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Promoting Australian Traveller magazine

We are promoting the latest issue of Australian Traveller magazine with this simple but high traffic location display in one of my newsagencies.

Australian Traveller is a relatively small Australian title delivering nice sales growth.  I urge newsagents to check out how they are supporting the title?   Give it a good spot – it’s a title customers love once they find it.

This is not a title to early return.

Place it next to newspapers (like we have this week) or with women’s weekly titles. It needs more eyeballs than the travel section gets. Women purchase more vacation travel than men so putting it with New Idea and Woman’s Day makes sense.

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magazines

No marketing collateral for Donna Hay magazine!

I like the look of the latest issue of Donna Hay magazine and would like to support it with a high-profile display.  Unfortunately the publisher has not sent us any collateral.  This is frustrating.  The easy answer is call and get some more.  With some publishers that is more challenging than others.  So, we’re making our own to provide at least some in-store support for the title.

What I like about the cover is the visual cut through, the clear colours make it stand out.  As someone with no design skills I’d not that using fewer colours on a cover helps it get seen more easily in the magazine department.

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magazines

How to do a magazine relay in your newsagency business

First up I should note that there is no right way to do a magazine relay. What I am publishing here is my opinion. It’s worked for me in several of my newsagencies. It may not work for all.

Next I need to say that this is not an end game. The relay you do will not be your last. A good magazine department is like a field in a farm – It needs tending and each a year it needs replanting. (Sorry to the farmers if my analogy is off.)

Finally I would acknowledge that I obsess about magazines. (You should too.) Some might say I am obsessive compulsive. Magazines, or rather the range of magazines we have, represent the single most important point of difference we have over any other retailer in Australia. For the medium term – maybe three years out – we can leverage that for traffic and sales growth.

Okay, that said, on to the relay…

PLANNING

Before doing anything think about your customers and how they shop.  Watch them, where in the magazine department they head first, where they congregate and how they interact with what you sell.

While you do this over a few days, print off a report looking at your magazine sales, preferably by MPA category – comparing that last three months with the same three months a year earlier.

Look at the percentage of sales delivered by each category and look at sales trends for the categories.  Tote up broad groups. For example the percentage of sales for women’s weeklies, women’s interests, crafts & hobbies, crosswords, home & lifestyle and food & wine.  If your newsagency is like mike, this grouping will account for more than 50% of your magazine sales.

If you then add up motoring, men’s lifestyle, sports & leisure, music & entertainment (possibly) and buying & selling and you have your men’s titles – probably around 30% of sales.

Think about the data you have collected and what you have observed in the business.  Talk about this with your staff. Discuss ideas for better placement of magazines.

WHAT TO CONSIDER IN A MAGAZINE RELAY

The goal of the relay has to be an increase in sales. It’s business after all. The  easiest way to drive sales is to give shoppers what they want and to make it easy for them to find, interact with and purchase what they want.

Forget everything about your current magazine layout. Yu really need to start with a clean slate.

Think about what people are likely to purchase with other titles.  This often leads to debate. Go into this knowing that what you think people buy with other titles is often not reflected in your sales data.

I like to create zones which reflect the genders and interests.  I start by creating a women’s shopping zone, an or a location aisle they own, where they are comfortable.  This is in the best position in the magazine department, easy to access, easy to shop.

Thinking about the magazine department in terms of zones makes approaching the relay easier I have found.

I see the women’s zone as having women’s weeklies, women’s interests, home & lifestyle, crafts & hobbies (not all hobbies but certainly cross-stich, card making, knitting etc), gardening, crosswords, bridal, hair, pregnancy and women’s health and fitness.  Now this depends on the space you have available.

The men’s zone has the men’s title categories noted above.

You also need a zone for tech titles for computer, gadget and gamer magazines.  This should be next to a zone for photography titles.

I tend to prefer to see the ACP cookbooks in a zone of their own where you can show off the range and appropriately support new titles which come out monthly.

I try and find a separate location for current affairs, business and allied titles. This often is next to hobbies like railway or air titles.

There is bound to be internal debate for you or external debate with others about what you put into your zones. Don’t worry too much since this is not an end game and it would not take long to make changes as you go.

NOW, THE MAGAZINE RELAY

My preference is to do this alone as it allows me to make changes as I go based on what I see.

Take every magazine off the shelves. That’s right. If you are going to do this you have to commit and taking every magazine off the shelves is a commitment.  Also, take down all magazine posters.

Clean the shelves. What an opportunity.

Now start building the women’s zone. From the busiest section in.  If it is an aisle, start with women’s weeklies on one side and fashion (marie claire, Cleo, Cosmo, Vogue) on the other.  But concentrate on one side first, the weeklies.  Respect your top sellers, give New Idea, Women’s Day, Famous, NW, Who, OK!, That’s Life and Take 5 prime position. Keep a pocket for TV Week. Use between three and five pockets for some Lovatts crossword titles.

Next to the weeklies I’d then place, in order, a waterfall of Australian Women’s Weekly, British women’s magazines (yes, all of them), country living titles, Better Homes and Gardens in a waterfall, home and living titles, food, wedding with a waterfall of the major title currently in and hair.  For me that sees out one side of the aisle.  This is where you need to think it through in terms of the space you have.

On the opposite side, directly across from and facing women’s weeklies, I have fashion young, fashion older and I end this with a waterfall of Frankie.  Next is women’s health starting with younger target titles and blending to older ones. Next is pregnancy and baby followed by crosswords. This usually rounds out that side.

This is my women’s aisle.

You can see that I am using key titles as borders and features at the same time.

I look for one space on each side for an in-location display, where I take between four and six pockets for a poster supporting a title.  This can help ease the visual conflict of a mass of titles and drive incremental business for a good title to boot.

I hope that people understand my approach.  What I do in women’s is the same for the other zones I create.  I do each zone separately and try and get into the head space of the shopper of the zone – using the most popular titles to act as beacons, or signposts, for the zone.

I also take note of covers and give really good covers, eye catching covers, time in the spotlight.

I am careful what I place next to top selling titles. This is a prime spot, next to the popular titles. Choose wisely. Choose titles that naturally fit next to the big titles, titles shoppers are likely to browse and purchase on impulse.

If I am not sure about where to put a title I put it aside and move on.

I take extra time with special interest and hobby titles.  For example, I put railways and model railroad titles near each other but I am careful to ensure that they are separated as they appeal to two shoppers and only occasionally do you see titles from both segments in the same basket.

Within the zones I look for and respect specialisation. For example, within men’s lifestyle and sports I create a clean space for the quality serious fitness titles like Coach, Men’s Health and Men’s Fitness.  I am sure to separate these from Maxim and some other the other similar titles which can be in this section.

While I could go on and list all titles adjacencies I run with, I hope that the explanation above is sufficient to set you off on what is right for your business.

By the end of a relay you will be exhausted but in a good way.  You will have something new and fresh for your customers to explore, something you created for yourself and your business. Something of which you can be proud. What you have will be your IP, your magazine specialist knowledge encoded in your magazine department.  Your point of difference will be on show … how good is that?!

REVIEW, FEEDBACK, FOLLOW UP

You’re not done when you think you are done. Track your sales, listen to your team and your customers. Tweak where you feel it is necessary.

Bring new issues to the fore. Continue to be engaged in how your magazine department looks.

I did my last complete relay in one of my newsagencies in September and have moved three zones since then. Every week I spend considerable time in the magazine department, looking for opportunities with which I can reflect our point of difference better.

Continue to look at your sales data.  If there is no lift them be open to having made choices which are not right for your business. Be prepared to do it all again.

FINAL WORDS

Doing a magazine relay can be like doing one of those kid’s puzzles – you move them around and around until you have the completed image. That image can look and feel like a work of art once you are done.

I can’t stress enough the importance and value of a magazine relay to your business and you personally. This is you placing your stamp on the business.  It is you breaking free from being a conveyer belt newsagent. It is you taking ownership of your business.

If you have made it this far, thanks for reading.  Magazines really are a point of difference which we need to work harder at embracing – despite the challenges of the distribution system.

I’d be happy to answer questions or discuss magazine relays with anyone: mark@towersystems.com.au or 0418 321 338.

Over to you…

Click here to download this blog post as a document.

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Promoting Take 5 magazine

The creative team at one of my newsagencies gas setup this terrific display at the counter to promote the latest issue of Take 5 magazine and their lottery offer of five free games.  Placement at the counter where we sell lottery tickets makes sense.  We also have Take 5 located in its usual position so as to not lose traditional shoppers.

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magazines

WTF The Monthly?

I’m in Perth at the Virgin Australia lounge and they have a couple of stacks of the latest issue of The Monthly here for the taking.  Okay I get it that they want to attract new readers and therefore don’t begrudge them offering it for free here.  What irks me is that here in Perth they are giving away the latest issue while newsagencies back east are yet to receive this issue.

Publishers should give retailers like newsagents priority. We sell their product after all. No excuses!

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magazine distribution

A TO DO list for newsagents from the sales benchmark study

With each newsagency sales benchmark study I try and provide a TO DO list for newsagents based on learnings from the data.

Here is the TO DO LIST for newsagents based on the data I have been immersed in as a result of the latest study:

  1. Do a full magazine relay. Every magazine off and rebuild your placement from the ground up. No excuses. I have done it. Sales will increase as a result. Call me if you need advice on this.  (I will have more on this tomorrow).
  2. De clutter. Have products in one location and not many. Make the statement you make at each high traffic location obvious and strong.
  3. Get into gifts.
  4. Look at your external marketing campaign. Your competitors are spending between 2% and 5% of sales to drive traffic.
  5. Look at how much you allocate to time on the shop floor. This is where incremental growth comes from.
  6. Refresh stationery and get serious about promoting this department.
  7. Ask your card company for another performance review.
  8. Look carefully at your basket building strategies and ensure that you are making the most of foot traffic.

The most important competitor a newsagent has is themselves. This is why regular comparison against past performance is vital to the success of the business.

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Refreshing our approach to music magazines

Over this past weekend we created this simple co-location display of key music magazines. The display is is located opposite our newspapers and will see more foot traffic than where music magazines are located.

While music magazine sales are good, up on last year, we want to drive an even greater increase.  Hence the positioning of them in this high traffic location for the next couple of weeks.

We are also taking the opportunity to look at what other titles are available to us to expand the range. We are better placed to do this than a magazine distributor deciding for us what new titles we could sell.

While we gave music magazines good positioning in our magazine relay in September, I am not happy with where they are and am keen to find a better location. As always, space is the challenge.

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Promoting diabetic magazine titles

I’d encourage newsagents to check where they have The Australian Women’s Weekly cookbook – cooking for diabetes.  We have been enjoying success with this title placed with the excellent Diabetic Living title in our health section.   While cooking with diabetes does sell from our ACP cookbook display, it is this placement with health titles and, in particular, Diabetic Living, which works a treat.

This is an example of why newsagents need to engage in magazine placement themselves.  Being attentive to tactical placement will result in a sales increase.  Also, this type of placement enables us to play beyond what our competitors in supermarkets do.

 

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Governments should stop pandering to car makers and their employees

I was disappointed to see media coverage in the last few days from union representatives and others calling for more government support for auto manufacturers so that Australian can keep General Motors, Toyota and Ford producing cars here.

While I understand the interest in supporting the manufacturing sector and thereby keeping jobs, government assistance provides false economy, it protects the businesses and those who work in them from reality. This, in my view, makes them less competitive.

I don’t see the long term value in government assistance packages, especially when governments do it for one sector but not another.

Imagine the boost to the economy if every dollar of government assistance was spent on building needed infrastructure or providing for needed and underfunded government resources such as health and education.  Surely this more practical investment would be more valuable than protecting uncompetitive industries.

Newsagency businesses live or die by the decisions of those who own and work in the businesses. There is no safety net, no parachute, not since 1999 when the federal government deregulated the distribution of newspapers and magazines.  Many newsagents are still digesting the ramifications of the deregulation. This has been made more challenging by the lack of government support.

The auto makers say that they can’t compete with China and India.  Hmm, our print products are challenged competing with digital yet there is no support or assistance package.

My point is that governments or all colours support some industries and not others.  I think this is wrong.

We all need to be accountable for our situation. Tough as it is, dealing with what we face relying only on ourselves will make those who do make it stronger, more competitive and more valuable to the Australian economy.

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Newsagency challenges

Nice back to work sales

While Back to School is the season many retailers focus on in January, the Back to Work season is equally valuable.  This time of the year we have seen a surge in general stationery sales and boxed pen sales plus second surge in diary sales.  Since it’s not a high profile season we are able to run it with healthy margins since it’s more about convenient shopping than getting a great deal … as long as the prices are reasonable.

Indeed, Back to Work is an ideal reason / excuse for newsagents to reach out to businesses in their areas and offer a Back to Work stationery supplies top up. A perfect opportunity to pitch the convenience of supply without having to place an order or even unpack the goods.  And, who knows, you could sell some magazines for the lunch room or reception area.

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Stationery

Promoting How to set up an online business

We are promoting the How to set up an online business magbook in our business section. It’s an impressive looking title which is on sale at an ideal time.  This is an opportunity to show our relevance to the growth in online retail and to reach beyond what I think our shoppers expect to see in a magazine department.  We’ll also give this title a run next to newspapers as it’s not something people will visit looking for.

Magbooks are much bigger in the UK than Australia. I expect to see more come through this year.

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magazines

Connecting with the Wiggles controversy

We are opportunistically promoting the current issue of The Wiggles magazine with the now sacked Wiggle on the cover.  I’m hoping it could be a bit of a collectors item. It should be given the considerable controversy over the last couple of weeks following the sacking and the pro handling of it by the Wiggles organisation. So, we have the magazine in a good location with the full cover on show.

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magazines

Have you been rejected on a returns claim?

I have spoken to a couple of newsagents in the last week about returns credits which were refused with the distributor saying they did not receive the stock.  I’m posting this today to invite comments from newsagents who have had returns credits refused for this reason. If this has happened to you please share your story.

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magazine distribution

Selling IdN magazine

We’re very happy with the performance of IdN magazine. By giving it better positioning, so the full cover is easily seen, we are achieving better sales and attracting more shoppers interested in design.

This is one of those niches in which newsagents can shine, a niche which is important to medium term magazine sales. You won’t see this title in c-store, supermarkets or other outlets. It’s a perfect newsagency title, an opportunity to show off our magazine specialist credentials.

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Ripper Girlfriend magazine sales

The latest issue go Girlfriend magazine has been selling its socks and we’re chasing extra stock to make the most of the opportunity.  The free nail foils and the terrific display are working a treat.

What is helping drive sales is the social media campaign being run by the publisher Pacific Magazines.  The Girlfriend magazine Facebook page has promoted newsagencies as the go to retailers for this issue.

If newsagents don’t have this issue out and in the spotlight then I’d suggest you give it a crack.

I always check sales for titles we promote as it’s important for these displays to produce a commercially valuable result.  Too often newsagents leave the displays to others and don’t check or care about how this valuable retail real-estate is performing for the business.

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Promoting magazine value packs

While I am not a fan of the discount packs of current issues of magazines, we are giving them a go in high traffic locations to see if they do deliver the incremental growth which I am told happens in supermarkets and transit outlets.  We have a couple of these packs this week from ACP and so we have placed them on the basket builder stand at the front of the newsagency, with the non-discounted version of each title.

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Promoting Burke’s Backyard

We are promoting the latest issue of Burke’s Backyard magazine with this aisle end display.

The display has been up over the weekend and as you;d expect we achieved some nice sales from this location as well as the usual location for the title.

What’s interesting is that the display is in the men’s section of the store, towards the rear.  We’re pleased that it working here as well as if it were facing into the front of the newsagency.  It just goes to show that being in the front of the newsagency is not always essential.

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Latest newsagency sales benchmark study results released

Yesterday I provided the results of the latest newsagency sales benchmark report to participating newsagents.

Overall, newsagents had a good end to 2011.  The year ended with better numbers over 2010 and 2010 ended over 2009.

I am concerned about the difference between newsagencies.  There is no doubt in my mind that the strong are getting stronger. They are achieving growth from specialisation and diversification. This is evident in the sales data.

Even the data itself speaks to the difference between businesses. Newsagencies with well-managed data perform better. I can assess attention to data management in department and category structure and in whether every item sold in the newsagency is being scanned.  This is why I am able to say that newsagents who are better at managing data will have more successful businesses.

What is interesting about this is that newsagents have complete control over how data is managed in their businesses.

Here are the newsagency sales benchmark highlight results for type of newsagency:

  1. Increase in basket depth. What is particularly evident is the increase in basket depth among more newsagents.  In short, more newsagents are selling more in each sale.  This is vital to our success as retailers. Not enough though, less than half the newsagencies in the study achieved this – at least this is up from just a third a year earlier.
  2. City versus country. It was harder to separate the results here compared to the last study where country newsagencies clearly performed better.  The data indicates to me that city newsagencies ended the year stronger than their country counterparts.  There difference was not as obvious.  That said, bigger country newsagencies performed better than smaller.
  3. Shopping centre versus high street. Except for a few of the larger high street newsagencies, shopping centre businesses performed better, more of them were in the grouping with better sales results compared to the year earlier.
  4. Rural. I looked at the data I had from a group of rural main street newsagencies. They did okay. Some growth, some increased sales efficiency – getting existing shoppers to purchase more. The challenge here appears to be driving more traffic.

Now let’s look at the results by key departments.  Note that for some departments I use unit sales and others I use dollar revenue:

  1. Magazines. 26% of newsagents in the study reported unit sales growth with an average growth of 3%.  Of the newsagents reporting unit sales decline, the decline was 7%. NOTE: I have not included data for newsagencies reporting extreme results as this would skew the results. For example, sales in one of my newsagencies are up 45%. This is primarily due to a complete magazine relay, considerable external marketing and store specific opportunities.  Rural and regional newsagencies were more likely to report a decline than a city based newsagency.  At the MPA category level, women’s weeklies, motoring titles and sports titles were the most challenged, reporting higher declines.  Food, crafts, crosswords and special interests continue to be the stand out categories, recording growth.
  2. Greeting cards. 57% of newsagents reported revenue growth.  The average growth from this pool was 3%.  Of those reporting decline, the average decline was 4%.
  3. Stationery. 60% of newsagents reported growth in stationery revenue in a major turnaround from the previous study.  The average growth was 3%.  The average decline in revenue for stores experiencing decline was 6%.
  4. Ink. 46% of stores participating in the study separate ink sales data allowing further analysis.  62% of stores reported ink revenue growth with 5% the average increase.  Of those reporting decline, the average decline was 3%.  Ink continues to be an important product category given the habit nature of the product. Win an ink customer on price and or service and you have them for life.
  5. Gifts. 52% of the stores in this study have a gift department.  70% of these reported an average sales increase of 8% in gift revenue.  Of those reporting a decline the average was 6% which is a concern.  The big concern in the gift data is that almost half newsagents do not have a permanent gift department. This is dreadful. A newsagency is a natural fit for gift sales. This is an easy department to move into, one over which you have pricing, ranging and other control. It is a department through which a retailer can shine.
  6. Newspapers. 40% of newsagents reported an increase in newspaper sales.  The average increase was 2%.  Of those reporting a decline, the average decline was 8%.

Here are some other stats from the assessment of the data provided:

  1. Average basket size. There are 1.63 items in the average newsagency basket not including lottery products. This is significantly up on the recent average.  More than 50% of newsagents experienced an increase in basket size.
  2. Customers served. 54% of newsagents experienced an increase in customers presenting at the sales counter. The average increase was 3% – not considerable but welcome nevertheless.

In the last study it was capital city shopping centre newsagencies which were most challenged.  In this study they are the ones enjoying the best results. This speaks to the fickle nature of shopping centre sales performance.  While am no economist it could be that they are the first to experience trends.

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Newsagency benchmark

Gotch cuts supply of Delicious magazine

For no apparent reason, the magazine experts at Gordon and Gotch have cut our supply of Delicious magazine.  We have sold out, as they would expect. We have ordered extra stock to satisfy demand for this excellent magazine.

For magazine experts the circulation people at Gordon and Gotch sure make planty of mistakes. This cut in supply of Delicious magazine is unwarranted when considering our sales data.  This situation is frustrating. It provides another example of how newsagents are treated poorly in some supply decisions by magazine distributors.

While the folks at Gotch will undoubtedly have their excuses, given the volume of stock they received from the publisher and the certain returns from supermarkets, there is no reason they could have supplied me at a level so as I could achieve my sales potential.

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Promoting ACP cookbooks in the newsagency with a personal recommendation

Here is another example of how our team is embracing the personally recommendation of magazine titles. One of our team members loves the ACP cookbook so that she wanted to tell our customers. From a business perspective we don’t control these personal recommendations – otherwise they would not be personal.

Read the endorsement and see for yourself how personal this is. It’s another example of the personal connection with what we sell can separate us from other outlets which sell what we sell. While supermarkets get these cookbooks, they get them weeks after us. Plus, I doubt they would let their team members engage in this type of personal endorsement … they’d probably want to charge the supplier for it.

We need to find more ways to separate the shopping experience in our businesses from those of competitors, including other newsagents. This is a survival of the fittest marketplace and even the smallest touch which separates your business, on a good way, is vital for a bright future.

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News Limited hurts newsagent sales with free newspapers

Shoppers yesterday at Bunnings in NSW were offered a free Daily Telegraph newspaper.  While I cannot be sure, based on the nature of the promotion and the photo I was sent I’d expect it was run widely in the state.

Every time someone sees the Daily Telegraph available for free it dilutes the value of the product and educates them to expect to not have to pay for the newspaper in the future.

While giving away newspapers usually paid for may make sense to the short and long term business goals of News Limited, free newspapers are nothing but trouble for newsagents. They harm a product which still is core to our identity.

Why News Limited?  What’s the plan?  While I think I know, it would be good for the company to share with newsagents their plan so that newsagents can plan themselves.

While even the paid for Daily Telegraph is only a dollar and has been for 14 years or more, is is still something people pay to access. Every time it is available free is a step closer to a purely free model.

News will have the excuse that this is a campaign paid for by Bunnings. While that may be so, there appear to be more free campaigns paid for by one party or another: gyms, sporting events, the races, music events and retailer situations.

If it were me I’d respect my product more.

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Newsagency challenges

Apple chasing card sales

Like I am sure every other registered Apple customer I received an email this week from Apple promoting their custom Cards app.  The pitch was simple, as Apple pitchers always are. It made a compelling case for using Apple to share a greeting or feeling next time…

The Cards app from Apple makes it easy to create and mail beautifully crafted cards personalised with your own text and photos — straight from your iPhone or iPod touch. Download it free from the App Store today.

So all you need is an image, the app and someone to send the card to. Apple does the work for you including posting the card. It’s a long way from then traditional greeting card. I wonder if this is the card for the mobile and connected generation.

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Greeting Cards

Finding a home for Time Out magazine

We have struggled to find the right place in our newsagency for Time Out Melbourne. We’re out in a suburban shopping centre and don;t have commuter traffic. Also, our shoppers are usually women, 35 and older, not your typical Time Out reader. We have the title with music magazines and with teen to twenty girls magazines.  But that felt wrong.  So, yesterday at around 5pm I moved it to next to the newspapers. True story – within five minutes a young guy purchased a copy.  I told him we were struggling with where we should put it. He was certain – Time Out should be with the newspapers, it’s where he looks for it in newsagencies. So that’s where we will place it for the first few days of the on-sale. Given the demand for this premium space we will either then move it somewhere else or find a way to create a display opportunity so that it can be permanently with newspapers.

It’s amazing what you learn when you seek advice from a customer.

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