Nanny state threatens Loom Bands sales
Fairfax reports today NSW schools are banning Loom Bands. Instead, the schools should consider congratulating kids for making something rather than watching TV or playing on their phone or tablet device.
Sunday newsagency management tip: genuine customer contact vital
Good morning. No sooner has I stepped across the threshold into an independent card and gift shop and I was greeted with a warm smile and a happy Good Morning. There was no pressure to say what I was looking for, no pitch of a special deal.
At the counter paying for a couple of items the sales associate said I hope you found what you were looking for – again with a warm smile.
None of this felt fake or forced. It felt like they cared about me and my experience with their business.
While your typical newsagency business has four or more times the foot traffic of the independent card and gift store I am writing about here, we have to find ways to engage in genuine customer contact.
I do understand that the experience is different in the country compared to the city, especially in smaller country towns – people are naturally more friendly and engaged with each other.
Imagine if every person entering newsagency was warmly greeted in one way or another without being over the top and if every person leaving the was thanked for shopping today or asked if they found what they were looking for. Yes, it would be labour intensive. But executed right, you would have shoppers loving our channel more.
In surveys and when asked at conferences newsagents cite customer service as the most significant point of difference. I wonder if there is a difference between what we think and how we act. I know in my own situation we could do much better on customer interaction. It would require a bigger payroll investment but could / should deliver a bigger return.
If we want customers to remember our businesses we need to provide them with memorable experiences. Genuine and personal customer interaction is a key.
While this sounds like a marketing tip I have tagged it as a management tip as getting customer service right is a management function.
Sunday newsagency marketing tip: show the value of gift wrap
Wrapping paper is a boring sale in many retail businesses. Okay, designs on the paper can look cool – but the product itself in roll or flat form is displayed in a traditional and boring way.
Smart retailers show what can be done with wrapping paper – like showing how many boxes can be wrapped from one roll of Christmas paper or wrapping boxes, using bows and treatments to show how wonderful you can make any gift look with items you sell.
We have an opportunity to bring some theatre to gift wrap and to drive traffic and sales as a result. Consider a stunning window display of your wrap by showing what your customers can do with it.
Rupert Murdoch on life, business and print
Rupert Murdoch sat down for an interview with Pattie Sellers of Forbes magazine and media outlets the world over have reported on the Forbes article. The Guardian has a balanced take. The interview also covers print:
Turning to the newspaper business, Sellers asked Murdoch: why keep the loss-making New York Post going? “I don’t know what it lost last year, but I think that in 2012 it lost $40m…
“Advertising has been very difficult. We’re looking at various plans for the Post. We are working very hard on the digital edition.”
Are you suggesting that in the next five years the Post as a print newspaper could go away and digital would be it? “I would be surprised. I’m not saying it’s impossible. I would think it might be quite likely in 10 years.”
What about the Wall Street Journal? Is that likely to exist in print form in 10 years? “I think so. Maybe not in 20. A lot of people are very happy to read their newspaper either on their iPad or — startlingly and faster and faster the figures go up — on their telephone, on their smartphone.
“At the London Times a third of our circulation is on a tablet. And people who read it on their tablet are spending 20% more time than if they’re reading the paper.”
Newsagents relying on newspapers to drive traffic and revenue should take this on board.
WH Smith reminds the importance of newsagency space reconfiguration
This quote from the WH Smith interim (six month) report released a couple of days ago speaks to the importance of reconfiguring retail space:
Optimal use of space is a fundamental part of the strategy for High Street, as we look to maximise profitability today in ways that are sustainable for future years. We work our space to maximise return on every metre drop in every store through improving margins, reducing costs and driving third party income opportunities. Each individual store has a specific space reconfiguration twice a year driven by many years worth of detailed space and product elasticity data.
The highlight in the quote is mine. I urge newsagents to take note of this.
Remember, in the UK, where the company has most high street stores, it competes with businesses like newsagencies. This quote and others in the statement speak to how a competitor operates. It’s very relevant for Australian newsagents.
Another amazing food display in a supermarket
This is an amazing display of zucchini and tomatoes in a suburban supermarket in Kansas City. Inspirational visual merchandising – making the product the hero through a good display and bright colours. Whoever made this happen has a passion for retail.
Odd selection of Easter chocolate in the US
I have seen few Easter Eggs in Easter displays in retail in the US despite obesity being a far greater problem here than in Australia. Easter candy is more regular candy repackaged and some marshmallow things called Peeps – not delicious marshmallow.
I have seen plenty of religious chocolate and while Easter is for many a religious season, I don’t understand the desire to eat Jesus chocolate.
Wine with sympathy cards
In the card aisle of one drug store – a convenience store on steroids – they have wine in the card aisle. I am guessing the placement near sympathy cards is not intentional. It gave me a laugh.
Good for them pitching wine to card shoppers though.
If we could sell wine, this is the type of display unit I’d like. Slim. Efficient. Easy to place.
Electronic cigarette outpost
This is one of many outposts selling electronic cigarettes that I have seen in shopping malls this trips. While these products are in drug stores and c-stores where you;d expect, it’s the outpost mall situations that is surprising. Based on the number it must be working.
Massive win for Tatts online
The $40M Powerball winner from last night’s draw purchased their ticket online direct from Tatts. Anyone who has sold a major prize will know this boosts sales for the winning outlet. Online will get a boost for sure.
WH Smith gives a peek into Australian strategy
The interim results announcement from WH Smith yesterday gives us a peak into their Australian strategy. I includes this:
Our international units are performing well and we have invested in additional resources to develop the business and support further growth. We have now won 156 units in international locations including 15 new units announced today: in the International terminal at Bali; Pudong Airport, Shanghai; further stores in Russia; and additional Fresh Plus hospital cafés in Australia. Additionally, we acquired a small cards and gifts franchisor in Australia in January 2014, Wild Cards and Gifts, which has 40 franchisees, enabling us to offer an additional brand to landlords and to develop further our international wholesaling.
To me, this reads like the Wild acquisition is a landlord play – getting a retail real estate footprint in Australia, facilitating their wholesaling operation. The wholesaling comment is interesting since WH Smith hived off its wholesaling division into a separate public company eight or so years ago.
On Wild, if I am reading the financials on page 5 right, the acquisition earnout cost to WH Smith was £2m.
Brilliant merchandising of vegetables
Now this is a different way to display asparagus and spring onions – standing up on a shelf. They also had broccoli and other vegetables on vertical shelves – very smart and enticing for the shopper.
This is excellent and inspiring visual merchandising – it shows what can be done even with something you thought you might not be able to display.
Excellent magazine range in supermarket
Check out the range of magazines being sold in a major midwest supermarket in the US. This is very impressive in terms of range, layout and shop ability. I am glad that the majority of Australian supermarkets do not do magazines this well.
Refreshing Easter in the newsagency
The workshops I have been lucky to be part of here in the US this week underscore the importance of keeping the retail offer fresh. This does not mean keeping displays tidy, no, it means creating fresh displays through a season pitching new opportunities.
In all major seasons here retailers in channels similar to newsagency businesses are encouraged to change their offer every couple of weeks in a reasonably major way.
In my experience this is rare in Australia. So imagine how thrilled I was to receive a photo showing a significantly refreshed easter offer in one of my stores. Regulars or semi regulars will see this as fresh and that will help drive sales.
Sand is a hot item for proactive newsagents
The sand we ordered a while back has been on the shop floor this week and selling very well. I never thought I’d have customers buying a 5kg pack of sand. It’s terrific.
We have the sand in a floor display unit on the lease line – in our kids area. Notice the sand they can play with!
I am thrilled that sand is attracting new shoppers to the newsagency. Some of these shoppers then browse the store and purchase other items.
I’d suggest newsagents get into it but suppliers are out of stock as early adopters spend above expectation.
Another scratch ticket vending machine
Here’s a third scratch ticket and lottery product vending machine I have seen on this trip to the US.
Notice the ticket checker on the right hand side.
These machines are in place for a reason. Lottery retailers should take note so as to be aware.
Memo to accountants and lawyers – News Corp. is not taking control of newspaper distribution runs
Lawyers and Accountants advising on the purchase of a newsagency have a responsibility to ensure that the advice they provide is accurate. It is frustrating hearing one or the other make a statement that is not based in fact.
One accountant recently told a prospective newsagency purchaser that it may not be a good business to buy because News Corp. is taking control of all the newspaper home delivery runs.
This is not true. Newsagents can hand their newspaper home delivery runs if they wish but it would be their choice.
The T2020 project trialled more than a year ago in South East Queensland to facilitate newspaper home delivery territory consolidation did not proceed as trialled.
Another scratchie vending magazine
Here’s a scratchie vending machine I saw at a convenience store in Kansas City yesterday.
While not as sophisticated as the vending machine I wrote about a couple of days ago, this one does the trick for scratchie tickets. It’s the only way scratchie tickets are sold in this store.
Not only do they change how lottery tickets are sold, they change where they can be sold.
InStyle magazine supports newsagents
The 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!
New wine magazine supports newsagents
Alquimie, a beautifully produced new wine independent Australian wine magazine is supporting newsagents in a range of ways including on social media. If wine titles work for you make sure you have this title.
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.
Last call: newsagent trade show survey
Take a few minutes on the Newsagent conference / trade show survey. Your response is anonymous. Results will be published here for all to read. Suppliers are welcome to respond too.
Here’s why they don’t label magazines in the US
Take 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.
Candy with magazines
Check 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.
Electronic cigarettes everywhere in the US
It 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.