By placing loose soap we sell in an organza bag with a product tag inside has driven excellent sales growth for us. It also streamlined selling at the counter, shifting the packaging work from the counter during a sale to the shop floor during quite times.
I think the sales boost has come from shoppers understanding what they actually get when the purchase the soap – we’re showing how attractive the soap can be as a gift.
Further to my report from the weekend that WH Smith is acquiring the Supanews business, I am told that Supanews outlets will be rebranded WH Smith.
Rebranding the Supanews stores as WH Smith would make sense as it would strengthen the presence of the WH Smith brand in Australia. WH Smith branding is important as it would make their push here more meaningful internationally.
The core benefit to WH Smith of the Supanews acquisition on top of their Wild and Kennys acquisitions is more outlets through which to offer their considerable range of home brand products. I’m told Wild franchisees are navigating the pitch of home brand product and WH Smith sourced product at the moment.
From a newsagents perspective, the Supanews acquisition is the most important indication yet of their intentions for Australia.
In April this year I started to comment that Loom Bands had run their course in Australia this time around. In the months following I wrote about magazines late to the party that did not sell. A couple of months ago I commented about discount stores promoting Loom Bands at low prices.
The moment we had five or six suppliers with Loom bands products early this year the writing was on the wall, it was time to quit the product line.
The only way to sell Loom Brand products now is at a deep discount.
This is why I was surprised to hear from a newsagent in South Australia that Ancol has Loom Brands as a feature product in their Christmas catalogue. I checked online and found 600 piece box sets for $3.50 – not much more than the wholesale price newsagents are paint for these.
Creating Christmas catalogues can be challenging because of the long lead time, competition with others sourcing products from common suppliers and varying degrees of interest from newsagents early in the year when you are building the contents of the catalogue. The challenge for those creating the catalogue is the cost of a dud product on them and the retailers they serve.
With Loom Bands, the signs were there early this year. Of course, my concerns could be misplaced and the bands in the Ancol catalogue could see out in participating newsagencies.
I am surprised Bauer Media’s Network Services is promoting stationery lines to newsagents. While 50% margin may be hot for products from a magazine distributor, it is not hot given what we achieve through non circulation product suppliers.
I’d be surprised if there is any take up for this offer.
Take the Pumponator. At $24.95 it is over priced and even at that inflated price 47% margin is too low. I sold it for less and made more.
I see no sense in non circulation product suppliers distributing through a magazine distributor.
To promote the products in your stunning window display – of course it’s stunning! – stick flyers in an acrylic unit suck to the outside of the window so people who like products in the wind have something to take away reminding them of what you have on offer.
The acrylic will cost around $20 and the flyers you can product and print in-house for next to nothing.
So, while your shop is closed and people are checking out your window, you have a marketing pitch for them to take away and remember your business.
Simple.
Brands matter in retail. There are plenty or articles and papers claiming that shoppers will spend more on a brand they trust. They can also make a purchase decision faster than if presented with the same product un unbranded backaging. This is why I spend time ensuring brands are respected on the shop floor.
The photo on the left is the before shot and the photo on the right is the after shot. All I did was turn the wrap so the brand – Hallmark – is represented in a consistent way. To me, the display on the right better reflects value and the messy display on the left.
Allocating a small amount of whop floor time can make your branded displays look better than other retailers. This can make you and your team more proud of your business. It, hopefully, will drive shoppers to notice the branded products and spend more with you – this is the key goal.
I appreciate this management tip may see somewhat obsessive. I think it’s valuable shop floor work through which we can make a statement about our businesses compared to others who may have the same products.
We are making good money out of Meerkats thanks to the popular TV commercial promoting insurance that has been a hit around the world for some years. We have products from several suppliers and are pitching them currently at the counter with success.
Being aware and on top of trends is key to maximising sales and gross profit. Meerkats are a perfect example. They have been hot for all of this year and have made an excellent bottom line contribution. recent sales indicate they remain a good opportunity.
We have had the BHG Puzzle Book with newspapers and it’s worked well. An acrylic is clipped into the slat wall next to The Age – adding a pocket to what was unused space. Most purchases are on impulse – making the newspaper purchase more valuable.
I have heard from two sources that Supanews is to be acquired by WH Smith with the acquisition set to be completed by the end of this month. Franchisees were advised by Supanews late yesterday.
Supanews is a franchise business with some corporate stores but with the majority of the group operating as franchisees. This acquisition will be the first of a newsagency related business in Australia by WH Smith.
Newsagency channel observers will not be surprised as Supanews has been in play for some time and the intention of WH Smith to grow its retail presence in Australia has been evident since their acquisition of Wild Cards & Gifts early in 2014 and then the the acquisition of carcass of the Kennys Cardiology business in mid 2014.
There has been movement in Supanews recently with corporate stores closing or being sold for what I am told are good deals. This appears to have been in preparation for acquisition.
Unrelated to the Supanews acquisition are reports of further acquisition activity by WH Smith in the newsagency channel. I have been unable to confirm reports put to me.
Day one of the taste cookbook collection promotion from News Corp. is almost over in Victoria. We’re out of today’s free cookbook and have been for a couple of hours. We were given plenty for our stock of papers and the extra papers we collected at lunch time but not enough for the Coles customers coming across asking for the cookbook. We gave a few out to these customers but from lunchtime sent them looking for the distribution newsagent as we needed cookbook stock for our newspaper customers.
This looks like it will be a popular promotion. It’s certainly been promoted heavily by News Corp in the Herald Sun, online and in-store – even in retail only newsagencies which is good.
While I have completely switched from print to digital for news and special interest magazine content, I have continued to only read books in their print form. I read a lot and the print experience provided time away from a screen. I like the ease with which I con interact with the book and appreciate seeing shelves full in my home office.
As an author I have experienced book publishing in the digital and print formats. I found the digital experience better for the data provided on engagement and download.
A few days ago I discovered a new book that I wanted to read urgently. The print edition would not be here until next month. Wanting it now, I bought my first digital edition of a book. Within seconds of purchase it was on all my devices: laptop, iPad and iPhone. The reading experience so far is better than last time I checked it out in an Apple store – years ago. If it continues this well the only thing I will miss is the reminder of books I’ve read on the shelves.
As technology evolves, more people will migrate from print to digital for all sorts of content. Reasons for sticking with print will fade as technology improves. Retailers relying on print for their future need to watch the trends with books, newspapers and magazines. Each of these three are being impacted at different paces. Newspapers are on the edge of the cliff, books are playing nearby and most magazines are some way back. However, they are all closer to the cliff than they were a year ago, two years ago …
I did not expect to enjoy digital book reading as much as I am. I only bought this particular book out of urgent necessity. I’m glad to be discovering an unexpectedly enjoyable experience.
I saw a good example of the power of the Disney Frozen brand Thursday when visiting a newsagency. The two stands of Frozen product in the photo were a magnet for kids and those buying for kids.
Placing the two stands together is a smart move as together they are more visual powerful than if apart.
Some newsagency marketing groups are offering their members access to Frozen product from plenty of suppliers – five at least. This allows those stores to sell a strong story that competes with the majors.
Price is not an issue as the bottom feeding deep discount stores are not heavily into this brand yet.
If you are do not have Frozen products on your shop floor you are certain to be missing out.
Newsagents should be ready in their newsagency software for the Taste cookbook promotion from News Corp. They have access to a stock file to make tracking the Taste stock items easier. If you don’t have it setup already contact your newsagency software company. Tracking it is important because with such a slim margin making a mistake can be expensive.
For newsagents with the Tower software click here for to access the knowledge base advice. Other software companies are welcome to publish links to their advice here too.
If ever I want inspiration for visual merchandising I go to The Works in hawthorn, on Burwood Road, newer my office. There you can see what their buying and VM experts consider to be best practice for the season.
Yellow is in. We have access to similar products – recreating this display or something like it is easy for newsagents in the gift and homewares spaces.
I’m posting the photo as inspiration.
The money (ink and paper) being spend by newspapers promoting their various subscription packages must be considerable – more than at any time I cal recall. While some ads promote the newspaper and digital products, more often they promote digital products only. Either way, digital is the focus over print yet print is the medium used for the pitch.
All newsagents need to factor this into their own planning.
Here more examples of magazine publishers supporting newsagents as the go to retailers for their titles. The screen grab is from Twitter this week. It shows how the two publishers are specifically promoting our channel.
While Australian Boxing Legends and Stage Whispers are not volume sellers, people who purchase them are valuable to us as these titles are unique to us, they reflect a point of difference.
Australian Family Tree magazine is another special interest title promoted on social media and actively pushing newsagencies as the businesses from which to purchase the title.
These special interest titles are more important than ever for us. We need to support them and be more aware of how they are supporting us in social media.
Relay stores at airports in Australia are always worth a visit. They are in traffic rich locations and need their displays work at drawing people into the store. This display at their Canberra outlet is on the corner of the lease line.
I stood across from the store for five minutes and saw four people walk across to look at the promoted book. One purchased.
The relay approach is simple to follow: make the product the hero and tell people who the product is the hero.
I got to see the Exclusive to Woolworths gift with purchase stand from Bauer first hand this week. It’s impressive in terms of the stand itself and the gift. While I am not a consumer of the promoted titles, I expect the promotion to work for Bauer and Woolworths.
This practical and shopper focussed offer is what Bauer should promote in newsagencies and not the Connections points program. Giving Woolworths a competitive advantage will not end well.
This stand promoting a range of News Life media and the terrific gift with purchase of any of the titles which I saw in Woolworths gives the supermarket chain a valuable advantage over newsagents for the promoted titles. The stand is Woolworths branded – making me think this is a offer exclusive to them.
Note: I had to pout four titles in the stand for the photo as the pockets were empty – such is their lazy approach to managing magazines.
In Woolworths earlier this week I noticed this Cleo packed with a terrific gift of LeTan wash off tan for summer. It’s a good gift with purchase for the target Cleo reader this time of the year. I am not sure if this is a Woolworths or supermarket only deal.
Anyone else get it? I didn’t.
In what is becoming a series, here is another slim newspaper stand. This time at the news and gift outlet at Launceston airport. It has a small footprint and is strong – allowing it to hold the heavier Saturday newspapers. Flexible too – it could hold more titles with more shelves installed. You low the deal: click on the image for a larger version.
Network Servcies has two titles out this week with the same barcodes. This is a dreadful error by the publishers.
03/11/2014 – THE CLASSIC MOTORCYCLE
Bipad 3748 Issue 201401
Correct Barcode 978099258495506/11/2014 – GUIDE TO THE CRICKET WORLD CUP
Bipad 3817 Issue 201401
Correct Barcode 9780992584948
Make sure you handle this according to advice from your newsagency software supplier otherwise your returns credits could be affected..
In Launceston yesterday I discovered from newsagents that Fairfax charges a Remote area publishing fee for The Age, the Melbourne newspaper, which is printed locally, in Launceston, for Tasmanian customers.
This seems like an odd charge to me. Fair enough if freight was involved but it’s not. It’s a fee for using a local printing facility. I would have thought that this benefited Fairfax.
My understanding is that the fee is one reason sales of The Age in Tasmania are down.
I’d like newsagents to share other charges they see from publishers for local printing of interstate papers or freight applied for shipping such papers in.
While not the same as is happening in Port Lincoln about which I wrote last week, it’s similar in that publishers are recouping more costs now their products are not as popular.
I love this newspaper stand from News Corp. which I saw at a Coles in suburban Melbourne a couple of days ago. It’s space efficient. strong, flexible and easily relocated. Very smart.
I like this stand more than the stands I have seen on offer to newsagents in recent years from News and Fairfax. If publishers were to offer something as efficient as this to retail newsagents I am sure we should see better engagement by that channel.
Click on the image to see the stand in more detail. Notice the strong construction, flexibility and marketing at the top.
I love it when a customer comes in and asks specifically for an item, something that has driven them to us. This is happening regularly at the moment for the Women’s Weekly Health Diary. I appreciate the traffic for the product – generated in part by good and wide promotion of the product recently.
One customer shared a but much Saturday saying I get all my magazines at Coles now and I thought they’d have this there. I smiled, thanked them for their business and pointed out the discount voucher they now had from us for spending on magazines from us.