Here is another example of a retailer’s use of colour blocking with good effect. I took this photo at a subterranean mall of pop-up shops in Guangzhou. I noticed the shop, in a sea of shops, because of the colour blocking. very basic but effective visual merchandising.
This is a poster at the front of a BE COSY story looking for new employees. The pitch itself is promoting the business which is smart. Whereas here in Australia we’d put out a sign saying staff wanted, many corporate Asian businesses that I have seen promote the business – probably reflecting the more competitive environment.
I was in China earlier this week and bought some scratch tickets from this stall near Tee Mall in Guangzhou. Look at the photo carefully and see four scratchie sellers lined up next to each other. each offering the same range. Tough competition!
The Fairfax press yesterday ran an interview with Tatts CEO Robbie Cooke that all newsagents should read. In the interview to mark his first anniversary in the job, Cooke outlines what Tatts is focused on:
”In 12 months time the things I’d be looking for in the business would be a new lotteries website, new wagering website and the new brand rolled out,” he said. ”There will be marketing and investment put behind the brand and we are aiming for all those initiatives to drive online sales.”
Newsagents contemplating the required re-fit should seek clarification. There is no point spending any money today on fit-out changes that could be redundant in anything less than three years out.
Mr Cooke said he also intended to expand the distribution of Tatts’ products. The company is poised to begin selling scratch lottery tickets from supermarkets after a trial in Coles Express outlets. ”We’ve been testing to make sure that activity has actually increased sales rather than cannibalised sales from our traditional channels,” he said.
It’s not just scratch lottery tickets as I understand it. Coles Express has been selling quick picks. I’ve been told they plan to roll that model out to all Coles Express outlets – in Victoria to start and then nationally. This comment about scratchies in supermarkets is new.
I’m not a Tatts retailer but if I was I would be approaching Tatts, the ACCC and other government entry points, all at once, to argue the significantly uneven playing field on which independent small business newsagents are forced to operate compared to our competitors such as 7-Eleven, Coles Express and, now, supermarkets. The capital cost that has been forced on newsagents for decades has assisted Tatts to have the recognition it has. Every newsagent who has spent money on Tatts mandated fit-outs has invested in the brand. Now, to find that competitors are given lower cost branding options requires consideration by appropriate authorities.
I understand that various associations are pursuing these matters – as they should. Individual newsagents who are Tatts agents should, in my view, make their own complaints. This will only add volume to what the associations do.
If I was facing a fit-out I would request of Tatts an immediate pause pending their review. If the fit-out requirements have me investing more capital than, say, a Coles Express then I would seek to have that matter arbitrated by an independent authority.
The challenge for newsagents comes back to the brand. Coles is a strong brand as is 7-Eleven. Take the Tatts branding – Golden Casket, Tatts, SA Lotteries or NSW Lotteries – out of a newsagency and in many situations you are left with unrecognisable branding. I think this is why tatts has been so heavy-handed on branding for years – they knew that it was necessary given the weakness and confusion of newsagency brands.
It is good that Cooke has been open about his plans. Newsagents can either complain about what he has said or plan the future of their business on the basis of what he has said. The information can lead to action.
Footnote: the moves by tatts are not unexpected. I have foreshadowed them for some time for several years at the Newsagency of the Future workshops.
The ramifications of the data breach affecting more than 100 million shoppers at US retailer Target will continue for sometime – not only for target but for retailers generally. The TV networks have been running stories of shoppers switching to cash because of the breach.
The Huffington Post published a piece yesterday about Target specifically, the implications for the company and how it is and could respond.
While Target is a massive business, the risks and implications are the same for newsagents given that each transaction involves customers giving us information, some of which could some times identify them. The Target breach is making shoppers more vigilant. We would be well served to be on the front foot.
We setup this wall on Saturday to promote more of the inspirational / positive / happy / good feeling products we have in-store.
This range of signs, part of a broader range of inspirational products we have deliberately sourced, had been placed with gifts on the shop floor and they were getting missed, lost in the colour of other products.
Putting the inspirational signs on the wall with black A2 card as backing helps them stand out and be noticed – and that is key for a products like this where the words and design do the selling as they touch the heart of the shopper.
Our placement with the black backing also helps draw people deeper into the shop as the black backing makes this wall stand out if people glance around the business.
We have a deep discount store a few doors away from us with products similar to these – not exactly the same and certainly not of the same quality – but they are chasing the same customer. It is a thoughtful display like this that separates us from the deep discount competitor. While we will not attract someone only buying on price, we will drive impulse purchases from people shopping from their heart.
Products like this, products purchased to express a feeling or emotion for personal use or for giving as a gift are vitally important in newsagencies. Greeting card customers especially will purchase them.
Click on the image for a larger version.
UK supermarket giant tesco is taking on c-store giant 7-Eleven in Thailand with the opening of a new model called 365. My understanding is that this is a trial of a new smaller-format c-store.
In Australia we see Coles and Woolworths continuing to change their core supermarket model and, to a lesser extent unit now, play with alternative retail models. This new tesco model is something to watch.
Tatts gets this too – why else would they embrace 7-Eleven and Coles Express and treat them differently to newsagents.
My newsagency like plenty of others I am sure has Christmas themed titles still arriving from our magazine distributors. International shipping has changed dramatically in recent years. Many online retailers offer free fast shipping on low margin items. Hence the question: Why is it we can get single copy overseas magazines here on time but not bulk copies?
I am certain that we could grow magazine sales if we got overseas titles sooner.
This Grow Koala – just add water – is an ideal impulse line for around the time of Australia Day. It’s an easy purchase due to cost and the fun factor. Good margin too. We have plenty of opportunities to grab extra $$$ from core product purchases with smart buying for the counter.
A newsagent told me last week that for the first time they are planning on paying two staff members off-book, with no record of their employment. They employees asked to be paid the regular award week-day per hour amount including the equivalent of super but for Saturdays and Sundays – responding to the prospect of having their hours cut by the owners who would work themselves to save money.
I am sure this story is not unique: that there are many employees keen for what are usually penalty rate hours – like today – who would happily work for regular pay given the prospect is regular pay or nothing.
Have current and prospective employees asked you to work off-book?
The cover of the latest issue of Yen features Lorde, a singer songwriter from New Zealand who is achieving extraordinary success internationally – including the cover of Rolling Stone magazine. Her success is extraordinary for someone so young. Her fans are loyal and engaged on social media – this issue of Yen is being discussed by them on Twitter and Facebook.
I urge newsagents to place this issue of Yen magazine next to Frankie and ensure that both full covers are on show. By engaging we can achieve incremental business and demonstrate that we are relevant to a demographic that is weak for the traditional Australian newsagency.
If you do engage with this issue of Yen as I suggest, also think about your suppliers in other categories – what products do they have that you can sell to the Yen / Frankie shopper? This is where we have opportunities with magazines. It is how magazine traffic can be more valuable than the 25% GP we make on a magazine. The magazine is the lure, the profit is what you do with the catch. However, this requires us to be engaged retailers.
This latest issue of Yen is an opportunity not to be missed.
The allocations experts at Bauer have increased our supply of Elle Australia on the back of a sell through of less than 50%. Five issues in and this magazine is loss making for us and, I suspect, many newsagents. We have promoted the title, given is excellent positioning, co-located a couple of issues and ensured the full cover is on display. It’s not working yet Bauer thinks we need more stock.
The Cate Blanchett cover shot on the latest issue of Vogue Australia is stunning – better than in the photo I took on the weekend. We are leveraging the value of the full cover by ensuring it is completely on display – placing it in a usual magazine pocket dilutes impact. I urge newsagents to check their placement.
Selfies (pictures of oneself) are all the rage: sexy and not so sexy. They feed off and into the obsession with living life publicly. They are facilitated and encouraged by the ease of sharing through social media.
The easy access to cameras on phones and other portable devices make selfies easy, allowing people catch moments they would in past years have only had a memory of.
Why not selfies of your newsagency business? … pics of your business, you and your people in your business. Not thought out too much, not setup, not for any reason other than catching moments in your business.
Here’s my management tip, yes, management tip, for today: take selfies of your business every day for a month. Don’t look at them. At the end of the month, scroll through them be open to what the photos tell you about your business. Look for opportunities in then images: opportunities for product placement, new products, better engagement with your business and other changes.
My experience is that the photos will show you thinks you have not seen before in your business. This is why taking selfies of your business is a management tip.
If a month is too long and you can’t wait – do it for a week.
Yes, this is unconventional management advice. We are in unconventional times. Think about it. years ao, the lines between the different types of retail businesses were clear. Today, the lines are not clear. Specialist retailers are challenged by department stores and others stepping into their space, we newsagents are stepping into other retail channel space. This breakdown of specialisation requires us to look at our businesses differently and any idea is worth trying if it shoes us what we have been missing. This is why I love the idea of selfies of your retail business – it will show you thinks you’ve not seen before.
You could take the seflies idea and give it to a team member. In fact, it would be ideal for a younger team member. Tell them to take the photos and not show anyone for a week or a month. See what they see. This could be gold – being able to see your business through the eyes of someone of the selfie generation.
You could also get a customer engaged – or all your customers: make a competition out of it. But don’t let them submit photos until the month is up. make sure they know you don;t want setup photos.
The more I think about this idea the more ideas flow. Play with it … see what you can learn about your business and consider how you can use that to grow your newsagency in 2014.
Embrace the love theme of Valentine’s Day but focus on your community. Cut out hundreds of hearts and ask your customers to write what they love about your town / community.
Put the hearts on show – so people can read the messages. Create a display in or on your window or create a tree-shaped frame onto which the hearts can be placed as leaves.
The completed tree or display, hopefully overflowing with heart-shapes with notes of what people love about their community becomes an inspiration for you and everyone who participated and looks at the finished art.
Let your council, chamber of commerce, community groups and schools know. Maybe invite a gold coin donation for each heart for a local charity. Let the local paper know as this is the type of local community story they should love.
There is no commercial goal here. No, this is a marketing idea designed solely to deepen the connection between your business and the local community.
We’re maintaining our attention on impulse purchase lines beyond Christmas and the school holidays. Our buying focus is on items that connect either with a season or some other opportunity that is relevant to us and our customers. These Extendable Fly Swats are part of a range of items we sourced for selling around Australia Day. They’re a bit of fun and useful – perfect for this time of the year.
Further to my brief post yesterday about changes to Tatts lottery fit out requirements, any newsagent facing a re-fit in the next three to six months should, in my view:
I am confident in my information that Tatts employees have advised some Tatts agents that there has been a change to guidelines.
If I was facing a re-fit I’d immediately put it on hold until I know the facts and revisit my commercial plans. It would be unwise of Tatts to pressure you i the absence of documented clarity on the changes.
WARNING. This is a crazy idea. You could feel foolish for trying it. That’s the worst case. The best case is you get to see your newsagency through fresh eyes and from that flows ideas for making your business more successful. Okay, here it is:
Go to your shop at night time. Leave the lights off. Put a chair on the middle of the shop floor. Sit down. Take your shoes and socks or stockings off. Put a blindfold on. Soak it up. What do you smell? What do you hear? Is there any sense of place that you get from being there. Be still for fifteen minutes or so thinking about this. Breathe deeply. How does your shop smell? Does it have a smell? If not, why not? Then take the blindfold off and look around you for another fifteen minutes. Finally, get up – with your shoes and socks or stockings still off – and walk around the shop. Take in the environment you are in control of. Let the ideas flow. If you want to take it to a deeper level, lie down on the floor on your back and look up and around – kind of up-skirt your own shop while it’s empty!
Your future is best created by you.
The range of gifts we sell at Valentine’s Day is only limited by the range of gifts we carry. There was a time when Valentine’s Day was about plush and chocolates. Now, with the season being embraced by more, we can sell all sorts of gifts. We’re having a crack with a range of retro-themed mugs. I love the retro music theme and so do our customers.
I was surprised to see Mollie Makes in a Woolworths supermarket yesterday. I see this as a specialist title, too fringe / specialist for the limited pockets in a supermarket. Makes me look at them even more competitively.
A difference between newsagents and supermarkets on magazines is our range in niche titles. If supermarkets enter this space I’d be concerned.
If you’re reading this blog post because you did a Google search for Mollie Makes – buy your copy at your local newsagency and support independent small businesses … we’ll love you for it!
Tatts has changed its fit-out requirements to help make meeting corporate image requirements for commercially viable.
I wonder how the newsagents who have paid for the more expensive fit-outs will feel about the change.
Ten News last night ran a story on Hubbed, the bill payment / parcel service in which the ANF has a commercial stake. The reporter called me yesterday morning about the story and as I was in Cairns all day on business I could not be interviewed.
The story was misleading in that newsagents have had access to the parcels services well before the launch of Hubbed. Plus the alternative services have no capital cost associated with them.
The story was incomplete in assessing the bill payment side: whether there is growth and how it’s done using the Hubbed kiosk versus the Australia Post offering.
The story did not look at the costs newsagents face in getting into Hubbed. One newsagent said two or three parcels a day makes him money. I’m not sure if this is the case once you account for labour, retail space and the cost of financing any infrastructure Hubbed require you to take on.
The pitch I have seen from Hubbed requires newsagents to take on a lease commitment for some years – releasing to Hubbed capital which newsagents fund? I can’t see the equipment or software provided by newsagents as being worth the amount they are being asked to fund – leaving me to wonder about the additional money newsagents are being asked to fund.
The ANF engaged previously with me on Hubbed but is yet to answer questions put to them. Link for more I have written on Hubbed.
My view is that the future of today’s retail newsagency relies on us being smart retailers generating net new traffic from retail endeavour far more so than through providing agency type services.
While sales of Take 5 and That’s Life remain flat, Thursdays, their on-sale day, are more important than ever in newsagencies. It’s the busiest day of the week for magazine sales for many newsagencies I have seen sales data for. Indeed, magazine sales are up 20% and more on Thursdays in some newsagencies when comparing to before the magazine on-sale changes in 2013.
In one newsagency, Thursday magazine sales are up 35% while overall magazine sales are up only 1%. This data is providing the newsagent with opportunities for other changes in-store through which to leverage the Thursday opportunity.
On Take 5 and That’s Life, I see a greater difference between the titles today than a year ago. Whereas in the past you could put them next to each other and they would look like twins, today, they are noticeably different.
We newsagents need to engage more with these titles if we are to help them get out of the sales slump. We need to be especially proactive on Thursday and Friday as this is when more than 80% of sales in newsagencies are usually achieved. By proactive, I mean: co-locate on the counter or with newspapers. Engage your staff to talk about what’s in the titles. Ensure they are full-face displayed with weekly titles.
Looking at the latest issue of The Australian Women’s Weekly, I wonder if Bauer is chasing a younger reader for this title. This latest issue feels like it is targeted women under forty. Maybe they have been pitching there and I’ve not noticed it. The cover shot looks like it could be on the cover of Cleo or Marie Claire. The stories, too, feel younger-skewed.
While I am no magazine expert, I did a double-take when I saw it, thinking – that’s odd. Then I started to wonder if they are chasing a younger reader.
With the launch of Yours imminent, maybe Bauer are trying to segment their readers more clearly. Yours is targeting women 50+ – what used to be the more typical AWW reader. The challenge is that AWW is historically bought by women in their forties, fifties and beyond. This latest issue appeals less to that older demographic in my view.
I can’t see my 40+ customers who purchase AWW based on the cover or a quick browse purchasing this issue. To balance that, however, there is an opportunity for a younger shopper to purchase this issue. But to leverage that opportunity I need to change where I place the title. I wonder if this is what Bauer wants us to do.
Knowing your customer is vital in retail. For example, the typical newsagency shopper is female 35 and over with one or two kids, more often working than not. While local situations will see differences, what I have described is common.
Knowing the customer targeted by products suppliers is also important. The suppliers who share demographic information can find retailers more engaged.
If Bauer is changing the focus of AWW I’d love newsagents to be given more information – so we can adjust in-store behaviour to reflect the change.
It will be interesting to watch customer interaction with this issue of AWW.
While the core stationery / school supplies products are not core to our newsagency, quirky products are. For example, this 2 in 1 sandwich cutter / lunch box set is a good product for the start of the school year – for younger kids. We have it on show at the front of the newsagency as part of a range of quirky products speaking to the back to school shopper. These products attract good traffic and they make people happy.