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

Getting ready for marie claire

With the considerable media coverage the February issue of marie claire has attracted in the last 24 hours, we are making sure that we have prime space set aside for tomorrow morning when it goes on-sale.

I listened to plenty of the debate on talkback radio and read many of the stories online.  While not an expert in the field, the fuss does not resonate with me, especially once I read the story in the Sydney Morning Herald and the interview with the General Manager of The Butterfly Foundation.

Demand for the issue is bound to be strong – newsagents ought to be ready and with a good display in prime position.  While there are challenges around the issue, our job is to sell magazines.  This is why we ought to be completely opportunistic.

Since customers will comment about the story, be sure to read some of the media coverage from the last 48 hours so you are up with it.  Talk with your employees about the issue too.  There is an opportunity here to be informed and ready to show off the difference in a newsagency shopping experience.

0 likes
magazines

Late Burke’s Backyard promotion

dsc00770.JPGWe are promoting Burke’s Backyard to shoppers leaving our women’s magazine aisle this week.   This title has been out a week and has already sold well thanks to our initiatives so stock is limited for the ACP display initiative we have been asked to do this week.  The best time to promote a popular title like Burke’s Backyard is from the day of on-sale.  A week later has challenges.

These displays we do on the back of the ACP basket builder stand continue to work well for us.   We use them to drive impulse purchases – with success.

0 likes
magazines

Promoting Prevention with newspapers

fhn_prevention_jan0409.JPGWe are promoting the latest issue of Prevention magazine at our main newspaper stand.  It’s been tremendously successful for us in this location since launching last year.

While we also have copies in our women’s health area, the newspaper location is best for us.

As I blogged last week, I consider Prevention to be the launch of 2009.  It connects particularly well with newsagency shoppers.

0 likes
magazines

Free crossword promotional poster for newsagents

crossword_poster.jpgI asked the creative team at my software company, Tower Systems, to create a poster to promote crossword titles as a New Year gift for newsagents.  I was looking for something to connect with crosswords as a holiday activity, something with which I could promote the category in the front of my own newsagencies.  The version we have gone with is the second option they developed.

Click here to download a PDF for local printing.  Use it anywhere you feel it will help you sell crosswords.

I am happy to continue to leverage the resources I have at Tower to create marketing collateral for newsagents to use.  It’s another way of putting something practical back into the channel.

0 likes
crosswords

News Corp. and advertising

Jeff Jarvis has written an excellent post about News Corp. and advertising at his BuzzMachine blog.

So I think we’re seeing News Corp. milk the dying cash cow. Newspapers aren’t going to grow and will shrivel and sometimes die. The value of local stations is only going to shrink. (MySpace was a mistake.) So News Corp. is begging for cash wherever it can get it — from readers online or viewers on cable (via cable companies’ billing) — no matter that there’s no strategy there.

Australian newsagents are wrestling with the new take it or leave it newspaper distribution and retail contracts from News Ltd.  In the documentation accompanying the contracts, News makes it clear that it is reviewing its newspaper model in Australia.  This review is about News and its costs and revenue requirements. It is not about newsagents.

Given that a review is under way, newsagents could argue, in a court or some other appropriate forum, that it would be more appropriate to extend the current contracts than to sign these new non-negotiable contracts which weaken the position of newsagents.

0 likes
Newsagency challenges

Attempted break-in

At around 5:30am yesterday someone tried to kick in the front door and a side window of one of my shops.  The police have video evidence from centre management as well as from our own security system.

While they were not successful, the damage and resulting disruption is considerable.  There is a very large glass window to replace and two doors to re-hang.

My thoughts on this go back to some of the comments from my arrest post last week.  If they are caught they will get a slap on the wrist and no real punishment.

I plan to find out the legal position on creating a retail crime shame site where we can all post images of people convicted of crime against retail businesses.

0 likes
theft

The boxed Christmas card market

It’s a week since Christmas and boxed Christmas cards are still selling well.  With most other retailers now out of this space and having a good range we are the local go-to place in the four shopping centres in which we have boxed Christmas cards.

We’re at 50% off and are achieving slightly above 50% margin on sales.

Based on experience and current stock levels, we feel that we have another week of good sales left before we quit the remnants at a deeper discount.

We have found that boxed cards work well when you mix the range from mainstream card suppliers with specialists (like Cardpac) in the field.  Our most successful outlet displays the range on tables and not in the card company stands.  This makes shopping easier for the power shoppers.  We go out in late September / early October.

Sales have grown every year.

Boxed Christmas cards should work anywhere.

0 likes
Greeting Cards

Wishes and resolutions for the 2010 year

Thinking about the year ahead and resolutions and hopes in particular over the last few days, here is what I would like to see in 2010 for the newsagency channel:

News Limited pauses the introduction of their new newspaper distribution and retail contracts and undertake greater group consultation with newsagents and consumers on issues surrounding newspaper distribution.

Magazine distributors agree on new trading terms with newsagents which reduce the costs to us for failed titles (<50% sell through) and long on sale periods (>30 days), recognise the increased cost of retail space and labour, and, give us genuine control of the titles we receive.  There are newsagents who struggle to expand specialisation because of the failure of the current system and others who will close this year due to the financial distress of the current system.

Newspaper and Magazine publishers realise that the retail newsagent network is a valuable asset and finally engages with them on customer acquisition in a way which financially respects the network and rewards them handsomely for success.

Card companies stop ten years of inaction and finally release the common data structure for cards to enable better business management by newsagents.

Newsagents realise that they have more control over their businesses than they use.  They experiment more with new product categories, new layouts and new ways to grow their businesses. Too many newsagents are waiting for others to lead them. They need to lead themselves, store by store.  Some are, but not enough.

More newsagent associations realise that newsagents want strong representation.  Associations competing with GNS for the supply of stationery, for example, is ridiculous.

Newsagents understand that GNS is a key asset of the channel.  Like it or not, the health of the channel is dependent to some extent on the health of GNS.  Buying from them strengthens our buying power.

This is by no means complete.  While there are many more points I could add, the points above are those I see as vital to the core health of our channel.

In terms of resolutions, I’ll continue to use this place to champion the place of newsagencies in the Australian landscape and to lobby for fairer treatment by suppliers.

While I don’t have a crystal ball, I do know that 2010 will see considerable change presented to newsagents.  Probably more than 2009.  The best way for us to engage with change is to encourage it, to ride atop the wave rather than being dumped by it.

Here’s to a successful 2010!

0 likes
Newsagency challenges

Doubling Family Circle sales

family_circle_2009.jpgWe doubled our sales of the Christmas 2009 edition of Family Circle magazine compared to the same issue in 2008.  Our success has been achieved through proactive engagement with and promotion of Family Circle on our part.  We are thrilled with the result.  It’s a terrific reward for the effort we invested in the title.  We did this not because of the offer of a publisher reward or a demand but because we sensed that we could achieve a lot more from this title.  We were right.  The success shows what you can achieve through promotion and embracing change – moving the title around was key to our success.

There are some who are critical of the time I give magazines on this blog.  While I see changes with the medium and am frustrated with the distribution model, magazines are currently the best channel-wide point of difference we have.  This is why I aggressively manage the category.  Results like what we have achieved with Family Circle show that the effort is paying off.

0 likes
magazines

Discounting calendars 75%

Myer in Melbourne discounted their 2010 calendars by 75% three days ago (December 30).  They clearly want to quit the category quickly.

We have stocked our business with calendars to keep us going well into February.  Based on previous year’s of experience we will sell plenty of calendars through this time and mainly at 50% off retail.  A couple of my stores are only discounting at 25% – we choose the discount level based on demand and competition nearby.

Moves like this by Myer present smaller retailers like us with excellent opportunities.  Calendar sales after January 1 are easier to achieve.  Just like boxed card sales are right now – with so few retailers in the space range is more important than price as long as it is fair for the time of year.

0 likes
Calendars

2009 in review from a newsagent’s perspective

It’s been an interesting year.  Here is my somewhat random selection of highlights:

Magazine launch of the year – Prevention.  Brilliant marketing, excellent demand and good on-going sales.

Best magazine promotion – Hair straightener with Dolly.  Excellent traffic generator.  Great sales.   My only concern is what for 2010 and the gifts which come with Dolly?  Will the market tire of the strategy?

Magazine of the Year – Better Homes and Gardens.  Nails it every month.  Excellent cross-promotion with TV.  Easy sales.

Best magazine refresh of the year – Australian Women’s Weekly.  Much improved – and not before time.

Best imported magazine – People’s Friend.  A selfish choice based solely on my experience.  Ranks in top 10 magazines every week.  Excellent traffic generator. Loyal customers – I love ’em.

Worst newspaper moment of the year –  not a moment as such but a worsening frustration: Fairfax and their increased use of ads stuck over editorial content on the front page of the newspaper.

Best newspaper promotion – Discovery Channel DVD series with the Herald Sun.  Great traffic generator.  Well managed in terms of supply.

Best greeting card launch of the year.  Hallmark sound cards.  Genuine innovation.  Excellent sell through (2 times in three months in some stores).  Customers love them.  They bring theatre to our stores.

Wake up call of the year – new contracts from News Limited and how the company is handling them. Their introduction will change newsagents forever.

Biggest frustration of the year – the continued poor performance of the magazine supply model.  Magazine distributors push stock on newsagents offering barely lip service to newsagent requests / demands yet pursue newsagents aggressively for payment – often for stock which will never sell.

Best feeling of hope moment – contact from a range of independent magazine publishers who share newsagent frustration with the sick magazine distribution model.

2009 has been a good year, not as bad as we expected and plenty of green shoots in the last quarter of the year and a good Christmas trading season.

Feel free to add your own awards.

0 likes
magazine distribution

Magazine distribution confusion

Network and Gotch advised that there would be magazine deliveries today.  I confirmed this with Gotch again yesterday.  In one of my newsagencies we received a bundle of OK! and in another we received a bundle of Who.  The communication from distributors has been poor.

0 likes
magazine distribution

Beware Western Union scam email

There is a phishing email doing the rounds purporting to be from Western Union.  Some newsagents received this yesterday:

Dear Valued Customer,

This is an official notification from Western Union. Your account access has been limited due to a login attempt failure.

To restore your account we have attached a form to this email. Please download the form and follow the instructions on your screen.

Fraudwatch International has the details.  Their latest update was overnight.  If you receive an email like this: Do not respond, do not click on the link.

0 likes
Newsagency challenges

Promoting New Year’s Eve products

happy_new_year_2010.JPGOur small display of New Year’s Eve products, placed in front of the counter, is working well.  The various party goods, hats, 2010 glasses and glow sticks are selling from the re-purposed Letts Diaries display unit.  We are expanding our range of party goods in 2010 so we want to take evry opportunity possible to promote party times – like NYE.

Click on the image to see a larger version of the display.

0 likes
retail

Promoting Girlfriend and gifts

fhn_girlfriend_dec3009.JPGThe latest issue of Girlfriend is packed with great gifts so we are pitching this at the counter to attract impulse purchases.  The magazine was well packaged – meaning that our stock arrived in tact.  The timing of the offer is good since we have more girls shoppingin our centre this time of the year.

0 likes
magazines

Superstars of New Moon rip off

superstars_of_new_moon.jpgSuperstars of New Moon sells of US$9.95 in the United States.  Here, it is priced at A$27.50.  I am surprised at the price difference given the current exchange rate between the two currencies.  Either someone bought badly or are making a ton of money.  The $27.50 price tag makes Australian newsagents look expensive.  This title is also late.  The New Moon market slowed once the movie was released.

Who wants a $27.50 magazine title on the shelves anyway?  Add to that the long shelf life – I don’t see much upside for newsagents in distributing this title to us now.

0 likes
magazines

An arrest feels good

It is a good feeling when the police arrest someone for stealing from your shop.  While they are likely to get a warning or some other soft sentence, enough of these and they may learn a lesson – or, maybe not.  Either way, it feels good to have the police arrest someone.

Theft makes me angry.  I don’t like the term shoplifting for this reason – it feels soft.  I’d like to see tougher penalties.  I’d also like the victim, us in this instance, have the right to post the photo of the criminal on display in our shop along with their name.  This would play a practical role in deterring this activity.

0 likes
theft

Is it the iSlate?

Blogs, websites and mainstream news outlets are abuzz with reports of an imminent announcement  by Apple of their new tablet reader.  Many think it will be called the iSlate.

Publications (books, magazines and newspapers) are ready for their iPod moment as I have blogged here for some time.  While I don’t know if the iSlate (or whatever it is called) will deliver this, Apple is better placed than most to deliver such a moment because of their profound understanding of human interface needs.

We in the newsagency channel, where half of our traffic is derived from print product sales, need to understand that this moment will come.  We ought to be adjusting our businesses today.  We do this with new traffic, new money and better people to people connection.

This digital future is the key driver behind changes in print supply and distribution businesses.

0 likes
Media disruption

Good display for new Darrell Lea pineapple products

dl_pineapple.JPGI like the merchandising unit provided by Darrell Lea for their new Pineapple liquorice and Pineapple Paradise Bar.  The small footprint, promotion of two products, bright colour and fun design should help drive good sales.

The display unit doubles as a reminder to our customers that we carry Darrell Lea products in-store.

The key with this display as with all counter offers is to ensure that the space around is not cluttered.

0 likes
confectionary

Promoting Good Food magazine

fhn_good_food.JPGWe are promoting the latest issue of Good Food magazine on the back of an ACP magazines basket builder stand.  This display faces customers as they leave our stationery aisles.  We also have the magazine in a pocket in the food coulmn with our women’s magazines and in our regular food title area.  Good Food has done well for us – hence the co-location approach.  We want to get our sales early in the on-sale period.

0 likes
magazines

Australia Post lets shoppers and tenants down

While I should be pleased that a competitor has been closed for four days, I am not.  Tenants in shopping centres rely on each other to do their bit draw traffic to their part of the centre.  The government owned Australia Post outlet opposite one of my newsagencies has  been closed since Christmas Eve.  This hurts our traffic.  It also makes shoppers angry and some take this out on nearby shops they visit.

If Australia Post sees itself as a mainstream retailer (and not a public service) it ought to start acting like one.

0 likes
Australia Post

Promoting Top Gear with newspapers

top_gear_news.JPGBuoyed by the success we have had with Men’s Health and Women’s Health in this small ‘created’ display space next to our main newspaper stand, we decided to try the latest issue of Top Gear Australia there.  We will track sales from this locations compared to sales from the main location for the title.

My sense is that Top Gear Australia will work in this location because it is not a planned purchase for many customers. While I have no evidence with which to back this claim, it is an opinion developed watching how shoppers interact with the title.  They don’t seek out the title but happily pick it up if it interrupts their destination purchase.

I know the display is not overly attractive.  It has certainly worked for other titles recently.  The posters while not completely readable, do promote the brand.

We will leave Top Gear here for a week before deciding our next move.

0 likes
magazines

Tapping into Christmas indulgence

post_christmas.JPGWe are tapping into the feeling of over-indulgence at Christmas with a simple display at the counter promoting a mix of diet and exercise products.  While not the best looking display, it has generated impulse business and that’s what it is there for.  We will give this display four to five days in this prime position – longer is the sales justify the space.

We created the display initially as an experiment to see if this mix would work here and because the space was free for a few days.

0 likes
Newsagency opportunities

Boxing Day sales strong

fhn_box_day.JPGWe fully embraced the Melbourne Boxing Day Sales season in all of our newsagencies.  Sales yesterday and today have been excellent, just under 10% ahead on last year (on a same store basis) but ahead nevertheless.

We are discounting all Christmas products by 50%.  A third of the Christmas stock on sale was purchased specifically for the sale.  We also purchased calendars, gifts and some stationery items at heavily discounted prices to give us good bulk for the Boxing Day Sale – these are at varying levels of discount.

We are using the Boxing Day Sale to show off the diversity of products we sell – this is essential given the new traffic generated by the sales.  We want these people thinking of us more for gifts and other non newsagency traditional lines we offer.  Our participation in the sales also helps combat the feeling among shoppers that newsagencies are expensive.

We follow the approach of the majors and start on the morning of December 26 with all Christmas decorations down and with product lined up to reflect deals – i.e. no pretty displays.  This is about value shopping where the price is more the hero than the product itself.

Core to our sale offer is our range of boxed Christmas cards.  We have been in this space for years and are known for having an excellent range before Christmas as well as after.  It is great to see power card shoppers back in over the last couple of days hunting for their bargains.  Our sales in the week after Christmas will come close to matching sales in the week before – with most at 50% margin or better.

We make more money out of our Boxing Day Sale than we used to make from Back To School.  This says something about our demographic.  It also says something about our ability to buy for the Boxing Day Sale and achieve an excellent good margin.

Our Boxing Day Sale will run for a week before we modify it into a summer sale for two weeks.

0 likes
Newsagency opportunities
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011