My advice if you think closing and walking away from your newsagency business is the only option available to you
Taylor Square newsagency in Sydney closed Friday last week after decades of service to Darlinghurst locals, many who partied in the area and many more who travelled there for their unparalleled range of magazines. The Piggott family were passionate about magazines.
The report cites the NSW government lockout laws as a major cause of the closure.
While I understand the impact of the lockout laws on overnight traffic, they would have less effect on the main part of the trading day from 7am to 6pm when most business is done.
While I am sure the lockout laws played a role as did the messy and drawn out changes to Oxford Street, I think other factors played a role – magazine sales, newspaper sales, the positioning of the business in a changing retail environment and out of store engagement by the business.
The biggest challenge faced by Mark and John Piggott is the same faced by many newsagents – how to drive the relevance of the newsagency in a rapidly changing world. We talked about this in the context of the business many times over the years. Our discussions were based on an assessment of their own business data, evident trends forecast in their data, trends that lead to the closure Friday of the business.
I wish this business had not closed. I wish John and Mark were running a reinvigorated and reinvented business today. I wish they were running a new Taylor Square Newsagency that was known for innovation as well as maintaining a stunning range of magazines.
Several times over the years I pitched structural changes to Mark and John including:
- Reducing opening hours by carving out the late night hours that are not profitable.
- Replacing underperforming legacy categories and introducing specific new traffic generating lines.
- Cutting magazine space to drive a better return on space.
- Out of store marketing to reach new traffic – people not currently aware of the business.
I appreciate these four points are not as simple as they look. Embedded in each is fundamental structural change to the business to make it relevant to today. Take the second item, several times I looked at this business point two alone should have resulted in more than 50% floorspace change by bringing in completely new product categories to open the appeal of the business beyond those who still remember what a newsagency was from the 1950s and 1960s. Those customers are dying, we need businesses that are relevant to the those spending money today. They don’t care about the newsagency of yesteryear, they care about what they like today – regardless of the shingle under which they purchase it.
It is not my intent with this post to come across as someone dancing on the fresh grave of Taylor Square Newsagency. Rather, I want newsagents to use news of the closure to shake themselves into realising that it is not too late to change and that change does not mean ignoring key categories at the core of a successful newsagency, categories we need such as magazines, newspapers, greeting cards and stationery.
It takes guts to embrace and chase change. The sooner you engage with this the better. From where I stand, the best encouragement you will get will not come from traditional sources of newsagency management advice such as your industry association of the National Newsagent magazine – they are rooted in the past.
My inspiration comes from looking far outside the channel at trade shows for other channels, at other retailers and at trends online. We have to have the guts to play outside the limitations of our shingle. We have to have the foresight to see a business beyond the traditional. We have to chase customers never thought we could attract.
But most of all we have to do something.
Complaining is not a management activity.
Here is my top-level practical advice for any newsagent contemplating closing:
- Dig depict your data and look for green shoots of good news onto which you can attach growth.
- Stop doing what is not profitable.
- Be a retailer and not an agent.
- Find products that will generate traffic in your location.
- Refuse to be restricted by the shingle under which you trade
- Change, change and change your business.
- Join a marketing group or at least partner with an outside force that will challenge you and open you to opportunities you don’t see today.
There are plenty of newsagents enjoying good results and feeling optimistic. I think anyone can.














