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

What to make of the Leveson report in the UK

The release of the report of the Leveson Inquiry has UK newspapers saying they don’t need the control measures outlined in the report. A tragedy has been uncovered brought about by systematic and systemic crime and corruption and the plan for stopping this happening again is being rejected because businesses think they can control themselves. Self regulation failed the UK.

We have seen similar complaints in Australia following the Finklestein report into media regulation. News outlets don’t want regulation, they say it’s censorship.  We have censorship in Australia today in some media outlets and bias on show in their pages. Look at global warming – many media outlets do not report the facts.  Just this week with the AWU scandal we have seen media outlets take down spin in the face of evidence that their ‘news’ was wrong.

You sell more copies and attract more eyeballs with fear and spin than facts.

For a feeling of how newspaper publishers have approached Leveson, read Roy Greenslade’s column in The Guardian.

I am for any measure that dilutes the control of of mass media into few hands and I am for any measure that holds media proprietors personally responsible for false and misleading reporting and criminal activity by any who work for them in pursuing story material.

9 likes
Ethics

Why newspaper retail and distribution need to separate

One of my older newsagencies did not get newspapers today until 9:30am. Our distribution newsagent operates a retail newsagency in the centre. Their excuse was that they short supplied … not so short that every other retailer including themselves didn’t have plenty of stock.  This is the same distribution newsagent who has blocked access to a raft of titles and about whom we have had to complain to publishers regularly with only mediocre success.

No wonder the newspaper publishers want to change the distribution model.

6 likes
Newspaper distribution

New newsagency: gifts and more

This photo of my newest newsagency shows the view across the shop to the counter and the rear wall. It shows part of our gift range. This is situated between our card department and the counter. We have gone with smaller display units to enable us to create clusters of displays targeting specific interests.

The floorspace allocation for this new newsagency has been done taking on board much of what I discuss in my Newsagency of the Future workshop. While we remain supportive of traditional newsagency categories – magazines and newspapers – we are using cards, gifts and plush to pull in traffic from the mall and to help us get to an above average (for a newsagency) overall GP.

The shop itself is 150 sq m. This is at the upper end of what I’d go for in a shopping mall.

5 likes
Gifts

New newsagency: the magazine wall

This photo shows how we are displaying magazines on the rear wall of the new newsagency I am a partner in and about which I blogged yesterday. This wall of magazines nis one of three display locations for magazines, offering around 700 facings.

You can see in the photo that the pockets are deep and the full cover of each magazine is on show. The fixtures are clip-in clip-out, this facilitates easy reconfiguration.

Shoppers entering the business see this wall. It has been lit to draw attention to it from the front of the shop.

This photo is important as it shows we remain committed to magazines even though we are playing with the rest of the model.

9 likes
magazines

Super Saturday – where a shopping centre can help

I have newsagencies in two Westfield centres and am looking forward to the results of today, Super Saturday. there can been considerable marketing activity inside and outside Westfield centres promoting this.

Westfield has also produced collateral for us with details of our particular promotion – enabling us, and other retailers, to have displays connecting with the collateral of the campaign.

I like that we are part of something bigger and can benefit from extra traffic drawn in by this campaign.

Having considered how other retailers are approaching this one-day event, we have decided to focus on one category and go hard in terms of our offer. We have sourced product specifically to enable us to make a pitch that works for us and for shoppers.

1 likes
newsagency marketing

famous promoting newsagents for The Submissive

The latest issue of famous magazine includes a pointer to newsagents as a retailer from which The Submissive can be purchased. Every promotional pointer like this helps position our channel. They also give us a reason to promote the products promoted in magazines in this way.

I notice that Big W has the title at half price.  This is nuts but typical Big W and out of the control of Pacific Magazines.

1 likes
magazines

Universal Magazines digital giveaway designed to grow print sales

Universal Magazines has announced a promotion giving away 1 million digital magazine editions in pursuit of growth in sales of print editions of their titles as Associate Publisher Emma Perera explains in the press release:

Early trials showed that digital can be used to promote brands and then lead the customer to subsequent purchase of editions via direct mail or retail. When we present offers to digitally-acquired customers they are just as likely to order print, as they are digital, if they like the product. We have run digital promotions that have given us a sales spike at retail – it’s just a question of uncovering the customer and making them aware of your product, or rewarding their retail purchase with digital incentives.

1 likes
magazines

Video an ideal way to train newsagents

My newsagency software company uses videos as a means of training newsagents. I urge other suppliers to take this approach as it provides a resource newsagents can share with their employees – getting everyone in the business on the same page.  Here is the latest video released this week: 5 Time Saving Tips For Newsagents.

For suppliers considering creating videos: keep them on topic, short and easily accessible. Don’t worry too much about your IP – people find ways to discover what you are doing and copy your innovation.

Newsagents themselves could create videos for their staff, especially when they are going away – again to make sure everyone is on the same page.

9 likes
Newsagency management

New newsagency: greeting cards

Here is another photo from the new style newsagency in which I have a half share. This photo shows part of the card department. You can see from the fixtures on the wall that we are using more space to display each card. This is exactly what we wanted on this feature wall, we are giving these products a better opportunity to work.

From the outset we said we wanted the best card department in the large shopping centre. Achieving this is a combination of range, fixturing and customer service. Early indications, eight days since opening, are that we can expect the card department to work very well for us.

Footnote: opening this new store is evidence of how I feel about retail … positive, worth investing in.

8 likes
Greeting Cards

New newsagency: plush wall

Here is the plush wall in a new newsagency just opened in which I have a 50% shareholding. We are using our 150 sq metres in a Westfield centre to play with our version of the newsagency model. This plush wall runs up one side to the lease line.

While we have only been open for eight days, this display, which is yet to be fully stocked, is attracting plenty of shoppers.

One thing I love about plush, today’s plush especially, everyone buys it … as long as you give them a reason to.

6 likes
Gifts

Oversupply: Australian Wood Review

We have not sold out of the Australian Wood Review over the last 12 issues. Our average sales are 2. Gotch just increased us from 4 to 6. I checked the magazine and can’t see any reason for this. I am not aware of any promotion. This is oversupply in my view and an example of the kind of behaviour that can get newsagents early returning other titles to strike back. There ought to be a financial penalty for this behaviour.

4 likes
magazine distribution

Welcome new One Direction title

It’s good having the official One Direction Photo Collection in stock – especially with tickets for another concert going on sale yesterday afternoon. We had the magazine at the Ticketek counter as you;d expect. we also have the title in three other locations to catch every purchase possible.

Our obsession about 1D continues to deliver an excellent financial return.

2 likes
magazines

It’s a gingerbread men Christmas

Further to my post about the gingerbread men created by the team in one of my stores for promoting the latest issue of donna hay magazine … Hallmark has a boxed Christmas card in a terrific gingerbread man shape. While we haven’t worked out how yet we do plan to promote both together to make the most of the theme. Why not – there may be gingerbread men lovers in-store who could go for this.

1 likes
Greeting Cards

Moment of truth for magazine publishers, distributors and newsagents

161 newsagents have participated in my survey on magazine supply. The results are an insight to publisher and distributor behaviour and how newsagents respond.

Click here to see the survey results in full.

While newsagents, magazine publishers and magazine distributors should read the results, I urge publishers especially to read the results. Here are the headlines:

  • 93.8% of newsagents said they received more magazines than they had space to display. 29.8% said they received more than 50 magazine titles a month they had no space to display.
  • 79.5% of newsagents early return magazines regularly. What a waste of time and freight costs.
  • 86.3% of newsagents say they think they could increase magazine sales if they could control their magazine supply.
  • Dealing with magazine supply (29.8%) and the magazine distributors on accounts matters (13%) causes the most stress for newsagents.

This is an important survey as it gets to the heart of magazine distribution challenges for all three stakeholders.

For newsagents it reinforces the labour and financial wastage in a distribution model that disadvantages newsagents compared to other magazine retailers.

For publishers it underscores why titles they send may be treated in a way they are unhappy with. It also demonstrates that the business rules around supply are missing some key factors.

For distributors it provides evidence that they are running a broken system. You cannot keep loading a conveyor belt when it it already at capacity. The conveyor belt will break.

What do I wish would happen? I wish distributors would trial a new magazine supply model with a group of, say, 200 newsagents. I wish this group would be selected based on a robust application process and that the participating newsagents have complete and absolute control over the magazine titles and quantities of titles they receive.

139 newsagents out of 161 have said they think they could increase magazine sales if the above processes were put in place.  It sounds too good to be true.  But certainly worth a trial. What if it works? What if these newsagents in such a trial do increase magazine sales? The question would then be what’s next?

The magazine distribution model is paternalistic. Newsagents do not have control over commercial levers. Newsagents are not given reasonable opportunity to be business-like. This results in a lower standard of responses from newsagents – such as ill-informed early returns of which I write here regularly.

The purpose of the survey, publishing the full results and writing this blog post is to encourage genuine change for the good of newsagents, magazine publishers and, yes, magazine distributors.

We need to move on from the denial by distributors about over supply. We also need to move beyond the finger pointing where publishers blame distributors and distributors blame publishers and where both blame newsagents.

We need to engage in serious dialogue about fixing this. If fear that if we do not, more newsagents will cut magazine display space (27.3% have already according to the survey) and more will undertake ill-informed early returns and publishers will seek other routes to market.

Getting a group of newsagents together who do want to actively work with publishers and distributors on a more equitable model is the easy part. My question for publishers and distributors is – will you join with us on this, will you work with newsagents to create a magazine distribution model which respects newsagents and pursues everything necessary to help all stakeholders make more from magazines?

This is our moment of truth. If we all believe in magazines (publishers believe in their product, distributors believing in their business model and newsagents believing in the importance of the category as a traffic generator) then we must act. The current situation is not working by any measure. Do we have the guts and faith in our respective businesses to engage in genuine partnership on this? I hope so.

My proposal is risk free and loaded with valuable upside. I would jump at the opportunity to engage through my own newsagencies.

16 likes
magazine distribution

Promoting Christmas Special of Cake Decorating

Here’s another good initiative by our team. Yesterday, we received this Christmas Special issue of Cake Decorating. As there was no marketing collateral provided (ugh!!!), our team created this poster to draw extra attention to the Christmas theme.

The display is placed in the usual location for this partworks. It’s passed by newspaper customers too. We are looking at including the partwork in one of our main floor Christmas displays.

2 likes
magazines

Excellent newsagency staff initiative for promoting Coach magazine

Check out the aisle end display created by the team at one of my newsagencies earlier this week for promoting the latest issue of Coach magazine.  They have made this the feature title in our men’s magazine area, certain to be seen by more people thanks to the extra treatment provided.

Coach continues to perform well for us.  We maintain it as a centrepiece title in our mean’s health, training and fitness section. We support each issue with a display like this one as well as excellent positioning in the usual location.

4 likes
magazines

Interactive counter promotions

We are pitching a range of Hallmark interactive products at the counter with this display.  Several of the products lend themselves to easy impulse purchases and they, in turn, invite a look at the more considered purchases like the story books.

Interactive is proving to be big this Christmas and this is on the back of strong 2011 and 2011 Christmases for interactive products.  Sales growth this year is being driven by a broader range of products from more suppliers and smarter, we think, engagement on the shop floor in showing off the products to shoppers.

The interactive products are giving us an opportunity for better customer interaction.

1 likes
Gifts

From inside the doorway of your newsagency what do you see?

I was in a newsagency this afternoon and what I saw four different marketing messages on posters hanging form the ceiling, five different brands being promoted with signage on the walls and more brands (mastheads) partially obscured by boxes.

Posters, branding and signage should only be there to drive sales. They should be current and relevant to our shoppers. The more you put up the less visual value achieve for each.

A single poster by itself will most likely be wasted visual noise and achieve nothing for you or the brand you are promoting.

I have seen situations in newsagencies where fewer posters and signs result in sales growth.

I urge newsagents to stand inside their door today and see what they are presenting to their customers. Remove unnecessary visual noise, take down signs, posters and the like that have been up more than a couple of months – except for the brand of the store itself. Old signs make your shop look and feel old.

The owner of the newsagency I was in did not realise the number of old messages facing shoppers.

7 likes
Newsagency management

Gerry Harvey should shut up, he does not speak for retailers

Gerry Harvey was in the news again yesterday talking down retail in that shrill style that is so him.

Gerry Harvey believes his Harvey Norman chain will be “the last man standing” as other retailers go bust due to tough trading conditions.

The chairman of the electrical, bedding and furniture retailer has predicted a wave of retailers will close in the early months of 2013 as businesses go under.

Retailers offering a consumers a value proposition are doing well and will do well. I am tired of gerry getting media covering for his doom and gloom. He does not speak for me.

Our sales are up wonderfully year on year. We also are attracting new shoppers with new lines. We are not having to use price as a selling feature – unlike Harvey Norman stores. Indeed, our average margin is up inn2012 over 2011.

6 likes
retail

Vogue discounts 40% for subscriptions

Subscribers to OurDeal were offered a year long subscription to Vogue magazine yesterday at 40% off the cover price.

Activity by some magazine publishers chasing subscriptions has increased. Their view would be that locking someone in for a year is more valuable to them than possibly getting 12 purchases from a retailer over a year. This is how they price their discount.

Every day in newsagencies across Australia we promote brands such as Vogue with terrific in-store displays and we make the products available for browsing without cost. All of this investment by us helps publishers be able to pitch subscription offers.

It is no wonder newsagents get angry when they see subscription deals like this.  At least Vogue is not pitching at a US subscription rate of 70% (and often more) off.

5 likes
magazine subscriptions

Australian Cupcakes & Inspirations magazine popular

Further to my post yesterday about not having room for a new travel title, we did have room in our food category for another new title-  Australian Cupcakes & Inspirations. We sold out the initial allocation and ordered more. They are selling.

While the title is expensive, cupcake bakers and fans love the practical nature of the content – making price a non issue.

Since we’ve had success with this issue we have built an even better story by placing it with other cupcake and cake baking titles.

3 likes
magazines

Promoting donna hay Christmas issue

We are promoting the Christmas issue of donna day magazine with this aisle end display facing onto our dance floor.

I love the look of this issue, it stands out from Christmas magazines with a very different cover. This is why we chose it for an aisle end promotion.

Kudos to our in-store team for creating the gingerbread men to connect with the cover shot. This was their own initiative!

We are keen to maintain the Christmas theme throughout the newsagency. Our magazine aisle for the next four weeks will feature different Christmas themed titles.

4 likes
magazines

Tatts adds SA to its pool

Tatts Group is acquiring SA Lotteries from the state government leaving only Western Australia as the non-Tatts lottery state.

As I noted recently, LotteryWest runs an excellent community engagement program associated with the sale of lottery products. The community value of this is considered to be significant to lottery agents I have spoken with.

As for the SA deal, the story SA Treasurer Jack Snelling saying they were worried they would not be part of the lottery block. That seems like a pretty weak excuse to me.

SA lottery agents should talk with their Sydney colleagues to get a heads-up on transitioning from a state lottery business to Tatts.

2 likes
Lotteries