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

Room for men to browse magazines

magazines-guysFor years now we have allocated guys space at the back of the newsagency for more comfortable magazine browsing. This is the ‘cheapest’ space in the shop – at the back of the store, unusually shaped space we cannot easily configure for other use.

While we call it our guy browsing area, guys, girls, kids and families use the space given the titles we have nearby. It provides a space away from the busy parts of the shop where people can be more engaged with magazines.

It would be a challenge to create this space in some retail situations so we’re lucky. It has served us well.

This is likely to change as we reconfigure our floorspace later this year.  With rent increasing 5% a year and labour increasing close to this we have to increase sales and get more efficiency from our space to meet the increases.

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magazines

Star Trek opportunity for newsagents

startrekOn March 17, Star Trek The Official Starships Collection launches through Gotch.  Given the interest in Star Trek and similar products I’d expect this to sell well. However, indications from Gotch are that they have not been allocated a huge amount of stock.

Gotch will be using sales for Batmobilia to guide allocations.

I’ve been sent part one of Star Trek The Official Starships Collection. It’s impressive. Trekkie colleagues like it and wanted to know launch details.

The launch in an opportunity to range other products that will sell to Trekkies – this wis when we can bank margin dollars off the national TV campaign supporting the launch.

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partworks

ABC’s Gerard Whateley promotes newsagents

abcfootynewsGerard Whateley from the ABC Grandstand program promoted newsagents to his 61,000 Twitter followers a couple of days ago when promoting the ABC Footy magazine that’s out in time for the start of the AFL season. Mark Scott, ABC CEO, retweeted this to his 52,000 Twitter followers.

This is the ABC actively supporting our channel.

Every step of marketing and promotion helps.

Support from people like Whateley is terrific as his tweet mentions newsagents (in bold) and ABC Shops – no other retail channel. This is a bonus reason for us to actively support the title.

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marketing

News Corp. newspaper stoops to a new low in the UK

BhlgFWZIYAAwsex.jpg-largeI’d refuse to sell this edition of The Sun newspaper if I was a newsagent in the UK. The headline suggests that the chiefs of the British Labour Party say it’s okay to have sex with 10 year olds.

One now ex labour minister was named in a 1976 press release about an age of consent discussion.

News is alone in its depiction of this story.   Check out the report at The Huffington Post.

This is It’s typical of some stories published by News Corp. in Australia – distorting and or time-shifting facts to serve their own commercial agenda. It’s disgusting. One can only hope that one day people spending money on titles that publish misinformation stop doing this. We deserve better.

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Ethics

Stalking by text message

mktgtxtI was in Guangzhou China Monday and walking past a shopping mall on Tianhe Road I received this text message. Apparently, the retailer involved pays China Mobile a fee to send advertising via text to people nearby.

I thought this was pretty cool – marketing to possible shoppers near your store. TheI thought it could be annoying for locals if they pass by this or others using a similar service. Your phone could soon become clogged.

While our privacy laws here stop this type of marketing, I am sure that iBeacon and similar close range services will see retailers reaching into the mobile phones of those nearby to try and attract interest.

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marketing

Understanding the new competitor: WH Smith

whsimpulseThis photo shows the impulse item pitch at a WH Smith store in Melbourne. It’s compelling, driving customers to purchase multiple items, a blending of what we see in convenience stores here already but in a more traditional newsagency model.

As WH Smith rolls out more into Australia it will challenge the traditional Aussie newsagency model since they can bring to market benefits of their strength in numbers.

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WH Smith

The danger in returning bagged discount magazine packs

magsbaggedretThis bagged pack of current (when released) issues of Elle and Cosmopolitan is tagged by the publisher as a topped return. If we did that we’d top the covers and return both separately. This could open us to a fraud allegation by the publisher owned distribution business. Instead, we return the whole bagged pack – to avoid any allegation of impropriety.

Maybe I missed something, maybe we could return the empty bag. I’d love to know how others handle returning these particular discounted bagged products – not the Express and Universal bagged packs with back issues, but these bags containing current issues of different titles.

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magazine distribution

Promoting People’s Friend Special

magspfspecialWe are featuring the latest People’s Friend Special at the entrance to our main magazine aisle. People’s Friend is in our top three weekly magazines so it makes sense we promote this special. The promotion will drive incremental purchases and traffic. Tactical placement of a title like this in the simple stand as shown continues to be more successful for us that a billboard type display.

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magazines

Making the most from magazine traffic

magcupcakesI never see magazines as a single item or single category purchase. The location of the category, promotion of other products in the category and traffic interruptors going in and coming out help leverage greater efficiency from the magazine shopper. This photo shows one example of a small step we have taken to drive sales of items to people browsing Australian Cupcakes & Inspirations. Even a simple small placement like the felt cupcake kit can help make magazines more efficient for us. It’s better we obsess about opportunities than drive magazines down because of all the problems with the distribution model.

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magazines

Remembering Charlotte Dawson

magscdWe’ve ensured we have magazines with the late Charlotte Dawson on the cover placed with each other. While this should be the case with Who and OK! I mention it here in case newsagents have not done this. Who did particularly well for us yesterday – helped by a second front of store placement.

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magazines

You think the newsagency channel is changing?

If you think your newsagency world is challenged by disruptive and challenging changes, consider what optometrists are dealing with. Opernative is a startup business in the US offering online and app based eye tests – bringing to your desktop and tablet computer a service you hitherto had to go to a medical professional for.  They are targeting a cost of $20 for an exam.

In newsagencies today we sell off the shelf reading glasses for usually between $9.95 and $29.95. Opernative fills the market between these cheap glasses and full prescription model except that they cover the majority of what an optometrist will offer today.

This move is relevant to newsagents as it illustrates the extent of change being wrought on traditional businesses by technology. It reinforces the importance of flexibility in your business plan. It reminds us that no business is insulated from disruption.

Read more about Opernative at digital trends.

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Newsagency challenges

Newsagent frustration at Network Services invoice changes

networkdeliveryFollowing off-topic comments here about recent EDI changed by magazine distributor Network Services, as promised I am opening a post here so newsagents can comment and through this provide feedback to Network.

This week, Network released EDI changes including the following (I have pulled this info from correspondence from Network – the image is the explanation sheet the provided):

No more multiple invoice numbers (Except for reorders sometimes)

No more pains for customers reconciling statements

Cleaner delivery documents

Changes in SA, WA, TAS and NT from 24th February delivery

  • The number of Statement Reference Numbers in the delivery will be substantially reduced.  However, it’s possible that a bundle may contain products charged on multiple Statement Reference Numbers.
  • Stores will receive an Outlet Summary with their delivery, which is the key document to enable reconciliation to the monthly statement, as it groups titles by Statement Reference Numbers, and also identifies the bundle each title was packed in.
  • DD2 file will remain sequenced in Statement Reference Number order, rather than physical packing order (as per above).

Network, through Netonline, can give newsagents something closer to the EDI experience they are used to. This is called the EDI late File option. Here is information from network again:

File creation begins at 6pm (Sydney time) the night before delivery, the file will then be available to you between 6.30pm and 9.00pm (Sydney Time)Quantities will match the quantities packed at the warehouse

The order of the titles in the delivery file WILL CLOSELY MATCH the order of your deliveries’ physical packing.

This is a new option that aims to streamline the process of physically receiving a delivery through closely matching the order of your POS labels to the order your stock is packed in.

While Network is big enough to defend itself, I’d note that back office magazine distribution software is a large and complex beast. Bending it to serve even the simplest change is expensive and challenging. Adjusting the software to serve newsagents is complicated by many voices seeking different changes.

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magazine distribution

Bill Express parent company OnQ news

I received a creditors report from the administrator of OnQ yesterday. OnQ is the parent company of Bill Express. Both companies were public companies. Both failed.  In this latest report, the administrator proposes a deed of company arrangement through which a backdoor listing business would take control of the OnQ shell. Click here to read the latest OnQ administrators report.

This latest activity is a reminder of the mess of Bill Express and the tens of millions of dollars of newsagent funds lost.

You can read my posts about OnQ here.

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Bill Express

Understanding the new competitor: WH Smith

whsmelbairpWH Smith is expanding its newsagency footprint on several fronts in Australia including opening what look like more traditional newsagency businesses. This photo os from the WH Smith at Melbourne airport – before customs in the international terminal.

This WH Smith store is a traditional large-format WH Smith transit store. What you see is an excellent range of products in a well laid out shop, good signage and plenty of product deals.

In the newsagency space WH Smith has transit shops and high street shops. The two are different in focus but operate under a consistent brand.

Given the expansion of WH Smith branded stores, their launch of Zoodle and their reported takeover of Wild Cards and Gifts, WH Smith is a competitor on Australian soil, a competitor we have to take seriously.

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Competition

What happened with your NW supplies this week?

Our supplies of NW were cut in the same week we received a stack of NW bagged with Woman’s Day. I can’t see why regular supply of NW would be cut unless they want people to buy the discounted bundle. As for the bundling – anyone watching how women’s weekly magazine shoppers interact with the product will know that browsability is important.

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magazines

Understanding the new competitor: Zoodle by WH Smith

whszoodleGiven the increasing presence of WH Smith in Australia – they are opening more stores and have reportedly taken over Wild cards and gifts (I say reportedly since WH Smith has not made an announcement) – I am planning a few posts about them.

Zoodle is a kids retail format from WH Smith at Melbourne Airport in International Departures. The Melbourne store was the first Zoodle. It opened late 2012. the first UK Zoodle opened in February 2013.

Zoodle is an interesting shop – 100% focused on kids and those who shop for kids. It’s bright and fun. It featured international brands like Lego, Hello Kitty, Peppa Pig and Where’s Wally. Brands are vitally important in the kids market.

What’s interesting about Zoodle is that WH Smith has two other shops within a few metres of Zoodle yet this kids shop is stand-alone. While I am no expert, to me, their approach speaks to the value of retail specialisation in a separate format rather than including that format in a bigger store.

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Newsagency management

Using Disney Princess to sell across product categories

dpmerchThe Disney Princess brand topped the 2012 licencing franchise list as the brand generating the most revenue – sales in excess of $1B – according to industry newsletter The Licencing Letter. In 2013 it continued to play a vital role in the financial success of the Disney corporation.

This matters to newsagents because we have access to a range of Disney Princess product. We can draw together products from multiple suppliers and across multiple categories and tell retail stories that pitch our businesses as culturally relevant and appealing to an important age-group and those who shop for them.

Sourcing mega-brand products from multiple suppliers creating a compelling in-store pitch is another way we can attract new shoppers to our businesses and get existing suppers spending more.

Now if you are reading this and saying all your customers are old, ask yourself: do they not buy for grandkids or nieces or nephews?

The photo shows part of the Disney Princess range in my newsagency. It’s part of a newsXpress strategy developed with several suppliers.

Suppliers themselves don’t get together to pitch a licenced brand story, we need to source these opportunities for ourselves or through our newsagency marketing group.

There are many opportunities like Disney Princess around which we can grow a brighter future.

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Newsagency challenges

Excellent Daphne’s Diary sales

daphneWe are on track to sell out of the first issue of Daphne’s Diary we stocked – encouraging us to request more of the next issue. One customer I spoke with told me she would be back for the next issue. It’s special interest / fringe magazine titles that are most important to newsagencies and traffic retention / generation.

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magazines

Tatts fails to promote its retail network

tattsonlineTatts expects (requires?) its retail partners including newsagents to promote online and over the counter purchase of its lottery products through its mandated shop-fits and the marketing material its retailers are required to display and distribute. Tatts does not reciprocate with its own marketing spend. Take the current Facebook campaign – it seeks to drive online sales. It would be easy to include a locate your nearest outlet button but Tatts does not do this as it makes more money from online sales as the recent Credit Suisse report indicated.

Every time Tatts advertises its lottery products it should also promote its retail network and make finding nearby retailers easy.

The retail network is important to Tatts yet the company fails to demonstrate this in its actions.

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Lotteries

Matt Handbury out of Hubbed?

I’m told that Matt Handbury is no longer involved in Hubbed – the bill payment and parcel business he actively promoted as the future of newsagency businesses for more than a year.  I am also told that the ANF no longer has its 5% stake in Hubbed but that Hubbed moved into the ANF offices in early January this year.

I am not aware of any formal announcement being made about any of these or other reported moves.  A check of the Hubbed website and blog indicates that Handbury is no longer involved.

Given that newsagents have been asked to sign long-term finance contracts to ‘finance’ equipment and or software, one could argue that they are stakeholders in the Hubbed business since these finance contracts, in turn, release funds, working capital, to the Hubbed business. Has any of this money been used to buy out Matt Handbury and if so what is the impact on the financials of the Hubbed business.

Handbury was quoted in a range of media stories in 2013 about how Hubbed would save newsagents, that it was the future. His connections and history were used to gain traction with newsagents, newsagents respect him. Now that he is gone I wonder of some who signed up will have second thoughts.

Hubbed is pushing its parcel operation more than bill payment. Anyone considering Hubbed for its parcel operation need to talk to the people at the newsagent owned N Parcel and the privately owned Parcel Point – do your due diligence comparing Hubbed to those other free offerings. I say this because several logistics people I have spoken with say the Hubbed parcel model is not sustainable in the long term.

Given what appears to be its continuing investment in the Hubbed business, the ANF ought to make a full statement to newsagents so that they are better informed prior to signing any contract in relation to Hubbed. My understanding is that VANA and NANA are yet to endorse or support Hubbed in any way.

Anyone with more information on Hubbed, please share your comments here.

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Hubbed

Excellent display unit promoting Yours in Coles

yourscolesThe Coles supermarket a few metres opposite my newsagency has this excellent floor display unit promoting Yours magazine from Bauer Media.

It’s been suggested to me that Coles is being paid a fee by Bauer for the placement of this unit. Regardless, the display unit gives Coles a competitive advantage over my newsagency, it reinforces Coles as a more relevant and engaged popular magazine destination than the competitor newsagency.

Every time publishers favour Coles or Woolworths with a better display unit or a better offer they help show off these businesses as being better than us.

Every customer who switches their regular magazine purchase from a newsagency to a Coles or Woolworths is dilutes the viability of our channel as magazine retailers. Take this out a few years and what do newsagencies look like without magazines? Dead.

The next time a publisher representative considers a promotion, focus on newsagents. We are more likely to invest something of ourselves in your promotion whereas our much competitors will only give you what you pay for.

Are magazine publishers and distributors listening?

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magazines

Magazine inserts in the bin

magtrashMoving Gardening Australia on the weekend and these ads and subscription flyers fell out. I didn’t put them back – it’s not my job. Some newsagents remove inserts. I don’t. What I have described is what happened. Flyers and ads falling out are trash in my view.

Publishers and advertisers take note.

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magazines
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