changes slowly so as to not disrupt valuable regular shoppers and to do so within a tight capex budget – we are frugal when it comes to making changes in the shop.

Our shop floor location and space allocation is guided by GP contribution. Newspapers in this business generate around $15,000 in GP. This does not justify the prime position they had occupied in this shop for decades.

We will experiment with the freed space over the next couple of months to find the categories that work best, and cycle through them with changes every week to keep the visual offer fresh.

As the photo shows, our preference is for visual variety in colour, shape and size. This provides flexibility as to what we display here. This particular display is centred with self care and around that is allied products we think will appeal to the same shopper.

The big magazine unit behind this space is safe for now as it delivers north of $450,000 in revenue for the business.

Back in the day we would have brought in a shopfitter to completely overhaul the shop and spent $150,000+ more doing this. Today, our approach, and our advice to newsagents is – make changes over time, to give the shop a feeling of perpetual motion (change), do the changes yourself, or use a handy person – certainly not a shopfitter.

My point is – anyone can make changes like this in their business. Do it on a budget. Do as much as you can yourself. measure the results. Keep at it, keep making changes.

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Newsagency management

WH Smith pitches coffee in the newsagency

While I know of newsagents who have been successfully doing coffee and related food and beverages in Australia for years, this WH Smith outlet is the first time I have seen a corporate ‘newsagency’ player in Australia offer it, and, they are doing it exceptionally well.

It fits well with their fresh new store design and is sufficiently visually different to be seen as a stand alone business. The Long Shot branding helps with that.

The WH Smith offer in Australia right now is the freshest and most on-point I have seen from them since they arrived in the country. Their new shop layout is excellent, supporting a broad range of products, making the shopper journey good, and I suspect, successful.

The changes are so significant that I would not be surprised to see them engage more in shopping centres and even at major high street locations.

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retail

Language is not the barrier it used to be in the newsagency

Years ago, if we had a card or some other product with a swear word on it, we’d receive complaints all through the day, many complaints. The same product today would attract one, maybe two, complaints a week.

10+ years ago we had a card from Spirit in one of my shops that had a small balloon on the front as the penis. We had a customer who would come in and cut the penis off.

I think what offends people today is different. Swears on cards and other products attract more laughs than complaints. I think the balloon penis would be the same if we had it.

There is a strength in the way swear words are used on some cards, a cleverness, too.

We are careful, of course, to not shine a light on these cards at the counter. rather, they are in the card mix, where you’d expect the shopper likely to purchase this card to look.

The Affirmations card business released their defamations range some years ago. It’s a raunchy range with plenty of swears. It sells very well. Retailers often tell me of the laughs they hear from the part of the store where the defamations products are located.

I guess my point here is that swear words are not the turn off they were 10+ years ago. Today, they will most likely help you win sales, and they will, for sure, make your shop relevant to a wider group of shoppers.

I’ve used cards with swear words on their in social media posts, with success. A common response is people tagging friends in the post.

There are plenty of suppliers now playing in this space. My advice in case you don’t have these types products in store is have a crack as you are likely to find new shoppers.

In the UK, the Scribbler group has built their business on cards like these. You only have to stand in one of their shops and realise the broad age range appeal of raunchy cards – older women, 75+, especially appear to like the humour.

Personally, I am drawn to the more nuanced used of swear words, like you can see on the card included with this post. I think it’s smart and relevant.

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Greeting Cards

The value of playing outside what has been traditional is vital for the health or the local newsagency, or any local retail business

A few months ago in one of my shops we introduced a new product category, something we had never stocked before, something appealing to a demographic we have not pursued with our buying or visual merchandising.

So In the first 16 days of this month we have just clocked over $1,000 in revenue for this new category. This is on the back of a $5,000 investment in inventory.

We are forecasting 12 month revenue at between $20,000 and $20,000 allowing for a seasonal bump, while maintaining that $5,000 inventory investment.

We had no idea if this would work for us. The $5,000 was a gamble we were prepared to take. We thought and hoped it would work, but there was nothing in the store we could point to that would suggest it would work. As I noted, it was new for us.

I’m grateful it is working, that the gamble paid off.

Now that we are around 10 weeks in, we are seeing new shoppers in to shop the category. We know from comments that this is happening because of word of mouth.

What makes the success more enjoyable for us is that we are using a location in the shop that was not performing before.

The whole experience is the reminder of the value for local retailers of:

  • Experimenting beyond what is traditional for your business.
  • Letting your customers tell you what they will buy.
  • Capping your spend.
  • Tracking the results.
  • Relishing every new customer you attract to your shop.
  • Not letting your shingle define you.

We’ve not changed anything in the 10 weeks other than top up stock. The plan always was to let it sit for 3+ months before change. With the results as they are, we think only minimal change within the category is necessary.

Anyone can do what we’ve done. And, it’s not about the products we specifically chose. That’s up to you. My core message with this post is to actually try something different and see what the results are for you. Good or bad, you will gain valuable insights.

Decades ago, back when we were agents others made strategic decisions for our businesses. Today, strategy is yours to determine, and one of the most important is to pursuit of new shoppers for they are the lifeblood of local indie retail.

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Newsagency management

Scottish newspaper publisher encourages readers to transition from print to digital – why it’s no surprise and of little concern

Scottish news publisher Highland News & Media is transitioning print newspapers to a digital only model and announced this late last year. Now that the company has started to publicly action its plan, by encouraging readers to switch from print, newsagents are reportedly unhappy, as Hold The Front Page reports.

The Federation of Independent Retailers has slammed the promotional campaign as “cynical, aggressive and a slap in the face for news retailers”.

Its head of news Brian Murphy said: “Our members in Scotland are shocked and appalled at the aggressive tactics that Highland News and Media is adopting in its bid to steal their loyal customers away from their weekly printed copy to its online version.

“The way the publisher is marketing the digital subscription packages for its papers shows the total disregard it has for retailers who sell its printed products. This is a slap in the face for newsagents.

“Furthermore, we have been given no prior warning about this.  The first we knew about it was seeing the heavy – and aggressive – promotion inside the newspaper.”

While I feel for the impacted Scottish newsagents losing print newspaper revenue, it is no surprise the publisher is making this move. It has been on the cards for more than ten years. Indeed, back in 2009 when the Seattle Post-Intelligencer moved to a purely digital model it was considered a crack in the dam wall of print newspapers.

Smart newsagents have adjusted their business model to not rely on revenue or traffic from print newspapers and to cop on the chin the whack the pitches from publishers in their print products to encourage people to move online.

Publishing companies have one prime obligation and that is to their shareholders, just as us retailers have one prime obligation, to our selves as business owners. The issue, I think, is that our channel, certainly in Australia, was birthed as as agency model, one in which we served publisher masters for a modest clip of each transaction. For well over a hundred years, again certainly here in Australia, we were treated as what I’d call last stop agents, the end of the line, the least important.

We were paid poorly, less than award wages, our ability to monetise our position as agents was stifled, we had no control over revenue growth and had to absorb the cost of increased operating costs. And, as the transition to digital for news access began in earnest in the 1990s, many of us were captured in our agent world, because we only understood that world of service for a low percentage.

Too many newsagents kept looking at the ground, barely a step in front of them, ignoring the horizon over which many opportunities could be found.

Publishers have played a role in holding newsagents back, keeping them in. their lane of agency service, because it suited them to keep newsagents subservient as they, the publishers, figured out how to shift eyeballs to screens from paper. And, too often today, as we can see in several places, newsagents are kicked to the kerb once publishers action their plan to encourage and push those eyeballs to screens.

But, as I have said, it’s no surprise when a news publisher quits print for digital. They can only subsidise an out of date news distribution model for so long, and print, for sure, is any out of date model. Heck, it’s been out of date for more than ten years.

My advice to Scottish newsagents (not that they have asked for it or need it) who feel aggrieved by the moves under way by Highland News & Media, is to look at what your business could be without reliance on print newspapers. This means stepping outside the usual lane for a newsagency business. Look at categories beyond those usual for newsagency businesses and usual for convenience businesses. It’s not too late. But, it takes urgent action, investment and courage.

Before I wrap up I want to comment on this quote attributed to Brian Murphy from the Federation of Independent Retailers speaking about the more by Highland News & media:

“It is a proven fact that newspapers are a key footfall driver, and research shows that people buying a paper will often buy something else at the same time.”

I’d be interested to see the data supporting this as here in Australia it’s not the case, and has not been the case since the 1990s. I have looked at basket data from more more than 1,000 retail newsagencies over  many years and since the 1990s, newspapers have held their position as inefficient in terms of basket depth, hovering at around 80% of newspaper purchases being for newspapers alone.

Newspaper publishers told us for decades that the commission (margin) is low because they deliver foot traffic. While they did that, those shoppers had a single destination product in mind and nothing could switch them from that mission.

The quote from Brian Murphy also indirectly pitches that traffic, footfall, is important. While it was back in the agency heydays up to the early 1990s, for those of us who transitioned to new product categories with substantially better margins, four and five times better, traffic was not as important. Selling something worth $300 and making 60% delivered margin dollars equivalent to 450 newspaper sales.

Are newsagents selling items worth $300 and making 60% GP? I know plenty who do, in city settings as well as in regional and and rural Australia. I also know plenty selling an item for user $10, but also with a 60% GP.

I guess the heart of this issue for local retail newsagents with what is happening re Highland News & Media is to configure your business so you are not reliant on any single supplier. It’s your business, rely on you, not them. Sometimes that can mean upsetting suppliers. So be it. If your decisions are right for you, that is what matters.

What you want, of course, is to be in control of the decisions about your business, because – suppliers will make decisions that are right for their business and that can be risky if the decisions are made by a supplier that is critical to your business success.

Look out over the horizon, leek for change opportunities and lean into them. You decide what your business, what it stands for. Don’t be constrained by history. Don’t be limited by your shingle.

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Newsagency management

Stocktake advice for newsagents

Here is an update to my 2022 post on this topic.

Never pay an outside party to do your stocktake and never do a stocktake outside of your POS software. Outside stocktakers cost more than it would be for you to do it yourself.

The most accurate stocktake result for any retail business is doing it yourself, using your POS software.

Actually, if you properly use your POS software, it’s unlikely you will need to do a full stocktake on or around June 30. But in case you do …

This time last year, I got together with one of the stocktake experts at Tower Systems to discuss this and answer common stocktake questions we are asked.

Again …

  • Don’t use an external stocktaker.
  • Do your stocktake yourself.
  • Use your POS software to record, live, m the stock count.

This is the best approach for maintaining accurate stock on hand data and for valuing stock prior to a change of hands of the business.

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newsagent software