Bauer to close Cleo magazine?
Is the week of change continues at Bauer Media with the report Cleo magazine is to close.
I do expect to see more closures of Australian magazines this year as publishers look carefully at circulation numbers.
Takeaways from CES 2016 for small business newsagents
I am grateful for the opportunity to spend two days the Consumer Electronics Show in Las Vegas last week – along with 170,000 other attendees.
Aside from the funky gadgets you may have seen on the TV news, CES was a showcase of innovation for and about business, especially small business.
Wow! What a show. Small business was represented everywhere, in almost every hall we visited. Small business in the form of start ups, products that appeal to our customers and entrepreneurial flair from bg businesses seeking to reset their paths for the new economy.
Change was evident in every hall, in every aisle. Change in products, how to discover shoppers, how to serve shoppers, hurt to fulfil orders and how to plan for the future.
The gap between technology and everyday got narrower with this CES show. There is no avoiding it in business or at home.
Now more than ever, borders between retail channels are dissolving. Whereas in the past retailers remained focused on their specialty channel, that is not the case today.
Take fitness tracking. In the past these devices, such as Fitbit, were sold in electronics stores. Now, the trackers and add-ons for trackers are pitched to pet shops, jewellers, bike shops, garden centres as well as all sorts of other businesses.
Take iPads and tablet computers generally. We saw these for sure but we also saw several suppliers of funky stationery related items targeting the users of these tablets. Fashion designers are all over this space.
As a regular CES attendee, I’d call 2016 the year of the pet. There were technology solutions for pets and pet owners. They covered, pet care, pet fitness, pet fun, pet travel, pet grooming and other areas. App connected and delivering a technology solution at a level not seen before.
We also saw a merging of the connected home and pet engagement when you are out of the home. This is a rapidly moving and exciting space with some very cool innovation heading our way.
We saw 3D printed bikes, portable bikes, devices for bikes, devices for bike riders, digitally enabled clothing … all sorts of products we expect bike retailers to be selling as connectivity evolves.
From a newsagency specific perspective, there was one stand with artwork of a magazine newsstand as a backdrop for pitching technology that replaces magazines. I thought: oh, okay.
Old brands such as Kodak, Polaroid, Lego and Meccano had stands that spoke to the importance of being nimble in today’s marketplace. They are leveraging consumer trust for their brands and pitching new, tech-centric, products serving today’s connected and socially active world.
Indeed, what Kodak, Polaroid and Meccano are doing is fascinating and reflective of what newsagents need to do – leverage the trust and legacy of the brand to bring shoppers to opportunities that are more relevant to today. The US Postal Service is doing this. See the photo below. Their stand this year was a terrific evolution from the stand they had at CES last year.
It would be easy to see all this and say it is too hard to compete in such a rapidly moving world, to say we do not have the resources necessary to keep up. However, this is essential if we are to have a future. I am certain plenty of newsagents can do this, embrace change by evolving their businesses considerably outside the boundaries that were considered definitional for newsagents. Those boundaries do not exist any more.
I guess if I was to summarise takeaways, the top five would be:
- Change, disruption, is the new normal: embrace it, chase it.
- Small is beautiful. Being the best locally is more important them being big.
- Do not be restricted by the history of your retail niche in considering what to sell.
- Understanding new technology is critical to the success of every business.
- There are more trends that rise faster become crowded out sooner and are discarded earlier than in the past. Time has been compressed, again.
One of the most enjoyable places at CES was the start-up hall at the Sands Convention Centre. There we saw exciting start up businesses, often one-man-band businesses. Struggling to be heard. making a pitch and hoping for funding. We loved talking with them and soaking up their excitement for creating something new.
There were many takeaways beyond these brief notes. I’ll reflect on these within the Tower Systems and newsXpress newsagency communities in which I serve through this year.
Here are some photos from CES we thought may interest newsagents. And yes, Elvis lives!
Back to school in the news and challenging newsagents
Newsagents doing Back to School should read Typo, Smiggle spur back-to-school shopping boom published in Fairfax newspapers last week. Embedded in the article is this challenge to newsagents who rely on stationery, especially at Back to School time:
What has changed, however, is what’s being sold: the bland, standard-issue equipment of yesteryear has made way for stationery that is colourful and creative.
And that’s become a multimillion-dollar industry, which Australian retailers are taking to the world.
“For us it’s been a really [good] opportunity to add fun to what 20 years ago was quite a bland product,” says Slattery, who works with a team of about 30 designers, developers and product buyers to stay on top of the latest trends and styles.
“Primarily our customers are looking for fun and something that will brighten up their day, and that will speak to who they are as a person.”
Do we need the International Psychics Directory?
Gotch has hit Twitter in the last 24 hours promoting the International Psychics Directory. At first I thought the title was an oxymoron and then I realised it was aimed at people in search of psychics. Regardless, I doubt this title will pay for the retail space it takes in newsagencies. I cannot recall ever being asked about a title like this.
Talking with US lottery retailers during Powerball jackpot frenzy
I have spoken with several lottery retailers in Chicago over the last two days about the Powerball jackpot. With outlets on almost every street in downtown purchasing is easy – they are not experiencing the long lines of a massive Australian jackpot. That said, I know in other cities the situation is different.
Traffic is way up and plenty are making massive purchases – hundreds of dollars at a time. The retailers seem bemused by the surge.
I have not seen any noticeable in-store changes to leverage the additional traffic. Also, there is no upset for other products at the lottery counter or no upset for the lottery at the regular counter.
The differences in engagement are a result in lotteries being available from more locations and not easily available online – an that lottery traffic is incidental to the businesses whereas for many newsagents it is key.
Valentine’s Day cards at Target in the US
I am looking at a range of retail situations in the US and am appreciating insights that relate to suppliers who serve us in Australia. Here is a look at Valentine’s Day in a Target store in downtown Chicago.
Unfortunate timing of resignation of AWW editor
The announcement today of the departure this week of editor of The Australian Women’s Weekly is unfortunate on the back of the major announcement of the imminent closure of Network. I wonder if further announcements are to come.
Gordon and Gotch to take on distribution of Bauer Media magazine titles as Bauer prepared to close Network Services
PMP, the owner of Gordon and Gotch, this morning announced to the ASX agreement with Bauer Media to distribute Bauer titles – subject to obligations Bauer has to consult with employees.
The PMP announcement is part of a planned move by Bauer Media to close their magazine distribution business Network Services in the coming months. Gordon and Gotch is taking on the distribution of Bauer Media titles and is expected to take on on many other titles currently distributed by Network Services.
The sky is not falling.
This is not a step closer to the end of print magazines.
Given the slim margins of magazine distribution and that Bauer is primarily a publisher in other marketplaces, the move makes sense.
The move should not alter the commitment of newsagents to magazines.
The closure of the Network business will most likely take some months. I expect it will be done in a structured way, taking into consideration all operational matters including returns processing and the handling of the bonds paid by newsagents and allowing the the complete handling of returns when due for Network titles in the system.
While newsagents may feel unsettled by the move, I do not. We will continue to have access to an excellent range of magazines as I expect many Network publishers to move to Gotch.
Take a moment to think about the publishers using Network, especially the small Australian publishers. Everyone working in these small publishing companies will feel disrupted by the move.
I urge newsagents to not change their behaviour because of the announcement. I urge you to NOT early return as doing this will only hurt the publishers of the products you early return.
Bauer Media is a massive business. There is no risk for newsagents. I am certain the structured closure of the business will be orderly and that newsagents will be respected. Bauer needs this for its future relationship with newsagents.
I anticipate a benefit for newsagents with one major distributor as one company will know the magazines newsagents are to receive whereas with two major distributors in would not know what the other was doing thereby making oversupply easier.
The pressure will be on Gotch to distribute in a sustainable way for newsagents, publishers and themselves. newsagents were not so much part of the equation previously because of there being the two major and competitive distributors. I hope it sees a stronger commitment from Goth to Australian titles and that these are distributed exclusively through our channel as we are the magazine specialists in Australia.
I also anticipate there to be a reconsideration of the magazine code of conduct that is currently under trial by the MPA with a small group of newsagents. I do think this move plays into some factors under consideration in the trial.
Why we need to keep our eye on Sanity Music
Sanity is on the move, changing the range of products they offer and through this broadening the appeal of their business to attract new shoppers.
Look at their decision to introduce ABC Centres into their shops. This is a smart move as it helps them leverage the much-respected ABC brand on the back of their already well-established brand and retail footprint. Even more than that, the ABC move ushers into Sanity a range of products hitherto not available in their shops.
This move by Sanity is a reminder we need to be introducing products/brands that will attract new shoppers and thereby enhance the relevance of our businesses. The most beneficial move we can make is through suppliers we do not currently deal with – unless there are current suppliers expanding their appeal through fresh products and initiatives.
Being small and individually owned does not stop us making strategic moves such as this. It starts with a will to embrace, chase, change.
New traffic is vital to the future of any retail business but even more so with newsagents with existing traffic fading following the decline of several core category products.
Leveraging the Peanuts movie for the newsagency
We are using the characters of the new Peanuts movie to attract new shoppers through social media. These limited edition characters are perfect for reaching outside the business and attracting people who would to consider a newsagency as a destination store for the purchase. They are new characters in the Hallmark Itty Bitty range.
Lottery compliance
This photo shows the display of instant scratch tickets at a 7 Eleven in Chicago. It is representative of the various counters I saw today. I am told they are under no pressure on keeping the space clear. Also, the lottery terminal is not placed next to these tickets.
How Tatts treats small business retailers
Check out this communication from Tatts to newsagent retailers:
Dear Retailer
Please be advised that Tatts Lotteries have outsourced the Responsible Play Audit and Retail Standards Reviews that were previously the responsibility of the Retail Territory Manager. These survey audits are now conducted by an external company, Market Pulse, and are being rolled out across all Tatts Lotteries jurisdictions. http://marketpulse.com.au/
The surveys have been conducted on the Gold Coast and Brisbane CBD over the past 3-6 months and will be commencing in our area very shortly. These will be unannounced visitations and will occur on a minimum cycle of once every three months. Retailers that do not show compliance to our retail standards will be visited more frequently.
It has been identified some stores are placing non-Golden Casket items in the dedicated Retail Image area. This includes pens, key rings, magazines, confectionary stands, torches, postcards, drinking straws, etc. being positioned on the serving counter, bag rail, or spinner units and also allowing dump bins to block access to the counter or writing bench.
Please be reminded it is against your Tatts Lotteries Franchise Agreement to display non-Golden Casket items in the dedicated Retail Image area. I bring this specifically to your attention as this will be checked during the visits and non-adherence to policy may result in possible breaches, non-renewal of franchise agreements, or in the worst case scenario, termination of your franchise agreement.
Market Pulse will also have the current Point of Sale planner off Retailers Web to check that your outlet is displaying the current marketing focus. In addition, they will check that all lottery brochures, coupons and result slips are on display on your writing bench.
Audit results will be forwarded to the Tatts Group Senior Management Team and I will be following up retailers once results are received.
To ensure your visits are fully compliant, I ask that you check your Golden Casket area now and identify and remove anything that is not compliant. If required, please order in any items as necessary through your Lotto Terminal to ensure the retail standards are being met.
Please find attached above the Responsible Play Audit checklist and Retail Standards Review for your reference.
Thank you for your assistance.
I wonder of Coles Express is treated the same.
retail space is expensive. The demands of Tatts that you not use ‘their’ space (for which they do not pay you) to only promote their product holds retailers back from maximising the opportunity.
The only test tatts should apply is are you performing at or above average in your area. How you do this should be up to you as the retailer.
This communication is paternalistic and disrespectful in my view.
Magazine off location display opportunity for newsagents
Check out this smart off-location placement of magazines near wine at a Walgreens I visited today. As our newsagency businesses diversify I think we need to embrace opportunities like this – placing a small selection of magazines closer to the shopper likely to purchase niche titles on impulse while shopping for other titles. Theses especially true in larger format newsagencies where shoppers shop only part of the store.
To make the most from magazines and their niche interest we need to stray from the old format large magazine department as that only serves the destination magazine shopper.
Gallery Collection closing
Gallery Collection issues the following statement, announcing the imminent closure of the business, to customers earlier today:
Dear Customers,
It is with deep regret that we write to inform you that we have decided to close the business of Gallery Collection Pty Ltd.
The decision to cease trading has not been taken lightly as we have enjoyed our relationship with all of our customers and friends throughout Australia. Over the past period I have been having some health issues making it very difficult to continue into the future and due to the nature of these issues we feel we have no option but to cease trading.
We are having a massive WAREHOUSE CLEARANCE sale where all stocks will be at a 50% discount, firm sale with payment prior to despatching. No other existing discounts apply. We suggest you look at our website, call us or speak to your sales representative as the stocks are moving quickly. This is an opportunity for you to stock up on many good selling products and gain a large margin. Once the stocks are sold, the prices will not be repeated.
We thank you for your business over the many years and for the efforts you have made in selling our products.
Thanking you for having the confidence to deal with us over past years and we wish you success for the future.
Be alert about shopper concern re gift vouchers
The woes of retailer Dick Smith and the swift handling of gift vouchers by the Administrator are a reminder to small business retailers about proper management of gift vouchers. By proper management I mean professional tracking of sales, use and balances, knowing at all times and instantly the liability of the business in terms of live gift vouchers.
Good software will track this for you.
Gift vouchers are an important product in any retail suite. Managed poorly they can be problematic. That is why they are best managed by a technology solution that is linked directly to your business accounting facility.
The money paid for a voucher is not yours to spend, it cannot be used as working capital. It is best isolated until redemption. This is easily managed by good software and a competent accountant.
Lanyard season in the newsagency
It is lanyard season in the newsagency and here is why in my neck of the woods at least: through January there is a surge in new hires at local shops, juniors working for the school holidays. These new employees look for ways to keep ID cards, keys and other items on their person. So, lanyard sales are up.
But if you are in the market for a lanyard where would you go? Frankly, if I did hot know we sold them I would not know where to go for a lanyard. I suspect other people think like this too.
Lanyards are another niche item we can promote outside our businesses, on our Facebook page, as well as at the counter – to drive awareness and impulse purchases.
Too often we hide products like lanyards far away, down low, almost so no one can find them. Yet they are a product through which we can define our businesses. Seriously and here is why I think this…
The general stationery game is over, we cannot compete with Officeworks, supermarkets and others for everyday stationery. We don’t have the dollars to match their advertising spend that they are cheaper. We also do not have their buying power.
However, we have a customer service that is better than theirs and an ability to serve niche needs. Most of us do this today in our stationery departments. yet we do not promote it.
Here is my challenge: take a look at the fringes of your stationery department at the products you almost hide because they are so niche. Build a story around them, promote them online – give people a reason to think about shopping with you for these niche items. Leverage this niche traffic into purchases of everyday stationery items.
If you are not promoting your stationery offer outside your four walls you not chasing new traffic – meaning average is all you can expect i9n terms of stationery sales.
Check where your lanyards are. take a photo. Write about them on Facebook. Place a selection at the counter. Do something more than just leaving them on the shelf expecting them to somehow magically work all by their own hidden away from those who need them.
Aussie mags on show in the US
It’s great to see Frankie and Renegade Collective, two terrific Australian magazines, on newsstands in the United States.
Despite odd placement in the magazine department at Hudson news at Las Vegas airport, the titles are noticeable, Frankie especially for its unique covers as always.
Another newspaper masthead cover-up
The Las Vegas Review-Journal today (Sunday in the US) has a post-it note ad covering up part of the masthead and editorial designed to drive newspaper sales. The ad is for a business called Mr Rooter so I guess there is karma in that for whoever approved this.
Sunday newsagency challenge: open your drawers
What do you have in the drawers below your card fixtures? How much is this stock worth? Why is it in the drawers? What is your plan to sell it? Customers cannot buy what they cannot see.
Sunday newsagency marketing tip: new this week
Behind your counter, in your window, on your business Facebook page or on an a-fram outside the front of your newsagency list NEW MAGAZINES OUT THIS WEEK. Use this to show off your point of difference by listing magazines shoppers are less likely to find at competition supermarkets, convenience stores and other outlets. Change the list every week, on the same day.
Sunday newsagency management tip: set a sale goal and share it
Set a sales goal for a product, a category, a spinner or some other measurable part of your business. Share the goal with your team members. Track performance. Share the joy of passing the goal or involve everyone in working out why you did not make it.
If you don’t set goals you will never reach them.
US Powerball jackpot $800M
Powerball in the US has jackpotted to $800M for the draw Saturday night (US time). Imagine how retail traffic would be in that situation.
The opportunity of clothing marker season at the newsagency
I served a customer last Saturday who wanted a clothing marker for new school clothes. The Artline 750 was perfect for their need. While looking at this they discovered the Artline Garden Marker next to the 750. They took that too.
The customer was thrilled as they had looked everywhere for a clothes marker. You should have looked here first, I joked. I forgot about newsagencies, she said. Gee that hurt.
Price was not an issue – because of the difficulty they had experienced in finding what they wanted.
I have found myself thinking about the interaction over the last few days. While it is easy to bemoan the fading interest in newsagencies as the first stop for people looking for any stationery item, we have a responsibility in this. We have stood by and watched as Typo launched, Smiggle grew, Kikki.K grew, Officeworks improved, supermarkets introduced better stationery departments and variety stores such as K-Mart and Target introduced better stationery departments.
But in our businesses, through products like the Artline 750, we have products we can pitch that no one else has or that are too hard to find in large businesses like Officeworks. We can use these long-tail products to promote a point of difference, a finely tuned customer care a a seasonal pitch that draws attention.
With Back To School in full swing it is a crowded marketplace. But who is promoting clothing markers? It is easy for us to pitch these online, in-store and elsewhere – because no one else is.
This is how I am responding to what my customer taught me on Saturday – I am promoting the Artline 750 on facebook and at the counter. This is one of several niche products around which I am promoting the newsagency, to draw attention to the specialty stationery we sell and through this to reinforce that shopping with us ought be more top of mind than it has been.
We, all of us, have to give people in our communities more reasons to shop at our newsagencies. The shingle is not enough nor is the general Back To School marketing. The best approach is result promotion of niche items like the Artline 750 to build the impression that your business is the go to place for stationery – because you care, because your service is knowledgable and personal.
newsXpress Eli Waters sells $70M Powerball winning ticket
Congratulations to the team at newsXpress Eli Waters in Hervey Bay, Queensland, for selling the sole winning ticket in the $70M Powerball jackpot last night.
this is a good win for a business that represents best-practice transition. while respecting traditional products and services, the business is kicking terrific goals in new product categories and attracting new shopper traffic as a result.
What did the Powerball jackpot mean for you?
Beyond the sale of Powerball tickets, what did the jackpot mean for you? Did the sales of any other products increase? If so, what?
I think it is important for newsagents with lotteries to know for sure the broader impact of lotteries so they can do more of what works next time and less of what does not work.