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

Author: Mark Fletcher

Lottery retailers are frustrated that Tabcorp (TheLott) offers some games online that are not available over the counter

In another move that appears to indicate a push to migrate over the counter lottery customers online, Tabcorp’s TheLott has allows customers to setup online only games. That is, customers can setup games on their profile that retailers do not see when customers present their card. This can create frustration at the counter. There are instances of shoppers criticising retailers for what they, the customers, have setup online – since the retailers encouraged the customers to go online.

Games setup in-store are available online.

Games setup online are not available in-store.

A spokesperson at TheLott says it is due to a “system limitations”. I suspect it is due to inadequate management consideration of the fair treatment of retail partners when evolving their online capabilities.

This move by Tabcorp is on the back of extraordinary pressure on lottery retailers to encourage lottery shoppers to sign up for online purchase access.

While I have heard of some discussion on social media, in response to approach from retailers I mention it here for lottery retailers to comment in a more public place.

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Ethics

Jigsaws sell in January in the newsagency

For 4 years newsXpress has run a January is Jigsaw month promotion. It’s a simple promotion that shines a light on jigsaws. There is no price deal, no special offer, no commercial pitch to shoppers other than a front of store placement of jigsaws with purpose-specific collateral. Jigsaw sales spike with revenue up at least eight times the monthly average, often more. This sales spike coupled with bonus margin from deals delivers an excellent commercial result for zero additional investment.

The idea started out of a discussion about what businesses not into back to school could do to boost traffic and revenue inn January. Jigsaws have turned out to be a hit in the city and country, in mall based businesses as well as high street.

Better still, the promotion does not appear to harm jigsaw sales later in the year. If anything, the focus helps drive later inn the year sales as more shoppers realise the range of jigsaw titles a store has.

There is plenty that I have to covered here provided by newsXpress to make the promotion a success. It’s not quite as simple as I have made it out here. There are layers and activities that combine to drive the success.

My point is that there are low and no cost opportunities for driving non-seasonal success in newsagency and similar businesses. Jigsaws in January is one example of this.

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Management tip

The UK’s Card Factory in Australia

Here is a video I shot a few weeks ago about the launch of the successful UK Card Factory in Australia via a relationship with the doubled Reject Shop group. I shared the video with newsXpress members and retailers of greeting cards – gift shops, card shops and newsagents – using the Tower Systems POS software late last year.

I think the video is important as it outlines some of the possible impacts of the Card Factory / Reject Shop move that could impact newsagency card sales.

I would rather the Greeting Card Association be on the front foot on this.

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Greeting Cards

Australian Geographic promoting newsagents

The latest Australian Geographic magazine is out and newsagents are being pitched as the go to retailers for the title on social media. Right now is a good time to leverage this coverage for our channel.

In store, this is a good title to pitch with greeting cards that feature animals as well as plush animals – to tell a more complete visual story. You don’t need much space to take this initiative.

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magazines

13 POS software related 2020 New Year resolutions

I shared this with Tower Systems customers a few days ago. Some here may find the list useful.

THIRTEEN 2020 POS SOFTWARE RELATED SMALL BUSINESS RETAIL NEW YEAR RESOLUTIONS.

  1. Maintain better quality business data. because data matters, good data helps you make more money.
  2. Order based on actual sales data rather than gut feel. Stop buying stock that will not sell.
  3. Spend more time away from the shop by managing remotely. This is easy with tech.
  4. Eliminate manual processes. Do it.
  5. Take action on theft. The tools are at your fingertips.
  6. Declutter the shop based on the business data.
  7. Delegate more, use the software to help.
  8. Set KPI goals, measure, track and engage.
  9. Learn something new from the software every week.
  10. Establish new rules designed to protect data integrity.
  11. Deal more with suppliers that make doing business easier and less with suppliers that don’t.
  12. Engage in more free training from Tower Systems.
  13. Ask Tower to tell me what they see about my business in my business data.
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Newsagency management

The devastating bushfires

The devastation wreaked on families, property, businesses and infrastructure across Australia, especially regional Australia, over the last week, and even before, has been extraordinary.

Watching and listening to the excellent comprehensive coverage on ABC TV and Radio I heard towns and smaller communities mentioned where I knew of businesses.

Through my POS software company, I have reached out to all customers with an offer of help. I have put the same offer to the newsXpress community. From help with an insurance claim, help restoring a backup to fast-tracking replacing hardware to establishing urgent alternative comms to be connected when the phone lines are down. Our people will help as much as possible.

I’ll also use connections with suppliers to help with inventory issues reported where appropriate.

None of this, of course, helps with the deep personal pain of the devastation. It is something though.

Getting help starts with a call or email. I have let our team know to prioritise fire related calls for help.

CLIMATE CHANGE.
While bushfire season is an annual ‘event’ in our country, what we are seeing, and experiencing, is recent weeks is different.

I accept the science, that climate change is real, human caused and that the earth is facing an urgent existential crisis.

I am tired of those who say now, during the bushfires, is not the time to discuss and confront this. They are, in my mind, ignorant fools. The politicians in this camp are worse, they are criminal in their neglect, especially since 2013.

I am tired of the politicians passing legislation for their mates and ignoring the needs of everyday Australians.

I am tired of those who say Australia is too small to make a difference. Such statements are ignorant and selfish.

We urgent action to reduce carbon emissions.

The bushfires will impact an already slowing economy. The best response is stimulus. The best stimulus in my view is cash in the hands of those who will spend it. In economic terms, this should be an urgent focus of the government. My November 11 post lists valuable and economically stimulating investments the government should consider.

If you are going to comment here denying climate change, don’t bother as you are wrong.

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Social responsibility

I love this story of a Blue Mountains local who supported their local newsagent amid bushfire challenges

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Small Business

Easy sales at the newsagency counter

With candy not viable at the counter in many newsagency situations, alternating product lines are important to leverage value from this important location in-store. Here are some products are working a treat in my experience: reusable shopping bags, small format blind boxes, small inspirational books, small (sub $10) plush, greeting cards, pop culture products.

The keys are regular change to the range and pitching product people would not expect you to offer.

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Newsagency management

Massive Boxing Day

I expected Boxing Day revenue to be down this year on 2018 given the considerable growth in Black Friday / Cyber Monday sales this year over last. It was not to be, Boxing Day 2019 was terrific as was yesterday. This Aussie retail tradition is running strong.

Boxing Day sales are an excellent opportunity for a clear out ahead of a reset. They are also an opportunity some suppliers leverage well, to help retailers maintain much needed margin.

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retail

Advice: don’t discount calendars

While Calendar Club and some others have been discounting calendars for weeks, we are at full price and will remain so because we will sell out at full price.

We stopped playing the calendar discoing game years ago and have never looked back. Discounting primarily educated shoppers when to purchase. Once we stopped people soon learnt to buy what they love.

The decision to not discount also adjusted our buying for the better. We are focussed ion brands and categories that people want as well as titles that fit well with other successful product categories in-store.

While we still play at the lower price point end, it is the premium special interest calendars that make up the bulk of our revenue.

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Calendars

Starbucks ditches print newspapers

The massive Starbucks coffee chain has ditched newspapers from its stores and, instead, offers free access to digital news platforms, as the in-store sign indicates.

This move makes sense in terms of space use, waste and the digital engagement with customers.

For newspapers more broadly, it is another step in the retreat from print. All that is up for speculation now is timing in my view.

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Media disruption

Typo Christmas cards under scrutiny

Cotton On, the owners of Typo, are looking into greeting card sourcing following reports about the use of prison labour. This, from the ABC News report:

A Chinese printing company accused of using prison labour to make Christmas cards sold at Tesco supermarkets in the United Kingdom is also a supplier to Australia’s Cotton On Group — a relationship the group is now investigating.

The forced labour allegations emerged after a six-year-old girl in London discovered an apparent plea for help written inside a Christmas card, which was made by the company Zhejiang Yunguang Printing and sold at the supermarket chain Tesco.

“We are foreign prisoners in Shanghai Qingpu Prison China. Forced to work against our will. Please help us and notify human rights organisation,” the note in the Christmas card said.

However, Zhejiang Yunguang Printing also manufactures products for the Cotton On Group, which owns a variety of retail brands across Australia, including Cotton On, Typo and Supre.

The Chinese company was named in Cotton On’s most recent official supplier list, and Zhejiang Yunguang Printing also claimed to make products for the Australian brand in a corporate video on its website.

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Ethics

News Corp and tax

Rupert Murdoch’s News Corp in Australia: sales over five years = $13.9 billion, tax over five years = zero. Source: this month’s ATO Transparency data for News Australia Holdings Pty Ltd.

A Tweet from the skilled business journalist Michael West.

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Ethics

Captions matter for cards, especially at Christmas

Obligation card shoppers like captions on cards they purchase to be targeted for the recipient. While more creative card shoppers, those more likely to buy blank cards and fully express themselves are less concerned about captions, the obligation card shoppers want it simple and clear, they want the caption they need.

With some Christmas ranges being reduced, obligation card shoppers have been less satisfied. I think this is a reason we see more newsagents ranging Christmas and other seasons from multiple cards companies.

The obligation card shopper is important in that a good seasonal experience that is satisfying for them and their recipient could be useful in getting them back in through the year.

We need more caption depth and less loading of the most popular captions in 2020.

Caption depth is a focus of some re-energised competitors outside the newsagency channel and that is a challenge we, and our card suppliers, need to step up to if we are to hold or grow our position in overall unit sales.

The card category is critical to our businesses for the net traffic delivered and the margin achieved.

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Greeting Cards

Woolworths and News Corp want people buying newspapers at Woolworths on the weekend

This coupon offers weekend newspapers at a discounted price at Woolworths outlets. The offer is available until March 31, 2020.

I doubt that Woolworths would be funding this promotional offer.

It makes other outlets look expensive. Either the newspaper is worth the cover price printed on it or not. Offering variable pricing based on where it is purchased is unfair.

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Newspapers

Sunday penalty rates in newsagencies

Newsagency businesses are covered by the General Retail Award. In the Award there is this coverage relating to Sunday penalty rates.

I mention this today as two employees of a newsagency (with which I have no connection) contacted me this week about their pay for Sundays. My answer to them was there same as I give every current or former newsagency asking abut pay – contact Fair Work and go through their process to determine if you have been paid correctly.

In their situation they were being paid cash in hand at a rate that was higher than what they would have got had it been taxed but at a lower cost to the business had it been paid at the required gross rate and on the books. Also, being cash in hand there was no super contribution.

With employee entitlements being in the news so much recently – 7-Eleven, Woolworths, the ABC and others – the last thing we need is the actions of some reflecting on the channel.

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Ethics

ACCC publishes statement of issues with Bauer acquisition of Pacific Magazines

The ACCC today has published Statement of Issues with the proposed Bauer take over of Pacific Magazines. The statement includes:

The ACCC’s preliminary view is that the proposed acquisition is likely to substantially lessen competition by reducing the number of major print magazine publishers in key magazine categories from two to one. The focus of the ACCC’s concerns is in relation to the loss of competition in the supply of content to readers/consumers between Woman’s Day (owned by Bauer) and New Idea(owned by Pacific Magazines) and the loss of competition between Take 5(owned by Bauer) and That’s Life! (owned by Pacific Magazines).

Bauer has released a statement:

ACCC HAS PRELIMINARY CONCERNS WITH BAUER MEDIA GROUP’S ACQUISITION OF MAGAZINE PORTFOLIO FROM SEVEN WEST MEDIA

Sydney, 19 December, 2019: Bauer Media Group is disappointed that the Australian Competition and Consumer Commission (ACCC) has today indicated that it has preliminary concerns with the proposed acquisition of Seven West Media’s Pacific Magazines portfolio.

Adrian Goss, Bauer Media General Counsel says: “In view of the ACCC’s own findings in its recent Digital Platforms Inquiry, we are surprised that it has not cleared the acquisition at this stage. While we are confident of receiving clearance in the New Year, the ongoing uncertainty is enormously challenging for Pacific Magazines’ staff and the business more generally. Bauer Media has always seen the acquisition as a positive step towards ensuring the sustainability of print magazine publishing in Australia.”

Bauer Media will continue to cooperate with the ACCC in addressing the matters raised in its statement of issues and expects the acquisition to be cleared in early 2020.

 

-ENDS-

While I agree it will lessen competition, so to would the closure of Pacific.

Magazine publishing has changed dramatically in recent years, with more changes coming. Blocking the takeover, if it did come to that, would serve little purpose in my view.

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magazines
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