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

InStyle magazine supports newsagents

twitiunstyleThe publisher of InStyle magazine is actively promoting newsagents through social media and in store with an excellent gift with purchase. Their call out supporting newsagents on Twitter is excellent support for our channel from Pacific Magazines. Support this issue of InStyle as appreciation!

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magazines

Good Chef bad Chef update

I have been communicating with the publisher of Good Chef Bad Chef following some comments here by readers and newsagents.  Here is an update from the publisher:

The response for issues 1 & 2 has been simply amazing. We increased the print run between issue 1 and 2 but again the demand has outstripped supply. We have sent out all the returns already to agents that had back orders BUT we simply ran out very quickly so there are still some orders in the system (with network) that need to be fulfilled.

What does surprise me though is that we still received 17% of early returns (immediately) when issue #2 went out. And over 120 of those were from newsagents that sold 4-7 copies of issue #1. Then on the other hand we are now close to sold out.

Issue 3 is on sale 3rd July – Orders can be made through the Networks Netonline system: https://www.netonline.com.au/SeasonalAllocation/ALLX010.aspx

I hope this helps.

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magazines

Here’s why they don’t label magazines in the US

magazinerecallTake a careful look at the text printed next to the barcode labels on these two magazines. Notice it says: Display until followed by a date. Since most magazines are sold in major / national retailers they do not need or want to micro manage magazines as we need to so only the recall date is important. If your supply was more commercially sensitive to our businesses and if publishers printed recall dates we would not need labels at all and that would be good.

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magazines

Candy with magazines

magazinedisplayCheck out the strip of candy in front of magazines that I saw at a CIBO outlet at New York’s La Guardia airport a couple of days ago.

Click on the image to see the detail.

Notice the tray of chocolate bars and candy in front of each row of magazines? See the branding consistency on each shelf. Excellent retail layout design work for this transit location ‘newsagency’.

The CIBO outlets at La Guardia airport, and there are several, are the best airport businesses I can recall seeing. Modern, fresh in approach, enjoyable to shop and trustured to drive sales.

It’s obsession to details like these that is important in convenience retail which is, after all, what transit locations are all about.

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magazines

Electronic cigarettes everywhere in the US

ecigsnycIt seems each time I come to the US the reach of electronic cigarettes has extended – faster than in Australia. In New York, in the three months since I was here there are more signs and billboards promoting them.

This photo shows the side of a news stand on Broadway in Midtown and where in the past regular cigarettes would have been advertised in the poster window you now have ads for two brands of electronic cigarettes.

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Tobacco sales

A look at Bauer Media

Respected journalist Ben Hills wrote a long and fascinating piece for Good Weekend – published March 28 – that looked at Bauer media, the business formerly known as ACP. Hills was thorough in his research – I know because of questions he put to me as part of the research.

The article is something newsagents should read as it takes us behind the scenes and provides some fascinating direct quotes like:

Tony Sarno, who resigned as editor of Bauerʼs two technology titles before the magazines were sold last year, believes the writing was already on the wall before the takeover was consummated. “When Yvonne came out we were told to have our offices all scrubbed up and clean and tidy,” he says. “We were told she was in the building… and then nothing happened. She never arrived (to visit us). It was all very disappointing, but I now think that they couldnʼt give a shit about the menʼs titles and technology. They are not interested in fostering an Australian magazine culture, just in rehashing all the stuff they have from overseas.” He says that on one occasion, when an editor asked how they were supposed to translate an article from German she was told to try Google.

While it will be a while yet before any reasonable assessment can be made of the purchase of ACP by Bauer, those affected by the purchase – employees, former employees, suppliers and newsagents – all have an opinion on how its going. This article by Ben Hills will get people thinking about their own perspective.

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magazine distribution

The lottery and scratchie ticket vending machine

lotteryselfserveI have been looking at how lottery products are promoted and sold in the US over the last few days. No retailer has the space and fittings investment Australian lottery outlets are forced to make.

The most interesting approach I saw was in a CVS store in Los Angeles – a self-serve vending machine offering stratchie and lotto tickets through a touchscreen selection – or a paper coupon entry and have this scanned.

The vending machine takes cash and does not give change. On top is a digital screen promoting games and listing the winning lotto numbers.

I watched as several customers made purchases without difficulty.

While a sign says YOU MUST BE 18 OR ORLDER TO PLAY, I saw no evidence of an age check.

The CVS store where I saw this lottery product vending machine is part of a large national business focused on healthcare. Their approach to retail is what I would expect to see from any of the national retailers in Australia such as Coles, Woolworths and 7-Eleven. I mention as they are the biggest bricks and mortar threat to newsagency lottery sales.

If technology like this vending machine did become available in Australia, it would be interesting to see if newsagents embrace it. For example, if it could be located in a shop window like an ATM, I wonder if many would. Or, if not, would newsagents place it in-store?  I suspect newsagents would prefer the personal service of over the counter. This makes sense as it is a perceived point of difference. However, such a point of difference is only valuable if you leverage it.

I have no knowledge about whether vending machines like this will come to Australia. What I do know is that Tatts continues to require small business newsagents to invest more retail space and capital in representing lottery products in their stores – compared to 7-Eleven and Coles Express and compared to what is required of lottery retailers in the US.

The lottery space is in play both in bricks and mortar stores and online. This is what the space and capital you invest is important.

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Lotteries

Another newspaper stand

newspaperstand2Further to my recent posts here and here about newspaper stands, check out what I saw Sunday at New York’s La Guardia airport. While it does not hold a lot of stock, you could place your top selling daily at the bottom and the others in the pockets above. The stand is sturdy so there would be no problem jamming the pockets.

This stand is easily moved – allowing us to keep the newspaper pitch fresh to regulars.

Since it is slim it could work right at the counter, driving impulse purchases of newspapers.  In fact, I could see two of these stands being useful in different locations in-store.

The days of the boat anchor newspaper stand newsagents were forced by publishers to use under threat of receiving a default notice are over thankfully. What we need now is an efficient newspaper stand that serves our businesses and our customers without giving up too much space and without one publisher dominating.

Getting the right stand could help some newsagents become more engaged with the newspaper category.

I like this stand I saw Sunday a lot. Unfortunately, the people I spoke with did not know the supplier – but I’m doing some research.

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Newsagency opportunities

The challenge of convenience retail for newsagents considering the switch

colesxpNewsagents contemplating transitioning their business to a convenience model need to thoroughly research the range of convenience retail offerings in Australia, and not just those nearby, before changing their business focus.

Convenience is about more than convenient hours or location. 7-Eleven, Coles and Woolworths have made it about value with every location every day offering nationally recognised products at discount prices.

The photo, taken a couple of weeks ago, shows a Coles Express outlet in Melbourne. Click on the image to see the clarity of their pitch on price. Count how many offers being pitched and the consistency of their marketing collateral – from the Coles express shingle to each of the posters and signs.  The strength of their value proposition – it is obvious from far away. They are leveraging the nationally recognised Coles brand and their down down advertising campaign that focuses on price.

This is what newsagents who transition to a convenience offer need to compete with to be noticed – they will need to consistently make a professional and understandable pitch on price from outside the business to attract shoppers.

Attracting shoppers is important because convenience shoppers are fickle. There may be some customers who shop with you regularly because they walk past every day or catch public transport nearby but the majority of convenience business is new or infrequent visitors shopping with you.

The Coles pitch is clever, designed to get you thinking that everything is discounted when it’s not. But enough is discounted to support the value proposition once inside. Their goal is basket depth with fuel used as the anchor product.

The other aspect of the push over the last few years by 7-Eleven, Coles and Woolworths into fuel is that they are taking more convenience business from stand alone retailers, retailers without fuel like the old mill bars and delis. This is driving a change in shopper behaviour with people walking to one of the new style fuel outlets for what they would have purchased from the local milk bar or newsagency.

While CBD convenience outlets like City Convenience focus on being convenient (and certainly not price) as their point of difference, the convenience competitors most newsagents face will be a mixture of the price focused giants: 7-Eleven, Coles and Woolworths.

Newsagents wanting to play in the convenience need to thoroughly research their competitors and develop a model that is sustainable for a locally owned independent business. They need to make any move knowing what they will be up against in terms of the better supply terms and the consistent and professional marketing pitch of the majors.

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Convenience retail

Taking a different approach with Easter chocolate

e4We are not running with the usual eggs this Easter. Instead, we have sourced a range of funky chocolate items from local company Freckleberry. We tried their range at Christmas and it worked a treat. Customers loved having access to chocolate that is different. I think the same will be true with this Easter range. The products are well packaged, keenly priced, provide a good margin and fun.

If my newsagency was in a country town I’d probably have a more traditional offering but in a capital city shopping centre where Easter Eggs are well represented in at least twenty shops I’d prefer to have a different Easter chocolate offer. This fits well with our Easter cards, plush and gifts.

We’re not a one size fits all channel and that can be a challenge for some suppliers to understand. Easter is a good example of the differences in today’s newsagency businesses.

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confectionary

Sunday newsagency management tip: don’t let your ignorance hold your business back

I know of newsagents who refuse to engage with Facebook because they say they are too old or that they don’t have the time. Years ago there were those who refused to get an email address saying that they would prefer a phone call or a fax. Before that some probably resisted getting a fax saying that a telegram would suffice if the matter was urgent.

Our businesses deserve to be represented where our prospective customers are. Facebook is one such place today. It’s currently free. Do it right and you can reach far more customers through your Facebook page than you would get through your front door in a week.

Don’t let your ignorance get in the way of reaching more prospective customers for your business. If you’re not on Facebook, get on. If you are on facebook, start working on what’s next – be it Instagram, Pinterest, Twitter or some other mobile connected platform.

There will always be a new communication and or marketing platform to learn. Refusing to use one, such as Facebook, only holds your business back.

As for the excuse of not having time, that’s ridiculous given how much your business could benefit.

This post is not about Facebook. No, it is about every innovation you ignore out of fear or stubbornness.

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Management tip

Sunday newsagency marketing tip: use colour to entice new customers

I have written a bit recently about using colour blocking to draw more attention to your business and to products you sell. A colour-blocked display can have shoppers noticing products they may otherwise not have noticed.

All smart retailers use colour effectively.

colourcauliThe supermarket where I photographed this cauliflower display is using colour effectively to draw attention to a vegetable that otherwise may be overlooked. Rich colours in neat sections – it’s a simple yet effective approach. I noticed a kid pulling their parent to look at the cauliflower- that’s an effective display!

colourtapeIn a Staples store this week I saw this display of Scotch tape – colour blocked. The columns of yellow, red, purple and green are more eye-catching than how these products are usually displayed in the stationery department of a newsagency. Making the display may require more stock. The display could drive sales!

Use colour blocking in your shop – in the window, on the dance floor (that open space bordered by your entrain, the counter and your main fixturing – and in key departments – to draw attention to products based on a bold display based on product colour.

The change could get regular customers noticing products they did not know you carried.

Displays like this also say something about you and your business and that could appeal to new shoppers.

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marketing

Survey on newsagent conferences and trade shows

With GNS cancelling their traditional Market Fairs this year and transitioning to expos in each state at GNS warehouses and more newsagents attending the national Toy Fair and one or more Gift Fairs, newsagency suppliers are wondering about the best trade shows and events to support to connect with newsagents.

In a meeting of several newsagency suppliers on an unrelated topic a week ago there was active discussion on conferences and trade shows. I offered to use this blog to harvest feedback from newsagents – to better inform suppliers of your preferences.

Click here to share your insights: Newsagent conference / trade show survey. Your response is anonymous. Results will be published here for all to read.

Please encourage others to participate in the survey. The more who respond the better.

Conferences and trade shows are expensive for suppliers. The more efficient they can make these events the better for their businesses and for the newsagents they serve.

I’ll leave the survey up for a few days.

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Newsagent representation

Easter plush hit drives newsagency traffic

e7This cute rabbit Beanie Boo has generated plenty of traffic for us over the last couple of weeks – driving excellent card, magazine and other purchases along the way. Even though we only have one or two left, it’s been responsible for an excellent start to Easter.

This is another example of plush driving success elsewhere in a newsagency business. We were careful to place this item such that it drove purchases of other items including some more traditional newsagency lines.

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Plush

A compact newspaper stand

newspaperstandCheck out the newspaper / magazine / candy stand being used by WH Smith in at least one Australian outlet I saw earlier this week. This stand or one even more efficient in space and with a lower profile is what I was getting at in my recent post suggesting newspaper publishers should work together. Being able to move newspapers to different locations would see them spend more time at the front of the shop.

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Newspapers

Excellent sweets display at Zoodle

zoodle-candyThis photo shows the display of packaged sweets at the Zoodle store by WH Smith at Melbourne airport. I love the red and yellow striped canopy above the product as it draws attention to this rear-wall display. It visually anchors this department within the business. In fact, anchoring departments is done well in in this Zoodle shop. Browsers can easily identify each section.  This is important in retail.

Take a look at your newsagency: do you have departments visually anchored? Are borders from one department to another clear? While it can be appealing to have departments and sections blend into each other, this can hinder the browsing experience and thereby affect revenue.

Attention given to shop layout can improve sales regardless of the age of the shop-fit.

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confectionary

The Los Angeles what?

latcoverupThe stuck on ad for Kohl’s posted on the front page of the Los Angeles Times yesterday covered the masthead of the newspaper. I love newspapers and disheartened to see such a respected masthead covered up in this way. Sure publishers need the money but why not carve out page one space in a way that respects the brand?

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newspaper masthead desecration

Newsagents have access to excellent healthy eating advice

newsagent-healthIn newsagency magazine departments we have access to excellent health and nutrition advice along side not so healthy temptations.

Time and other demands on running and working in a newsagency can challenge the health choices we make. I know I have succumbed too often to poor choices in shopping centre food courts.

One way we can help ourselves, our staff and our customers is to give prominence to health conscious magazines and issues of magazines promoting healthy recipes. We can also ensure that any topped food magazines put in the lunch room offer healthy choices over less healthy food.

With your newsagency most likely one of your most valuable assets you owe it to the business and those who depend on it to be fit and healthy. Exercise and diet are the keys to being fit and healthy. Many magazines you sell today have good advice on this. These are the magazines we should be paying more attention to: for our future and those who rely on us.

While I am no fitness expert, I have found wearing a pedometer to count steps and cooking some recipes in Diabetic Living and Australian Healthy Food Guide to be useful in feeling better.

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Happy products

Loom Bands in the news again

loombandsstoryThe Herald Sun earlier this week had a story on a school banning kids wearing the Loom Bands. This story has kicked along interest as it reinforces interest in the popular jewellery items. The million dollar question remains – when will this round of the craze end? While I don’t know, I am being careful to not carry too much stock exposure.

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Gifts

Money back guarantee for Yours

untitled_697x994In a first, Bauer is offering Yours readers a money back guarantee up to April 25, 2014. If they are not satisfied they complete a form online, print this, mail it with the magazine cover and Bauer will send a pre-loaded eftpos card that will have to be used within 39 days.

With a bit of thought there could have been a way to involve newsagents in this process and provide a better customer experience as a result.

This money back guarantee offer on the back of the discounted copy sold with Woman’s Day last week invites speculation about the circulate being achieved for the title.

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magazines