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A tiny & efficient magazine store (part 2)

Here is a photo from the inside of the tine magazine store on the upper west side of Manhattan covered in my previous post.

Check out how the magazine titles are displayed. No full covers on show. There is a greater cover overlap where they have more titles in a category segment.

On the top shelf, not shown in the photo, barely an inch of a cover is on display.

If newsagents displayed special interest titles like this we would free up 75% of more of our magazine space. The question is whether we would back that we are a destination location for these special interest titles. The other question for many would be – what to do with the freed space.

I have looked at a range of magazine display formats here in the US in the last week in advance of creating a magazine department in a new newsagency I am involved in back in Australia. Having a blank canvas with which to play, I am planning on taking a different approach … but not like this one metre wide store in New York.

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magazines

A tiny & efficient magazine store (part 1)

Check out the tiny magazine store I spent time in yesterday on the upper west side of Manhattan.  Just over a metre wide, the walls, left and right, are lined with acrylic pockets holding magazines.  Most have only part of the cover displayed.

This shop holds close to 400 magazine titles. Seriously. Plus a reasonable range of tobacco products, bongs (!!), convenience items and allied lines. Every square inch of retail space is used and more.

The owner was happy to talk so we compared notes. I asked about the display and the challenge of not displaying the full customer. he said it did not hurt sales as most of his customers came in seeking out specific titles. While he carried high volume titles, he did not carry them in great numbers … just as supermarkets and convenience stores do not have the range this guy has.

He runs the business as a destination business and is doing okay.  Some purchase each issue of a title whole others shop based on available time for reading magazines on topics of their interest.

He stocks the business to meet his cost base and situation.  This is interesting as most newsagents do not reverse engineer their cost base to drive inventory range. In shopping centre situations this is more vital than ever.

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magazines

Wall of plush

I have seen plenty of retailers this last week displaying plush products on the wall, on shelves high enough to make the plush sit straight and nicely fill the space with colour. In a couple of stores they did this in dead areas and brought them to life, in others they did it at the front of the shop and told a bright and appealing story.

In each case, placing plush on the wall was impressive and appealing. It’s something I want to try.

While there is a place for selling plush off spinners, wall placement makes it an actor product and this in itself may generate more destination traffic.

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retail

Promoting Wedding magazines at the sales counter

The team at one of my stores created this simple and bright display featuring current wedding magazines at the sales counter.

I love the use of the small blackboard capping the display and the placement of flowers as a border.

We continue to enjoy good sales success with carefully selected titles in this location. Indeed, it’s sometimes surprising what we can get people to add to their shopping basket on impulse.

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magazines

News Corp. to split into two companies?

A report from The Wall Street Journal today that News Corp. was considering splitting into two companies – entertainment and publishing could be more of a reason to delay announcing plans for their distribution model changes that the Fairfax announcement last week. If the split did occur then it would be a whole different company – the Australian newspapers could be in Australian ownership again.

Twitter has gone into meltdown on the news.

While a split would make sense given the quite different needs today of both businesses, Rupert Murdoch has often talked about the value of an integrated multi-platform media organisation.

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Newspapers

Game changing services attract customers

I am sitting on board QF94 flying from Los Angeles to Melbourne as I publish this blog post. I’m using the on air WiFi service being trialled by Qantas. It’s terrific. No, not because I am obsessive about being online but because I have spent most of the day today travelling and having internet access has helped be take care of a day’s worth of emails and therefore make life a bit easier when I land Wednesday morning.

The need to be connected grows every day, especially for those in business. Customers expect us to respond to tweets and Facebook comments.

An airline offering WiFi on board will get my patronage ahead of one which does not. It’s a bit like retail businesses. I have chosen coffee shops and cafes with free WiFi over those without the service.

Accessibility is key in business today – both outbound from premises where customers gather through to inbound where customers want / need to contact you.

Businesses, especially cafes and coffee shops, calling for shoppers to like them on Facebook and not offering free WiFi are less likely to be liked. The photo is from a store I saw in New York – their promotion of their Facebook presence is more visually prominent than their business logo. I’d expect them to offer WiFi when they open for business.

It makes me wonder what my ‘WiFi’ service could be, the thing I could do to get more shoppers choosing my business over other businesses selling what we sell.

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retail

US Postal Service does not hurt small business like Australia Post

I have been able to get into several US Postal Service outlets in New York today and none has the range of retail products there government owned Australia Post has in their corporate stores.

The US Postal service focuses on being, well, a postal service. They are not trading off their government protection and public service reputation to take revenue from independent retailers. Nice.

I took the photo in one USPS location on the Upper West Side of Manhattan. What you is is it. I think this is reasonable for a postal service to offer.

Corporate Australia Post outlets should get out of competing with independent retailers like newsagents. Successive governments have allowed them to harm newsagencies and other businesses … making a mockery of any claim of support for small business.

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Australia Post

Thinking about joining a newsagency marketing group?

Newsagents interested in considering joining a newsagency management/ marketing group might want to consider comping to one of the newsXpress one-day member meetings being held from next week. These sessions include practical business-building workshops including a discussion about managing for change. Let me know if you would like an invitation. Here are the dates:

  • Sydney – Tuesday 3rd July
  • Melbourne – Thursday 5th July
  • Brisbane – Tuesday 10th July
  • Perth–Thursday 12th July
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Newsagency management

Managing clearance lines in retail

Walking into an Office Depot store the other day here in the US I noticed this display facing the entrance … promotion the inventory items they have on clearance. The items are on the table and the board to the right lists each as well as how many they have left if they are running low. I like this display. It gives a sense of a deal. I expect it would help add these clearance items to shopping baskets – and that’s what you want, to clear out the clearance items.

While Office Depot was not the best stationery outlet I have seen this trip, there were some elements, like this clearance display, which I liked and have learnt from.

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retail

Promoting The Block magazine

We have positioned our display promoting The Block one-shot at the front of the newsagency, on the leas line – to attract shoppers from the mall into the business. We’re competing with other retailers here so getting out in a front of store position and chasing early business is vital.

The team creating the display has ensured the title has clear space either side so there is less competition for attention.

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magazines

Promoting frankie magazine

The team at one of my newsagencies has respected our regular commitment to prime position promotion of frankie magazine. The reward will be good sales for sure. frankie sells well for us, continuing to grow sales and attract a valuable demographic to our business.

In addition to this aisle end display (which we will move during the on-sale to another location), we are supporting the title in the usual location with a waterfall display.

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magazines

Apple store wages in the spotlight

The front page story in The New York Times today (Sunday here in New York) is about Apple and the wages paid to its retail employees. US$11.91 an hour is what Apple store employees get paid. That’s close to half what we pay retail employees in Australia. What makes the rate difference even more extraordinary is the difference in margin between what is sold in an Apple store and a newsagency.  The difference on weekends, taking into account penalty rates, is extraordinary.

Liberal and Labour politicians in Australia say we as a country need to be competitive on the world stage. To achieve that we need a competitive cost base.

No, I am not calling for wage rates equal to the poverty line wage rates of retail in the US (see the PBS report on Walmart pay rates), I am calling for, at the very least, a cut in what we call penalty rates when there is no penalty involved.

Read the Apple story, it’s fascinating what they get away with in the US.

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retail

Paywall for Fairfax and News titles overseas senseless

I am in the US and frustrated that paywalls block access to local news. I’m a luck in that I have my AFR.COM subscription and can read AFR content. But if I didn’t have my subscription I’d be blocked. The same with News sites:  The Australian is as if I was back in Australia – the paywall is blocking access beyond the introduction to a story.  The barrier is not causing me to sign up because I can turn to other outlets for a news catch up – Twitter being the main outlet. Sometimes a headline is all you need when you are on the road.

Erecting a paywall around a regional newspaper site blocking access from the other side of the world seems odd to me.

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Media disruption

Fairfax needs to address supply line issues

While I appreciate newsagents being promoted as the go to place to purchase The Age Good Cafe Guide, Fairfax should fix supply line gaps which see many newsagents without the title.

It is supply gaps like this which will encourage further distancing from the newsagency shingle and traditional suppliers.

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Newspapers

A newspaper masthead stuck on add to like

Check out the post it note type ad stuck on the front of The New York Times Sunday Review insert. What’s interesting about this is that they are promoting subscriptions deep inside the newspaper. I am guessing this is to connect with people who love the newspaper enough to get inside. I don’t mind the ad here. Okay it covers the masthead of the section – but you have already purchased the newspaper at this point.

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newspaper masthead desecration

Sunday marketing tip: turn your shop into a classroom

Theatre is important in retail if you want to separate your store from an online shopping experience. Retailers need to exploit ways to demonstrate the added value of the physical store shopping experience.

Having products on the shelves or racks is not enough. You have to bring these to life.

Beyond being able to touch and smell and item live, every retail store has opportunities to make the shopping experience more personal and physical.

Supermarkets do this all the time with food sampling and demonstrations. They have someone cooking product nearby where the product can be purchased. These in-store demonstrations are done because they work, the drive sales. The smell and the taste guide the senses to encourage the purchase.

You do not need to be selling food for an in-store demonstration to work. Here are some suggestions for other retailers on how they could use in-store demonstrations and other techniques to bring products alive:

Books: book readings, book clubs, author visits, performances from children’s books.

Fashion: Fashion show, a talk by a designer, a talk by a stylist, a dress making demonstration by an expert, a makeup demonstration to go with the clothing you sell, a hairdresser to show the importance of hair to go with what you sell.

Camping: A tent setup competition, tips from a local ranger for safe camping, stories from camping trips – a group discussion sharing ideas, a supplier presentation on new equipment.

Homewares: A dinner party in store showing how a range of dining homewares products look when you have guests over, a stylist speaking about how to style your home, a manufacturer presentation on a new line.

Card shop: A calligrapher to write beautifully on cards purchased in-store, a local writer to help customers with the right words for each card purchased, a card stylist to help shoppers find the perfect card for the occasion, a card maker presenting a talk on what goes into making a card.

Stationery business: Supplier presentations on the latest items for sale, a competition for customers based around clever use of a particular line of items you sell, a recycle class from an environmental expert on how to recycle used stationery items, a presentation on the different brands of printers you sell and how each suits a particular need.

Cosmetics shop: Host a fashion parade showing off how your cosmetics look with the right fashion, run cosmetics classes for different occasions – make up for work, evening wear and weekend fun times, have a manufacturer speak about what makes their products special.

Each of these ideas is about bringing interactivity to your store, going beyond static products on the shelves and bringing them alive. This separates your business from the mass merchants who will have fewer in-store displays and from online retailers as well.

Schedule interactive sessions. Plan them carefully, promote them and make sure that they are covering topics of interest to your shoppers. Ask your shoppers too if they have a presentation idea as they could be a welcome source of new in-store content.

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marketing tip

An independent perspective of Fairfax and News announcements

Bob Cronis, Group Editor in Chief of Western Australian Newspapers penned an interesting perspective of the events of this week at News and Fairfax and reflected on some of the commentary since. He also chimed in on the issue of engaged proprietors. I share the link here as man newsagents on the eastern seaboard would not get to read content from The West Australian.

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Media disruption

Customer service lives up to the message

I was privileged to have breakfast today at Jamms Restaurant in Las Vegas before heading off to look at a bunch of retail businesses.  I wanted to get the team I am here with to Jamms so people could experience the customer service I experienced earlier this year.

While the food at Jamms is delicious, it is the service experience which is truly memorable.

The sign on the table is a good indicator of their commitment to service. (Click on the image for a larger version.) Whereas other restaurants, and businesses including newsagencies, have signs telling shoppers what not to do, Jamms has a sign saying what they will do for you. And they do it.

Another sign they have says you will leave as a friend. It feels like that … without being forced. It truly is a wonderful customer service experience, inspirational.

While Jamms is off the beaten track, far away from where Las Vegas tourists usually get to, the visit is well worth it. It’s one of the best breakfast experiences you could have in the US.

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Customer loyalty

Organising our cards, learning what we sell

We do not use a merchandiser from our card company to put our cards our. each team member has been trained in how to do this and it’s a task which is done in quieter hours of the day.

There is a structured process followed from the moment the boxes carrying inventory is opened to when the cards are put out.

We check what we have received against the invoices and then carefully place the cards in the correct pockets.

I’ve written here previously about the process of receiving, checking and putting out cards. From when we brought this work in house we learnt more about the stock we sold, found occasional errors and became more engaged in the high-value card department.

I’d encourage all newsagents to do this. The more we touch and engage with the stock we sell the more we will sell.

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Greeting Cards

Hmm … How to publish your own eBOOK – in print

This is an odd title. How to publish your own eBOOK. In print! The best guides for e-book publishing I have seen have been, well, e-books … i.e. not print. But since I am not my customer we are promoting this new title here with our iPad titles as well as next to Smith Journal, The Monthly and Dumbo Feather.

I want to find more titles which connect with digital platforms (iPhone, iPad, Android and the like) and this new magbook does do that.

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magazines

Promoting the free novel with Better Homes and Gardens

We are promoting the latest issue of Better Homes and Gardens in multiple locations this weekend to make the most of the opportunity of the free Mills and Boon book which comes with this issue.

This is an excellent value promotion and an opportunity to pick up purchases by those who don’t purchase the magazine every month.

Click on the image to see a larger version of the photo showing our main display which faces shoppers as they entree the business. We also have a stack next to newspapers and a half waterfall in the usual location for the title – between food and home & living.

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magazines
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