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

Chasing the 24/7 shopper

connectedretailCheck out the window I saw at a Forever 21 retail store last week. Whereas in the past valuable window space would be promoting the latest season fashion products available in-store, this window is promoting 24/7 connection / shopping with Forever 21.

National and international retailers are all over 24/7 shopping. More and more are using their retail shops to promote other ways to shop with their business.

In addition to the challenges we face in several traditional newsagency product categories, we have this challenge of 24/7 retail, a challenge many newsagents don’t know how to confront. The best place to start is via social media: Facebook, Twitter and Pinterest.

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retail

Opportunity to promote Australian Traveller

at100The latest Australian Traveller out yesterday features the 100 Best Holidays in Australia. Plus, there is a free wall map that people love with the 100 on it and a bonus magazine – 16 Amazing Landscapes of Australia.  This is an excellent issue to promote with weeklies and or newspapers as well as with travel magazines. My recommendation is with weeklies since research shows women make more travel decisions than men.

Don’t early return this title – it sells through the on-sale period. This issue is getting good media coverage.

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magazines

Poor communication from Tatts lets newsagents down

While newsagents like the free scratch ticket prize from Tatts to drive scratch ticket sales, the execution by Tatts does not allow newsagents to seamlessly and efficiently track the tickets they give away. Had tatts consulted in advance they could have done this in a way that saved newsagents time and provided better record keeping of the free tickets handed out.

For years Tatts has failed to do its research and failed to ensure best practice advice for its retailers. Here we are in 2014 with another example.

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Lotteries

Promoting Easter to attract newsagency shoppers

easter2014Easter is a broad season ranging in focus from religious through to kid-targeted gifts and fun. The team at one of my stores has created a grassed mound as the foundation for promoting chocolate, egg-themed and plush items for purchase as Easter gifts. The Easter card stand is placed next to this to grab this purchase with the gifts.

Looking back on sales data for the last few years, Easter has been growing in importance for us in all categories including cards. We are chasing growth in 2014. This display will change over the weeks plus we will have counter offers for Easter related impulse purchases.

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Greeting Cards

Smart promotion of local connection

localconnectionIt’s one thing to say shop locally and another altogether to show customers the local connection of products you sell.

The photo shows how a Thomas Dux supermarket is promoting free range eggs. While not very local, the poster does show the eggs are from a farm in the state as well as giving confidence that they are genuinely free range.

We have products in our shops that could benefit from such promotion – including magazines from local publishers and gifts from local artists.

I like this poster because it is educational and that makes it feel more authentic – far more valuable than simply promoting that they have free range eggs.

Building shopper trust starts with sharing information they can believe. This poster achieves that for me.

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magazines

Impressive issue of The Monthly

monthly-apr2014The April issue of The Monthly is impressive in content and with its cover. Indeed, the cover is a stand out in the sea of colour in the magazine department. We have this issue in its usual location and with newspapers for the first week. We will also place it in our free standing floor unit as the entrance to the main magazine aisle as this will get it in front of more eyeballs – especially women who I think will be drawn to this issue.

The Monthly is a magazine we can guide customers to purchase on impulse by doing something outside the usual with it. What we do depends on the cover. This cover demands our attention.

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magazines

Check out this UK Home News Delivery association

HNDA Ltd is a UK association representing home delivery newsagents. Their aim is impressive and clear:

“PREFERENTIAL TERMS” – That is our ultimate goal for all HNDA members with HND customers.

We will represent every UK Independent Home News Delivery Newsagent when negotiating the needs of our and your business with Publishers, Wholesaler Distributors and any other organisation looking to benefit from utilising our services directly or indirectly. Our package to Publishers and Wholesalers will be recognised as a break through for the whole News Trade Industry, most importantly the package is for the benefit of HND Newsagents ONLY.

From what I can see they are not engaged in commercial activity – theirs is a pure association offering for UK newsagents.

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Newsagent representation

US lawmakers move against online gambling

It’s interesting to see US lawmakers move against online gambling. They argue online is harder to control and that poses a risk to young people, especially underage young people who can gamble without being detected.

Newsagents wanting to staunch the growth of online gambling in Australia could consider engaging in a push for similar legislation here. If this happened the live question would be whether politicians would support it. I suspect not as online gambling has too much of a commercial foot hold.

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Lotteries

When a customer hugs you

It’s usually pretty special when a customer hugs you in you or a team member in your newsagency. Maybe not so much in a rural or regional newsagency where you know most of your customers but it’s certainly rare in a capital city newsagency and rarer still in a shopping centre newsagency. So, yeah, when a customer hugs you or a team member it is very special – as long as it’s not weird or inappropriate.

I heard of this the other day when a newsagent was able to get the missing issue in a long partwork series. Where other magazine retailers would have given up, this newsagent pushed and argued and pushed and eventually got the missing issue. Kudos to them. They deserved the hug or appreciation from the customer. They represented the newsagency shingle well.

Every day in newsagencies we experience personal and often heart-felt customer interactions that are rare in other retail businesses. We ought to share more stories of these. Whether it is giving or receiving a hug, our relationship with our customers is special and often deeper than the same shopper experiences in other retail businesses. This is a difference for us to cherish.

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Newsagency management

Beware the fake $50 note in your newsagency

Fake50Here is a fake $50 I intercepted and photographed before handing it in. On a busy day, presented at the right time, I can see how this would have made it’s way into the day’s takings. Two simple checks would have avoided accepting it: the clear window did not feel integrated with the note and the material was more paper than plastic in the feel.

The Reserve Bank of Australia has excellent information on detecting counterfeits for each Australian note. I’d suggest we all ensure all our staff review this and thereby are more informed at detecting fake notes. We appear to be in a period of high circulation of fakes at the moment.

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Newsagency management

The NSW State Government shows how little it cares about small business

The roll out of the Opal Card to people using  Sydney Public Transport shows how little the Liberal State Government cares about small businesses like newsagents.

The margin being offered is tiny, not fairly or reasonably respecting the time, space and financial comitment to be made by newsagents in offering Opal.

Further, it is being rolled out by epay, a company with a poor customer service track record with newsagents. Plus you have to have extra equipment from epay for topping up Opal cards.

Newsagency competitors like c-stores including 7-Eleven will embrace Opal as it fits their model of tiny margin traffic generating business. This will encourage and force some newsagents to chase it.

If I owned a newsagency in NSW I’d say no to offering Opal. The margin offered by the state government is disrespectful. Plus, my experience is that transport ticket customers are inefficient, they rarely purchase other items no matter how good a deal might be.

The O’Farrell Liberal Government is showing that it is the same as any Government we have seen in Australia for decades when it comes to small business. They treat small business with complete disrespect. We ought to expect no more from hypocrites.

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Newsagency challenges

Are you at the Loom Bands party?

loombandsIf you have never heard of Loom Bands or are just considering stocking this product now you’re coming late to a craze than has been hot for months. Kids, especially young girls, love these things. We have been selling them since last year and have struggled to maintain stock – especially when the craze hits a new school. You can tell based on th wave of new shoppers.

If you are coming new to Loom Bands, be careful as interest will wane. You want that to occur when you’re almost out of stock. But, hey, what do I know. I thought YoYos would never come back.

We are stocking expecting to get a few months more out of the craze so by mid year we will reassess our stock plans.

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art supplies

Magazine publishers need to stop using newsagents as warehouses

storagespaceWith the cost of retail space increasing and magazine cover prices not keeping up with this and other costs of business, it’s only natural that newsagents look at operating costs. One cost we could do without is that of storing magazines with a greater than 30 day on-sale period. Once you consider the cost of storing a long shelf life title until their either sell or are returned it is often loss making.

Delayed billing does not address this issue. The only solution is replenishment drops through the on-sale based on sales.

While using newsagency businesses as warehouses works for the publisher, it no longer works for newsagents. The numbers have changed in recent years, our costs have risen far more significantly than margin dollars for some of these titles we are asked to warehouse. This is especially true those in shopping centres with higher occupancy costs and especially for titles where the cover price has not kept up with the CPI and increases in our operating costs.

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magazines

Much interest in UK Mother’s Day?

ukmumWith Mother’s Day in the UK this past Sunday (Mothering Sunday) I am curious about the value of this minor season for Australian newsagents. We had a range of UK cards out and on show and while there was some interest it was not as strong as I have seen in the past. I would love to hear how it went for others compared to previous years.

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Greeting Cards

How long before we see a capital city daily newspaper retreat to weekend publication?

Each of the Melbourne daily newspapers carried full page ads on the weekend promoting Saturday / Sunday home delivery. It leads to the question: How long before we see a capital city daily newspaper retreat to weekend publication?

newspaper-futureThe Age promotion is a pure weekend-only play for the home-delivered print product while offering seven day a week digital access. The price of $12.50 a month for three months is compelling.

I’d expect Fairfax is running this offer because they know it will work based on current subscription, retail sales and readership data. It does not augur well for the Monday to Friday print product.

paper-weekendnewsThe Herald Sun offer is different, it is specifically tied to AFL interest and packages weekend home delivery, seven day digital access as well as access to FOX Sport and Supercoach access. It speaks to a key reason many must buy the newspaper – AFL coverage.

While this is an AFL offer, it highlights the strength of weekend product versus weekday.

While I don’t want to see a capital city daly retreat from six or seven days a week publication, declining sales mean it will happen at some point – at the point where production is no longer viable based on subscription and over the counter sales revenue plus advertising revenue.

Coupled with declining weekday sales is a change in shopper behaviour. In the city more so than in the country newspaper, a high proportion of newspaper purchases have migrated from the newsagency channel to supermarkets and petrol and convenience.

Our channel as a destination for newspapers is as challenged as the products themselves.

We can either sit by and ponder these changes and complain about the publishers focussing on weekends or we can look at our own businesses and our business decisions and challenge ourselves to bring in new traffic for other products. Yes, it’s hard work. It’s also retail.

We alone are responsible for our own future.

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Newspapers

AFL footy cards challenge cash-flow for a micro margin

promostockweightWhile I like the traffic for the AFL foot cards being promoted with the Herald Sun, there needs to be a discussion about billing and margin. The slim margin and the early payment coupled with customers who only want cards challenges the viability.

While you could say it’s up to use to sell something else, it is challenging with customers coming in the the coupon and wanting only the cards. More than a third of them are frustrated at having to shop for the cards and are therefore not in a head space conducive to up-sell.

I’d prefer a model where we are paid a retail margin of 30% or more.

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Newspapers

Promoting The Block Fans + Faves

magsblockWe have been promoting The Block Fans + Faves here at the entrance to the magazine aisle, with weeklies and with home improvement titles. While sales are not what we need, we will keep these three locations at least until Thursday after which we will scale back to the location with weekly magazines.

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magazines

Should we read anything into discounting Yours magazine?

discount-magazines-wdyouI was surprised to see Yours and Woman’s Day bundled together in a discount pack last week. Yours is just a few issues old and should be enjoying a honeymoon period. Also, I thought it was targeting an older demographic than Woman’s Day. This discounting leaves me wondering if we should read anything into the move. For example, is Yours struggling and in need of support from the higher volume Woman’s Day? While we won’t know until the next audit, I can’t see any other reason for discounting a new title so soon after launch. If this is the case and Bauer wants to reach more prospective Yours readers they should engage newsagents and pay us to give sample copies away to people in the target demographic.

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magazines

Sunday newsagency management tip: use your receipt as a powerful marketing and management platform

newsagency-receiptsReceipts are important in retail. In addition to documenting a sale, they remind a shopper of your professionalism and they act as a lure to bring a customer back.

Too many newsagents treat receipts as a cost of business. They either don’t give them out or their receipts are not professional. Receipts should be printed using thermal printers as they are quieter, faster and can produce a more professional marketing message.

I  give out receipts for just about everything except for a single newspaper. Every receipt contains an opportunity, a promotion of something in our business. In recent weeks we have been promoting the Pacific Magazines WIN A CAR competition. Our receipts also include the discount voucher – to bring the shopper back.

We have used receipts to promote cards, magazines, stationery, ink and other categories. Some promotions have worked better than others. We finesse our offer based on shopper response.

Don’t worry about the cost of receipt rolls. Buy them in bulk and they’re not expensive. Shop around.

Your newsagency software should offer flexibility in serving receipt content. This can help you tailor your use of receipts to better serve your business plans.

Receipts offer a structured, consistent and low-cot platform which can help you manage and promote your newsagency. Use it!

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magazines

Sunday newsagency marketing tip: leveraging brands to get more from magazines

magpepEvery week magazines offer us opportunities to earn more than the 25% of the cover price of a title. Investing time in looking at each issue and leveraging opportunities can deliver handsome rewords.

The latest issue of Practical Parenting is a good example. The Peppa Pig DVD gift with purchase makes it an ideal magazine to place with other Peppa Pig items such as plush, activity packs and stationery packs. This off-location placement of the magazine takes a few seconds and it extends the reach of the pitch you can make around the Peppa Pig brand.

The photo shows our placement of Practical Parenting at the top of a Peppa Pig stand. This is on the lease line – facing into the mall.

Using nationally and internationally recognised brands to promote your business – in your window, on the lease line, in flyers, in the local paper – can attract new shoppers to your newsagency. Magazines often offer us opportunities to do this.

Too many newsagents treat magazines as a chore, something to be done without thinking. I see magazines as a vitally important opportunity while at the same time being realistic about the challenges the medium faces.

Look at magazine covers for opportunities to locate elsewhere and to promote with other products leveraging the same brand – like with Practical Parenting and Peppa Pig.

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magazines

To the person taking photos in my newsagency

Ask. Next time you want to take photos of products and displays, ask. Twice yesterday someone, a middle-aged male, walked around my newsagency taking photos. The first time as I approached him he fled. The second time he fled when a team member made eye contact with him.

If I take photos inside another shop I ask and if there is no one in authority to ask I do it openly. This guy was being sneaky, holding his phone camera close to his chest, positioning himself with his back to the counter where he could. He was photographing gift products and displays.

We get plenty of visitors and the majority ask if they can take photos and we agree.

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Ethics

Must read: The Demographic Cliff: How To Survive And Prosper During The Great Deflation Of 2014-2019 by Harry S. Dent

the-demographic-cliff-how-to-survive-and-prosper-during-the-great-deflation-of-2014-2019I’ve just finished reading The Demographic Cliff: How To Survive And Prosper During The Great Deflation Of 2014-2019 by Harry S. Dent.

To take in a book like this you need to trust the author. While Dent has his critics, he has an excellent track record of success in predicting economic  trends. The book itself is heavy with evidence supporting his prediction. It is hard to find a hole in the foundation he lays.

Whether you believe all the data Dent provides or not does not matter to the part of the book that is most relevant to business owners including small business owners like newsagents. In the chapter Business Strategies for the Winter Season, Dent provides wise advice that is relevant to all of us. He lays out what is important for us to focus on, what we must get right in our businesses.  Each step, decision and strategy he proposes can work for us regardless of whether The Great Deflation occurs or not. This is the chapter I copies onto A4 so I could make notes and refer to it over time.

Many times I have written on this blog that we need to run our businesses as if the toughest competitor ever has opened next to our newsagency. It is hard getting in the headspace of a hypothetical situation. In The Demographic Cliff: How To Survive And Prosper During The Great Deflation Of 2014-2019, Dent provides statistics and other evidence as a means for getting into a headspace where we can see a possible / likely future – with a view to acting now to be stronger through the challenges.

If there was a newsagents book club, I’d propose this be our next book for discussion. Anyone in any leadership role with / for newsagents – such as association directors – should read this book.

If you plan to read this book, be sure to purchase an Australian published copy as it contains an introduction written especially for Australians. This was an excellent part of the book.

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Newsagency challenges

Night Owl evolving the convenience store of the future

Convenience World reports the Night Owl convenience store group is refining its model to chase growth as part of a broader push by several c-store operators to expand and refine. The latest Night Owl store reflecting next steps in their future model is in Townsville:

“The concept of the convenience outlet has evolved and customers can find everything from basic groceries to confectionery and snacks and a wide range of ready-made meals,” he said. “The store-of-the-future concept is about providing a one-stop shop for customers’ needs.”

The 162sqm store is open 24 hours and features an extensive foodservice offering including grab-and-go healthy options such as wraps, Turkish breads and toasted sandwiches, and ready-made meal solutions. Over the coming months, the store offer will expand to include innovations such as a ‘Fun Wall’ offering gelato, confectionery and frozen drinks that can be mixed together.

An in-store ‘Owl Café’ with seating overlooking Flinders Street will also open eventually, offering a range of sweet treats such as donuts, cakes and danishes and its own brand of ‘Hooting Good’ coffee.

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Newsagency challenges

ACCC set to authorise VANA to negotiate with Tatts and Intralot

The ACCC announced Thursday that it proposes to authorise VANA to negotiate with Tatts and Intralot on behalf of its members.

The proposed ten year authorisation covers collective negotiations with Tattersall’s Sweeps Pty Ltd (Tatts), Intralot Australia Pty Ltd (Intralot) and any other public lottery provider who may become licensed to operate a public lottery in Victoria in the future.

VANA represents around 460 newsagents in Victoria, many of which are lottery agents selling Tatts and Intralot products. At present, Tatts and Intralot are the only licenced lottery providers in Victoria. Both have exclusive licences to operate until 2016.

“Collective negotiation can allow members of a collective bargaining group to have more effective input into contracts and deliver agreements that are better tailored to their needs,” ACCC Commissioner Jill Walker said.

The ACCC has previously authorised the Lottery Agents Association of Victoria to collectively bargain with Tatts and Intralot on behalf of its members, as well as similar collective bargaining arrangements in New South Wales, the Australian Capital Territory, Queensland and Tasmania.

As with these previous authorisations, the ACCC is not proposing to authorise VANA to collective negotiate on issues relating to the impact on existing lottery agents when new lottery agents are proposed, due to concerns that this may raise barriers to entry for new lottery agents.

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Lotteries