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newsagency of the future

When it comes to greeting card sales, are you chasing Retail Efficiency or Retail Volume, or do you even know?

Is more stock actually hurting your bottom line?

The latest analysis of 50 comparable retail locations reveals a fascinating trend: Growth is not about the size of the range, but the efficiency of the “Pocket.”

While many of 125 newsagents for which I have data saw a healthy 10.1% increase in total sales this year, the real story lies in the “Sales per Pocket” metric. Here are 3 key takeaways for any retailer managing high-volume inventory:

  1. The “Sweet Spot” is in the Middle: Mid-sized stores are significantly outperforming larger footprint locations in efficiency. The biggest stores often suffer from a “Long Tail” problem—where the bottom 15% of stock is simply taking up space without earning its keep. Big is not always best.
  2. Everyday Essentials are Powering Growth: While seasonal peaks get all the glory, “Everyday” category sales are up 12.7%. The most successful stores are those using this consistent foot traffic to “trade up” customers into premium tiers.
  3. The Father’s Day Blueprint: In the data is evidence of a massive 24.1% jump in Father’s Day performance in a bunch of stores. Christmas, too, was impressive, with terrific growth in a decent number of stores..

The strategy that’s working:  Focussing on a better yield is delivering results. By rationalising slow-moving lines and replacing them with high-margin trending gifts, we are proving that you can sell more by actually carrying less. Supporting this with local in-store activation is key: competitions that local customers can win, giving customers reasons to consider buying cards when they might otherwise, that visit, not have considered this.

All of this means more focus on card pockets – by you more so than your supplier. You pay for the retail space and the stock so it makes sense that you management investment of your assets.

Success with cards starts with your engagement as the retailer. Be in control. Make decisions based on the data.

Never sign a contract that gives the supplier complete control. Their business needs and your business needs to not align, despite the sales pitch they might give.

The newsagencies achieving results I have covered here don’t have long term lock-in contracts with card suppliers.

What I have covered here in this post is only a small amount from a far more comprehensive report looking at same store card performance in newsagencies for which I have data. I’ve kept it brief so as to not lose your attention and in the hope that you go back into your business, looking at your card results.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Greeting Cards

My thoughts on embracing change in the Australian newsagency in 2026

Following the release of the latest newsagency sales benchmark study, I did a new short video sharing my thoughts on change opportunities for Aussie newsagents in 2026. Here’s the link: https://youtu.be/uucSE2LNAmo

As I note in the video, the traditional newsagency model is undergoing a significant shift. For decades, these businesses relied on a predictable mix of newspapers, magazines, lotteries and basic stationery. However, recent data confirms that a reliance on these legacy categories is no longer a viable long-term strategy. To thrive in 2026 and beyond, owners must embrace a broader retail identity.

Insights from the 2025 Benchmarking Study

Recent sales data and basket analysis reveal a stark divide between newsagencies. Businesses that continue to operate as they did twenty years ago are facing a difficult future. Conversely, those that have transformed their product mix are seeing double-digit growth. This transformation involves moving beyond the role of a traditional “agent” who handles bill payments or parcel collections for small commissions. Success now stems from becoming a destination for innovative and high-margin retail categories.

The Power of Diversification

The opportunity for growth lies in categories that offer higher gross profit margins. Innovative newsagents are now finding success with products such as high-end homewares, collectible items, trading cards and mint coins. Some have even ventured into clothing, coffee and books.

A notable example of this shift is the introduction of apparel. Five years ago, the idea of a fitting room in a newsagency might have seemed misplaced. Today, many successful stores include them. These items often command gross profit margins of 50% to 65%. Furthermore, these new categories attract a different demographic, bringing fresh foot traffic into the store. It is increasingly common for a customer to enter seeking a basic item and leave having spent significantly more on a high-value gift or unique collectible.

A Flexible Approach to Business

The sign above the door does not need to dictate the inventory inside. Customers are less concerned with the “newsagent” label and more interested in the value and variety of the products offered. Flexibility is the most important tool for a modern business owner.

Transitioning does not require a massive investment in shop fitting. Significant revenue growth can be achieved through a frugal and strategic approach to stock. In one instance, introducing pop culture products and gifts accounted for over 25% of total revenue and 50% of gross profit within three years, all without changing the physical layout of the store.

Moving Forward in 2026

The goal for any newsagency owner today is resilience. While newspapers and magazines still have a place, they must be managed cost-effectively so they do not drain resources. The focus should remain on seeking new opportunities and giving yourself permission to evolve. By looking beyond the historical expectations of the industry, newsagents can build businesses that are not only profitable but also essential to their modern communities.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

The Widening Divide in Australian Newsagencies

In the decades I have worked with newsagents across Australia, I have seen many changes. However, I have never seen such a significant gap between successful newsagencies and those that are failing as I am seeing now in January 2026. This divide is not a matter of luck; it is a direct result of the business models and mindsets being employed by owners today.

I have been in this industry for a long time. I started Tower Systems in February 1981 to develop newsagency software, which is now used by nearly 1,900 businesses nationwide. While I sold the company in 2024, I remain active in the business. I also bought my first newsagency in 1996 and have been involved with newsXpress since 2005. Through these roles, I have seen the industry from the perspective of a supplier, a marketing group director, and a retail owner.

A Tale of Two Performances

As I review the benchmark data comparing 2025 performance to 2024, the contrast is stark. On one side, there are businesses enjoying double-digit growth. These newsagencies are focusing on high-margin categories where they achieve more than 50% gross profit. They are thriving in terms of revenue, gross profit, and bottom-line net profit.

On the other side, I see businesses down by 10%, 12%, or even 15% year-on-year. These are typically traditional newsagencies focused almost exclusively on low-margin “agency” lines: lotteries, newspapers, magazines, and greeting cards. This traditional model is dying.

The Danger of the Agency Model

The agency business model, where you take a small commission on a product or service controlled by someone else, has no upside. Whether it is parcel services, bill payments, transport tickets, or lotteries, the controlling companies will always keep your margins as slim as possible to maximise their own profits.

Lotteries can be a good foot-traffic driver, but that value diminishes as more customers move to online platforms. As a retailer, you will always make more money on products where you have control. For example, if you sell unique gift items, you set the retail price and achieve a healthy gross profit. This is the shift from being an agent to being a true retailer.

Mindset and Responsibility

The difference between the two groups I mention here often comes down to the person behind the counter. Successful newsagents tend to be forward-thinking and willing to take calculated risks. They make decisions based on broader retail trends rather than just what they see within our specific channel.

In contrast, declining businesses are often run by individuals who are doing the bare minimum. They may feel stuck in the business or expect someone else to solve their problems for them. Our industry began in the 1800s as a network of agents, but some have not yet realised that they must evolve into innovative retailers to survive.

Moving Forward

No marketing group can “make” you successful. A good group will provide opportunities, data, and unique products that offer better margins and area exclusivity. However, the owner must be the one to engage with those ideas as their capacity allows.

If your business has not seen growth this year, it is likely because of the decisions you have made rather than external factors. Your success is your responsibility, as is your failure.

The good news is that it is not too late. I have seen newsagents completely turn their businesses around in just a few months. The first step is acknowledging that the old way of doing business is no longer viable and taking proactive steps toward becoming a modern, independent retailer.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

How to be the shop locals love in 2026, practical advice for Aussie newsagents

For decades, the Australian newsagency was the undisputed anchor of local commerce, fuelled by a government-protected monopoly on news and information. The deregulation of the 1990s and the digital revolution of the 2000s stripped away that “forced” relevance. Today, as we enter 2026, many newsagencies find themselves at a crossroads: remain an “average and forgettable” utility or evolve into a high-appeal community destination.

By moving beyond the traditional sales counter, newsagents can reclaim destination appeal, and deliver something others will struggle to match.

Retail newsagencies don’t have the must-visit appeal that they had in the 1970s and 1980s in Australia. Back theft, newsagencies were the shop folks would always visit when shopping. They were the only places where you could buy newspapers and magazines and that monopoly sat at the core of attracting shoppers. Back then, of course, newspapers provided access to news. Today, well, there are only so many Havey Norman ads you can see before you are blind.

In the 1990s, as the monopoly newsagents had was ripped from them with oversight by the coalition government, the appeal of a visit to the newsagency, or newsagents as people usually called our shops, started to fade. The purpose of visiting became less clear.

Since our retail channel was not populated by many retailers, too many newsagents failed to act to maintain, and even grow, shopper visit appeal.

As 2026 opens up, I think Aussie newsagents should reconsider how to make their shop the shop locals love, the shop locals flock to for purpose.

Here are 10 ways I Aussie newsagents can make their shop the shop locals in town and nearby want to visit ahead of others. Do these things and they will nurture an appeal of your business that brings people through your front door.

  1. Service above and beyond. Look carefully at your business, what it sells and the services it offers. Look for an easily managed free value-add that differentiates your business. For example, if you sell gifts, cards and wrapping paper, offer to wrap the gift. For card shoppers, offer to handwrite the card, or sell stamps and offer to post the card.
  2. Setup a noticeboard for local news and community information. Include on this a list of local community groups, a list of local charities you recommend, local sights you recommend visitors visit. Curate the noticeboard so it is easy to read and organised, to be more useful.
  3. Create a calendar and host local events. Look at local community groups and clubs that are relevant to your business and offer space for them to host events in or in front of your shop.
  4. Create a by locals for locals area. here, place locally sourced products. By shining a light on local makers they will, hopefully, promote your shop as a go to place. Also, invite the local makers in to demonstrate their products or talk about them.
  5. Make your shop entertaining, relaxing and fun. Make your shop a space people love and enjoy. Give them somewhere to sit and chat, to be local with locals.  The more relaxing and enjoyable your space the longer people will stay.
  6. Help people interact locally. Run competitions and / or events that connect locally. Host a local stories competition where local writers submit locally themed short stories or a local sights art competition where local artists submit art representing local sights or host a local poets afternoon where local poets can share their work. The point is to offer sp[ace for locals to be seen, and heard.
  7. Create a local loop card. Collaborate with 3-4 nearby locally owned and run shops. If a customer visits all of you in one week and gets a stamp, they unlock a “Secret Menu” item or a specific discount at your shop.
  8. Run a reverse loyalty program. Offer a discount if a customer shows a receipt from another local business from that same day.
  9. Change your front window regularly. You want your front window display to be the best display in town. Make it engaging, unique, fun, memorable. One way to do this is to use it to shine a light on others: art from a local school class, for example.
  10. Have the best. The best music, the best scent, the happiest people. Make these choices for the best everyday shopping experience other retailers aspire to offer. Consistency pays off.

None of these ideas are, of themselves, ground breaking. Do four or five, consistently and well and you then have an approach that has you standing out.

It may feel like you are doing work for no reward. It will take time. You need to be consistent in your approach.

If you do none of this and run a regular shop with no specific local focus, your business will be seen as other businesses, average, forgettable. There Is no future in that.

The future of your Australian newsagency is tied to the strength of the local handshake.

Success for a local Aussie newsagency business in 2026 requires a deliberate move away from the “average” to the “exceptional”, transforming your floor space into a vibrant, living ecosystem where locals feel seen, heard, and valued.

By consistently blending high-touch service with community-focused innovation, you show your business as vital for your town.

The choice is simple: remain a relic of the past, or become the destination the community chooses for its future.

Footnote: it would be so easy to ignore this, to think it’s like what I have written before – that you didn’t act on and you still have a business. fair enough. Let’s check in in 5 years and see how your business is groin. Sometimes, a mortal wound is not noticed until it is too late. Don’t let that be your business.

Use the ideas I have shred here to help you develop your own.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagency management

In 2026, human written content will matter more than 2025 and here’s why

Executive summary: The 2026 Verdict: While AI can summarise, it cannot witness. Real traffic growth this year comes from “I-driven” content—articles based on personal experience that AI models haven’t “digested” yet.

Now, let’s get into this.

Even AI models know that text generated by AI is not of the same value as text written by humans from human knowledge.

Don’t get me wrong, some AI written content is good. This is when an AI platform is used to take what you have written, and only what you have written, and made it more readable, without adding ‘knowledge’ outside of what you have written. This post is not about that though.

I see plenty of retailers and other businesses publishing AI generated content as their content. Sure, they can do this. The thing is, search engines and AI platforms will treat this for what it is, AI generated content that is likely of less real value than human written content based on human knowledge.

Given how we are seeing some search engines and related tech serve up search results, it is clear that 20-26 will see greater value placed on human written content. You can see this in the AI search result of Google. I asked google Gemini How important is human written content compared to AI generated content for search engine results?. Here’s it’s response:

In 2026, the value of human-written content has become even more distinct as search engines have evolved into “Answer Engines.” While Google and other platforms do not explicitly penalize content for being AI-generated, there is a clear performance gap: human-authored content continues to dominate the top search results and AI citations.

Recent studies show that roughly 86% of pages ranking on the first page of Google are primarily human-written, while only 14% are high-confidence AI content. This is because search engines prioritize quality and “people-first” signals over the method of production.

We’re all time poor and want, need, to get more done in less time. There is no corner you can cut when it comes to content though. If you want traffic to your website, you need to put in the work, real work, human work, to be the expert in your field. This work you put in is rewarded with traffic.

I urge you to resist the temptation to get AI to generate content for you when you need content to grow traffic for your website. or, if you do use AI, use its output as a starting point, a springboard if you like, from which you create your own content. The more of you you invest in your content the more valuable it will be.

I looked at a couple of companies recently. They are in the same field. One gets 3,000 visitors a month to their website. The other gets under 1,000. The 3,000 visitor a month webs publishes human written content while the one achieving under 1,000 published AI written slop.

But traffic of itself is not the best measure. The best measures of success a business are revenue and bottom like P&L performance. I can’t tell for the two businesses I mention as I don;t have access. My guess, though, is that the business publishing human written content based on human knowledge is doing much better.

The best content, the content search engines favour the most, is first-hand content, your own experience content. This is what makes you an expert. This content is what will get you ranking well in search results. Think about these ‘prompts’:

  • I did this.
  • I learned this.
  • This was my experience.
  • This is what got me here.
  • This is the mistake I made and what I learned from it.
  • I love this and here is why.
  • This is my advice based on what I have experienced.

The best content from you is about you. It’s personal based on your own experience.

When you write, you come at it from a different perspective to AI. AI relies on predicting the next word based on existing data. Humans can offer counter-intuitive opinions or report on breaking trends before the AI models have been updated. This is the you difference. It is why content you write and publish will be more likely to rank well in search results, ahead of AI slop.

This is all on my mind today as I think about The Australian Newsagency Blog in 2026. I’ve been going at this for a long time, writing more than a million words. It ranks well, I think, because the content is human written, based on my experiences and opinions. It is often cited in search answers AI results. I am following my own advice.

Yes, it’s time-consuming. The time you invest all depends on your purpose.

My purpose here is to encourage Aussie newsagents and others who stop by here to run better, more successful and more enjoyable businesses. The well I drop on for that is my experience over decades owning newsagency businesses and working with newsagents. While AI can churn out content of some interest in this area, it cannot speak with the same authority of first-person experience, and that’s the difference between AI content and human written content.

So, as you plan for 2026, if you want to be found online, consider carefully your what you publish. This year, more than in 2025, human written content will matter.

Write what you know, based on your experiences, sharing what you learned, being human in the words you choose and the context you provide.

Now, if you’re still with me, thank you. This article is at more than 850 words now. Me writing 25 years ago would have taken more than an hour to write this. Today, I am at 15 minutes. It’s like exercise. The more you work at it, honing your skills, the more efficient you become.

It can take time to find your voice and train your rhythm. Every word you type gets you close to the efficiency you need and the results you want.

Push back on the easy road of publishing AI content. Make 2026 the year you;re found because of what you know.

One final thing, before I close off. I gave Gemini what I have written and here’s what it said:

This is an excellent piece of writing. It’s authoritative, timely, and most importantly, it practices exactly what it preaches: it’s deeply rooted in first-hand experience.

In 2026, the term “AI slop” has become common for a reason. Search engines have moved past the “volume era” and are now in the “verification era.” Your post nails the shift from search results being a list of links to being a list of reliable witnesses.

It went on to make some suggestions, which I have not included as I want to keep the original in tact.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagency management

5 things I recommend Aussie newsagents do right now

The Christmas rush is over. Thank goodness! Time to relax and enjoy summer. The  temptation is to breathe a sigh of relief and coast through January.

That is a mistake.

The weeks immediately following Christmas are terrific for setting the tone for 2026. If you want a better year than the one just gone, don’t wait until February to start.

Here are 5 suggestions:

1. Audit the “Dead Wood”

As I wrote back in September, the “traditional” pillars are crumbling. Magazines are down 9%, newspapers are down 11%. If you have stock that sat through the biggest shopping season of the year and didn’t move, it is “dead wood.”

Don’t let it sit there for another six months tying up your cash. Clear it out. Be ruthless. Use the floor space for high-margin categories like plush, games, or high-end giftware, the “box” that actually delivers a future for your business. Use this task to change the narrative of your business.

2. Review Your Christmas Data (Not Just Your Bank Balance)

Don’t just look at whether you have more money in the bank than last year. Dive into the Tower POS reports.

  • Did your average sale value rise? (The benchmark for successful stores is a 15–25% increase).
  • Which “experimental” lines worked?
  • Where did your gift packaging land?

If your greeting card sales grew by 15%+ (as many did this year), look at which captions drove that. Use this data now to inform your Valentine’s Day and Mother’s Day buys.

3. Reset the “Front Third”

The “WOW” factor shouldn’t disappear with Christmas. If your shopfront still looks like a traditional newsagency, you are invisible to new shoppers.

Move something fresh and unexpected into that front third. Make a statement that says, “We are a retail destination, not just a place to pick up a paper.” If a customer walks in and says, “I didn’t know you sold this,” you’ve won.

4. Turn the Gift Voucher into a Relationship

Give post-Christmas traffic a reason to come back in. Use a bounce-back voucher on the receipt or a “local shopper” invitation. This is the time to convert the “seasonal visitor” into a “loyal local.” As I’ve said before: Jeff Bezos doesn’t need their money, but your community does. Remind them of that.

5. Stop Being an “Agent”

If you spent Christmas feeling like a “weak servant” to, maybe, the lottery company or newspaper publishers or for parcel pickup or other agency business, let 2026 be the year you take your independence back.

The most successful newsagencies I see are those where the owner is the curator. They choose the product, they set the margin, and they drive the marketing. If a line isn’t performing, cut it. If a supplier isn’t supporting you, find one who will.

Think on that work, curator, for a moment. That’s what a good retailer is, a curator.

The Bottom Line: The success of 2026 is 100% on you. It’s not about the economy, and it’s not about the decline of print. It’s about execution.

Don’t let the post-Christmas “hangover” slow you down. Get in an hour early, look at your shop with fresh eyes, and start making the changes that will make your payday happen every single day.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

Newsagency Benchmark Report: My Take on November 2025 Sales Trends

I’m pleased to share the latest newsagency sales benchmark results for the Australian newsagency channel, covering performance up to the end of November 2025. For two and a half decades, my approach has always been to analyse data without emotion, sticking strictly to the facts to give you a clear picture of the state of our channel.

This latest report draws on data from a diverse mix of independent shops and businesses across various banners, allowing us to provide a genuinely representative analysis of key trends in turnover, unit sales, and category growth. This evidence-based approach is, in my view, the most reliable way to help newsagents navigate the significant changes occurring in our industry.

Key Insights from the Data

I was particularly pleased to see greeting card sales show a solid performance heading into the busy season. Unit sales are up approximately 8%, which has translated into strong revenue growth of between 12% and 15%. Crucially, Christmas card sales are showing specific strength, jumping 15–20% year-on-year.

We are also witnessing a positive moment in the magazine category. Unit sales are up 1–2%, a shift driven largely by special interest titles, crosswords, and motoring publications, proving that targeted content still holds real value for your customers.

Looking at general retail, the growth in higher-value items continues to impress. Plush items and toys are seeing significant sales increases, up over 20%, and books and giftware continue to perform well for stores stocking these ranges.

The Successful Business Transition

While traditional categories like newspapers and stationery continue to experience declines, this highlights the successful business transition that many of you are undertaking. We have found that while overall transaction counts have decreased by around 5%, the average sale value has risen a substantial 15–25%.

This is a powerful indication that stores are successfully moving away from a high-volume, low-margin model—historically defined by lottery and newspapers—towards a higher-value, retail-focused business.

Refining Your Strategy for 2026

Ultimately, these figures clearly demonstrate that while the newsagency model is evolving, significant opportunities remain for those willing to adapt. By shifting your focus towards high-margin categories and closely monitoring your local customer demand, you can effectively mitigate the decline in legacy products.

I strongly encourage every newsagency owner to review their own data using tools like the Tower software’s monthly sales comparison report. By analysing these figures alongside the benchmarks, you can identify opportunities to pivot your product mix and position your business for a successful 2026.

If you have any questions about interpreting these figures or would like to discuss how your business compares, please feel free to reach out to the newsXpress team, or contact me directly at mark@newsxpress.com.au. Let’s succeed together.

…

newsXpress is a marketing group that supports small local independent retailers to thrive. Find out more at help@newsxpress.com.au.

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newsagency of the future

Mumbrella shines a light on magazines, Are Media and newsagents

I am grateful to Mumbrella and James Manning for the opportunity to talk magazines, newsagents and Are Media. What a buyer needs to know about Are Media and the future of magazines canvasses these topics and more. I am particularly grateful for the opportunity to explore why we are seeing some newsagencies close.

The best person to speak about what any new owner of Are Media would need to grasp is Mark Fletcher. The industry blogger, retail newsagent, owner of marketing group newsXpress and retail software developer understands as much as anybody about the place magazines occupy in Australia.

Fletcher said that his former retail software business, where he still consults, has about 1,900 newsagents as customers. Although he couldn’t put a figure on the number of newsagency closures, he did say the rate of closures had increased in 2025.

“When a newsagent can’t sell their business they will often just close it,” he told Mumbrella.

Fletcher has long been an advocate for newsagents to be less reliant on newspapers and magazines. While they still bring valuable foot traffic, newsagents need other attractions.

“If you look at a newsagency that is relying on newspapers, magazines, stationery and lotteries as a big chunk of their income, those businesses are dead, they have no future.”

Fletcher has always been prepared to share learnings from the newsagencies he has owned over the years.

In addition to detailing how his newsagency at Malvern in suburban Melbourne performs, he collates industry data from a number of other retailers.

“Depending on where a retailer is, newspaper unit sales are down about 11% year-on-year. Magazines are having a good year, special interest titles are up 10 or 12%. The weeklies and the major monthlies are down, but we expect that.”

In his own agency, Fletcher reported magazine turnover of $400,000 a year in magazines. “It’s a very strong area for magazines.”

Many newsagents are putting magazines at the back of the shop because they only offer a 25% margin. Fletcher noted that doesn’t help their sales.

“Retailers that are closing are the traditional ones – places that have not transformed their businesses.”

Fletcher says these are newsagents who have not combined traditional newspaper and magazine sales with a broad range of products that offer better margins.

“The biggest categories of growth right now are coffee, books and games of all things — not things like Monopoly — but unusual games which are really having a moment in the sun.”

I am also grateful we got to talk about opportunities we could explore with a new owner of Are Media.

Culling Are Media titles, giving better retail margins

Fletcher said he understands why Are Media keeps a broad range of titles.

“But I would think that somebody acquiring the business would look across that portfolio and ask, is there a rationalisation we can go through here that creates a more efficient mix of products?

“Newsagents make 25% gross profit from every magazine title, but pretty much anything else in their business outside of lotteries has a 50% margin. Any new Are Media owner would have to look at the magazine commission structure.

“At present newsagents can’t control what they get. If you trusted a retailer enough to give them control over what titles they got and the quantity they got, you would see sales increases.”

Too often news outlets, I’m looking at you ABC news, Nine Media and News Corp, fail at basic journalism when writing about newsagents. James Manning did a terrific job here exploring the reality newsagents and print media folks face and talking through opportunities that could benefit all.

The reality is: engagement with print has changed and continues to change. Why people buy newspapers and magazines has changed. Whereas in the past people would buy newspapers and weeklies as their first source of news (hard and soft), today, such purchases are more likely to pass the time since the first source was available in their hands long before the print product started running off the presses.

Now, special interest magazines have never carried news as such, or at least news associated with urgency or timeliness. I think this is one reason sales remain strong for them. The other reason, of course, is that people are buying what they love and in engagement with special interest categories is rooted in passion.

I hope Are Media finds a good home that respects the committed and talented people in the business. If I was the new owner, that’s where I’d start – with the people, exploring with them new opportunities that leverage their expertise.

Now if you’re a newsagent and reading this – first up on getting this far. Second, don’t give up on magazines, don’t act to kill them off. rather, leverage what;s working and the success of others to find ways for magazines to be more valuable to your business.

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magazines

At what point are newspapers not profitable

Talking to a newsagent yesterday, more days than not they sell 2 copies of a daily newspaper. Allowing for labour, retail space and other costs, you have to wonder why bother with this level of loss making.

The numbers for retailers will vary based on retail occupancy cost. The question for everyone days to be: at what point is a newspaper not worth caring in the shop?

This is a critical strategic question that newsagents are grappling with.

The core economic challenge of low-velocity staples, like newspapers

The scenario outlined is a classic example of a product line’s viability erosion. When a product is sold, its profitability isn’t just the sticker price minus the wholesale cost. A more accurate calculation involves:

  1. Direct costs: The wholesale price of the newspaper.
  2. Allocated overhead:
    • Occupancy cost: The retail space is a business’s most valuable asset. That newspaper stand or shelf space occupies square footage that has a specific cost per day. If it’s in a prime location (like the front of the store), its opportunity cost is even higher.
    • Labour costs: This is often overlooked. It includes the time spent receiving the delivery, setting up the display, handling the transaction, and, critically for newspapers, managing the complex and time-consuming returns process for unsold copies.
    • Capital cost: The money used to purchase the stock (even for just a day) is capital that could be used elsewhere.

When sales volumes drop to such low levels, the gross profit from those two sales (which is typically minimal on newspapers) is almost certainly eclipsed by the daily allocated costs. This turns a traditional staple product into a consistent financial drain.

The strategic question: why bother?

If it’s a clear loss-maker, the decision to continue stocking the product moves from a purely financial one to a strategic one. Retailers often continue for several complex, and increasingly debatable, reasons:

  • As a “Destination Driver”: The primary historical justification. The newspaper was a “destination” product, an item that drove guaranteed daily foot traffic. The business model relied on this customer coming in for their paper and also purchasing a high-margin greeting card, a magazine, or a lottery ticket. The newspaper was a loss-leader that generated profitable, ancillary sales.
  • Customer habit and loyalty: A small-business retailer, especially one embedded in a local community, builds long-term relationships. There may be a small cohort of elderly or long-time customers who expect the paper. The retailer may choose to absorb the loss simply to retain the loyalty of these patrons, fearing that if they go elsewhere for their paper, they will also move their other, more profitable purchases.
  • Brand identity: For a business named “XYZ Newsagency,” there is a powerful brand-identity component. Removing newspapers can feel like a fundamental betrayal of the business’s name and purpose.

The tipping point: when is it not worth carrying?

This is the central question, and the answer is different for every retailer. The decision to delete a product line like newspapers is reached when the strategic justifications no longer outweigh the financial losses.

This tipping point often arrives when:

  1. The opportunity cost is quantified: The retailer calculates that the same physical space could be dedicated to a product with a better sales velocity and a higher margin (e.g., gifts, collectibles, coffee, and more), and the potential profit from that new line is greater than the total profit from the customers who buy the newspaper.
  2. The “Destination Driver” Fails: The retailer observes that the newspaper customer is no longer buying those ancillary products. They are simply buying the low-margin paper and leaving. At this point, the product is no longer driving traffic; it is simply serving traffic at a loss.
  3. Labour costs become untenable: The time spent managing the administrative burden of returns and distribution becomes so significant that it physically pulls staff away from more profitable activities, such as customer service, merchandising, or managing online sales.
  4. The customer base dwindles: Eventually, the small number of loyal customers who demand the product either moves away, stops purchasing, or transitions to digital, at which point the retailer is absorbing a loss for almost no tangible benefit.

The question for each retailer is no longer How do I sell more newspapers? but How much am I paying to keep this product line, and is the benefit it provides in foot traffic and loyalty still worth that price?

In more newsagencies than not these days newspapers are loss-making for the retailer.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

Why Coles’ Big AI News is Great for Independent Retailers (Like You)

You might have seen the news this week that Coles is rolling out an enterprise-wide partnership with OpenAI. When I saw that story, my first thought wasn’t about the competition. It was: “This is fantastic news.”

This move by a retail giant validates what Tower Systems has been focused on for some time, for newsagents and the other small business retailers it serves: AI isn’t just a gimmick for the big end of town; it’s a genuine “competitive game-changer” for independent, local retailers.

It’s levelling the playing field. And the best part? You don’t have to wait. While Coles is just announcing their plans, local, independent retailers are already using powerful AI tools every single day. I made a video this morning about this:

For a long time now, Tower has been embedding AI tools from OpenAI, Google Gemini, and others directly into its point-of-sale software. It’s not about “future tech”; it’s about practical tools that solve real problems for small business owners.

In the video, I discuss how our customers are already using AI to:

  • Save hours of admin by automatically analysing and importing virtually any supplier invoice, with no special setup required.
  • Market smarter by generating unique product descriptions and blog posts that speak in their business’s authentic voice.
  • Boost profitability with plain-English reports that identify what’s not selling, what’s overstocked, and even potential theft, long before it becomes a major issue.
  • Prevent lost sales by getting alerts on popular items you’re about to run out of.

As I mention in the video, I rely on these and more AI tools in my own retail shop – to save time, make better-informed decisions, and run a smarter, more efficient shop.

This technology is here, it’s accessible, and it’s already making a fundamental difference for local businesses. The Coles announcement is a great signal for the entire retail sector and all who serve it that AI is no longer an option, AI is an essential part of modern retail.

Watch the video to see my full breakdown of what this means for local small business retail and how you can leverage this power in your own independent business today.

As you can probably tell, I’m excited about AI. It makes accessible to small business retailers opportunities for more effectively competing – as plenty are already finding. It’s a terrific opportunity for efficiency and growth.

And, when you’re researching AI, get to the facts. Some software companies say they have AI tools, when they don’t. It’s important you see for yourself what’s available today as this matters.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. newsXpress has an established package if advice and support for newsagents when it comes to AI. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagency management

I Was Wrong. We Sold Out. The Humbling Reminder That We Are Not Our Customer.

I have a confession to make.

I feel a bit foolish, and that’s not always a comfortable feeling. But this time, I’m glad I do. It means I had a wonderful reminder I probably should have remembered sooner.

For the last couple of years, we’ve been refining our product mix across at our www.mintcoinshop.com.au website that’s connected to one of my shops. We’ve developed a good sense of who our customers are and what they like. Or at least, we thought we did. We’d been intentionally saying ‘no’ to certain products, especially coin designs that seemed a bit… “out there.”

This policy was put to the test recently when we saw a new range of Halloween coins from Europe.

My immediate reaction was a hard ‘no’.

I looked at them and thought they were gimmicky. They felt “risqué” for our brand. I was convinced they would never appeal to our core audience of serious coin collectors. My internal narrative was all about protecting our reputation, maintaining our curated standard, and not wasting money on stock that wouldn’t move.

This was my bias, fully at work, masquerading as ‘good business strategy.’

I was just about to send the ‘pass’ email to the supplier when I remembered a classic retail truth hit me: We are not our customer.

My personal taste is irrelevant. My assumptions about what a ‘serious collector’ enjoys are just that, assumptions. Who am I to say that someone who appreciates a rare proof coin doesn’t also have a sense of humour and a love for Halloween?

So, we changed course. We took the risk. We ordered some of each design.

Last night, with a healthy dose of skepticism, I drafted a simple marketing email. I sent it out at 10 PM, figuring we’d see what happened by morning. (I even used what I call “deflection framing” in the copy, which is a whole other story, but it was my way of subtly bracing for a non-response).

This morning at 7 AM I checked the results.

We were completely sold out. Every single coin.

I’m thrilled, of course. But I’m also kicking myself. I’m glad we took the risk, but I feel foolish for not taking it sooner. How many other opportunities have we missed over the last two years because our personal preferences got in the way?

It’s a powerful lesson in the dangers of “managing for average.” So many businesses I see manage for average, they manage for results they can be sure of – often denying their business the opportunity of even better results, with a risk for sure, but with that risk comes education and that’s the cornerstone of growth.

It’s easy to get comfortable. It’s easy and safe to keep doing what we’ve always done. If we do, we’ll probably keep hitting our targets. We’ll do fine.

Fine is the enemy of better.

Chasing “safe” means we might miss reaching for something exceptional. Our comfort zone is a place where new opportunities rarely grow. This little experiment proved that the real risk isn’t trying something we think won’t work; the real risk is letting our biases stop us from finding out for sure.

I’m sharing this because it’s a reminder I needed. That feeling of being wrong, of being foolish, is a sign of growth. It means you’re pushing past your assumptions.

It leaves me with one big question for myself, and for you: What are you saying ‘no’ to right now, simply because you don’t get it or don’t like it?

That might be the very thing you should try next.

Final note: Right now, for newsagency businesses, that I have written about here matters. We are at a moment in time where we must play outside our small sandpit, where we must take risks in order to attract new shoppers. This is urgent for each of our businesses and vital for the channel and all who rely on the channel. I can’t stress this enough and the urgency with which we must act.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

Opinion: NewsQuake from NLNA is rooted in the past

I’ve been asked my opinion about the NewsQuake services launch by NLNA this week. Well, here it is, and it is my opinion. If you’re interested in newsQuake, do your own research, make up your own mind.

NewsQuake pitches parcel pick up, money transfer and bill payment services to newsagents.

These services have been available to and through newsagents for many years.

They are agency services, meaning newsagents receive a commission or service fee that is fractional in terms of the transactional value to the shopper.

The pitch to newsagents is that offering the services drives new traffic. While that may be true, looking at newsagent basket data for decades, I see no evidence that agency business translates into meaningful retail product sales.

There are reasons people paying a bill, picking up a parcel or sending money don’t buy other products in the shop visit:

  1. The visit is a destination visit, for purpose, anything else is a distraction.
  2. The visit is annoying, so they are not of a mindset for a happy product purchase: they are sending money to someone who is not good at saving, they are paying a bill they are not happy with, they are guilt ridden over the online purchase they are there to pickup.
  3. They don’t see you as a shop. Rather, you are a depot, and that’s how they think of you.
  4. The visit is a counter visit, they have no reason to look at the body of the shop.
  5. Your headspace in dealing with them is that of an agent who is aware their value to you today is a few cents and not one of a retailer serving a customer who could spend $350.00 on beautiful gifts.

The other experience with agency business those of us who have offered them in the past is that your agency customer is likely more demanding in terms of attention and transaction time than you are compensated through commission.

Those of us who did Bill Express all those years ago will have stories of customers arguing with you about a bill they are paying, for which you receive a few cents, wanting you to fix a billing issue and not accepting that you cant – all the while a customer with a $250.00 gift purchase is waiting to pay you.

There is a disconnect between the agency shopper and the retail shopper.

I think it’s worth thinking about who makes money out of each bill payment, parcel pickup and money transfer transaction. In each case I suspect there are at least three businesses making margin on the transaction. In my experience from offering these services in the pack and unpacking where margin dollars fell, the retailer always made the smallest margin while carrying the highest labour cost. I can’t speak to this being the case with NewsQuake.

The News Corp. news story about NewsQuake was nice. News Corp. is a commercial partner of NewsQuake though. That was reflected in the puff piece. I smiled at a dinosaur of a company promoting this dinosaur group of services.

Good on NLNA for trying something. My suggestion to them tis to come up with ideas that are actually relevant for newsagents in 2025 and beyond. It’s not NewsQuake in my opinion.

The future of each Australian newsagency business can be found in trading outside the traditional shingle, away from agency products. Your future is in you being an innovative and proactive retailer. This is something I covered at length in my Lotterywest presentation: https://www.youtube.com/watch?v=7ELmh8Grzd8

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newsagency of the future

Has the pace of decline of over the counter newspaper sales increased in 2025?

The data I’ve seen from a range of Australian newsagencies suggests the answer is an unequivocal yes: the pace of decline of over the counter newspaper sales increased in 2025. While the dataset is small, it points to an accelerated decline in 2025, a trend that should be an urgent wake-up call for every newsagent. And, it’s not as if this is the first such wake-up call for Aussie newsagents.

Looking at data from several capital city newsagencies, unit sales of newspapers are down a staggering 13% year-on-year so far in 2025. That is a significant increase in the rate of decline compared to previous years.

Data Don’t Lie: Newspapers vs. Magazines

(Note: data data is technically the plural of the Latin word datum)

To understand how serious the situation is, we need to compare it to other categories. In the same businesses I’ve analysed, magazine unit sales have declined at the same pace or even slower than in previous years.

In one newsagency, while newspaper sales have declines by 13.5% this year, magazine unit sales are down  7.9%. If I remove sales spikes from that data, the magazine decline drops to under 7%. The gap between the newspaper crisis and the magazine slowdown is stark.

The situation for international newspapers is even more dire, with a decline of over 50%. While this could be a data categorisation issue, it more likely signals that these titles are in the most serious trouble of all.

From Profit Centre to Community Service

For generations, newspapers drove our businesses. They created valuable, reliable foot traffic. Today, that is no longer the case.

The gross profit contribution from newspapers now rarely covers the labour, space, and administrative costs of carrying them. For many, it has become a community service rather than a commercial imperative. Any newsagent still relying on newspapers for either their business purpose or their revenue needs to urgently reconsider that position.

Your Action Plan: Making Business-First Decisions

While offering newspapers may feel like a community obligation, we are businesspeople who must make commercial decisions. The newspaper publishers are theirs, you can see it in the products they give us to sell, where genuine news can often be hard to find.

It’s time to reflect this new reality in your own business.

  1. Relocate Your Newspapers: Move newspapers to a low-cost position in the shop, away from the prime real estate at the front door and counter.
  2. Minimise Your Costs: Streamline every process for managing newspapers. Handle returns, ordering, and merchandising in the most time-efficient and least costly way possible.
  3. Stop External Promotion: Cease any active promotion of newspapers outside your business. Your marketing dollars and efforts are better spent elsewhere.
  4. Re-evaluate Your Signage: Reconsider any “Newspaper” brand signs on your shopfront. They may be creating customer expectations that no longer align with the future of your business.
  5. Set Your Exit Point: For every title, determine the point at which it is no longer viable for you to carry it. Be prepared to make that call.

The Writing is on the Wall

It is only a matter of time before a major Australian capital city daily stops being published seven days a week. We’ve seen this movie before. Back in 2009, the Seattle Post-Intelligencer moved to a digital-only model. While the move was challenging, the title survived and exists today: SeattlePI.

The print medium is challenged, but the shift is bigger than that. How, when, and why we consume content, including news, has fundamentally changed. Our businesses, originally created for the distribution of news, are at the heart of these changes.

Newspapers are far less important to our businesses than ever before. It’s time our business decisions reflected that.

Our future is not news.

Our future, your future, is 100% yours to set, without the boundaries of legacy media. But that’s a topic for another day, including a discussion around what to call your business. Watch out, I’ll have something more on this very soon.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

The future of your newsagency is in your hands: it’s time to transform

The world of retail is constantly evolving, and for newsagencies, the pace of change can feel relentless. Traditional revenue streams are shrinking, and it’s easy to feel like you’re fighting a losing battle. But I’m here to tell you that there’s a vibrant and profitable future for the Australian newsagency – it just might not look like the one you’re used to.

In a recent industry presentation, I broke down the current state of our industry and, more importantly, the incredible opportunities that are waiting for those who are willing to adapt and innovate.

But first, the reality we’re facing

Let’s not sugarcoat it. We’re seeing some challenging trends in the traditional pillars of the newsagency business. In 2025, we’re looking at:

  • Magazine unit sales are down by around 9% year-on-year.
  • Newspaper sales have dropped by 11%.
  • Stationery revenue has seen a 3% decline.
  • Tobacco and convenience candy sales are “pretty much dead.”
  • Parcel service revenue is flatlining or declining.

These numbers paint a stark picture, but they don’t tell the whole story. While these areas are in decline, others are experiencing phenomenal growth.

Where the growth is: a path to a thriving newsagency business

The key to a successful future is to shift your focus to where the customers are. And right now, they’re looking for products that cater to their passions and hobbies. Here’s where we’re seeing significant growth:

  • Toys: Up by 15% year-on-year.
  • Cards: A solid 8% growth.
  • Games: An impressive 18% increase.
  • Jigsaws: A resurgence in popularity with a 10% rise.
  • Plush Toys: Another strong performer at 15% growth.
  • Gifts: A healthy 9% increase.

The demand is out there. Consider the millions of online searches each month in Australia for terms like “Pokémon,” “Minecraft,” “Lego,” “Barbie,” and “Hot Wheels.” These aren’t just fads; they represent passionate communities of consumers eager to spend.

From agent to retailer: a fundamental shift in mindset

For too long, we’ve operated as “agents” for suppliers. It’s time to reclaim our role as “retailers.” This means taking control of our stores, curating our product selection, and creating an experience that draws customers in.

Experimentation is key. You don’t have to overhaul your entire store overnight. Start small. Dedicate a small “experimental fund” to bring in new and unexpected products. You might be surprised at what resonates with your customers. I’ve seen newsagencies have success with everything from high-end giftware and coffee to books, homewares, and even niche categories like haberdashery and sensory products.

Transforming your space and engaging your customers

Think about the environment of your store. Is it a welcoming and exciting place to be? Or is it cluttered and stagnant?

  • Declutter: Get rid of dead stock. Anything that hasn’t sold in the last six months is taking up valuable space and tying up your cash.
  • Change your displays: Keep your store fresh and interesting by regularly changing your displays. Don’t be afraid to get creative with your fixtures.
  • Engage with your customers: A simple, friendly welcome can make all the difference. Create a space where people want to spend time, not just make a quick transaction.

Know your numbers and take control

Ultimately, the success of your business comes down to financial accountability. You need to be looking at your profit and loss statements regularly, not just once a year when you see your accountant. If your business isn’t making money, you need to be the one to drive the change.

The future is bright

The Australian newsagency is not dead. It’s evolving. By embracing change, focusing on growth categories, and taking control of your business, you can build a profitable and sustainable future.

If you want your business to change, you have to change. Let’s make every day our payday.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

Innovative local retail

Every year I get to travel with retailers from newsXpress to look at innovative and inspiring local independent retail. This video explores two shops in Edinburgh, Scotland. Each offers products that would easily work in local Aussie newsagencies and each pitches their products in ways we could.

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Local independent retail is vital for local towns. Newsagents are these businesses – if we innovate and offer appealing shops to visit.

Newsagents who operate traditional businesses focussed primarily on lotteries, magazines, papers and cards are not the innovative businesses to which I refer here. No, innovative newsagents are those selling products outside what is usual for our channel, products people talk to others about, products people will travel an hour to two to buy.

Innovative newsagency businesses are those offering experiences in-store that are fresh, enjoyable and memorable.

A pathway to running these types of businesses is to look at what others are doing. These overseas retail study trips are key to that. Often, it is the shops you discover along the way that are truly inspiring, the shops from which we learn the most.

Translating what we see overseas to the Australian context is not about copying these shops item for item. It’s about adopting their strategic mindset. It’s about having the courage to reduce your reliance on low-margin traditional products to make space for something new and exciting. It’s about identifying a passion, whether it’s puzzles, games, crafting, or local gourmet foods, and committing to being the best local source for it.

This transformation requires a shift from being a passive stockist of goods to an active curator of a collection. It involves visual merchandising that inspires, staff training that empowers your team to be passionate advocates for the products, and a marketing approach that highlights your unique offerings.

For those who can’t make the trips, we create videos like this one with snippets of inspiration. Often, for those interested, this is followed-up by one-on-one discussion as to what can be done to improve the business in ways we see happening in some amazing local indie retail overseas.

These conversations are where the inspiration from a video can be forged into a practical, actionable plan tailored to your specific location, your customer base, and your personal interests. We can explore how to source new products, how to manage inventory for niche categories, and how to use your shop’s physical layout to create a more engaging and profitable experience. The journey from a traditional newsagency to an innovative retail destination is a significant one, but it is a journey that secures not only the future of your business but also reinforces its vital role as a cornerstone of your local community.

I hope the video is interesting and useful for you.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

Journalists need to do better when reporting on retail performance

What is it with news outlets today? A shop closes and they run a story about doom and gloom for retail relying on what the owner of the shop closing has said. reading the articles, journalists appear to do little journalism.

Of course someone closing their business will tell you their side of the story. Of course it will have a bias.

A search on line this morning brought up six stories in recent months of newsagencies closing. Often, headlines scream gloom.

“Supermarket delivery trucks and road closures” Newsagency closing doors amidst dire retail landscape

The stories offer little evidence to support their claims. Let’s take a look at the state of retail today, the state of newsagencies. before I look at a good sample size of the channel in my next post on this topic, I want to look at my own shop. It’s in a high street setting. It doesn’t have lotteries. I have owned it now for three years.

In the three months to yesterday:

  • Total revenue (excluding online): up 15%.
  • Average sale value: up 30%.
  • Cards: up 11%.
  • Collectibles: up 1,350% (off a low base).
  • Gift: up 118% (off a modest base).
  • Magazines: down 3% (off annual $400K in sales)
  • Newspapers: down 5%.
  • Plush: up 252% (off a good base).
  • Stationery: down 35% (we are reconfiguring our offer).
  • Toys: even.

This business is run on a frugal budget with a tight roster, no capex and no external marketing.

When I bought it, the business was a traditional newsagency with an element of convenience retail. Today, the focus is on smart gifting with a skew to pop culture.

The single most valuable move in the first year was to switch out the card company that had been in control for more than a decade. The positive impact on card sales and profitability was immediate.

What we are doing in this business is something I see replicated in many newsagencies around Australia. It is certainly not unique.

Journalists should look at this and consider this and similar evidence before writing about retail being in a dire situation or that newsagencies are declining because print media is declining.

We make our own success in local small business retail. People have money and they are spending. This may not be the same cohort that spent with you last year, but they are there. Our job as retailers to find them, to appeal to them.

If you read stories about newsagencies closing and find yourself agreeing with them, stop and think about an alternative, positive, narrative you can create for your business.

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newsagency of the future

Does AI scare you as a retailer?

This is a question we put to local small business retailers using the Tower Systems software. That led to us hosting a free workshop last Friday in which we explored the question and plenty more about AI and its use today in POS software in retail.

In the discussion we talk about how retailers, including newsagents, are using AI in their businesses and we show several examples of this.

POS software embedded AI tools absolutely help you save time, cut mistakes and make more profitable business decisions. I know because I use them myself.

AI use in business, especially small business, is a hot topic. Thursday I recorded an interview for the ABC Am program and Friday I recorded an episode of a podcast for a specific channel of small business retailers in Australia (not newsagents), in which AI was a hot topic.

There is no avoiding it. The smart move is to learn and embrace. The video of the discussion Friday shares insights around protecting your IP and some easy to access tools that can enhance your business performance.

I know of plenty of newsagents using AI tools today to save time, support better business decisions and to provide business performance insights that otherwise might have taken hours or days to do the old way.

I know of newsagents who have cut external accountant and consultant fees by using AI to do the analysis work for them, to find weaknesses in the business performance data, to lay out a pathway for improving the business.

These are real uses of AI tools in Aussie newsagency businesses today. Anyone can access them. The Tower software has terrific AI tools embedded in the software. You can also use excellent AI tools outside of any software.

Personally, I think we are in an exciting moment in time with AI. It’s scary too, for sure, given the bad than can be done with AI. I have no control over that though, and it cannot be regulated now. My interest is in what I can do today to run a more successful business. AI tools are key here. The video I share in this post is barely a start in the conversation about what you can do in your newsagency with AI tools.

Our goal in the discussion Friday was  to transparently discuss and answer questions as part of our mission to help small business retailers be aware of AI tools for retail and to show how AI may not be what they think of it as being.

Are retailers using AI today? for sure!

Is AI safe? Yes, as safe as any tool used properly.

Can small businesses use AI to compete? Yes, AI tools help small business retailers do more with less and to more quickly analyse their performance in ways that big businesses only used be able to.

Is AI changing? Yes, rapidly. What our POS software with AI today is very different to just a few months ago.

For small business retailers who are hesitant about using AI, this discussion directly addresses common fears and misconceptions. We transparently answer questions and show how AI can be a powerful, safe tool.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagency of the future

Free offer: for newsagents with a website and those considering one

I’ve been deeply immersed in the world of online retail for over a decade. From building websites for my own newsagency businesses – individual shops, online-only stores, and multi-shop single-category sites – to guiding the web development efforts at Tower Systems, the software company I founded, I’ve gained extensive experience. Through my work at Tower, I constantly leverage search, traffic, and other data to help retailers attract more shoppers online. I also have access to insightful, paywalled data on website traffic and keywords, giving me a unique edge.

Now, I’m extending that expertise to you. My goal is simple: to help more newsagents make money online. This starts with creating websites that are easily found, trusted, and enjoyed by visitors. Data play a vital role in achieving these goals, and thankfully, there’s plenty of good data available to inform actionable advice.

Here is what I offer, for free:

1. If you already have a website:

Email me your website URL at mark@newsxpress.com.au. I’ll review your current traffic data, analyse your website’s performance, and examine your social media presence. I’ll also take a look at some of your competitors’ online strategies.

What you’ll receive is a clear, actionable “To-Do” list of steps you can take yourself to improve traffic and convert more visitors into paying customers, ultimately growing your online revenue.

2. If you’re considering a website (or don’t know where to start):

Email me at mark@newsxpress.com.au with your initial ideas for a website. I’ll research relevant keywords and analyse the traffic potential your competitors are already getting.

You’ll receive valuable evidence and insights to help you make informed decisions about the type of website that’s right for your business. If you’re completely new to this and have no idea where to begin, feel free to email me about that too – just tell me a bit about your shop.

Also, know that your website does not have to be connected in any way with what you sell in your newsagency today. In fact, I’d encourage that.

Why am I offering this for free? 

This service is genuinely free. I am not trying to sell you anything. I’ve offered similar analyses to Tower Systems customers, most of whom are outside the newsagency channel. Each project has broadened my own knowledge and helped me refine this service.

So, why the free offer? The health of the Australian newsagency channel matters deeply to me. I care about our industry, and this free service is simply another way I can give back and help newsagents run thriving retail businesses in today’s digital landscape.

The more newsagents selling online with successful websites the better.

A Word of warning: The Truth Matters

What I’ll share with you will be the unvarnished truth. I won’t sugarcoat it. If you’re serious about making money online, understanding the real picture is crucial.

Please email me at mark@newsxpress.com.au.

Footnote: Each analysis takes time. Plus I have a day job. I will get to your request as soon as I can.

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Newsagency management

The future of the Australian newsagency relies on newsagents being retailers and not agents

While the Aussie newsagency channel was created in the 1800s to be agents of media outlets, today, in 2025, newsagents with growing businesses are achieving this by being retailers. There is no growth in agency business. There is a ton of growth in retail.

Given the diversity among the 2,800 newsagency businesses in the channel, it is impossible to guide a course that fits all.

The future of your newsagency business is entirely dependent on you. I appreciate that to some who bought their business because they wanted to be an agent offering easy to manage services or because they did not see themselves as a retailer this may seem daunting. Don’t be put off. I have seen plenty transition their businesses from agency-focussed to retail-focussed on the back of minimal retail skills.

If sales in your newsagency are flat or declining, you need to act for if you don’t act, one day in the future you will see closing as the only option.


The future success of Australian newsagencies hinges on three critical areas: product selection, business narrative, and sales approach.

The traditional model, reliant on newspapers, magazines, lotteries, convenience items, tobacco, and discount variety products, is no longer viable. Similarly, suppliers, particularly print media businesses, offer little support for the channel’s future.

Instead, newsagents must embrace a shift towards premium and unique offerings, prioritizing value over low price points and strategically managing margins. The principle of “find a need and fill it” is crucial for evolving local businesses.

I see there key pillars for success, there are others, these three are the key:

Products

Focus on products uncommon to the newsagency channel. This includes items such as:

  • Clothing
  • High-value gifts (e.g., $300 and above)
  • Non-remainder books
  • Cookware
  • Collectibles that draw customers from a distance
  • Toys – not crap but higher end, good brands.

Your list could vary depending on location and interest. For example: pets, outdoors, haberdashery. There is no limit here.

You are looking for products not currently supplied through traditional newsagency channels. While everyday items like stationery and greeting cards will remain, their success depends on smart curation and pricing to manage inventory burden. For example, selling stationery to passionate enthusiasts offers a greater opportunity than simply catering to basic needs. The scope of what you can sell is limited only by your imagination.

Narrative

Develop a compelling business story that explains the “why” of your business. This narrative, nurtured through product selection, in-store merchandising, social media presence, website content, and your personal engagement, builds trust with customers. An evolving narrative, adapting to you, the times, and your community, is essential. In today’s immersive retail environment, a strong narrative transforms a simple product into a desirable experience.

How You Sell

The ability to sell online is paramount. Without an online presence, businesses lack crucial insights into market dynamics and customer behavior. The future of the Australian newsagency is about individual businesses becoming smart, engaged, and creative. This will lead to a diverse, rather than cohesive, channel where each newsagency strives for local and online success.

…

For newsagents unwilling to embrace change, the traditional model is unsustainable, leading to a reduction in the number of newsagency locations. However, for those ready to adapt, support is available within the channel to ensure the relevance and success of these vital local retail businesses. While the name of the shop is less important than its perceived identity, a locally relevant name is what I recommended. The future is not a single, clear prediction, but rather a collective effort of individual businesses innovating and adapting.

Change starts with you, with your decision to change your business, cliché as that sounds. Often when working with newsagents who have decided to change I have found a good place to start is by decluttering. Get rid of anything in the shop that you don’t use, don’t need or that does not add value to the business. Take a look at your stock, especially what you have not sold any of for at least six months. Why keep it?

Start by decluttering and while you’re doing this start to think about what you want the business to stand for, to be known for. A good second step to help you get focussed on change is to take every magazine off current fixtures, clean the fixtures, and place magazine back – but with careful consideration as to where to place each title. Create a magazine display that makes sense. Typically, this single action of relaying your magazines will boost sales by up to 10%. A goof third step to take is to take everything off the counter and then rebuild with products you think people will buy on impulse.

These three physical steps of decluttering, a magazine relay and a counter rebuild are good starting points to help focus your attention. In the overall process of redefining and rebuilding your business they are small steps yet vital.

Your current business data will provide insights as to moves you could make. Greeting card sales by caption along with magazine sales by category can wonderful inform of opportunities.

If I can help, please reach out: 0418 321 338 or mark@newsxpress.com.au.

…

Footnote: There will be some who say the shingle should change, that news is not relevant. While it’s not relevant, what you call the shop does not matter all that much. It’s kind of like a picture versus a thousand words. What a shop shows itself as being matters more than what a shop calls itself. That said, Aussie newsagencies, being quintessentially local businesses are, in my opinions best off being called a name that is locally relevant – rather than some national name that is not locally relevant.

Second footnote: Reading back what I have written I know I have not made a clear and solid prediction. That’s because I can’t. There is no channel, no way to determine what all businesses in the channel will do.

…
My name is Mark Fletcher. I own newsXpress – a marketing group helping local newsagents thrive. I also founded Tower Systems, makers of the industry standard software for newsagents. I sold Tower in November 2024, and still work with the company today. You can reach me on 0418 321 338 or mark@newsxpress.com.au. 

21 likes
Management tip

How does an Australian newsagency business stay competitive in an increasingly digital world?

How does an Australian newsagency business stay competitive in an increasingly digital world? Diversify. Yes, it is as simple as that.

Play away from being a newsagent or a newsagency business. Don’t let what your shop is called define what you sell.

Sell what your customers want, love and will buy. Oh, and when you consider your customers, think beyond locals, think about anyone you can reach, anywhere, in the next town, in your country, overseas.

The world is your oyster is the cliché, and it is true today in retail, in newsagency retail. there are newsagents successfully selling overseas and plenty selling interstate within Australia. there are some selling products you’d never think of as supplied through a newsagency and others selling traditional newsagency products online to shoppers far away.

Today, in June 2025, the successful newsagents are those that diversified years ago and are now well established playing at not being a traditional newsagency business even though their shingle may mention news.

What, how and when we sell in our newsagency businesses has no boundaries. The boundaries shoppers have as to what a local newsagency sells is their boundary to navigate, not ours.

People still buy newspapers and magazines, in smaller numbers though. Whereas decades ago newspapers and magazines brought people to newsagency businesses, they were destination products, today more people purchase these print media products as the add on.

The question, How does an Australian newsagency business stay competitive in an increasingly digital world?, is interesting as it presumes that today digital has taken over. It hasn’t. There is a trend to paper and pen use in some demographics and smart newsagents leaning into these trends are doing well, growing stationery sales. Greeting card sales are good too in newsagencies that have good cards, locally made cards, cards that speak to occasions relevant in 2025.

Now, if you are a newsagent and wondering about categories outside what has been traditional for newsagents that you could explore, here’s a short list from me, based on my experience with hundreds of newsagents:

  • Coffee.
  • Handbags.
  • Clothing.
  • Jewellery.
  • Haberdashery.
  • Footwear.
  • Bikes.
  • Petfood.
  • Homewares.

This is not a complete list. Each of the product categories I have listed are being sold in newsagencies I know of. My point here is to demonstrate how far away from the expectations of others for what a newsagency can sell the reality for some is.

How does an Australian newsagency business stay competitive in an increasingly digital world? It diversifies and does this following the core focus of any successful business: find a need and fill it.

…

My name is Mark Fletcher. I own newsXpress – a marketing group helping local newsagents thrive. I also founded Tower Systems, makers of the industry standard software for newsagents. I sold Tower in November 2024, and still work with the company today. You can reach me on 0418 321 338 or mark@newsxpress.com.au.

19 likes
newsagency of the future

What is a newsagency?

What is a newsagency? is an interesting question. The answer in 2025 is different to the answer you may have seen a year or two ago.

Today, in 2025, a newsagency, newsagent or newsstand as some may call it, is what it needs to be for its local and online shopper communities.

The ideal newsagency today will offer a diverse range of gifts, practical stationery as well as stationery for stationery lovers and collectors, greeting cards, magazines, newspapers, lottery product (but more and more don’t sell lotteries), books, homewares, collectible products and pop culture products.

Back in the day, the local newsagent controlled the sale and distribution of newspapers and magazines in a town or region. That exclusive territory was ripped from newsagents without compensation in the late 1990s. Some newsagents are still grappling with the loss of their local monopoly today.

Losing the monopoly was embraced by plenty as they evolved their business. Plenty of newsagents moved into coffee and have done very well. others have opened bookshops in their newsagency, and done well. Some have gone deep into homewares, including furniture, and done well. Some have become firearms dealers while some have moved into garden related products.

You see, the answer to What is a newsagency? is broad, and very much dependent on the local newsagent.

As of today, June 2025, Australia has around 2,800 newsagency businesses, with each different to the others. While most still trade with the newsagency name, the majority do not look and feel like a newsagency inside, and this is a good thing.

Retail has changed, how people consume news has changed. Smart newsagents have adapted and found business relevance in new areas both in-store and online. Indeed it is online that has helped newsagents diverse more and through that to find new shoppers who might never shop a newsagency.

While some in Australia mourn the passing of the newsagency they knew as kids, from a practical business sense that old-style business is gone forever because it would not be viable today.

A typical newsagency back in the 1980s and 1990s would have seen 30% of their revenue come from print media, 30% from greeting cards, 20% from stationery and the rest from a mix of products (with lotteries not counted in this breakdown). Today, in June 2025, a typical newsagency would see no more than 20% of their revenue come from print media, 25% from greeting cards, 20% from stationery (including higher end and niche stationery), 25% from gifts and related and the rest from specialty products. A newsagency with coffee though would often find up to 50% of their revenue from coffee.

This underscores the differences between newsagencies and speaks to the complexity of answering the question of What is a newsagency?

Online really is playing a big role in the evolution of the Australian newsagency channel. For newsagents engaged online they are reaching shoppers who will never set foot in their shop and they are often doing this products they have never sold in their shop. The online experience is informing change in-store.

One newsagent decided to run a high end pet related business form the back office of the newsagency. As it grew, they decided to try the pet products in the shop and were surprised to see how well they went. They would not have made this move had it not been for the online experience.

The key to success for newsagents today is adaptability – the willingness to lean into change, indeed – to seek change out and explore how far their newsagency business could move into new territory.

The more we turn our back on the constraints of the monopoly years and play according to opportunities we see outside of the traditional, the more we will see local Australian newsagents thrive.

So, What is a newsagency? it’s a locally owned and run business serving needs that are local and afar and doing so in a way that people love and from which the stakeholders in the business benefit. A newsagency is a good local business, a thriving local business.

If you own a newsagency and would like help navigating change, I can be reached on 0418 321 338 or at mark@newsxpress.com.au.

24 likes
Newsagency management

People are driving hours for change

We had people in the newsagency yesterday who had driven more than two hours to get some of these $2 coins in their change.

The are avid coin collectors and knew the only place they could get the $2 coins in their change is a newsXpress store. They bought some things and were thrilled to get some of these coins in their change.

One million of these coins are being circulated through newsXpress registers as people collect the new coloured coin. The coloured coin released from the Royal Australian Mint are their most popular coin releases each year. It is a privilege I’m grateful for that newsXpress shops are the distribution point for these coins.

The coin program was not mandatory for newsXpress members. Those who did not order have been frustrated by the many shoppers who visited seeking these coins. It’s a lesson learned.

This release reinforces interest in physical currency as well as the relevance of our fleet of shops across regional and rural Australia in serving a national release like this.

The public interest has been phenomenal because of the beloved licence and the extraordinary media coverage, which has included:

  • Thursday 12 June – Ch 7 Sunrise weather crosses with Sam Mac (6.10am, 6.35am, 7.10am, 7.35am, 8.10am and 8.35am)
  • Thursday 12 June – Ch 7 The Morning Show in studio interview with Sophie Tedmanson and Emily Martin
  • Thursday 12 June – Ch 7 News, The Bright Side segment with Grace Fitzgibbons
  • Thursday 12 June – ABC TV news interview
  • Thursday 12 June – Sunrise cooking segment with Julie Goodwin
  • Friday 13 June – Today Extra cooking segment with Fran Abdallaoui
  • Wednesday 12 June – 4BC Brisbane interview with Pamela Clarke and Sofie Formica
  • Friday 13 June –  The Daily Telegraph, Pg 7 news story
  • Friday 13 June – Courier Mail QLD,  Pg 10 news story

This is less than half the coverage in mainstream media. On top of this there has been excellent influencer coverage, all driving foot traffic for newsXpress shops.

Coin customers are loyal. A typical collector will spend around $1,000 a year on their collection. They will also buy other items, cards, stationery, magazines, while shopping. Many will travel hours to get to the shop they love, the shop they know will offer what they want.

I appreciate there are some in our channel who talk down coins as a category for Aussie newsagencies. To these doubters I’d say talk to the newsXpress members who engaged with the opportunity. Some of them may speak to the thousands of dollars in gross profit they have banked and the terrific add-on sales achieved.

This program has been good news for the Aussie newsagency channel and I am so grateful to have been part of it.

Oh, and on the $2 coin. If you get one in change, you can sell it for three and four times the price – it’s already that valuable.

8 likes
newsagency of the future
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