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

Would you leave your shop unlocked at night?

Newsagents should take care with who they permit to access their computer system without their knowledge.  I know of at least two newsagency software companies who have access direct into newsagency businesses without the knowledge of the newsagents.

This is a security risk.

You should always know who is accessing your computer system and why.  You should not agree to unfettered access as some newsagents accept today.

If someone outside your business can access your computer system and thereby your business data, how can you be sure that your interests are protected.  If they need to access this for maintenance reasons then you can let them in each time as you would any guest coming toi your home.  This is how my software company Tower Systems operates.  I would never want the risk of having unfettered access to a newsagent’s business without their knowledge.

Be careful as I have seen instances over the years where the interests of the newsagents affected were not protected.

So, would you leave your shop unlocked at night?  Some newsagents do, sometimes without knowing it.

0 likes
Ethics

Promoting Your Garden at the counter

yg-nov2010.JPGWe are promoting the latest issue of Your Garden with a tactical co-location strategy – in with gardening titles as well as at the counter this week.  being a seasonal publication, it’s natural that customers will not be thinking of Your Garden when they visit.  This issue has been out for a couple of days and so far is showing promising sales.  We plan to run with the co-locatio strategy for the next two weeks space permitting.

0 likes
magazines

M-Cups – the ideal impulse Christmas gifts

mcups.JPGWho would have thought that newsagents could sell measuring cups at the counter as an impulse line five or so years ago?  The M-Cups are going great … with shoppers off all ages.  They connect with the foodie interest right now.  We are promotting them with our food titles as well as at tthe counter.  The counter position is the winner.  Christmas gifts under $20 are selling very well this Christmas.

0 likes
Gifts

Beware of the generic tablet computer

Some newsagents have been offered cheap tablet computers from China.  These unbranded devices look appealing as they could get us better connected with the migration of readers to digital platforms – that is the sales pitch being put to newsagents.  Priced at under $150, the devices I have seen look good, cheap but good.  The problem is that they are not a known brand and do not appear to have reasonable local backup support.  This could be problematic should a device fail and a customer return to the newsagency expecting satisfaction.

0 likes
Newsagency challenges

Do we really need this handgun magazine in Australia?

handguns.jpgWhile there are strict restrictions on the sale of handguns in Australia, there appears to be no such restriction on handgun magazines. This latest issue of Concealed Carry Handguns went on sale yesterday.

While I don’t know if this magazine is promoting guns which are illegal in Australia, I would certainly be uncomfortable with this title on my shelves.  It is from the US, a country with a very different approach to handguns compared to Australia, a country, too, with far more handgun related deaths than we see in Australia.  In the US they report 15.22 firearm deaths per 100,000.  In Australia we report 2.94.

While I am no prude, this magazine crosses a line for what I’d consider reasonable in an Australian newsagency.

The Parliamentary Library publishers a helpful guide on resources available on firearms in Australia.

0 likes
magazines

Riding Junior MasterChef coattails

j-masterc.JPGWe have a good range of Junior MasterChef products out on display to leverage the extraordinary interest in the TV show which just ended its run.  These and the mook (magazine / book) which goes on sale on Monday will combine to give is a strong presence around this brand which is popular with parents and kids.

While the Junior MasterChef products are in homewares and other stores, I am confident that they are a good fit for newsagencies.

This range of products should also help continue good sales for food titles by broadening the appeal of our stores around this niche.

0 likes
magazines

Gardening Australia revamp selling well

gardeningaust-nov2011.JPGWe have seen a sales lift for Gardening Australia with the latest issue.  Hopefully this is due to the revamp of the title and sales continue at this higher volume.  We have the title in three pockets of prime position in our gardening section – there is no room for co-location in our temporary smaller location.  The new look cover works particularly well in traditional newsagency fixturing.

0 likes
magazines

A royal engagement to boost sales

The royal engaagement announced overnight should give us some good sales of weeklies and maybe even AWW from now through Christmas.  Diana sold a forest load of magazines.  Selfishly, this engagement has come at a good time for magazine retailers.

0 likes
magazines

How’s your health?

I know of three newsagents who have each had a heart attack in the last week.  While they are on the mend, it is a reminder of the need to take steps to reduce risk.

With the hours newsagents work and with many handcuffed to their businesses out of necessity, achieving a healthy lifestyle can be a challenge.  It is better that we act early, before warning signs (or worse) for the sake of our families, our friends and our businesses.

All of us in the channel should look at what we can do to improve our situation and that of colleagues.

0 likes
Social responsibility

Apple iBookstore pricing kinda good news

The pricing of books for Australian customers on Apple’s iBookstore for the iPad is good news for book retailers, for the moment.  Prices are high.  An astute shopper can buy the print version of a novel for around the same price.  This is contrary to the US experience.  It will need to change for the new channel to take off.  Book publishers will need to decide if that’s what they want.  Oh, wait, consumers will decide for them by shopping through US sites like Amazon and read these books on the Kindle iPad app.

0 likes
Book retailing

The value of some imported titles

uk-foodtitles.JPGHere are more magazine titles which demonstrate the value of imported titles in the overall magazine range.  These titles are a welcome extension of Australian cooking titles.  They make our food section more interesting that Coles or Safeway.

Magazine distributors need to make it easier for newsagents who want to specialise in a magazine category.  Right now, there are too many hoops to jump through and the results too uncertain.  Give newsagents more control and I think you would see some interesting and competitive specialisation emerge.  I know that I would play more with the mix if distributors engaged with us in a more business like and fair manner.

While we do not sell masses of these food titles, they set us apart from our magazine competitors in the shopping centre and that’s certainly a good thing.

0 likes
magazine distribution

Interest in digital scrapbooks

baby-scrapbook.JPGThe range of digital scrapbooks we have from Hallmark are generating good interest.  They have been on the shop floor for a couple of weeks and we have sold some already.  This is good considering the uniqueness of the products. It will take a while for us to learn how to help sell them …while some will purchase on impulse, others will need help.

I like that the digital scrapbooks are themed, like the baby one in the photo.  This gives us a unique gift to offer for this occasion.

Interactive gifts are certainly in.

0 likes
Gifts

Do newspaper apps cannibalize print?

James Murdoch, head of News Corp. in Europe and Asia thinks so.  He also prefers the Apple iTunes store to newsagents.  Read for yourself what he is reported as saying last week:

“We go to the iTunes store because it’s frictionless. They charge a percentage but the guy on the newstand and the newsagent charge a percentage, and they don’t even merchandise it properly,” he told the Monaco Media Forum.

Regardless of whether he is speaking from a UK perspective or not, it’s an unfortunate and unhelpful statement.

Here is his comment about apps as reported by Reuters:

“The problem with the apps is that they are much more directly cannibalistic of the print products than the website,” he said. “People interact with it much more like they do with the traditional product.

Yesterday, News Limited launched apps for its capital city dailies with more cities to follow.

0 likes
Media disruption

Smutty wrapping paper

smutty-wrap.JPGWe encountered a customer on Saturday who was angry about this wrapping paper from Hallmark.

I heard her complaining to one of our team members at the sales counter, telling them, and other shoppers nearby, that we should remove the paper from the shelves.

Our staff were busy serving customers and couldn’t engage that much. She went back to the paper display.

I’d heard the comments from elsewhere and went to speak with her, expecting to find that it was a prank.

The disgruntled shopper was in front of our wrap display, busily removing the product which offended her. Seriously.

I advised that we would continue to sell this design. She reiterated that the product was rude, disgusting. She said she would complain to centre management.  She eventually left but not before complaining to other team members.

Customers who heard her comments were surprised and sympathetic towards us.

Some days, people working in newsagencies face the most unusual experiences.

0 likes
retail

Need to watch Wrapaway

vint-rtuck.JPGLocal magazine distributor Wrapaway snuck this vintage truck title in under the radar. While I am happy to cater to the special interest group targeted by the title, I and other newsagents should have been consulted on volume. My other issue with Wrapaway stock is that it does not come through XchangeIT, meaning manual processing. Groan. There should not be a single item getting access to newsagencies outside of an electronic invoice process.

1 likes
magazines

Promoting Zoo and the $1.95 offer

zoo-nov151.JPGOur temporary layout benefits Zoo Weekly as it enables us to better promote special issues like this week’s $1.95 offer with an in-location poster placement.  The text based poster is less likely to offend customers and that’s a good thing with our mix of customers.  While I am not a fan of these regular price cuts – as I think they educate customers – I still support them with displays such as in the photo.

0 likes
magazines

News Corp and yahoo together?

There are rumours flying around online about a News Corp. and Yahoo merger.  Who knows if there is any truth attached. News has certainly denied any interest.

It’s interesting to think about though. Especially from the perspective of News and the direction it would lead the organisation.

As publisher content gets further away from being on the printed page, diversification which previously would have seen implausible will make sense.

0 likes
Media disruption

Magazine twins

wdni.JPGEvery couple of years this happens, New Idea and Woman’s Day looking very similar.  The similarity is evident when responding to questions from older customers who cannot find one of the titles. I’m not that concerned, just surprised to see it happen.

0 likes
magazines

Magazine publisher bodies should focus on the newsagency channel

While the coming together of Magazine Publishers’ of Australia and Publishers Australia is a good thing, the two bodies do not represent all publishers.  Indeed, many publishers which give newsagents their point of difference would not be at the new table.

Here is what I would like to see the two publisher groups focus attention on:

  • A review of the retail channels from the perspective of the continued dilution of newsagents as the magazine specialists.
  • Support for a retail campaign supporting magazines.  Currently, Magazine Week is an advertiser centric event whereas it should be consumer centric and run through newsagencies – as is done successfully in the UK.  Only newsagents can engage in a way which will drive consumer engagement.
  • Provision of more useful data with which newsagents can make business decisions.
  • A commitment to requiring magazine distributors to allow newsagents to make business decisions around magazines.
  • Recognition and reward for newsagents and groups with a magazine strategy beyond the traditional for a newsagency.
0 likes
magazines

The calendar range point of difference

volcanos.JPGA few years ago we discovered an interest in volcano calendars among our customers and sought to satisfy this with our buying.  Now, we have a couple of regular customers and others snapping up the 2011 stock.  While dog breeds is the biggest calendar category, we are pleased to see some of the fringe categories, like volcanoes, increasing their share of sales.

All of the 2011 calendar range is selling well.  It is common for customers to buy at least two at a time.

We refresh the display daily and move categories around every couple of weeks.  We plan to start our outpost next week.

0 likes
Calendars

Changing the card range

bluemtnart.JPGCard companies swap ranges in and out to keep the offer fresh.  Blue Mountain Arts is an exception. While designs and verses change, there has been a sameness for many years.  Over a year ago I took it out of one of my stores.  Now, I am removing it from the other store carrying the brand.  We may go back into BMA at some point in the future.  There would need to be a major overhaul of the offer to better differentiate the brand.  What was unique for BMA years ago is now a crowded space.

0 likes
Greeting Cards

Driving Christmas sales

hmkchristmas.jpgThis Hallmark promotion is helping to drive Christmas sales.  Customers who spend $20 or more on Hallmark Christmas products (cards, wrap, bags and gifts) can buy the fun reindeer for only $5.  I like to watch how customers interact with the display.  In one of my stores yesterday I watched as one customer was approaching the counter with three Christmas cards when she noticed our reindeer display.  She picked up a reindeer and went back and selected two more cards.

This type of basket building promotion based on perceived value is, in my view, more valuable to us than straight out discounting.

0 likes
Newsagency opportunities

Rising from the ashes

terrigal.jpgAndrew and Cathy Strachan lost their newsagency in Terrigal a few months ago when an arsonist started a fire in the lane out the back which burnt down their premises and that of a bottle shop next door.  Yesterday, their newsXpress Terrigal store reopened in a new store built with the help of friends, colleagues and (most) suppliers.  The Express Advocate has more on this story.  the reopening is a good story of how to put together a professional looking shop for a fraction of the usual shop fit budget.  It is also a story of how rise from adversity to trade another day.

The newsagency channel is full of good stories like this and it is good to see the local newspaper get behind Andrew and Cathy to tell their story.

Photo credit: Express Advocate.

0 likes
Newsagency challenges

Myer addicted to discounting

The management team at Myer has admitted that they cannot break the habit of discounting – shoppers will not let them.  This story got a good run in newspapers around the counter yesterday, that Myer tried to pull back on discounting but had to reinstate the tactic to stop sales erosion.

In the various stories, Bernie Brooks, Myer CEO, focuses on two key issues – that shoppers prefer stores with discounts over stores selling at regular price and that the interest rate rise of earlier this month will make for a very tough Christmas.

Talking with newsagents this past week, there is nervousness about when Christmas will kick in.  I am seeing some movement in the sale of boxed Christmas cards, especially those connected with charities.  I am also seeing good sales for unique gifts – we have had to reorder which is a good sign.  While I have reservations about the interest rate rise, now that all four major banks have hit borrowers hard, I am cautiously optimistic for Christmas.

Newsagents tend to not have a discount strategy.  This could be why shoppers see us as expensive. In our own situation we combat this with our regular newsXpress HOT Ink! promotion, a card loyalty program and our Magazine Club Card.  The first draws plenty of new traffic and the next two encourage customers to purchase more than average.  All three help us attract shoppers looking for discounts.

Newsagents need to have a plan to connect with the shoppers looking for a deal.  If there is no such plan then you cannot expect anything beyond the average and in today’s marketplace the average does not cut it.

0 likes
Newsagency opportunities

News Limited promoting new iPad Apps

News Limited started the sales pitch for its iPad Apps for its daily tabloids yesterday.  The Herald Sun ran a story promoting the $7.99 a month subscription.  My understanding is that the same story ran in the Daily Telegraph.

Mr Hartigan assured customers that the apps will offer much more than their print counterparts.

“They will play to the strengths of the iPad,” he said, adding that journalism, photography and video content “will be easily and intuitively accessed with arresting design and strong imagery”.

One of the most common questions newsagents ask me about newspapers and magazines on the iPad is how we can sell the subscriptions.  This is an entirely new channel and I see no role for us in building or supporting this except for maybe selling generic tablet computers once the mass merchants are well stocked.

0 likes
Media disruption