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

Promoting Ita and The Australian Women’s Weekly

mags-awwsep2011.JPGWe are promoting the latest issue of The Australian Women’s Weekly with this main counter display.  We also have the new issue on our impulse unit facing into the mall as well as with our weeklies on the dance floor and in the usual location for the title.

The Ita Buttrose cover is a test as it is a connection with the old AWW yet the story itself is a connection with the new newsier AWW. It will be interesting to see how this issue goes.

We are running with various placements in store as each attracts its own shoppers.  We want to make sure that we give the title as much support as possible to find the maximum sales.

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magazines

James Bond cars again?

mags-jamesbond.JPGI am surprised at the re launch of the James Bond car Collection.   It makes me feel like we are in a time warp with this re issue and the recent re issue of The Art of Knitting.  It does feel like a bit of a cash grab.

Oh well, we are participating by placing part 1 in a good location.  It will need to generate good sales by Monday as that is when we will relegate it because of other pressing demands on this premium space as we start to fill for Christmas.

In this retail climate more than ever magazine distributors have an obligation to allocate with care.

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magazines

News Magazines cuts deals for Vogue and Vogue Living

voguedeal.jpgIt seems that News Magazines likes livingsocial for selling its magazines – hot on the heals of their promotion of MasterChef magazine is $39 a year deals for Vogue and Vogue Living.

Is this hot pursuit of subscription deals by News Magazines related to other events, such as the closure of Borders?

Do subscriptions signed up for through livingsocial count as sales, even if the coupons which are purchased are not fulfilled?

While I understand that subscriptions play a role in the magazine supply model, I am frustrated to see deals like this being promoted so widely without any deal being put to newsagents to enable us to be competitive. We work hard at building brand awareness and it is this work which, in part at least, enables publishers to promote subscription deals.

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magazines

Stationery sales up 35%

Our stationery sales were up 35% in August compared to the figures for 2010. We are thrilled with this result as it vindicates greater attention to the category in our buying and customer service. Pens, everyday and fine writing, journals and paper are the key drivers of the growth. Stationery growth is also helped by our 61% increase in ink sales. This department (and it is a department for us separated from Stationery) continues to power forward.

While there are many people reporting doom and gloom for retail at present, we are loving the opportunities of this marketplace … by constantly changing our range. Embracing change is helping us have a good time and enjoy sales.

Newsagents who do the same thing over and over with stationery will most likely get the same (or worse) results.

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Newsagency opportunities

Flashing badges a great counter line

flashingbadges.JPGThese simple flashing badges have been selling like hot cakes at one of my newsagencies. We’ve had them for a month now and I am surprised at how well they have gone in such a short time. It is terrific seeing a shopper add a badge to a greeting card purchase.

The $6.99 addition to the basket not only drives margin dollars from the sale, it also drives the overall average GP achieved by the business.

With so much of what we sell having a margin of 25% or less, it is important to drive sales of items which are above (well above) this.

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Opportunistic retail

Promoting delicious magazine

mags-delicious-oct11.JPGWe are promoting the latest issue of delicious magazine with a prime seat placement in with our food titles.  We also have a pocket located with our food title co-location display in the impulse area of our store – from where we sell more than 25% of our food titles.  delicious is under the pump with the launch of Feast and the increased activity from other food related titles in newsagencies.  These challenges aside, the cover shot of the current issue looks, well, delicious.

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magazines

Newsagency marketing on TV

newsXpress is the only newsagency marketing group with a full year TV advertising commitment.  The national TV ads started last month.  Ads are changed monthly, reflecting seasonal opportunities, special deals and other newsXpress specific opportunities.  They are as much about brand awareness as they are a call to action.

Here is the latest newsXpress TVC.

While I am a newsXpress Director and therefore conflicted, that newsXpress newsagencies are being promoted relentlessly and nationally on TV, 4,200+ spots over the next year, is good for newsXpress, its suppliers and the broader newsagency channel.

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newsagency marketing

Angry Birds sell out

It only took a few weeks but the range of Angry Birds products we brought in last month has sold through.  It’s been a terrific success, bringing in new shoppers.  A brilliant range we are sure to carry again.

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Gifts

Express Publications seeks to appease newsagents

Responding to newsagent concerns about magazine related cash flow, Express Publications yesterday announced to the newsagency channel that from September 7, 2011 their titles will have four weeks on-sale and be distributed in the first half of the month where possible.

This is a significant move by Express, one I am sure newsagents will welcome.  I am pleased they have made the move but am frustrated that it has taken so long.

The other issues for Express Publications to address are the cost to newsagents of returning unsold copies of magazines and the bagging of magazines.  These two issues are connected since bagged magazines are heavier and this increases the freight costs newsagents bear in returning unsold stock.

Publishers who want a healthy and engaged newsagency channel will address these issues.  We only make money from sales.  Everything else is an overhead – hence our desire to rein them in.

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magazine distribution

Herald Sun newspaper covers front page news headline

sunsep30.JPGJust like the Courier Mail, the Herald Sun has an ad stuck on the front page, covering part of the main news story of the day.

This ad placement, covering news, shows how News Limited treats news when there is a buck to be made from advertising.

Some customers were angry yesterday, directing it at Woolworths – I guess because it is so easy to be angry at rich supermarkets … they are a bit like banks like that.

While the Herald Sun placement is not as insensitive as the placement by the Courier Mail, it is bad enough, covering the main headline of the day.

For many years News Limited was (maybe is in some places) aggressive toward newsagents about placement of their newspapers, saying that the front page was vital to driving sales.  Now that they appear happy to compromise their lead news story of the day I guess their opinion about what drives sales has changed.

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Newsagency challenges

The obligatory street directory promotion for Father’s Day

fathers-melways.JPGWhile satellite navigation devices are ubiquitous, there is still a marketplace for street directories, especially at this time of the year as Father’s Day gifts. The team at one of my stores has put together this excellent display promoting the Melways Street Directory.

While sales of printed street directories are not what they were a few years ago, they do warrant promotion – there is a noticeable sales lift as a result of the attention we give the product. Also, there appears to be fewer retailers stocking street directories now so the competition on price is less.

We are not promoting any special deals, just promoting the product to leverage seasonal interest around Father’s Day.

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Gifts

Promoting 30 Days of Fashion

mags-30days.JPGWe are promoting the 30 Days of Fashion campaign by ACP Magazines with this high profile aisle-end display facing out into the shopping mall.

I like the display as it promotes the overall campaign while also giving appropriate attention t the titles we want to sell under the banner of the overall event.

We have a number of promotions planned to support the 30 days event beyond this display.

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magazines

Art of Knitting not so good

mags-artknit.JPGThe second time around for Art of Knitting part series does not appear to be going as well as expected if the sales data I have seen plays out for the newsagency channel. Our sales have been nowhere near what we expected and not a patch on the sales we achieved when this partwork first hit Australian shores.

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magazines

Courier Mail newspaper covers Daniel Morcombe front page story

coriermail-shame.jpgInsensitive.  Appalling.  Disgraceful.  Greedy.  Shocking.  These are just some of the words one could use to describe the ad for Woolworths stuck over a page one story about Daniel Morcombe in today’s Courier Mail newspaper.

What does it say about News Limited that it would rather take the money of a giant supermarket chain than give this heartbreaking story respectful coverage.   Oh, there will be excuses and explanations.  The fact of the ad stuck over the story is there for all to see.

News Limited ought to be ashamed of selling out to Woolworths and covering up this story.  The company should apologise.

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Ethics

Queensland newsagents face 100% increase in insurance premiums

Queensland newsagents have been shocked by the insurance premiums being charged for the next year.  Many have premiums which expire next month, organised through a QNF endorsed insurance broker.

If what I am told is right, a change of ownership of the broker has played a role in newsagents being hit with a 100% rate rise.  I expect that newsagents will flee the broker if this exorbitant rate rise sticks.

I don’t see any justification for a doubling of insurance fees, including the floods at the start of this year.  Insurance companies build reserves for such events so that they do not double rates the year after such an event.

I’d be interested in hearing what newsagents are being charge for insurance – I am sure others would too.

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Ethics

Good start to 2011 calendar sales

caln-bartel.JPGOur Bartel 2012 range is selling well. This is the first start of our broader calendar offer which will hit the shop floor over the next few weeks.

Getting in early with good margin calendars is important in establishing your position in the category.

We will not discount calendars until January 1, 2012. I can’t think of any reason for newsagents to discount calendars before then.

This year many newsagents have a better opportunity with calendars following the collapse of REDGroup retail and their calendar Club operations. While I understand that Calendar Club will emerge, my understanding is that it will not be in as many location as in the past.

The collapse of Cardeaux will also help calendar sales in newsagencies, especially at this early stage as they were notorious for discounting from the start of the season.

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Calendars

Australian Travellersupport drives results

austav.jpgI’ve been a strong supporter of Australian Traveller magazine here over the last year. This has been vindicated with the latest audit result. Sales for the magazine were up 17.93%. This is a terrific result. It demonstrates to newsagents that their support for the title can drive sales … an increase in sales means we get to bank more margin dollars.

I am seeing growth in sales for Australian Traveller by placing the title with women’s magazines and not in the travel section.  This placement with weeklies is what the publisher recommends.

The latest audit result should be enough to get more newsagents behind this title.

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magazines

New Hallmark Recordable Storybook ad

Check out the latest (adorable) advertisement for the Hallmark Recordable Storybook range. This ad features new titles just added to this popular interactive range of gift books.

It is so much easier selling products which are promoted on TV, especially products backed by an international brand such as Hallmark.

These Hallmark Recordable Storybooks have been a hit, opening up a whole new marketplace for us. Customers love them.

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Greeting Cards

Supporting Maxim magazine

mags-maxim.JPGWe are supporting the second local issue of Maxim magazine with this half waterfall display in-location. With the first issue selling out for us we are keen to grow that initial interest even further. The market to which Maxim appeals is important to us, it’s why I want to be sure we cultivate it – with this type of support in our magazine department.

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magazines

Promoting Take 5 and Symply Too Good

t5-sym.JPGWe have been supporting the free Weight Loss journal from Annette Sym which is on the cover of Take 5 with a prime location placement and to support the sale of her cookbooks.  Once this feature ends tomorrow we will be promoting the Symply Too Good books with our weeklies as well as with food titles.

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magazines

ACCC agrees to collective bargaining for newsagents with NSW Lotteries

The ACCC today issued a draft decision proposing to allow NANA, the Newsagents Association of NSW and ACT, to collectively bargain with NSW Lotteries on behalf of member newsagents for the next five years.

While this is a good move for NANA and NANA / ANF members, the biggest challenge lottery agents face is the migration of shoppers online.  The best way we can counter this is through the experience we offer in our shops every day, with every transaction.

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Lotteries

Newsagent injures arm delivering overweight newspapers

A newsagent has injured his left arm delivering heavy Sunday Telegraph newspapers. With time off work, physiotherapy and other expenses associated with this workplace injury, the cost will be considerable.

With the Sunday Telegraph and other newspapers often weighing more than that recommended in the ANF commissioned Nery report of 2006, there is a question for News Limited to answer about the occupational health and safety challenges they present with their overweight newspapers.

Newsagents can’t split the Sunday Telegraph into two pieces. News is not paying for two deliveries anyway.

Newsagents are an agent for News, operating as a contractor under the control of News. News sets the price, terms, conditions and controls the weight of the product.

While I am no lawyer, I’d expect News to have some, if not full, responsibility for the OH&S situation where its products are concerned.

I’d be interested to hear if other newsagents or newsagency employees have sustained injuries delivering heavy newspapers.

Click here to read what I have written over the years about the Nery report and overweight newspapers.

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Newsagency challenges

How can newsagents cut costs?

The media section of The Australian this morning carries a report about a drive within News Limited to cut costs by 5%.  While this is a story abour News Limited and its costs, there are two levels on which newsagents could consider this story:

  1. Newspaper distribution is a considerable cost for the company.  How much will there be an expectation that they can find cost savings in the distribution model?  Based on their research of the distribution model I’d expect them to be targeting significant savings through the forthcoming distribution changes.
  2. The second issue is one about our own costs.  When was the last time you reviewed your operating costs?  When was the last time you acted on reducing your costs? For many newsagents the answers would be never and never. From insurance to rent to labour we need to look at our costs and operate as lean as practical.  Don’t make excuses.

Imagine the impact on your bottom line if you were successful at cutting costs by 5%.  Every cent saved would hit your bottom line and benefit you this year and when you come to sell.

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Newsagency challenges

South Australian newsagents upbeat despite News Limited

South Australian newsagents I spoke with at the Ancol Trade Expo in Adelaide yesterday were upbeat about business despite the uncertainty surrounding newspaper distribution caused y the News Limited ‘study’ into the future model of newspaper distribution.

Many newsagents now realise that they need not wait for news to decide since they can make decisions themselves about the future direction of their own businesses. It was good to hear of the proactive plans of some newsagents. It was also good to hear people ‘owning’ their future by embracing change before change hunts them down.

My only criticism of the day is that I would have liked to see magazine publishers and distributors represented.

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Newsagency challenges

Feast achieves 50% sell through

feastmagazine.JPGWe have passed sales of 50% of our initial supply of the launch issue of Feast magazine and there is no indication that sales will end. I think that sales of this magazine will occur right through the on-sale – that is certainly what we are seeing with the launch issue. This is another reason for not early returning, especially with the launch issue.

On the numbers we have done, Feast is in our top food titles this month – well done Pacific Magazines and SBS..

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magazines
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