Overall newsagency sales decline. 57% of participating newsagencies reported a decline in revenue. This is an improvement on the previous quarter. Of those reporting a decline, the average was 4% – also an improvement. Of those reporting growth, the average was 3%.

Traffic. Customer traffic was down for 54% of newsagents recording an average decline of 3% in the number of transactions.

Basket depth. 52% of newsagents reported a decrease in basket size (items in the basket) with an average decrease was 1.4%.

Basket value. 42% of newsagents reported an increase in basket value – with an average of 3.1%. While newsagents are selling fewer items, they are selling more expensive items.

Product mix. Traditional newsagency lines – newspapers and magazines – suffered the most, again.

Discounting. The decline in discounting identified in the last two quarters has continued with only 18% of newsagents undertaking discounting of any significance.

The gap between the performance of the traditional newsagency and one chasing change growing. The traditional newsagency is the type of business reporting the most significant decline whereas the newsagency pursuing new lines is the type of business reporting growth.

This newsagency sales benchmark study is based on an analysis of sales basket data from more than 150 newsagencies – city and country, shopping centre and high street, banner groups (various) and independent.

Benchmark results by key departments:

1. Magazines. 71% of newsagents reported an average decline (in units) of magazine sales of 9.1%.

Women’s Weeklies is the category reporting decline in more stores with 83% of all newsagencies in negative. The average unit sales decline for the category was 9.6%. Women’s Weeklies accounting for, on average, 25% of all magazines sold in a newsagency. What are newsagents doing about this? Not enough from where I sit.

I expect weekly sales to be even more challenged in the second half of the year as a consequence of the change in magazine distribution days. I think this will drive more people to get their magazines from supermarkets. I don’t want this to happen but I worry it will because newsagents will not fight to win retail let alone win magazine shoppers.

Magazine categories doing okay are: special interest, sport & leisure, craft & hobbies, home & living and partworks.

The number of newsagencies reporting declines above 25% is most concerning.

2. Newspapers. 81% of newsagents reported an average decline of 5.3% in newspaper sales. Regional newspapers did not suffer as much.

3. Greeting cards. 55% of newsagents reported average growth of 3.2%. Of those reporting a decline, the average was 3.8% with some as high as 18%.

4. Stationery. 62% of newsagents reported an average decline of 2.3%. This continues a trend in newsagencies in relation to stationery. What are you doing about it?!

5. Ink. 49% of stores participating in the study separate ink sales data allowing further analysis. 41% of these stores reported ink sales growth of 3%.

6. Gifts. 61% of the newsagents in the study have a separate gift department. Of these, 53% reported average year on year growth of 4%. This shows a slowing of gift sales growth. The way to arrest this is better buying and better in-store engagement. Standalone gift shops are vulnerable and we can take more business from them.

7. Plush. 7% of newsagencies report on plush sales in a separate department. I recommend this. A reasonable sales benchmark for plush is revenue equal to 25% of card revenue. In stores reporting on plush, sales are up on average 26%.

8. Tobacco. 62% of stores with tobacco products reported a decline.

9. Confectionery. 59% of store reported an average decline of 8%. This category is in trouble in our channel.

10. Toys. 838% of stores with the department reporting growth of just 3%.

Newsagencies continue to be good businesses to own. They respond to attention. There is good evidence of this in individual store data I have seen. The average newsagency with a retail model 10, 20 and 30 years old is the type of business in trouble. It’s unlikely to be doing anything to insulate against the changes we see impacting traditional lines.

Newsagents need to understand that growth comes from management and shop floor attention to products more so than agency lines.  If the benchmark data I see evidence of local store engagement driving better outcomes. This is why I say newsagents need to decide if they are going to be agents or retailers.

The best type of newsagency to own continues to be the one where you have the most control over what you sell.

We create our own luck, now more than ever.

This benchmark study is not a piece of fiction. It’s from a broad cross-section of newsagency businesses. It reflects what is happening in newsagencies. For what it’s worth I think we need to:

1. Fix magazines so we own the category again.  Too many newsagents are doing the bare minimum and their sales are suffering. The declines I am seeing need not be as bad.
2. Take stationery more seriously by mounting a challenge against the majors.  I think too many newsagents have become lazy while others have taken this business from us.
3. Refresh greeting cards to grow beyond our 30% (or thereabouts) of all card sales.  Card companies live engaged newsagents.
4. Run our gift department as if it was the only revenue you have got. You are competing with gift shops with little or nothing else. They are usually tough competitors. Unless you match them they will win.
5. Use plush to attract shoppers who will buy other items.  I own newsagencies that will top $80,000 in plush sales this year. I know what I’m talking abut.

Too many newsagents are waiting to be told what to do. It’s your business, your money at stake. Engage as if your future depends on it!