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

Impulse items driving basket depth and traffic

This display unit of stress balls was full when placed out on Friday in one of my newsagencies. All it took was five days to sell most of the stock. Every purchase was on impulse, adding value to a visit to our business by a shopper. We’re having tremendous success in our shopping-centre based newsagencies with carefully selected impulse items from Modern Brands and Independence Studios. Even if you’re not in a group with off-invoice discounts the pricing is excellent, enabling good GP.

While this is something else we need to keep on top of, the financial return is significant if you get the product selection right for your shoppers.

I’d also note that good impulse lines promoted at the front of the store can drive new traffic, shoppers who may not usually shop a newsagency.

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Impulse lines

Newsagent engages with the election

Check out how newsXpress Eli Waters has been engaging with the election – by offering leader candidate themed syndicates.  I’d be happy to put up pictures showin how others are engaging with the election opportunity. This type of promotion shows shopper engagement while promoting a product at the same time.  Nice!

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newsagency marketing

Promoting 30 best loved recipes partwork

We’re promoting 30 best loved recipes book collection partwork with our food titles as well as at the front of the newsagency. This partwork is an easy sell for our older customers whereas many recent partworks have appealed to a younger shopper.

We put partworks at the front of the shop on the lease line as well as in-store where it’s appropriate for the subject. For a bit of work and space we get an excellent return. Our focus is make the most of issue 1 and 2 and then manage time and space accordingly.

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magazines

Another crazy magazine day for newsagents

It’s ironic to me that a couple of weeks after PMP announces in its FY13 results a decline in Gotch distributed magazine volume of 10.9% that newsagents experience newsagents are hit with what feels like a considerable volume increase in magazine supply.

The most insidious increases are those by one or two copies where we’ve not sold out of recent issues. There is no justification for such increases.

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magazine distribution

What’s the value of digital advertising screen for a newsagency?

I see no upside for the digital advertising screens in a newsagency unless they are a call to action for products available in-store.

My preferred digital screen use in-store is small screens placed near or with product, to encourage purchase.

This is on my mind today because of several digital advertising screen services currently being promoted to newsagents. I don’t see them generating the revenue needed to justify the space they take. I also see their attention-grabbing to be at the cost of attention for products I sell.

The average Australian newsagency is already visually noisy with plenty of products and services we offer competing for attention. I don’t see the value in distracting shoppers from what we offer. Also, I am skeptical of the return on investment available to newsagents from advertising.

One model I saw recently encouraged the newsagent to sell airtime to local businesses. Newsagents would benefit more from working on their business, making it a destination for hero products and or services rather than selling advertising to distract existing customers.  Another model has the supplier controlling all contact and it would include products not sold in a newsagency. I don’t see the sense in that.

I could be wrong on this. Please comment and share your thoughts…

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Newsagency management

Newsagent cash-flow workshop very popular

At the newsXpress newsagency marketing group national conference earlier this week on the Gold Coast the newsagency business cash-flow planning workshop proved popular. Over the two sessions more than 60 newsagents participated with more interested but space not available.

The CPA (with newsagency cash-flow planning experience) running the event was surprised at the lack of cash-flow planning undertaken by newsagents. He shared advice and a template for undertaking this to better inform business decisions.

He also provided time saving tips for getting daily business data into your accounting system – sharing insights from the businesses he does the accounts for.

Other popular workshops included lease negotiations, high-GP product supplier insights and success stories form other newsagents.

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Newsagency management

New-look Wellbeing selling!

I’ve heard that the latest issue of Wellbeing magazine is selling well, ahead on recent sales for the title. Seasonally this is a good time for the title – we’re out of winter and for those of us in colder states out of hibernation. The redesigned cover is another reason to give the title time in the spotlight.

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magazines

Smart engagement promoting Smith Journal to newsagents

I like the material sent by Morrison Media to newsagents promoting the latest issue of Smith Journal. The information explaining the title and the ideal placements in-store is useful for us. I’d urge newsagents to make sure they read it and get the person responsible for magazines to read it – and action the suggestions. Smith appeals to an important shopper for newsagencies. As for the cover of the latest issue, I love it!

Click on the image for a larger version.

 

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magazines

Cool Boost Juice election-themed marketing

I like the campaign being promoted by Boost Juice in the lead up to the election this weekend.  They’re driving sales of their protein balls on the back of a survey where you nominate your preference of Tony Abbott or Kevin Rudd. It’s a simple and topical campaign with a commercial outcome focus. If you’re not a protein ball lover you can’t vote.

 

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Social Media

ANF responds on Hubbed contract

The ANF sent a notice to members yesterday apparently in response to some of the questions I have raised. Their repsonse included:

Yesterday ANF CEO Alf Maccioni sat with David McLean from Hubbed to once again go through the CONNECT contract which is going out to newsagents. He asked a number of questions and suggested changes to the contract. The main cause of concern was a clause which made it seem like this was an exclusive agreement and that the newsagent had to ask permission from Hubbed to allow competing services. This clause has now been removed from the updated contract.

The ANF membership has a 5% stake in CONNECT to ensure the interests of newsagents are paramount and Hubbed will continually work with members to ensure that their questions are being answered. There is an extensive list of Q&As on the ANF website.

ANF CEO Alf Maccioni said he believed that the CONNECT suite of products will add a new dimension to the newsagency channel and will ultimately attract younger customers.

As previously stated, the ANF strongly recommends that all agents should also get independent legal advice on the CONNECT contract and any other contract in relation to their current business and personal circumstances. If for any reason you feel uncomfortable about signing or you are not sure if this system would work in your store then don’t sign.

I heard about this from an ANF member. The ANF, as with Hubbed, is welcome to respond here to the questions I have raised.

If the ANF thinks newsagents will believe that their 5% stake is to ensure the interests of newsagents are paramount and Hubbed will continually work with members to ensure that their questions are being answered then they must think we’re stupid.

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Hubbed

2014 Astro Diaries opportunity for newsagents

Universal Magazines is releasing a premium diary for 2014 exclusively through the newsagency channel. I’ve seen the product. It’s high-end, and ideal gift. Newsagents can control supply. You can also request a floor display unit. I’m ordering this for my newsagencies as it fills a valuable niche.

Here’s information from Universal about the Astro Diaries:

  • The Astro Diaries are really two products in one, Each of the 12 Astro different Astro Diaries combines the usefulness of a week to view Diary planner with the fun of a monthly Astrology overview and daily prediction.
  • Finished size 210X200mm case bound with magnetic close flap
  • RRP $19.95
  • Exclusive to newsagents
  • Delay billed for the whole on sale period – No cash outlay-
  • 33% retail commission
  • Full sale or return
  • Our research suggests the Astro Diaries will be a popular gift line this year as they are unique, fun and represent exceptional value as a gift Supplied through Network Services
  • Available to retail 19/9/2013

While I’m promoting the diaries I have no commercial arrangement with Universal Magazines. My support is because I think this product offers an excellent opportunity for newsagents.

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Diaries

Terrific cover story for The Monthly

I love the cover of the latest issue of The Monthly. The cover story, Why we hate refugees, speaks to a issue at the heart of politics in Australia but an issue on which the two major parties effectively agree. The Monthly is playing an important and timely role with the piece by Christos Tsiolkas.

We have The Monthly in its usual location as well as with weeklies. This is an excellent issue for us drive incremental business.

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magazines

Tasty cover for Feast magazine

The latest issue of Feast magazine looks tasty and it stands out from the sea of colour that is the magazine department in a newsagency. We are promoting the magazine with food titles as well as giving it a week with our newspapers. Feast is a magazine shoppers will buy on impulse – if we put it in front of them.

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magazines

Jumbo Interactive growth from online lottery sales

Following form my post yesterday about Tatts Group, check out the Motley Fool article about Jumbo Interactive, the operators of the successful Oz Lotteries website. Their success is another indicator of migration of the lottery customer to online and another reason for newsagents to consider the extent of capital they invest in lottery products

Lottery products are agency products and while there is potential for sales growth thanks to jackpots, I don’t see much everyday growth for high street stores since more lottery customers will migrate online – especially when the online experience becomes even easier. As an agency line, retail success is dependent more on the supplier than retailer lines where we have more levers with which to play to make our own success.

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Lotteries

Placing products by interest can work better than by category

Here’s another example of how newsagents can grow sales by connecting products by shopper interest more so that product type. The teapot calendar sells well when placed with our range of teapots and teas. The same shopper will be interested in all three items yet in a more traditional newsagency the calendar would be in the calendar department and not placed with the teapots and teas.

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Tactical display

A bagged magazine that makes sense

Here’s a bagged offer from a magazine publisher that makes sense to me.  The bagging of Hello magazine with a Price George collectors edition makes sense as it adds value to the magazine. We have this issue in a higher profile location as a result.

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magazines

Online gambling growth for Tatts

A week ago Tatts Group announced its results including growth for its own online sales:

Our continued investment in the Tatts.com website is also starting to deliver results with growth of 35.2% achieved through the online lottery sales channel. Online sales now represent 8.2% of all sales (excluding SA Lotteries)(FY12: 6.6%).

This is important information for newsagents to consider when investing in representing Tatts from signage through to a shop-fit. Invest in a way that respects your business and what you can achieve from it in a reasonable (three years I’d suggest) period of time.

In pursuing online and mobile opportunities Tatts Group is doing what it needs to do to drive shareholder value. Newsagents need to understand that Tatts must and will put its shareholders ahead of everyone else. This is why the objectives pursued by the company may not align with the objectives of retailers.

Footnote. In the results call transcript is an acknowledgement of a dip in sales of instant scratch tickets:

Instants are down 11% and are thought to have been impacted by the “attraction ” to our jackpot games – we are however looking at a number of initiatives to reinvigorate scratch-its.

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Lotteries

Moving wedding magazines, chasing newsagency magazine sales growth

As part of our perpetual magazine relay – we love change – I moved wedding titles on Saturday, placing them below magazines for women (teens through thirty or so). While one has to reach down to pick up a magazine here – it places the titles closer to where the target shopper.

The days of a set and forget approach to magazine layout are long gone. We have to approach the department with a hunger to compete with supermarkets, convenience stores, petrol outlets and other newsagents.

By constantly changing magazine placement we learn more about the titles we sell as well as about the habits of our magazine customers. The sole goal of this work is to increase magazine sales. Think of this work as marketing activity.

While I still think a whole of department magazine relay is vital annually, tweaking the layout regularly is equally important and rewarding. See: How to do a magazine relay in your newsagency.

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magazines

Thoughtful expansion of magazine range

I was thrilled to see Explore Whiskey on our shelves. It’s an unusual title for a newsagency out in the suburbs. The team member who decided to order in the title explained their reasoning and it made sense. It’s an expansion of our male-focused magazine titles, broadening a car and sports-centric magazine department.

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magazines
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