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

Is shoplifting on the increase?

Maybe it’s just me but it feels like shoplifting is on the rise based on the number of posts on social media by retailers with photos of people in their shop who appear to have forgotten to pay for what they left with.

The Guardian has published a report on shoplifting in the UK. It’s worth a read as it’s written from a street-level journalism perspective, and while it is stories from Manchester, it could be from parts of Australia.

This small corner of Manchester is no anomaly. The British Retail Consortium (BRC) estimates that there were 8m “theft incidents” in British shops last year, costing £953m. The BRC says shop theft is a “long-term rising trend”, with incidents more than doubling since 2016-17. Meanwhile, reports abound of increasing desperation among customers stealing to feed their children – claims promoted by opposition politicians, but strongly contested by many retailers.

I think any retailer would find it interesting.

I have seen limited data and they indicate a rise in shoplifting in local indie retail in Australia. I have see more evidence of employee theft tho.

In a newsagency, the best early indicator of possible shoplifting is the magazine returns discrepancy report. Returns are processed weekly anyway so it’s a tiny step to check the discrepancy. If you notice these, consider spot stock-take elsewhere in the shop to test whether theft is a problem for you.

9 likes
theft

2023 newsagency performance benchmark targets / goals

Benchmarks provide business performance data points against which similar businesses can compare their performance.

Here are the recommended benchmarks for newsagencies:

  • Gross profit: this is the goal gross profit for all product sales not taking into account any revenue or costs related to any agency business. The traditional newsagency average continues to sit at 28% to 32%. In an engaged newsagency, I think a GP% goal of 45% is appropriate.
  • Minimum stock turn. That is, the number of times you sell an item in a year. This is a calculation based on current stock holding against total revenue for a year. Here are suggested stock turn goals by key departments. These numbers are based on what is needed at a minimum for a department to be valuable to you:
    • Cards – 3. The average sits at 1.75. This is too low.
    • Gifts – 7. This means a tight mix of products turning quickly.
    • Toys – 5.
    • Plush – 5.
  • Ratio of Gift revenue to Card revenue: 100% minimum. The goal ought to be 200% or more. If you do $50K a year in cards, toe goal is to do $100K a year in gifts.
  • Revenue per employee – $250 an hour minimum.
  • Revenue PSQM $4,500 – $8,500 depending on country versus city / high street to shopping centre and depending of the product mix. Higher GP lower revenue required.
  • Overall revenue mix percentage targets: Cards: 30%; Gifts/toys/plush: 35%; Stat: 10%; magazines/newspapers: 15%; other: 10%.
  • Category performance notes:
    • Stationery. Pens and writing products should account for more than 30% of revenue.
    • Magazines. Crosswords should account for more than 6% of unit sales.
    • Lifestyle cards. Should be more than 40% of total card sales. growth should be 12% year on year at least.
    • Impulse counter items: (NeeDoh, sensory, putty, world’s smallest) should be more than 10% of toy and related sales.
  • FLOORSPACE ALLOCATION: This is very much a store specific thing. That said: Cards: 20%; new traffic lines: 5%; Gifts/toys/plush: 35%; Stat: 8%; magazines/newspapers: 10%; other products: 10%; office/back room / counter: 10%. You don’t make money from your back room.
  • Mark-up goals: Stationery: 125%; Gifts 110%; plush: 110%, jewellery 300%.
  • Occupancy cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Location and situation are a big factor in this benchmark. For example, a large shopping centre business will have a higher cost than a high street situation. NOTE: It is easy to say the landlord is responsible for this ratio. As the retailer you are responsible for margin and revenue.
  • Labour cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Labour cost should include fair market costs for all who work in the business. (See above).

Now, these are goals. I share them here for consideration. You should set your own, based on your own situation. The key is to have goals and understand why they are what they are. That’s the reason I have published this information developed by my POS software company Tower Systems and my newsagency marketing group newsXpress – to offer something of a starting point for individual newsagents to consider.

15 likes
Newsagency benchmark

The local Aussie newsagency is changing. It’s likely not the shop you remember.

I made this video Tuesday for one of my shops, to promote it on social media as well as YouTube. below I explain how I made the video and, more important, why I made the video.

I took the photos on my iPhone and used promo.com to assemble these, add text and lay music underneath. All up it took less than 10 minutes. I share these details to illustrate how easy it is for anyone to make a video like this.

Now, the why.

This video is important as it is us pitching a narrative for this shop. For decades, the narrative of the local Aussie newsagency has been controlled by others. Today, in 2023, the narrative about our shops is rooted in decades ago. It is out of date. It challenges our relevance. It does not help us.

I wanted to have a crack at recasting the narrative for this one shop in a suburban Westfield centre in the bayside area of Melbourne. While for sure I am biased, I think it’s a good video that does re-cast the narrative for this newsagency, while at the same time making a statement about the channel, calling for others to see us differently and not as others so wrongly and ignorantly pitch us.

I’d love to see more newsagents do this, make videos and other social media content that pitches our businesses with a fresh and relevant to 2023 narrative. Points about lottery jackpots and the major seasons are predictable, expected. The more we play outside of what is expected the better for us, the more we are likely to attract new shoppers to our businesses.

As I noted above, this video took less than 10 minutes all up. There are plenty of platforms you can use to make videos just like this one. While I pay a commercial licence for promo.com, there are others out there that are free.

As for the products I chose to highlight, plenty are made in Australia. In fact, half the air time of the video features Australian made, small business sourced, products.

I want to call out the final frame. This features a pair of colourful stud earrings on a card that says you inspire me. That is a very deliberate choice to pitch that message at the close of the video.

Hopefully all this background is helpful enough that other newsagents create content to recast the narrative of not only their newsagency businesses but the channel more broadly.

But back to the video. In 24 hours it passed 20,000 full views thanks to a nudge through the YouTube ad platform. That’s 20,000 people in the area of Melbourne I targeted who watched the video in maybe the first newsagency pitch they had seen in years.

I appreciate it’s not call to action advertising. It’s not intended to be. As I wrote above, this is about the narrative relating to the Aussie newsagency. We all need to invest in this. It’s far more important than think tank meetings and the like by people who do not have their own capital tied up in this channel.

UPDATE: 26/05 @ 3:11pm. I’m pleased this video has not been played 32,000 times.

UPDATE: 06/06/2023 @ 7:18am. This video has now been viewed more than 102,000 times.

27 likes
Newsagency management

Vegemite anniversary a hit

The Vegemite brand is having a moment in the sun thanks to the anniversary this year. Licenced product is selling very well, including the mint coins.

The 100 Years of Happy Little Vegemites – Six-Coin Uncirculated Year Set 2023 and the 100 Years of Happy Little Vegemites – Six-Coin Proof Year Set 2023 are both selling well. Just today alone we have sold more than $600 worth in one shop. People travel for them, and they purchase other items at the same time.

I did not expect this iconic brand anniversary to go this well.

7 likes
Newsagency opportunities

Is LayBy set to make a comeback in local retail, like newsagencies?

With the federal government set to announce today plans to regulate buy now pay later (BNPL) products under the Credit Act, it could be timely for local independent retailers to pitch LayBy.

The use of LayBy dropped away as BNPL like Afterpay, Zip and others offered shoppers easy access to finance for immediate purchases. While BNPL is used for many products outside the scope of LayBy, I expect the use of LayBy to increase once the BNPL regulations are in place.

While the ACCC defines the LayBy arrangement, LayBy is regulated at the state / territory level. In Victoria, for example, the regulations cover the contract, cancellation, price chan get and more. The level of regulation varies between the states / territories.

There is sure to be plenty of noise about the regulatory changes. I can hear some apologists for the BNPL businesses calling the moves those of a nanny state, lobbyists for the BNPL companies themselves saying that misbehaviour by a few has led to this and oh, self regulation would be better.

As a retailer, I like the BNPL products in that they helped drive terrific sales growth and they provided a level of shopper stickiness with regular BNPL users choosing shops based on their acceptance of the payment method. In one of my online businesses doing close to $500,000 a year, BNPL is the payment method for more than a third of all sales. At Christmas time that can jump to 50%.

In physical stores, the use of BNPL varies by retail channel, but it is a popular payment method, but often expensive to the retailer. Whereas credit card payments today typically cost retailers less than 1%, BNPL payment can cost as much as 6%. The benefit to the retailer is that there is no risk should the shopper default.

The anticipated BNPL regulatory changes give local retailers the opportunity to re-pitch LayBy. But first, we need to ensure our processes are fit for purpose, smooth, understandable, appealing to shoppers and economically viable for us. This is where retail management software comes into play. POS software can offer easy structuring of terms and conditions, managing the appropriate deposit, set different expiry terms for a LayBy based on the products in the LayBy, track payments, following up missed payments and tracking where LayBy products are stored. Plus, you can edit a layBy once commenced – by adding and removing stock, and you can manage partial collection of items in the LayBy.

Introducing a LayBy service fee could be a good way to qualify the LayBy shopper and cover some of the costs involved. There are retailers in Australia charing from $3.00 (Target) to $15.00 (Big W) in LayBy fees. Depending on how you structure it, this could be in addition to a cancellation fee.

My advice to retailers is to focus more on the expectation that all LayBys will be fully paid and collected on time, to consider LayBy as a positive service by the business and opportunity for the customer. Promote it. Welcome its use. Make managing it easy for you and the shopper.

Local retailers can make decisions around offering LayBy that could differentiate their businesses from bigger retailers.

News outlets will carry stories of the BNPL regulatory changes as they make their way to reality. This is why now would be a good time to pitch LayBy in-store and on social media.

13 likes
Newsagency management

Magazine range a key factor in sales growth

While I get that many newsagents are reducing space commitment to magazines on the back of declining sales, at my Malvern store sales are growing. I think this is in part due to our out of store promotions like the video below that we released yesterday.

In one of my other newsagencies we have no magazines while in may third we have 250 pockets, which is under review.

This video shows part of the Malvern range.

This video is part of a weekly promotion outside the shop of magazines, designed to attract new shoppers – and it’s working for us.

It took me all of ten minutes to shoot the video on my phone, strip out shop sounds using iMovie, load it to promo.com, enter the text and lay a music track over iot. Now I have a video that I will use in several places several times over the next couple of weeks.

No other retailer anywhere near our malvern shop is promoting magazine range.

8 likes
magazines

Here’s what we did to increase crossword sales by 29% in the last month

Our crossword sales in the newsagency are up by 29% to $3,343.00, or 308 in unit sales.

There are 2 things we have done that, I think, have helped drive this:

  • Pitching key titles next to newspapers while still carrying them in the crossword section.
  • Pitching crossword titles on social media, Facebook mainly.
  • Relaying crosswords to improve the shopper experience. This took all of 5 minutes.

Yes, I am disappointed that we continue to only make 25% GP and that cover price movement has been minimal, not keeping up with inflation. That said, the growth from a small effort is terrific.

I can’t be sure as to why we are seeing this growth in crossword sales. If it is wider than our newsagency then I suspect it is related to the economy or how people feel about the economy at least. If it’s just us then what we have done has to be key here. I do think our small but targeted actions have played a key role.

Overall magazine sales are up 6% year on year, making the 29% growth for crossword titles worth consideration.

3 likes
crosswords

Growth in Mother’s Day lifestyle cards

While I’ve only seen sales reports from a small number of newsagencies so far, an interesting stand-out in the Mother’s Day card sales is the growth in Mother’s Day Lifestyle cards. It is significant, noticeable. Now, that may have to do with supplier segmentation. It’s too early to tell.

More broadly on the season, the results appear to be okay, not brilliant, bot okay … up on last year.

Outside of Mother’s Day, I am seeing continued good growth in everyday captions, 10% and more. 2023 is developing as a good year for card sales.

3 likes
Newsagency management

Here’s a video of an AI bot navigating cancelling a New York Times subscription

Now, this is relevant because of the barriers newspaper publishers place in front of those who wish to cancel their subscription. Both News Corp. and Nine Media deploy time wasting barriers to those wishing to cancel a subscription, I’ve experienced it myself. As the video shows, an AI bot has more energy for the process.

4 likes
Newspaper distribution

Why choosing a card company based on the rebate they offer is most likely a mistake

For decades, major card companies in Australia won new business by offering a rebate on purchases, and we all loved it.

Newsagents would change card companies because of a bigger rebate offer. Oh, that and ‘interest free’ loans we could draw based on anticipated rebates.

What many of us soon realised is that the rebate is worthless unless you sell the cards as it is only when you sell something that you bought at a discount off wholesale, which is, after all, what a rebate from a card company is, that you bank the rebate value.

Switching to a new card company because of rebate could be a mistake unless their cards sell as well as or better than what you have today.

The main reason to switch card companies in my view is to sell more cards.

It’s only when you sell cards that you make money.

Already in 2023 we have seen enough trading to consider 12% year on year growth in card sales as a reasonable benchmark against which to compare your newsagency business.

If a card company’s main pitch is the quantum of the rebate, my advice is question why they pitch this ahead of the actual products.

What you want, and need, is cards that drive new traffic and more purchases in each visit, you want product that perform above average. This is about card company choice and about how your in-store range is managed – two quite different things.

Cards are the best margin products in our businesses. They deserve our active management attention.

My advice is check your year to date performance against 2022. Are you up 12%? If not, think about what you might do about that, and consider it in the context of any rebate pitch put to you.

This has been on my mind because of conversations with some newsagents recently where rebate was the topic.

One stuck out – they said they would not switch unless a card company matched their current rebate. Their card sales are down 9% year on year. That decline is twice the overall business decline, meaning there is a problem with card range. They refused to look at any other supplier, thereby =not considering that range might be the issue.

I see any rebate as a pot I can draw from to help drive card sales, and I do that to fund a loyalty program, and more. each month I am seeing terrific results, like for April.

Yes, that’s 19% growth in 2023 over 2022. If I compare back to 2019, cards in this business are more than 50% up.

I know that if I get the card story right in-store and in socials pitches not only does that department benefit but the whole shop benefits because of card shopper dwell time. And, all that flows to margin dollars banked, which are far more value than the promise of a rebate in the hope of selling something.

This post is not about any specific card company. I am not suggesting you switch to any specific card company. My advice is that you make your business decisions on what you bank, and that spends solely on sales.

11 likes
Greeting Cards

May 16: via Zoom: Newsagency of the Future workshop

Join me via Zoom Tuesday May 16 @ 11am Melbourne time for a Newsagency of the Future workshop.

I will share up to date retail newsagency performance data, sales data from outside our channel for categories allied to what we do, thoughts on the rest of 2023 and into 2024. I will also cover some trends into the future that present opportunities.

There will be an open Q&A.

While Covid continues to circulate, it is over from a disruptive perspective. I think there are things we can leverage from the pandemic experience. I also think there are category opportunities for growing business GP% and attracting new shoppers.

I am not running the session to sell you anything, or to get you to sign ups to anything. My sole motivation is for the retail newsagency channel to be strong, vibrant.

It is a competitive world out there and I think all of us in retail newsagency businesses can do better.

Here is the link:

https://us06web.zoom.us/j/84982771189?pwd=RWdRM0s3bENpZ2F5UGxNblkzKzN3QT09

Meeting ID: 849 8277 1189 Passcode: 103292

I’ll record the session.

Anyone is welcome.

1 likes
Newsagency management

Are you making money in your newsagency?

I was talking with a newsagent the other day and was surprised to discover that they discover the profitability of their business twice a year, when their accountant meets with them, and even then, the information relates to a trading period from two or three months prior.

They have no processes in place to track and report profitability more frequently. They are not looking at GP% mix, say, weekly, looking for trends.

Their reasoning is that the accountant is the expert and that as the retailer they do not have the skills to understand the business performance at that level.

Not knowing business profitability at more frequent intervals and close to the actual performance is a problem for any business.

Gross profit is the pot from which you pay rent, employees, loans and yourself. Not managing that in a timely manner can see a business slip away.

Too often I see local independent retailers get caught in a narrative no one has any money or the economy is really tough or we’re busier than ever or no that doesn’t sell. More than half the time the statements are checked with business data, which is rare in itself, the statements are not supported by the business data.

My point here is that what matters more than anything else about newsagency performance and any local independent retail business performance is what business data report, your P&L, profitability reports from your POS software, your evidence. Your business data will guide better business decisions. Waiting a month or two for an accountant to provide their take on what they see is too long.

If you own a newsagency you need to be serious about your business data as it sets you up for trading profitably and selling more easily when that time comes.

So, are you making money in your newsagency?

Seek out that information and establish processes for you to have easy access to the information regularly. If you are not making money, your only option is to make changes in the business. There is never a real barrier to making such changes.

Fixing profitability starts with knowing where you are at.

18 likes
Newsagency management

What does your newsagency stand for? What’s unique about it?

In his 1960 book, Reality in Advertising, Rosser Reeves, a respected US advertising executive, introduced the world to the concept of the Unique Selling Proposition, USP for short.

Reeves defined USP in an advertising context:

  • Each advertisement must make a proposition to the consumer: buy this product and you will get this benefit.
  • The proposition must be one that the competition either cannot or does not
  • The proposition must be so strong that it changes consumer behaviour.

In the 1960s and 1970s, the concept of a unique selling proposition evolved from being essential to advertising to being essential in business. Finding your business USP was considered mission critical to businesses, retailers especially. Businesses drifted however and forgot about the importance of a USP.

Today, it is common to see ads with we will not be beaten on price or if you find it cheaper elsewhere we will sell for 5% (or more) less. These pitches are from lazy marketers who think price is the most important USP and while it is a factor to some shoppers, value is often about much more than price.

Jack Trout told us a few years ago that USP was relevant today. In 2000, he said that a Unique Selling Proposition was mission critical in business in his aptly titled book Differentiate or Die: Survival in Our Era of Killer Competition.

Differentiate of Die. There is no doubt about the call to action in the title, no doubt about the consequences of inaction.

Yet many retailers, for the most part, have remained still in the face of an onslaught of competition. Some newsagents have remained still.

Retail is complex, challenging and changing rapidly today. The differences between competitors fewer. Retailers are surrounded by competition and it grows by the day. Yet many have remained still and done nothing.

Our channel continues to be confronted by the migration to digital, more local retail competitors and online shops selling what we sell. Those who have stood still feel the impact more than others.

Smart retailers are re-acquainting themselves with the writings of Reeves and Trout and leaning about the mission critical imperative of having a Unique Selling Proposition.

Differentiation could be service, products or location or a combination of these. Differentiation will most likely not be price as anyone can match this easily. Price is, after all, the last line of defense in any business battle. That said, there are some major price-focused success stories – WalMart for example. It is rare in an independent retail situation.

To develop your USP, engage with your employees and other stakeholders. or, do it yourself with your own deep dive into what you want your business to stand for. This is leadership. Take your time. Determine what you and your business stand for. Following open and honest discussion and debate, the USP around which everyone in the business can willingly congregate will emerge.

A good USP will not require an advertising campaign to communicate. It will become obvious through actions and decisions. By living the USP in every facet of the business you soon become seen as unique by shoppers and this can drive excellent word of mouth and success for the business.

While differentiation in retail is more important today than ever thanks to today’s economic conditions, the approach to the challenge is the same as in the 1960s.

If you are not sure where to start when considering your USP, look at your POS software and the data it curates about your business for in that data will be insights into your points of differences things you can cultivate to have a stronger USP.

Your POS software is a good place to start as your shoppers show you through their behaviour what they like and don’t like about your business.

No one can tell you what your USP should be. It has to come from you, from inside your business. It has to reflect what you believe, how you want your business to be seen and known.

Here are some things that are not a USP.

  • Convenience is not a USP.
  • Opening hours are not the USP they once were.
  • Agency products like lotteries are not a USP.
  • Magazine range could be a USP as many have moved on from deep range cover.
  • Price is not a USP.

And while we are considering lists, here are some less than ideal things in business that could be a USP – note the strikethrough the S as they are not selling propositions but, rather, customer turnoffs that a retail business could become known for (in a bad way):

  • Poor customer service.
  • High prices.
  • An EFTPOS surcharge.
  • Poor range.
  • Bad opening hours.
  • Poor counter processes.

Here’s another list of some easy USPs:

  • Local community connection.
  • Community group support.
  • Product range.
  • Product knowledge.
  • Fun in-store.
  • Quality products.
  • Value.
  • Appreciation of shoppers (loyalty).

It can be tough coming up with something genuinely unique. But, once you have it, it can be worth the work.

Take your time. Do it yourself. Be the leader your business will love.

8 likes
Management tip

Range matters when it comes to finding the right greeting cards

Looking at the Mother’s Day cards we have in the newsagency, I am reminded that our channel really does have the best range, not only for seasons but for all year round. And, by range, I really mean caption depth.

Looking at Mothers’s Day, sure, there is the one card for mum you want to buy. But, then, there are cards for grand[parents, friends, colleagues and more. The more card giving opportunities we represent, the more shoppers we can reach.

I think this is an opportunity for us, to pitch depth of captions to reflect on depth of range. It’s our point of difference.

Looking at what I have in a couple of my shops this morning’s these cards are an indicator of some of the depth of card range ion a newsagency that I am talking about.

Of course, I could have included the Nan, Nanny, Nanna, Granny, Gran and Grandma cards to show range depth too.

Mother’s Day is a perfect season to show our point of difference in the greeting card space.

3 likes
Greeting Cards

Why do newsagents have to pay for electronic invoices for magazines?

My POS software company, Tower Systems, serves 3,000+ retailers in the jeweller, bike shop, gift shop, garden centre, firearms dealer, fishing bait and tackle shop, toy shop, music shop, produce business, sewing shop and health food shop retail channels, as well as newsagents.

It is only newsagents who have to pay their supplier for electronic invoice data, which is ironic because coupled with the electronic invoice data is returns data that saves the supplier a tremendous amount of money.

It’s time that EDI was provided to newsagents at no cost whatsoever.

The current arrangement is rooted in the practices of decades ago.

I wonder if our supermarket competitors have to pay for this.

30 likes
Ethics

The publishers of Artlink magazine show it’s not that hard to pitch local Aussie newsagents

This tweet from the folks behind Artlink magazine would have taken a minute or two and cost nothing. Here they are pitching to their community that the new issue of their magazine is out and available at newsagents.

I wish other Aussie magazine publishers would be this engaged.

6 likes
magazines

Australia to ban non-prescription vape products

The news that the federal government will move to ban non-prescription vape products in Australia brings clarity to a challenged retail category.

I do wonder what compensation will be offered to vape shops that have legally flourished in Australia. I suspect it will vale to state and territory governments to resolve this.

For what it’s worth I’ve advocated newsagents not get into the vape space as I felt it was always going to be more heavily regulated.

Given the news from the federal Minister for Health last night, now would be a good time to scale back if you are in this space.

It does come back to the question about the type of retailer you see yourself as being and the types of customers you want to attract. You’ll do better focussing on better margin new traffic attracting products.

As has been the case with tobacco retail for decades, price drives vape product sales. On price, it is tough for indie retailers to win. We do so much better focussing on higher margin products that people love and love giving.

8 likes
Newsagency management

The Pharmacy Guild protests too much about prescription changes

It was galling to watch the president of the Pharmacy Guild weep and moan on TV last week about the planned changes to more efficient prescription access to 300 drugs on the Pharmaceutical Benefits Scheme.

The planned changes mean people accessing these medications will be able to get 60 days worth of their medicine instead of the current 30 days worth, meaning one dispensing visit for 60 days instead of two.

I get that pharmacists will lose some revenue. Those needing the medication will save time and costs involved in getting out to collect them. The government will save costs.

I think the gains for consumers and government (taxpayers) outweigh the modest cost to pharmacies.

If you believe the weepy president of the Pharmacy Guild, this move will end some local pharmacies. If that the case, the businesses must not have been strong enough to start, they must have been relying on their government protected monopoly.

In my opinion, pharmacists have been protected for too long, and at too much of a cost to Australians.

24 years ago Aussie newsagents were stripped of the monopoly they had over local newspaper and magazine distribution. This was taken from us under the guidance of the Howard Coalition (Liberal / national) Government. It was taken from us without any compensation. The cost to the value of local newsagency businesses was tens of millions of dollars in business valuation and tens of missions of dollars of revenue.

Good retailers in the newsagency channel thrived. The deregulation made them evolve from agents into retailers.

While kicking the protection crutch of protection hurt and demonstrated a lack of care for local small business retail by the Howard government plenty of us got through it. For sure, compensation would have been good. But, maybe those leading the channel at that time did not have the skillset to achieve anything for newsagents. We’ll never know. It’s 24 years in the past now.

So, back to the pharmacists, while they can moan and complain, and cry, the reality is that the current approach to dispensing prescriptions is inefficient and expensive, to the benefit off protected pharmacists. Making them more efficient and saving money have to be a benefit to the health system and to Australians more broadly.

Local retailers I have spoken with since the tears were shed on TV a few days ago offered no support for pharmacists. It seems to me like they over-egged their response to what feels like a reasonable move.

In the 23 years since deregulation, as I have often covered here, newsagents have benefited from relying less on protection and more on being entrepreneurial. Most in our channel today have stable businesses, plenty are growing, with the growth com ing from decisions we make, rather than some legacy suppliers.

Footnote: I do understand that in some settings, particularly in regional and rural Australia, and in genuine community pharmacies, the move may present some challenges. I suspect that if you look at actual financial details in those businesses you will see the impact will not match the emotional outpouring of some in the last week.

22 likes
newsagency of the future

Industry standard software for newsagents

With 1,750 newsagencies in the Tower Systems newsagency software community, it’s the industry standard software solution. While, for sure, there are a couple of other software programs being used in newsagencies, the scale of the Tower newsagent community sets it apart. I an grateful to newsagents for their trust and support and proud to be part of the channel as a supplier, and as a newsagent.

Here’s a recent demonstration of this $185.00 a month software for newsagents:

And here’s another from a few weeks prior to that video:

And here’s a video promoting newsagents to the broader Aussie community:

And here is another video I made and promoted on YouTube to pitch the Aussie newsagency channel:

Plenty of Aussie newsagencies are thriving and I am grateful that my newsagency software company plays a role in that.

Here’s what the $185 a month provides:

  • Access to the latest newsagency software.
  • Onboarding support.
  • Help desk support.
  • Unlimited registers. No extra cost.
  • Integrated accounting link.
  • Integrated e-commerce links.
  • Integrated payments.
  • Loyalty programs.
  • Advanced reporting.
  • Customer marketing.
  • Visual analytics dashboard.
  • Special customer orders.
  • Serial numbers.
  • Sell by fractions, sell by weight.
  • Integrated LayBys.
  • Customer gift vouchers.
  • Customised onboarding.
  • 24/7 support.

From a newsagency operation specific perspective, though, this newsagency POS software handles to best practice industry standards for areas such as magazine management, magazine returns, newspaper subscriptions, newspaper home delivery, magazine putaways, supplier electronic invoices, customer special orders, Epay integration for selling phone vouchers and other electronic vouchers.

Folks who run traditional newsagencies love the software because it handles the traditional requirements well. Folks who run newsagencies that are different, outside what is usual love the software, too, because of how it serves outside what has been traditional for newsagency businesses.

Tower Systems is a unique newsagency software company in that it owns and runs newsagency businesses. The company bought its first newsagency in February 1996. It has owned newsagencies ever since – using its newsagency software, walking in the shoes of customers, providing all staff with a live testing space and learning more about the software / retail business interface in a way that is valuable for all Tower Systems customers.

Beyond the newsagency software itself, Tower Systems helps newsagents with marketing advice, theft mitigation advice and a range of other management level supports and assistances. We believe in this quintessential Australian retail channel and appreciate opportunities to genuinely help newsagents run better and more successful businesses.

8 likes
newsagent software

Cards in the front window of the newsagency attract shoppers

This full face display of Mother’s Day cards in the front window is attracting passers-by into the newsagency on the busy Glenferrie Road in Malvern. That was the plan, our hope. It looks like paying off.

In December 2021, this space was taken by a drinks fridge, and ice-cream fridge and a stand of AWW cookbooks. Slowly we have change what’s here, culminating in the installation of this card wall a few weeks prior to Easter.

I think there is nothing better than awesome good margin products attracting shopper traffic from off the street. It’s a bonus if they are habit related products, products from a category for shoppers could return to you.

.

This shop is in a highly competitive location for cards with two newsagencies nearby, several supermarkets, more than 15 card and gift shops and an Australia Post outlet also with a good range of cards. We have the biggest range in the area, but it’s located in the card department inside the shop. I knew we had to bring a card pitch to the footpath.

While our card suppliers have been supportive, we funded this new fixtures ourselves, so that we control the use of the space. This will be especially critical with how we use the space outside of seasons, especially in the retail valley between Mother’s Day and Father’s Day.

On the space itself, we have the capacity to extend it to the left, to almost double the space. This will be needed for Christmas.

A bonus of this new card wall is that we no longer need seasonal card floor units. This frees up floorspace and assists traffic flow. Also, on the new wall, cards are better presented and more easily shopped than in a floor display unit.

While the pitch in the front window of the newsagency right now is Mother’s Day cards, it will change from may 15 to a different card offer.

We used a handyman to install the slat wall, this was a fraction of the cost of a shoplifter. We are frugal in managing our capital investment in this business, and in each of our shops. Our approach tends to be: make a change, measure the result, if good – move forward, if bad – re-group.

Too often over the years I have seen retailers access funding for a new or partial fit out and too much of that money be spent on changes that will not pay for themselves in 3 years. Funding it out of your own pocket makes you more cautious about the spend.

Be frugal. Follow your data. Take small steps. Back yourself over tradition.

Yes, a shoplifter may have created for us something more grand. I doubt it would have delivered a better financial return though.

While our shops are a reflection of us, they should not be a shrine or a showpiece, unless that makes money, turns a profit in the investment, in 3 years or less.

Footnote: some suppliers will be keen to engage with you on changes in your business. For sure, listen to them, but, it’s your business, not theirs.

12 likes
Greeting Cards

Newsagency of the Future – a free online workshop about retail newsagency businesses

Join me via Zoom Tuesday May 16 @ 11am Melbourne time for a Newsagency of the Future workshop.

I will share up to date retail newsagency performance data, sales data from outside our channel for categories allied to what we do, thoughts on the rest of 2023 and into 2024. I will also cover some trends into the future that present opportunities.

There will be an open Q&A.

While Covid continues to circulate, it is over from a disruptive perspective. I think there are things we can leverage from the pandemic experience. I also think there are category opportunities for growing business GP% and attracting new shoppers.

I am not running the session to sell you anything, or to get you to sign ups to anything. My sole motivation is for the retail newsagency channel to be strong, vibrant.

It is a competitive world out there and I think all of us in retail newsagency businesses can do better.

Here is the link:

https://us06web.zoom.us/j/84982771189?pwd=RWdRM0s3bENpZ2F5UGxNblkzKzN3QT09

Meeting ID: 849 8277 1189 Passcode: 103292

I’ll record the session.

Anyone is welcome.

4 likes
Newsagency management
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011