We’re thrilled with the range of Mother’s Day cards we have for this year. The many new designs present a fresh pitch. We have the cards on the lease line facing into the mall. We plan a couple of moves of the range as the season progresses- we find moves like this work for us.
My newsagency software company today launched a comprehensive training program for newsagents and newsagency employees. Made up of in excess of 120 professionally produced videos (more than 7 hours of peer reviewed training) this training is unique in that…
There is no other training resource in the newsagency channel like this.
This training will make newsagents and their employees more productive in their use of newsagency software. The businesses benefit, suppliers benefit and those working in a newsagency and undertaking the training benefit.
Representatives of The Examiner, a Fairfax owned daily newspaper serving Northern Tasmania, started meeting with newsagents four weeks ago to advise them that they, Fairfax, would be taking control of home delivery customer management.
Newsagents were shocked, it was the first they had heard of this move. Up until now, newsagents have managed all aspects of home delivery of The Examiner – customer billing, payment, stops, starts, run management.
I’ve been told that ANF was advised by Fairfax of the move in November last year. It has also been put to newsagents that the ANF ‘ticket off’ (approved?) the move back then. Newsagents I have spoken with want to know why the ANF kept this news from them for four months.
UPDATE (1:15PM) The ANF has advised that they first heard of this in January and even then in extremely vague terms. They did not and have not ‘ticked off’ the Fairfax plans. I note that my original information came from someone told by fairfax. the ANF has written to Fairfax to correct this misinformation.
The Fairfax pitch is that they will take charge of the customers, manage all aspects of the account, promote subscriptions and promote an associated digital offer. This appears likely to lead to a lower level of remuneration for newsagents.
Fairfax is offering nothing for the effective take over of the customers, many of whom have been acquired directly, through the hard work of newsagents.
Fairfax representatives have apparently said that they will give customers the option of paying for home delivery at the post office. Really? I’d be shocked if they did this. there is a perfectly good retail network in place today – newsagents.
Fairfax is also planning to require all customers to pay in advance. They are apparently offering customers a voucher to sweeten this move.
As recently as five years ago The Examiner purchased territories off newsagents. Back then, the company considered the home delivery customers acquired by the newsagents had a goodwill value. This latest move could be seen as takeover by stealth. This is one of the concerns of newsagents – what happens to their goodwill?
The ANF is getting legal advice in Tasmania. This feels too little of a response too late. I’d prefer legal advice from those with national experience in this space, experience in dealing with publishers. This legal advice ought to have been sought in immediately Fairfax advised the ANF of their intentions.
UPDATE: (1:15PM) Based on what the ANF has advised their timeliness in getting a legal response has been good.
The Examiner prints between 30,000 and 35,000 copies a day. This low number makes me wonder about the viability of the print edition. Okay, as a regional newspaper the economics are different and a lower print run can be more profitable in this situation than in a capital city. Still, 30,000 to 35,000 copies is low. I wonder if the Fairfax move is to prepare the business for a switch to digital only or, at the very least, to reduce print days. They can’t easily do this unless they own the customers. Currently, the don’t own the customers.
I was in Launceston yesterday and spoke directly with several newsagents affected. Outside of their concerns about losing the customer accounts asset of their business and therefore significant goodwill, they explained the nature of their customers and an expectation that a decent percentage would not want the details held by their local business being handed to a national business.
Some said they’d expect to lose at least 10% of home delivery customers because of the move of account ownership from the local business to Fairfax.
Some said they expect Fairfax would lose more customers by requiring payment in advance.
These issues could have been fully canvassed through a more open consultation. As it has been done, the newsagents involved are stressed at the late notice grab for an important and valuable part of their business.
What is happening with newsagents in Northern Tasmania ought to concern all newsagents. Some of our own are being treated with disrespect and unfairly. They have been let down by their association. Hopefully this blog post leads to more active engagement by all to treat newsagents fairly.
We’re promoting the AWW special Celebrating 80 Memorable Years with placement next to AWW itself and this placement with newspapers. I chose newspaper placement over counter as I think people are more likely to make the $9.95 purchase decision here.
We’ve made sure to place Iron Man 3 titles next to each other to make the most of the movie launch. This is a massive movie franchise that should generate sales for us. My plan is to switch these titles to a far more prominent position for the weekend.
Check out the story at Tech Crunch about Google installing its first first parcel pickup unit, BufferBox, in San Francisco. This is a rapidly moving space and the US preferred model appears to be self-serve. The photo is from Mike McCauley (@mmccauley on Twitter).
I am told that at a recent sales meeting, Ancol management disclosed that march sales were down 30% – primarily due to the failure of its subsidiary KW Wolesalers – to win a schools supply contact. I’m also told that another five employees have been retrenched. If true, both bits of information are not good for newsagents as the shareholders of the business.
Ancol continues to fight the state government on its failure to win the schools supply contract. With the lobbying spend in excess of $100,000, it’s no wonder South Australian newsagents are frustrated. As I noted previously:
If it was up to me, I’d be questioning the value of the $100,000+ spend on lobbying. What if this same amount was spend on TV in the state promoting newsagents as the go to retailers. The result could be better, full margin, business for more newsagents as opposed to discounted government business for the wholesaler.Ancol management have indicated stationery prices could rise , this is a worry for SA Newsagents who currently on average pay more for their stationery than other Newsagents in Australia
This is a big issue for SA newsagents. What if the lobbying achieves no results? Newsagents would reasonably question why so much was spent on a failed exercise. Without seeing the submission from Ancol it is hard for newsagents to know if their representatives put the best pitch forward to win the schools business in the first place.
Bauer sent us more than double the usual supply of the OK! and Cosmopolitan discount bundle. I’m not aware of any reason for the increase. We didn’t receive any collateral with which to promote the cheap bundle.
Regulars here will know I am not a fan of these promotions, of educating shoppers to not pay full price and of us having to fund the discount for what is already a slim margin product. My on-going frustration aside, this increase in supply is frustrating as Bauer has the data necessary to make a better decision.
We are actively promoting the Win a Car promotion from Pacific Magazines with this aisle end display as well as in-location with the promoted titles.
The beauty of this promotion is that it harvests shopper email addresses and mobile phone numbers. These details are attached to our business so we can use them in our own campaign.
Suppliers running promotions in newsagencies ought to take note of this approach of harvesting shopper contact details for us to use.
We will be actively promoting this campaign throughout the running time and not just now at the start of the campaign.
One of the magazine categories performing well for us and some other newsagents as identified in the latest newsagency sales benchmark study is music. For us, I think the growth has come from moving it and giving attention to specific titles – tapping into covers featuring performers whop are in the news. We co-located a couple of times recently but not enough to significantly impact our figures. the vast majority of our growth has come from attentive management of our music titles in their usual location.
We are promoting the new AWW cookbook – Sweet Things – and pitching the free copy of Gratins and Bakes available with any purchase with this feature display near our newspapers and next to our cookbook range. We also have the titles in a second location.
The latest newsagency sales benchmark report delivers mixed news on the performance of the newsagency channel. Traditional products deliver poor news while newer product areas deliver good news. The bad news is that the results are not uniform. The gap between newsagencies continues to widen, making it difficult for suppliers to transact with the channel uniformly.
Here are the results:
Overall newsagency sales decline. 51% of participating newsagencies reported a decline in revenue. This is an improvement on the previous quarter. Of those reporting a decline, the average was 5% – also an improvement. Of those reporting growth, the average was 5%.
Traffic. Customer traffic was down for 50% of newsagents recording an average decline of 2% in the number of transactions.
Basket depth. 48% of newsagents reported a decrease in basket size (items in the basket) with an average increase was 1.8%.
Basket value. 57% of newsagents reported an increase in basket value – with an average of 3.2%. While newsagents are selling fewer items, they are selling more expensive items.
Product mix. Traditional newsagency lines – newspapers and magazines – suffered the most, again. This should be very concerning to newsagents and their suppliers.
Discounting. The decline in discounting identified in the last quarter remains evidence for this quarter with only 27% of participating newsagencies reporting discounting of any significance.
The gap between the performance of the traditional newsagency and one chasing change is more evident than ever. 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 group and independent.
Benchmark results by key departments:
Magazines. 83% of newsagents reported an average decline (in units) of magazine sales of 6.3%.
Women’s Weeklies is the category reporting decline in more stores with 89% of all newsagencies in negative. The average unit sales decline for the category was 7.6%. With Women’s Weeklies accounting for, on average, 25% of all magazines sold, the scope of the decline is a concern. We have to ask ourselves: what are we doing about this? While it is easy to blame the products, we must also look at how we treat the category. Maybe doing the same today as what we did ten years ago is part of the problem here.
In the 11% of newsagencies reporting growth I specific categories driving this. For example, in one newsagency, partworks sales are up 300%, delivering 18% of all magazine sales. In another newsagency, craft title sales are up 11% and food titles up 13%. Talking to some participants achieving category specific growth, they put it down to strong local interest and specific attention by the business in this.
In a couple of newsagencies reporting magazine growth undertaking a whole of department magazine relay was put up as the reason for success.
Too many newsagents are bystanders with magazines. They do the bare minimum. While the magazine distribution model to newsagents is unfair and puts us at a competitive disadvantage, there are growth opportunities for newsagents. It takes work. The rewards are worth it.
Newspapers. 83% of newsagents reported an average decline of 6.7% in newspaper sales. Regional newspapers did not suffer as much as the capital city dailies.
Greeting cards. 43% of newsagents reported average growth of 5.1% revenue growth. Of the 57% reporting a decline, the average was 6% with some as high as 22%. If you’re reporting a decline in card sales you need to work on how you display the product, refreshing your offer and engage your staff with the category.
Stationery. 57% of newsagents reported an average decline of 3%. This continues a trend in newsagencies in relation to stationery. It feels like businesses are giving up.
Ink. 44% of stores participating in the study separate ink sales data allowing further analysis. 42% of these stores reported ink sales growth of 5%.
Gifts. 61% of the newsagents in the study have a separate gift department. Of these, 89% reported average year on year growth of 7%. A year ago I suggested that gift revenue should equal around a third of card revenue. Today, I see this as a benchmark, but one that should be passed if you’re more well-established in gifts.
Plush. 10% 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 19%.
Tobacco. 73% of stores with tobacco products reported a decline.
Confectionery. 53% of store reported an average decline of 2%.
Toys. 82% of stores with the department reporting growth of 5%.
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.
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.
ABOUT THIS STUDY. This study is based on sales data collected from more than 146 newsagents across Australia. These newsagents represent five banner groups as well as independent operators. The only common thread among the newsagencies is that they all use the Tower Systems newsagency software. Around 63% of newsagents with a computer system use Tower. I have eliminated data from businesses where I knew that unique local factors impacted on the sales data.
Another Sunday and another pitch by the Herald Sun to our customers to stop buying their newspaper from us … and doing this by covering up the newspaper masthead and the lead story of the day.
Customers don’t like these stuck on ads. I don’t like them. They disrespect the product.
Confectionery is the most common product available for purchase at the counter in most Australian newsagencies. This is how it has been for decades as we have copied others with a last minute impulse purchase of a chocolate bar, chewing bum gum or mints. Since we’re copying everyone, margin is not ideal, indeed, it’s below the average margin we need and should be relentlessly chasing.
Too often, newsagents are stubborn in considering breaking free from confectionery at the counter. I put this down to fear that an alternative might not work and laziness in that they don’t have to think about alternatives. The reality is that plenty of newsagent suppliers offer good alternatives, higher margin alternatives, alternatives that could replace just some of the space taken by often under performing confectionery.
The glitter twist bangle in the photo is a good example of an ideal counter line that is better than confectionery. It’s purchased on impulse, has an excellent margin and moves your store away from a me-too counter.
Newsagents can be lazy when it comes to their counter. I know I have been. If what you are doing at your counter today is what you were doing a year ago, two years ago, longer – step back and reconsider your position. Is it the best you can do? Does it serve your business needs? Are the products delivering the margin, return on space and return on investment you need? Do the products reflect a point of difference?
Make a decision about what you want your customers to do at the counter, what you want them to buy on impulse. Be a retailer and manage the counter for your success.
Sometimes we complain that our customers don’t recognise our businesses from others. This is our fault. We control how different opur businesses look – outside mandated shopfits such as lotteries of course.
With retail and the traditional newsagency model changing more rapidly than at any time in our channel’s past, we need to reach out to new customers. I urge newsagents to set it as their goal to reach out to new customers every week. Whether it is through a personally delivered to a business, an approach to a community group for a co-op campaign, letterbox drops in a single street or some other activity, reach out to at least some one new every week.
If we don’t get more people onto the conveyer belt carrying people to our businesses then one day we will find that conveyerbelt not sustaining us.
Vodafone has terminated all retail product distribution arrangements, leaving retailers without easy access to Vodafone products. I’m told they plan to establish direct with retailer relationships. In the meantime? Nothing. This is leaving retailers, including newsagents, up the proverbial creek. The obvious gap in customer service is set to hurt Vodafone network numbers and customer perception even more than it has been hurt over the last year or two as the company shed many customers. It’s another brick for Vodafail.
I have now been contacted by several newsagents with many Vodafone customers. they are all asking if I have any ideas on future distribution arrangements. I contacted the company directly but that’s a challenge as the regular customer service entry point was a waste of time and my contacts are no longer with the company.
Beyond poor network service, another way to kill a telco brand is to cut off support for your customer facing retailers who have actively supported your brand and have been a point of purchase for recharging prepaid phones.
Changes by Network Services around the handling of supply of and backorders for the James Bond DB5 partwork are causing newsagents and their customers considerable frustration, lost time and, in some cases lost money. And the company appears to care less about it.
For some time now we have had issues on backorder to address undersupply issues. Around two weeks ago, network advised that they had cancelled all backorders. We called customer service and they advised that we would have to reorder issues and that they would be firm sale. We were also told that as our orders had been cancelled by Network and reorder would place us at the bottom of the queue.
Regulars here would know that I am a big fan of partworks. These flip flops and poor customer service from Network challenge that commitment. Their ineptitude in relation to the James Bond DB5 make us look bad. For a meagre margin it’s not worth it with this title.
Being able to stop and start the home delivery of newspapers is a long-held feature of the Australian newspaper home delivery model. I was surprised when someone asked me if I had herds, as they had, that Fairfax was planning on stopping the suspension service in a couple of months.
Of course, it could be that Fairfax will allow the suspension for the delivery but not an extension of the subscription period. This would allow the company a financial gain. Customers would be unhappy if it is the case.
So, has anyone heard anything about this?
We’re participating in a promotion where customers can get a free 600 ml Coke if they purchase any four participating magazines from Pacific Magazines in a set time period.
This promotion links well-known magazine brands with the best known beverage brand in the world. It’s also a point of difference for us compared to other Coke retailers in our shopping mall.
Promotions like this are important, especially when they are connected with the best-known brands.
For a good laugh, check out the article at Cracked.com on three very funny, and dangerous, do it yourself projects published in magazines many years ago. The things magazines publish! Cracked was a humour magazine from the US. I preferred it to Mad magazine.
I am almost done collating and analysing the sales data for the March quarter from newsagents participating in the latest newsagency sales benchmark study. I’ll release the report here Monday. One thing is for certain, the days of the traditional newsagency are over.
Check out this tweet telling people in the UK to get news about the passing of Margaret Thatcher online rather than by going to the local newsagents.
I was surprised at the news this week that we may not have a fast rail network established in Australia for thirty or more years.
For decades, federal and state politicians have let us down on major infrastructure projects, very fast rail being just one of them.
We ought to be ashamed that it takes longer to travel by train from Sydney to Newcastle than the time it takes to travel by train between Beijing and Nanjing in China, a 900km trip I did last year.
While I accept the extraordinary difference in population size and government of Australia and China, the need for and value to be gained from major infrastructure projects like fast rail is the same.
I am certain that if we have a fast rail connection between, say Sydney and Melbourne, Sydney and Canberra or Melbourne and Canberra years ago then today we would have a broader fast rail network.
The announcement of the latest report into fast rail in Australia released this week piqued my interest as I have just got back from two days in China. Yesterday, in the China Daily newspaper, they had a feature on their fast rail. 98,000 km of tracks, 85% of wood and crude oil shipped by rail, 4 billion tons of cargo transported annually … the numbers roll on.
If we had in Australia what China has we could get from Melbourne to Sydney in three hours and Sydney to Brisbane in four hours. Indeed, we could get from Melbourne to Perth in just six or seven hours. And we could do this in more comfort and with less stress than air travel.
Major infrastructure projects like fast rail can economically focus and define a generation. While I am no expert, it seems to me that this is the case in China.
Having such a network in Australia could reduce the cost of doing business and make Australia a more appealing destination for tourism and economic migrants.
Sure, we need to undertake projects like this within the scope of our population and economy. However, we will only grow and prosper as much as we challenge ourselves to.
It’s on infrastructure opportunities that we have lacked leadership in Australia for decades. I don’t want to wait thirty years.
I have announced dates for more Newsagency of the Future workshops. I’ve added dates for Cairns, Gold Coast, Albury, Geelong, Hobart, Darwin, Canberra and Newcastle.
This workshop series is based on entirely new content, relevant to what we find in 2013, based on what we learnt last year.
Newsagents, would be newsagents, newsagency employees and suppliers are welcome to attend. Access is free.
This workshop is designed to get everyone owning their future. We can’t rely on any supplier or association to deliver it to us. We also can’t rely on the newsagency shingle to deliver any upside.
I’ll look at the very latest retail trends, agency business versus retail, why size does not matter and how we can thrive in this world of change.
This two hour workshop will present a roadmap for those who want a roadmap, insights for those who want insights and hope for those seeking hope for the future of the newsagency business.
Last year, the Win a car promo from Pacific Magazines saw and average increase in sales of 11% for Pacific’s monthly magazines. This year’s promotion starts next Monday, April 15. A shopper will win a car and a newsagent will win a car. I love that the nexus website has our targets already setup – this gives us specific sales goals. I like that success is tied to sales growth rather than displays or other branding activity.
The participating titles are: New Idea, that’s life! WHO, FAMOUS, Better Homes and Gardens, marie claire, Women’s Health, Men’s Health, InStyle, Home Beautiful, Feast, Your Garden, Prevention, K-Zone, Total Girl, Girlfriend, Practical Parenting, Bride to Be, Diabetic Living.