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

Why is the federal government funding Job Saver in NSW yet no similar program in ACT or Victoria?

From mid July in NSW, through the state government, the federal government has half funded Job Saver. This is essentially a re-branded version of Job Keeper, made for NSW, but no other state or territory, apparently.

Given extend lockdowns in the ACT and Victoria, it does not make sense to me that the federal government would not put in place similar arrangements.

Here is the announcement about the NSW program from the federal treasurer’s page:

Small and medium business support payments

From week four of the lockdown, the Commonwealth will fund 50 per cent of the cost of a new small and medium business support payment to be implemented and administered by Service NSW.

Eligible entities will receive 40 per cent of their NSW payroll payments, at a minimum of $1500 and a maximum of $10,000 per week.

Entities will be eligible if their turnover is 30 per cent lower than an equivalent two week period in 2019.

The new small to medium business support payment will be available to non-employing and employing entities in NSW, including not for profits, with an annual turnover between $75,000 and $50 million.

To receive the payment, entities will be required to maintain their full time, part time and long term casual staffing level as of 13 July 2021.

For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week.

Businesses can register their interest from 14 July 2021 at Service NSW.

The assistance will cease when current lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.

I am drawing attention lion to this today in response to contact from several retailers doing it tough in lockdown with almost no support available for their businesses.

The Covid situation in Australia right now flows from NSW failures to suppress the Delta strain. Their approach, endorsed by the federal government, has placed us where we are. It is for this reason I think the federal government needs to step up and provide base level funding for businesses with even a modest decline. Doing so would be a boost to business owner and consumer confidence, which is something the country needs right now given the prospect of another recession.

I appreciate this is a political topic. It is also a personal topic for businesses owners in Victoria and the ACT, as well as business owners elsewhere that sell into NSW, ACT and Victoria. One WA based business owner I spoke with 2 days ago is down almost 70% because their customers on the East coast are not ordering. It is stories like this that make it a federal government issue.

If only there was leadership for average people and small business owners, and not just the big business groups.

14 likes
Social responsibility

Australia Post suspends parcel collection in NSW, ACT & VIC

Australia Post has just announced a temporary suspension of parcel pickup in NSW, Act and VIC;

Temporary suspension of Parcel Post collections in NSW, ACT & VIC

Dear  ,

Thank you for your ongoing partnership with Australia Post.

As you know, across the country we are all managing the sustained challenges of the COVID pandemic. With two of our largest States and some 15 million people in lockdown, the fluctuations in customer online shopping have significantly increased.

We are also dealing with the impacts of the Delta strain and in any given day, we have close to 500 people out of our workforce as they follow necessary self-isolation and testing before clearance back to work.

This is putting increased pressure on our network like nothing we have experienced before, as we manage staff shortages, temporary facility closures, and parcel volumes as high as Christmas peak period.

To help us clear excess parcel volumes in NSW, ACT and VIC due to these impacts, we will be suspending customer collections in these areas.

All Parcel Post collections from customers and merchants in NSW, ACT and VIC will be paused from 7am Saturday 4 September until 7am Tuesday 7 September.

The safety of our people is our highest priority and this temporary measure will allow us to responsibly clear record volumes in parts of our network.

Our team will be processing all weekend to reduce these volumes to a safe and manageable level and help free up capacity with ULDs and pallets.

Services provided for Express Post, Premium and Startrack Express remain unchanged across our network. Lodgements at Post Offices and SPB’s will also continue to be collected and collections in all other States remain the same.

Normal medical shipments (normally lodged Parcel Post) will still be accepted subject to confirmation and by arrangement.

We’re sorry for the inconvenience

We sincerely apologise for the inconvenience this may place on you and your customers. Thank you in advance for your patience and understanding as we continue to navigate these challenges together.

As always, please do not hesitate to contact us with any queries via your Account Manager and continue to check auspost.com.au/service-updates for the latest information on impacts across our network.

Stay safe,

I feel for the LPOs in areas impacted by this and what iOS coming their way in terms of customer frustration.

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Social responsibility

Early Father’s Day 2021 sales success for small business newsagents

Looking at comprehensive Father’s Day card sales data for a number of newsagencies reveals some terrific results. I am not sharing this as channel-wide results. Rather, the results are the results for the five businesses.

Here is data for the 5 retailers up to the weekend just gone:

These results are excellent.

The factors for success include going out early with product and offering range from more than one supplier.

Now, looking at the results more deeply, this next table shows sales by segment.  Included is the number of stores that participated in that segment because  it shows some segments that are punching about their weight.  Eg Husband, Pa.

Not shown above, for privacy reasons, but in the data provided is evidence of opportunity for at least two retailers where they have bought some captions from a supplier but not others. Looking at their performance compared to retailers with a broader range of captions and we can see missed opportunity.

As part of the performance analysis, we looked at the difference it makes having the niche cards in the mix. In every store that carried niche diversity shows they add about 35% to 40% of Father’s Day card sales.

But we are not sharing this to drive Father’s Day for you as that season is all but over for 2021. Rather, we are sharing this because achieving growth in card sales is possible. We can help. Our data analysis / data insights approach is key to excellent card sales growth in participating newsXpress businesses.

Too often, newsagents put out a seasonal range, keep the display tidy, and take it down at the end of the season with the next time of engagement being either agreeing to the order for next year or receiving the stock for next year. I think this is a mistake, a missed commercial opportunity.

Diving deep into your own business performance data, even for a modest season like Father’s Day, can reveal opportunities that you can leverage for sales success. That is what some of the retailers in the small dataset above have done. And to be clear, the success noted above only documents card performance. Once you add in related gift performance you can see terrific financial value from this deeper data engagement.

The work I am outlining here, the data collection and analysis work, is part of the newsXpress intellectual property around greeting card sales performance and management for success. What I have shared here is a peak into a much bigger offering from newsXpress that is helping retailers significantly grow card sales.

Greeting cards are the best margin product in a newsagency. They respond to engagement. That is, it is easy to grow their sales. Card customers are sticky, they return if they like the range and experience. You can bank on the results from engagement with cards.

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Greeting Cards

Newsagents: beware claims of fast profits and stellar growth

There must be something in the water, something bringing out people with loud claims of fast profits, amazing results for newsagents, the best offer ever put to newsagents, a revolution for newsagents.

These are some of the claims being pitched to newsagents in recent times.

Not one pitch I have seen recently provides evidence. Sure, there are newsagents talking them up, but, again, no evidence, no facts that can be verified.

We all want success, right?! Any pitch that feels believable, that offers success that feels attainable, can be successful for the party making the pitch.

History has shown that get rich quick schemes are not likely to succeed, that fast profits are not easy, or fast, that revolutions tend not to be.

If you’ve received a pitch that interests from you, be inquisitive. Ask tough questions. Seek evidence, get it in writing, making it clear that you want it in writing should things not go as promised.

Asking for evidence in writing will have some back off. They’ll probably say that you are not a good fit for them our that your question demonstrates lack of trust or that they don’t have time to answer you because they are too busy with people who want to proceed.

Slick sales people leverage the fear of missing out to get people to sign up quickly, before they have done any due diligence.

I have researched a couple of recent claims that have been put to newsagents and can’t find any evidence to support the claims of success.

In one case a claim about margin failed because the sales price needed for items was found to not work in shops. The real margin at which point the products did sell was half what was claimed.

In another case, online sales claims feel inflated in that the website is getting around 50 visitors a month and is ranked at the bottom of page 2 on Google.

My point is, buyer beware, do your research. It may turn out the pitch is right for you, that it delivers what you hope for, which would be terrific. It is better you make the decision with the facts and not the hype, because anyone can hype.

And, yes, I have made claims myself here at this blog. Most recently about card sales growth of 50% and more. These claims from me are based on evidence in the data. Greeting cards continue to be the best margin and easily grown products in a newsagency today.

Absolutely chase growth and success for your newsagency. But … do so based on evidence.

6 likes
Ethics

Looking at UK newsagency businesses for sale

It’s fascinating seeing examples of our shingle overseas. Travel used to satisfy that interest. Today, with our international border closed, looking online is all we have got. Ad listings for newsagencies for sale in the UK provide a useful insight into the model there. This new listing is a good example.

The community needs and local retail commercial situation is very different between the UK and Australia.

7 likes
Newsagency management

Covid support for VIC, NSW and ACT businesses

I helped a Victorian newsagency business to land $7,600 in Covid related grants last week. They aren’t the only ones. there are plenty of grant opportunities available.

NSW, ACT and Victorian businesses have access to a range of grant opportunities. Our advice is:

  • Review each grant opportunity. yes, it is worth the time it takes.
  • Apply even if you do not quite meet the criteria as the rejection provides an opportunity for you to make a stronger case.
  • Make the application yourself. There is no need to pay your external accountant to do this for you.
  • Do this now. Don’t wait.

Here are some of the grant opportunities by region.

NSW newsagents. Click here to access the overall Covid grants page. Of particular interest is JobSaver, a wages subsidy that to Jobkeeper rebranded by the federal government for NSW. Click here to see a useful side boy side comparison of grants.

ACT newsagents. You have access to several grants if turnover is down by 30% or more. Click here for the page with details. The business grant looks interesting too. Check out the business $10,000 grant. You’d use the Monthly Sales Comparison Report to determine if you are eligible. Note: this report has some selection options that could be useful.

VIC newsagents. Click here for the page that lists all grant options. If you are down 70%, the hardship fund could be interesting. if turnover is down 30% or more, you and your landlord could work together on funding support. If you are Covid impacted and need to do a deep clean, click here for a rebate.

Nationally, click here to a web page from the federal government that acts as a portal for all states and territories.

I think what is happening in NSW with the messaging around Covid is interesting from a business perspective. Reading between the lines, there is likely to be commercial value in vaccination of everyone working in a business, as well as vaccination in your local community. My point is, if you can get vaccinated, do so, as there may be a point down the track where that is a bankable advantage.

This is small of the advice provided to newsXpress members as part of the on-going Covid support and communications package.

7 likes
Newsagency management

This doesn’t look like a newspaper

And while we’re talking about the Herald Sun, Crikey published an interesting article this week:

There’s a changing of the guard in Australia’s media: long-time Melbourne circulation kingpin the Herald Sun has tumbled way down the rankings. Now, it looks like it’s not only runner-up to local competitor The Age, it’s fallen to fourth spot among News Corp’s remaining Australian mastheads.

It’s the second blow to News Corp’s market supremacy, following the ABC’s leap to displace news.com.au at the top of the Nielsen Digital News Content rankings since the 2020 summer of bushfires.

The Herald Sun — boasting an audited circulation over twice its competitor with 600,000 copies when it first merged back in 1990 — is down more than three-fourths, with 146,026 subscribers across its print and digital products, according to June 30 internal figures reported by the company to the US Securities and Exchange Commission.

7 likes
Newspapers

Videos of 4 free workshops this week for local small business retailers on how to take your business online

Monday through Thursday this week I hosted four free workshops covering a range of topics related to creating POS software connected Shopify sites and how to drive traffic to them. The goal was to share insights and offer free advice and training for retailers looking to grow online sales.

All up, the four sessions covered close to six hours.

Here are videos of the workshops for anyone interested. If you are considering a website for your business, buyer beware. There are plenty of shonky business people in the web development space. My hope is that the four workshops share information that you find useful in navigating a path to growing your online sales.

This last session is all about writing good blog posts and how they play a key role in driving traffic.

We are grateful to the retailer who participated.

19 likes
Newsagency management

It’s fun watching newspaper publishers criticise each other

In the Australian Financial Review today, Tony Boyd takes a ‘look’ at the performance of Nine Media over News Corp It includes burns like:

Shock, horror: Nine beats Murdoch at his own game

First, the results confirm that Murdoch’s newspapers in Australia are losing the bitter and long-running competitive fight with the mastheads created by John Fairfax & Sons.

Now, questions must be asked about the strategic and operational moves by News Corp Australia’s managers who have overseen successive years of poor financial performance.

They appear to have squandered News Corp Australia’s dominant position by failing to transition fast enough to a digital and data-driven business model.

It is in this area that Nine’s publishing arm, which includes The Sydney Morning Herald, The Age and The Australian Financial Review, stands head and shoulders above Murdoch’s publishing assets, which include The Australian and tabloids in every major city except Perth.

On the readership front, Nine’s publications are showing News Corp’s publications their heels.

Beaten at his own game
When it comes to earnings, Nine appears to be comprehensively beating Murdoch at the newspaper game. That’s got to be galling for a man who mastered the art of newspapers at the age of 23 at a small afternoon tabloid in Adelaide.

In 2021, Nine’s publishing arm had earnings before interest, tax, depreciation and amortisation (EBITDA) of $117 million, up 28 per cent on the prior year. This was on revenue of $504.5 million.

The News Media arm of News Corp had EBITDA of $US52 million ($72 million), which was about the same as the previous year. This was on revenue of $US2.2 billion.

News Corp insiders will argue that the performance of the Australian publishing business cannot be fairly compared with Nine’s because News loads some international costs on to the local business.

News Corp’s snail’s pace approach to cost-cutting in editorial, which includes another round of redundancies this month, is in stark contrast to the hiring in Nine’s publishing business.

News Corp’s digital strategy appears to be repeating a decision that was made by Nine some years ago and reversed because of its damage to masthead brands.

To save costs, News Corp is centralising its news-gathering across all its tabloid mastheads, except for its political coverage. This goes against the fundamental principle that each city in Australia is different and deserves its own unique coverage.

Fairfax, before it was taken over by Nine, merged the business reporting newsrooms of the Financial Review, SMH and Age. This was rapidly unwound after a more sensible analysis of the commercial implications.

In the context of retail newsagency businesses, newspapers play only a small role in our businesses. Bottom line wise, they are almost irrelevant. Foot traffic wise, they count for something, but not that much. Their key value recently has been tom provide products that bestow upon us essential status, and that is worth something.

5 likes
Newspapers

How to write blog posts to drive traffic for your online shop

Today at 10:30am I am hosting a free workshop for small business retailers on writing blog posts for websites to attract online shopper traffic.

This is the fourth free Zoom workshop this week for local small business retailers seeking advice and help in creating beautiful websites for their businesses. From the workshops, a common question from people was about writing blog posts: how to, when to, why to and how to.

Writing blog posts can feel daunting. Let’s talk and see if we can help show a pathway to make this achievable free marketing for you. Plus, we will answer any Shopify / online sales questions:

Today, Thursday August 26 @ 10:30am Melbourne time:
https://zoom.us/j/94814612952?pwd=L25FRVkyVmFybzI1TjVmYzUrYXhvUT09
Meeting ID: 948 1461 2952 Passcode: 941762

1 likes
Newsagency management

SEN promotes local newsagents on social media more than any other magazine publisher

Kudos to SEN for their relentless support of local retail newsagents when promoting their flagship AFL Record. For each issue they hit their socials and promote our channel. I have not seen any other publisher do this with such consistency. Their call out for our channel is wonderful, something Victorian newsagents especially should appreciate and applaud.

4 likes
newsagency marketing

Another selling online and click and collect Zoom meeting today

Thank you to those who could join the website discussion yesterday morning. I am doing this again today, Wednesday, at 10am 10am Melbourne time, talking about POS software connected Shopify websites. Anyone can join. No booking necessary.

Bring your questions or concerns about selling online. Our goal is to provide useful facts that could help guide your own business decisions. I think we could speak more about shipping, loyalty and bundles.

Here is the link for today @ 10am:
https://zoom.us/j/99483113349?pwd=UG1vRThSeThjZm14YVRoamNiSG5NUT09
Meeting ID: 994 8311 3349 Passcode: 830738

Click here to access our website customer questionnaire. This is designed to help you clarify your needs. A copy of your responses is sent to you.

0 likes
newsagency of the future

5 reasons to buy your Father’s Day cards and gifts at your local newsagency this year

Father’s Day 2021 will different to what people expected. Plenty thought 2020 was disrupted. 2021 will be even more so in some parts of Australia.

Local newsagencies offer wonderful opportunities for celebrating dads, grandfathers, friends, include, step-dads and mentors this Father’s Day. I urge anyone shopping for Father’s Day cards an gifts this year to consider their local newsagency and here’s why:

  • Newsagency businesses are 100% local. Locally owned. Locally run. What you spend is more likely to stay within the local community.
  • Newsagency businesses offer Father’s Day cards that support charities. Charities like RU OK?, which do wonderful work in the community.
  • Newsagency businesses have the best range of cards, usually more than you will see elsewhere. From fun to serious, Fram dad to pa to pop to grandpa to uncle to step-dad, the caption range is excellent.
  • Newsagency businesses often have gifts to go with the cards. Plenty of them have Australian made cards and gifts, too, which further serve the local community. If you are not sure what to give, ask for help.
  • Newsagency businesses are likely to offer easy shopping, grab and go. Plenty have father’s day gift bundles made up, ready for treats for Dad.

Shopping early for Father’s Day is good because you get to choose from the broadest range. Then, you have time to post the card and gift.

So, when shopping for Father’s Day cards and gifts this year, consider your local newsagency. They would be grateful to get your business and do their best to serve your needs.

6 likes
Social responsibility

Helping newsagents step toward selling online

The Zoom meeting yesterday with retailers about the first steps toward selling online had 30 or so participants. I am hosting the same session this morning at 10am for anyone interested.

Here is an email I sent to newsagents yesterday, announcing two free workshops, today and tomorrow, for anyone considering a website for their retail business:

The next session will be Tuesday morning, August 24, at 10am. Here is the link:

https://zoom.us/j/93217163735?pwd=Y2ZHUlcrQ0s3dkJoS2c5dm5Wc2kzUT09
Meeting ID: 932 1716 3735 Passcode: 847150

Any one is welcome to join. You don’t need to book, click on the link and show up.

I hope the sessions will be informative and offer you a pathway to getting online if that is what you want, getting more online shoppers if that is what you need or sorting out whether online is right for you, if that is where you are at.

Selling online is hard and relentless work. There are no shortcuts. But, there are decisions you can make to narrow your focus, so you can have some early learning opportunities.

Based on what we are seeing and based on the data from major retailers here, online is contributing more and more to business bottom line. What Covid has done is speed up that transition.

Oh, and if you think online is not impacting you or not being used by your shoppers, based on my experience I am sure it is. Hopefully, we can offer advice that helps you see what is next for you online.

1 likes
newsagency of the future

An open letter from News Corp at odds with it’s own behaviour through Covid

What an odd letter given what the company has published / broadcast over the last year and a half.

You only have to look at the shouting from News Corp to the Victorian government Andy who support them through 2020 and plenty of 2021, or watch Sky News After dark, or read The Australian or read opinion pieces by Dolt and others to see my point.

4 likes
Social responsibility

If you are considering a website for your newsagency

Here is an email I sent to newsagents yesterday, announcing two free workshops, today and tomorrow, for anyone considering a website for their retail business:

Sunday update.

The email I sent yesterday (see below) resulted in a bunch of emails and phone calls from business owners keen for advice on getting online, setting up click and collect and getting people finding you online.

Thinking about the questions, I have decided to schedule two free and open Zoom meetings where we will answer all your questions. The first is tomorrow, Monday August 23 @ 2pm. Here is the link to connect:

https://zoom.us/j/99494233308?pwd=UVlGN0hNS1E4VElJMnVsVGhvL3gwUT09
Meeting ID: 994 9423 3308 Passcode: 708035

The next session will be Tuesday morning, August 24, at 10am. Here is the link:

https://zoom.us/j/93217163735?pwd=Y2ZHUlcrQ0s3dkJoS2c5dm5Wc2kzUT09
Meeting ID: 932 1716 3735 Passcode: 847150

Any one is welcome to join. You don’t need to book, click on the link and show up.

I hope the sessions will be informative and offer you a pathway to getting online if that is what you want, getting more online shoppers if that is what you need or sorting out whether online is right for you, if that is where you are at.

Selling online is hard and relentless work. There are no shortcuts. But, there are decisions you can make to narrow your focus, so you can have some early learning opportunities.

Based on what we are seeing and based on the data from major retailers here, online is contributing more and more to business bottom line. What Covid has done is speed up that transition.

Oh, and if you think online is not impacting you or not being used by your shoppers, based on my experience I am sure it is. Hopefully, we can offer advice that helps you see what is next for you online.

Anyone is welcome to these sessions.

5 likes
Newsagency management

Advice for newsagents considering a website for their business

I sent the following email to small business retailers on my database yesterday morning. I share it here as I know newsagents are being encouraged to go online, including by some with dubious claims about their success and what they can do:

Good morning this Saturday morning.

Like many of you, I guess, I am sitting here getting some work donw while rgularly checking for Covid updates, to find out when the various press conferences will be. I’ve also been checking emails.

I am frustrated at some of the email pitches I am seeing to retailers offering websites. I am especially frustrated by those who claim it is cheap and easy.

Like anything in this world, you get what you pay for. 

There is one shonk emailing claiming that you’ll make a ton from selling online from a. website they setup for you. I check the traffic they get to their own online shop and it’s under 100 visitors a day.

I own Tower Systems and I own several retail shops. Each shop has a website connected to it. I know how hard it is to get the website up and running, attract shoppers and maintain traffic. The rewards can be worth it.

There is no easy road. But, that should not put you off for if you get it right, the reward can be wonderful.

Click here to see some of the many websites we have created.

I have a small high street retail shop in suburban Melbourne that will do more than $160,000 in online sales this year. What we have done for that shop is what we advise our POS software and web development customers to do. It runs a POS software commented Shopify site, which we created here at Tower Systems.

A website is a hungry beast. If you leave things to someone else, I guarantee the results will not be as good as they could be.

There is no easy road. We have a pathway that focusses on early wins, good commercial outcomes you will like.

We develop POS software connected websites for our customers for $6,600.00. But, we expect you to get your data ready, in the POS software, so it flows across. We guide you through this.

We also develop Magento websites. They are for more complex needs. One of our magento websites does around $500,000 a year in sales. It’s connected to a group of retail businesses, which are owned by local retailers.

We have used WooCommerce but no more. It’s expensive to maintain. Anyone who asks our advice, we say don’t go with WooCommerce.

With the news our of NSW yesterday about click and collect, we can help you with this. It’s part of what we do for customers through a POS software connected website. We can also help you navigate complex shipping requirements as well as connecting with a variety of payment options.

If you are interested in a POS software connected Shopify site, click here to see our fixed price quote.

In addition to developing a beautiful site for you, we can help with the planning by sharing data for your competitors, guiding you on keywords and making suggestions on look and feel.

Given what has happened in NSW, VIC and the ACT in the last few days, we can fast track a site for you. let us know if this interests you.

To find out more, email sales@towersystems.com.au or call Tim on 0401 833 917 or Justin on 0434 365 789.

If you have the time, check out videos some of the workshops we have hosted in which we discuss with retailers web development and how to make some of the decisions you need to make around this.

Thanks for reading. I hope you are safe and well. And, please, beware claims offering cheap websites setup entirely by others.

Mark Fletcher
Managing Director
Tower Systems
0418 321 338.

PS. As a guide, online should by now be at least 10% of your product revenue.

7 likes
Newsagency management

Respecting being an essential retailer in Covid

With newsagencies open in areas under lockdown due to Covid, it’s important that we do so in a way that respects the opportunity. Having gone through this 5 times already and now into lockdown 6, here is what we have found works for us, the community and nearby retailers who are closed:

  • Retail as a service. You’re open because you are essential, not to overtly take a position against a competitor.
  • Make shopping easy. Reduce clutter. Put sought after items at the front. Make shopping easy for grab and go.
  • Make it safe. Have face masks and hand sanitiser next to your QR code check in at the entrance and at the counter.
  • Offer click and collect. Either through your website or for phone orders, offer to bring the items to the shop door for easy collection.
  • Play happy music.
  • Don’t do awesome VM displays. Be practical.
  • Be grateful to customers and grateful on social media.
  • Reduce promotion of non essential products on social media.
  • Keep the counter cleaner than ever.
  • Give staff what they need: free masks, breaks for washing hands, time to recharge.

If there are retailers nearby that can’t open with considerable stock they are worried about, maybe offer to help them move some of that stock. I mention this for areas where the lockdown is extended.

While it is terrific having a shop that is permitted to be open during Covid lockdowns, it can be a curse sometimes with how others, competitors and customers, see you. This is why it is important that we trade in a way that is respectful of the unique situation and thoughtful of others.

12 likes
Social responsibility

Tabcorp results show a slowing of online migration?

The latest results released by Tabcorp in their Annual Report reveal that the percentage of lotteries revenue from online has increased, but not on the previous trajectory. The year on year comparison shows a jump from 28% in FY2019/20 to 32.8% in FY2020/21 and while that jump is sizeable, it’s the 6 month jump that is lower. Six month earlier they were 32.1%

32.8% of revenue coming from digital (online) must interest lottery retailers, especially since Tabcorp says it would like to see online revenue grow.

Another possible concern for retailers will be Tabcorp’s focus on continued diversification of the retail channel. Plenty of retailers have already complained about new outlets opening nearby and an ineffective and opaque appeals process run by Tabcorp.

You can see from the Annual Report that they are only part way through this engagement with expanding the retail network. Note below: Evolve retailer mix and CX uplift. (cx = customer experience.)

These slides from the Annual Report deck don’t contain detail useful to retailers. But, there is enough there of concern. The company, in its accompanying press release, spoke re retail:

Lotteries digital turnover grew a healthy 27%. Digital accounted for 32.8% of total lotteries turnover in the year. Customers continue to transact predominantly through the retail channel. Investments to uplift lotteries’ presence and role in retail illustrates the value Tabcorp places on it as part of an omni-channel model that supports customers to buy when, where and how they wish.

The bottom line from my perspective is that lottery products, while important to retailers do present challenges in terms of upside along with channelise in terms of increased outlet competition.

My tip if you have lotteries through Tabcorp: do everything to meet your obligations while at the same time working on the business to attract new shoppers for better margin product over which you have more control, as this will be your future.

7 likes
Lotteries

News Corp. subscription systems failures let home delivery customers and newsagents down

I hear from newsagents about failures in News Corp. notifications about newspaper home delivery situations, about how the News Corp. notification is evidence of internal systems failures. Here is a recent example – they ask the delivery to restart on August 11 while then noting that the paper was failed to be delivered on August 10 to the same customer.

I am told no amount of reporting situations like this to News Corp. helps as the company ignores such reports.

So much for News Corp. providing newspaper home delivery customers a better experience than local newsagents provided – as the company claimed would be the case in its letters to customers.

14 likes
Newspaper distribution

Should the federal government support businesses outside NSW that rely on NSW for revenue?

There are many businesses outside of New South Wales that are experiencing financial challenges because of the NSW Covid mess. These are businesses that usually derive considerable revenue from selling to NSW businesses.

Talking with a couple of retail business suppliers this week, they say that orders from NSW clients have all but stopped for the last 4 to 6 weeks. If they supplier businesses were in NSW, they’d qualify for significant financial support. Since they are outside of NSW and not in a lockdown area, they are not eligible.

One supplier told me that this lockdown in NSW is different to what they have seen through Covid til now in that it is the first time there has boon such a drop in orders from retailers.

NSW retailers are, naturally, being cautious with ordering. This is impacting their suppliers, plenty of whom are located outside of NSW. This is where the current financial support grant process is challenged.

It’s time for the federal government to see the NSW mess from a federal lens.

7 likes
Social responsibility

Tabcorp pushing online purchase of lottery tickets during lockdown

I received these two text messages Friday morning from Tabcorp. While they do mention in-store purchase in the text message, the link, of course, if for online purchase.

Tabcorp people know what they are doing here – leveraging uncertainty over lockdown to drive online purchases. And, yes, I checked, the link in the text message does take you to their site for online purchase.

I think the mention of in-store is only so they have a defence in case retailers complain. This text message is all about online purchase, which reinforces my view that there is little to no upside in over the counter lottery sales in retail.

What could Tabcorp have done? They could have setup a page on their website listing all their retailers permitted to be open, and promoted that.

7 likes
Lotteries

An update on using the new Facebook jobs platform

Okay, so last week I posted a job on the new Facebook jobs platform, for one of my shops. The result was 30+ applicants is a couple of days, only 3 of whom had a set of skills close to what I was looking for. While this is okay, the platform is cumbersome, and slow, at weeding this out, saying no thanks and managing. But, hey, it’s free and in a couple of days I got to 3 good candidates worth speaking with.

Yesterday, I posted a second ad and this has gone better, although the process remains cumbersome and lacking some of the features of other jobs boards.

Would I use Facebook again to advertise a job? Maybe, probably, I guess. I do prefer some of the other platforms like Jora and Indeed, and have found them to be easier to use and more successful.

What Facebook has going for it is the local community connections. I think if the platform is refined it could be a good tool for finding local employees.

overall, even though I have complained about it, I say it’s worth a try. Hey, it’s free.

4 likes
Newsagency management