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

September sales results

September has been an interesting month for newsagents.  I have seen stores with excellent growth and others with dreadful figures.  From what I see, it continues the patchy economic condidions we find ourselves in.

In our own case, we had a good month overall: books – down 17% (due to differences in sales cycles over the two years); calendars – up 14%; cards – down 16% (due to run down to a complete card relay and 25% supplier replacement yesterday);  confectionery – up 2%; Gifts – up 83%; magazines – down 7%; ink – up 25%; stationery – down 24% (fluctuation in some corporate business).  Overall traffic is up 3% but average sale value is down 10%.

We are moving to higher margin product and this is creating a healthier business.

In magazine categories, partworks is the big drop – if we take these out of the figures, the magazine department is down around 3%; food – down 22%, sport – down 18%; women’s interests – down 12%; women’s weeklies – down 3%; computers – down 29%; craft – down 17%.

0 likes
Newsagency management

Apple tablet to reshape how we consume news?

There has been plenty of noise online about the soon to launch Apple Mac Tablet including speculation of negotiations between magazine publishers and Apple about getting magazine content available through iTunes.  PC World has a good summary of news.

Such a move is guaranteed to happen as I have noted here before.  Once newspaper and magazine friendly devices appeal to consumers, publishers will embrace them.  This happened with music.  It makes sense.

Smart newsagents are building flexible businesses to cope with change while also working hard to make the most from print product in serving consumers who prefer this medium.

0 likes
magazines

Dust storm magazine shows off innovation

strange_light.jpgStrange Light is a one-shot 40 page magazine about the dust cloud which enveloped Sydney last week.  The magazine was created in a day and a half using MagCloud from Hewlett Packard. The storm occurred on September 23 and the magazine was published and available for purchase on September 25.  Amazing.  Read the publishers blog post about the process here.

This is an excellent example of how MagCloud and similar technology could change special interest publishing, especially around an event or a single topic.

I am grateful to Andrew Batt of Bangkok Station tipping me off to Strange Light.

0 likes
magazines

Sudoku junk proves why we need a magazine czar

sudoku_junk.JPGAs if we do not have enough sudoku titles already.  These five new titles arrived on Wednesday.  We were not supposed to receive any.  Ugh!  I am kind of glad we did because I got to see this junk.  These titles should never get access to the newsagency channel, not with the range of sudoku titles we have in our newsagencies already.  This is why we need a magazine czar to grant access approval to our retail network.  Someone controlling access to our network, based on range anf performance criteria, would have blocked these titles from getting through.

0 likes
magazines

Promoting The Australian Women’s Health Diary 2010

fhn_health_diary.JPGWe started promoting The Australian Women’s Health Diary 2010 at the front counter of our newsagency from yesterday.  This is the first time we have done such a display for this at the counter.  While the diary usually sells very well, we wanted to see what we could achieve with a good display at our best impulse purchase location.  Our goal is to sell 200 copies over the next few weeks.  The sooner the better given space challenges of this time of the year.

I like the poster supplied to promote the diary – it appeals to the targer customer.

0 likes
Diaries

Promoting Dolly magazine and Roxy duffle bag

fhn_dolly_oct09.JPGWe are promoting the latest issue of Dolly magazine at the entrance to our women’s magazine aisle. It replaced Australian Women’s Weekly which had been up for a week.

What may not be obvious from first glance at the photo is that we sliced up three of the posters to create the strips in front of each shelf promoting the free Roxy duffle bag. This attention to detail is important since we have the magazine opened out showing the bag.

We put this display up yesterday and already it is generating good interest.

0 likes
magazines

Update on XChangeIT update

Here is an update on the status of yesterday’s update to XChangeIT Link:

We had a few issues with a couple of the distributor gateways during the night, and therefore files will be delayed in delivery to you. We will contact you with updates during the day via email. Gotch & NDC may also send their invoices via email, depending on the status later today.

I have heard from a number of newsagents that the link has loaded successfully overnight.

0 likes
newsagent software

Freight move increases cost of magazine returns

The move by magazine distributors NDD, Gotch and Network to Toll Holdings for freight looks set to significantly increase the cost of returning unsold magazines.  One newsagent told me that their cost will go from $25.00 to $66.00.  This is what they will have to pay for stock they did not order and which has failed to sell.

Newsagents are understandably angry at this cost increase imposed on their businesses.  If distributors let newsagents return only then cover then the cost would be significantly less. NDD performs worst out of the three magazine distributors based on the data I see in terms of sell-through – meaning higher additional costs.

The magazine distribution model which makes newsagents liable for the cost of freighting titles which have not performed is flawed.

0 likes
magazine distribution

Trading Post classifieds newspaper to close

The Trading Post classifieds newspaper will cease publishing within the next four weeks.  While this has been a topic of discussion for months, there has been no clarity on specifics.  The publisher has certainly worked hard to migrate customers to their website.  In newsagencies, the Trading Post is not paying its way.

The Australian published a report stating that the print edition of the Trading Post is to close.  Telstra has published a notice with details.

0 likes
Media disruption

Soccer balls in newsagencies?

soccer_merchandise.JPGWe received 10 soccer balls today from Gordon & Gotch in one store and 15 in another.  The packaging carries ANF endorsement.  I knew we were getting soccer product because I saw it on a list of new titles I approved earlier this week.  Had I known they were actual soccer balls I’d have said no thanks.  I don’t want to sell soccer balls.  They do not fit in my newsagency.

I have no space at the counter for these even though they come in a counter unit.  Ugh! We currently have tweleve counter units and only two spaces for their use.

Soccer fans will know they can get brand name balls at sports stores.  They don’t think about buying these at newsagencies – unless there is a major advertising campaign to drive traffic.  Given that the ANF represents only 33% of newsagents, the endorsement is of dubious value. The ANF is engaging in an area which has nothing to do with an association.

This is not a smart promotion.  For it to work properly, there needs to be a narrative built around the offer.  This is done by bringing several products together with professional collateral to support the offer.  This has not been done with the soccer balls.

0 likes
Newsagency challenges

Cashing in on the Geelong AFL Grand Final win

fhn_herald_sun_geelong.JPGWe are displaying the Geelong team photo (free with the Herald Sun) today at our usual newspaper stand as well as at the lottery counter (see photo).  Based on selling out of the Geelong premiers magazine in two days, the team photo should be a hit in our newsagency.  The poster should drive good sales.  On the premiers magazine, we received extra stock today and by 8:30 we had already sold three.  Opportunistic moves like these are essential.

0 likes
magazines

Promoting crosswords in newsagencies

crossword_plate.jpgThe creative team at Tower Systems has developed another poster for use by newsagents in promoting crosswords.  I like this one more than the artwork I published here two weeks ago as I think it will stand out well against the sea of colour in a newsagency.  I also like how it represents the health benefits of crosswords.

Once we make any adjustments, based on feedback from publishing this here, I will make a PDF available for anyone to download and print locally.

We plan to use this poster in a front-of-store crossword display as well as on visual merchandising space adjacent to our main crossword display.  The poster being timeless allows us to use it when we choose.

I wish publishers would work together and fund unbranded collateral promoting newsagencies for key magazine segments such as crosswords, crafts, food, motoring and travel.  While they only want to promote their titles, a healthy segment overall is good for all publishers involved.

Tower invests in this artwork and other promotional activities for newsagents to help build a healthier newsagency channel.

0 likes
crosswords

Graduation and teacher gifts

fhn_graduation.JPGEven though the school year has a way to go, we have a small display of graduation and teacher gifts on display for our school holiday shoppers.  We have the range of plush in the photo and several other items in this growing category.  We display these items along with a selection of appropriate cards to demonstrate the context of the gifts in case it is not obvious.

0 likes
Gifts

XChangeIT update available today

Newsagents using the new XChangeIT platform has been asked to act AFTER 4:30PM TODAY to ensure they are running the new release.  This will help address some of the operational challenges of the last month – it’s an important update.  The advice from XChangeIT for noewsagents to either reset or reboot their computers as follows:

To Reset:
1. At a convenient time shortly after 4:30PM on the 30th September, right click on the XchangeIT icon (its the blue triangle) in your bottom right task bar
2. Select the Exit option. This will close the XIT application and remove the icon from your task bar
3. Go to your Start menu and select All Programs.
4. Select the XchangeIT Link and the XchangeIT Newsagent Client option. This will launch the XIT application with the new version installed.
5. Check in your Newsagent client at the top right corner just below the round picture of the world and you should see v1.0.40.
6. Send us an email to let us know you have completed the upgrade support@xchangeit.com.au

To Reboot:
1. At a convenient time shortly after 4:30PM on the 30th September, simply shut down all programs you might have running, and save any work in process.
2. Shut down your PC
3. After 30 seconds turn your PC on again. Start your regular programs and start your XchangeIT LINK EDI program. The new version 40 with a new security key should automatically load. You should be able to continue receiving and sending files as normal.
4. Check in your Newsagent client at the top right corner just below the round picture of the world and you should see v1.0.40.
5. Send us an email to let us know you have completed the upgrade support@xchangeit.com.au

To check what version of XchangeIT LINK you are running:
1. In your Newsagent Client look at the top right corner just below the round picture of the world
2. There you should see v1.0.40 after you have upgraded.

The folks at XChangeIT have consulted widely on the release of this update including the timing to ensure that it is released at the best time possible for newsagents.

0 likes
newsagent software

Publishers should use newsagent preorders to gauge appeal

Magazine publishers launching new titles should consider offering a preorder service through newsagencies as a means of gaining consumer appeal. This could provide feedback in time to adjust print runs and thereby avoid sell-outs or over supply. Newsagents are used to offering such a facility for regular titles – called the putaway service. Indeed, putaways are a key point of difference newsagents offer magazine customers.

Offering preorders could be particularly useful for mass market titles. The Home and Away souvenir one-shot earlier this year was a good example. We ended up selling three times our allocation. I expect that a smart preorder campaign would have provided sufficient guide in a few days to provide better data with which to forecast our sales.

0 likes
Newsagency opportunities

Another magazine launches iPhone app

Just £2.39 buys a month long subscription to The Spectator magazine on your iPhone.  This was launched yesterday. An annual subscription to the print edition costs £135.  The pay as you go model will be appealing subscribers through the iPhone channel.  It is the same model selected by other magazine publishers.

If we want to maintain our position as magazine specialists (against competition from the iPhone and other distribution channels), we need to develop strategies which make our businesses more appealing to magazine publishers while at the same time ensuring our own viability in this category.

0 likes
Media disruption

Newsagents represented in another Magazine podcast

I participated another Magazine podcast for Mediaweek late last week. This is now available for download here. Those participating in the discussion included author of the Girl With A Satchel blog, Erica Bartle, and the co-director of Australian Traveller magazine, Nigel Herbert, James Manning of Mediaweek and Bendan Wood, Moderator.  In the podcast we discussed a range of magazine related topics including the bonus commission on Australian Traveller, gifts with magazines, cover price and the impending sale of NDD.

It is good that newsagents have a voice at these discussions. The podcasts are downloaded by a variety of people from inside and outside magazine publishing – I know because of the feedback to the last podcast I did with Mediaweek.

Check it out and let me know what you think.

0 likes
magazines

Promoting Top Gear magazine and free Stig DVD

fhn_top_gear_oct09.JPGWe are promoting Top Gear Australia at the entrance/exit of our men’s magazine aisle this week. While not considered a premium location, sales suggest otherwise. This location is ideal for Top Gear because it is located close to the main stock of this title as the photo shows.

We will leave Top Gear on display here for a full week, maybe longer depending on demand for the space and the performance of the title.

My only beef with this issue of Top Gear is that it is bagged, to hold the DVD. Guys love to browse magazines. Bagging Top Gear stops browsing by some and encourages damage to the product by others. Find another way to package the DVD with the magazine. Let guys browse titles. You’ll sell more magazines. Advertisers will be happier too.

0 likes
magazines

Driving sales of bags and wrap

bags_sep21.JPGThe photo shows the bag wall at one of my newsagencies.  The range has recently been refreshed and there has been a good sales kick as a result.  We know from industry sales data that newsagents underperform in terms of bag and wrap sales.  This is usually because newsagents hide the product behind cards.

Newsagencies where bags are close to the front of the store and highly visible are achieving better results.  That was the goal of the recent refresh in our newsagency.

In addition to refreshing the range, we take opportunities to create feature displays to show how bags can be dressed to great effect.  We do this, not our merchandiser – the benefits are ours after all.

0 likes
giftwrap

Missing out on the newsagency experience

What is it about Australian capital cities and newsagencies. Well, Melbourne, Sydney at least. They used to boast several good ‘full service’ newsagencies. Now they are nowhere to be seen. Instead we have convenience stores on every street corner.

I am in Sydney today and needed something only a newsagency would carry. While Sydney has a good number of News Stands, as they are called, the main CBD streets lack a newsagency or two.

I suspect that rent has a lot to do with this. Our slim margin businesses don’t work when you are paying close to $2,000 a square metre for retail space.

It’s a pity. Tourists wandering Sydney streets mixing sightseeing with shopping are missing on a quintessentially Australian retail experience.

0 likes
Newsagency challenges

Girlpower and shag bands

With ‘shag’ bands in the news over the weekend, the latest issue of Girlpower magazine is a challenge for newsagents since it has bands bundled with the magazine.  Some newsagents are asking whether they should promote this issue.  For other definitions of shag branbds, check out urban dictionary.

Maybe I am disconnected but the ‘shag’ bands story sounds like a beat up.  I’m happy for the magazine to be on the shelf.  If it was removed for this then the magazine shelves would look quite bare.

0 likes
magazines

Model Orbiter partwork

model_orbiter.JPGThe Model Orbiter partwork launched today. Actually, launched is not the right word.  We received stock but no collateral.  You can’t promote new partworks without collateral.  I am sure there will be an excuse.  It is not good enough.  Collateral should arrive with the stock as this is when we allocate space and have resources for creating displays.

0 likes
magazines

Why is the ANF sponsoring a soccer TV show?

anf_sponsor.jpgI wonder how many newsagents are aware that the ANF sponsors the Goal of the week on the football stars of tomorrow  TV show and website.  The sponsorship is poorly executed in that there is no explanation on the website about the ANF or newsagents, there is nowhere to click to get to the ANF to get this information and it is based around a logo which the majority of newsagents do not use.

Maybe I am missing something but I cannot see the value to newsagents in this sponsorship.

0 likes
Ugh!
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