Making pencils
There is some relaxing and therapeutic about this video showing the making of yellow pencils.
Making the colour bit of pencils. Transfixed 😳pic.twitter.com/JULOfiExee
— Bernie'sTweets (@berniespofforth) July 13, 2020
The value of being online
Being online with the right product and the right mix of purchase options can deliver sales like this one, $1,082.99, at 7:48am yesterday, Sunday, on a day the store connected to the website is closed. This was one of 5 sales in the day for the store, $2,000+ in revenue, which the shop remained closed. Every sale above 50% GP.
This website, like all websites I have been involved with for my shops and others connected to groups of newsagencies, the online pitch is not through a newsagency related shingle. I think this matters. Indeed, the most successful online pitches are through either a known product brand or a widely loved product category.
Newsagents can sell online and doing so successfully can help you adjust physical store operations to be more overhead cost efficient.
The key thing to understand about what you an do online is … the only barrier is you and what you think you can and cannot do.
Newsagents face a 50% cut to margin following News Corp. fee hike
Wrapaway, a niche magazine and newspaper distributor, late yesterday wrote to NSW / ACT newsagents advising them of a cut to their commission (gross profit) from 25% on their titles to 12.5%. Their letter to newsagents explains that the move has been brought about by a 500% increase in what News Corp. charges them to deliver their product.
This is another of many changes in the News Corp. that are impacting and will impact newsagents.
The challenge for impacted newsagents is when is it too much, when do you quit suppliers. While financially such a move may make sense, when it comes to niche titles, such as foreign language titles, you may accept a reduced margin to maintain your specialist status.
The other options of course, is to increase the cover price.
If the Wrapaway letter is accurate and News Corp. has increased their charges by 500% the company needs to fully explain the basis for this increase, it needs to prove that such an increase is necessary.
Sunday marketing tip: use products to speak for you
This iconic jigsaw at the front of the shop in Victoria makes a timely and powerful statement right now.
While the image on this jigsaw represents a message from another time, the simple words resonate today. I was at the shop Thursday and heard a couple of customers comment positively about it. It reminded me that sometimes products can be a better advocate than pretty signage.
Advice for newsagents confronting another lockdown
Based on what we have seen over the last few days in Victoria since the government announced a second lockdown, people are nervous. While the news reports show empty toilet paper, pasta and baby formula shelves, it is more than this, people are distancing again and they are touching products in-store less. So, it’s back to basics in retail, back to what we know is important:
- Show that your shop is clean, safe and easy to shop. Uncluttered, easy access is key to safe shopping.
- Have hand sanitiser at the entrance and at the counter with a sign encouraging people to use it.
- Encourage staff to wear face masks. This helps set the tone for safe shopping. I saw first-hand the value of this on Thursday. In an area serving older customers it was appreciated.
- Ensure the counter is setup for safety of staff and customers.
- Have suggested product packs ready to purchase easily – as appropriate to your business.
- Offer curbside pickup.
- Offer home delivery where possible.
- Be positive in-store.
- Be positive on socials and on the front foot. This is your opportunity to be clear with o=your messaging outside the business.
- Bring to the front of the store things that were popular during lockdown. If appropriate to your business: jigsaws, books, adult colouring books, activity sets, knitting / crochet / craft packs, music, art supplies, home nesting products and tactile products for kids.
- Clean regularly and let people see you doing this.
I get that this list is common sense. I mention it as a reminder.
Part of what has happened in Victoria, I think, is complacency within the population due to people thinking we were through it. This has been encouraged by some media reporting on top of corona fatigue. Indeed, some in the media and some politicians have driven the push to get back to normal with dumb Dictator Dan headlines and labels.
As an employer my my primary interest in the shops is employee health and safety. This is why I have taken a strong position on face masks. I am grateful to have a team that gets it.
Newsagency businesses selling
Newsagency businesses are selling through the covid challenges. While retail businesses in some other channels are not selling, newsagency businesses are selling and some have sold quickly, in a week or two of going on the market.
This is good for the channel. The number of buyers looking speaks to how the channel is viewed as an investment opportunity.
I have heard of a couple of instances where the purchasers were able to obtain bank finance, too, which is a nice shift from recent times.
Being essential through the pandemic is helping to reset how the channel is viewed.
How UK newsagents have been helping their local communities through covid
This is a terrific news story from the UK about how UK newsagents have been helping their local communities through covid:
Newsagents have played a crucial role in their local communities during the coronavirus pandemic, from ensuring residents can get their daily news fix to keeping emergency stashes of toilet paper behind the till for customers unable to get their hands on any elsewhere.
Yet unlike many other essential workers who have, rightly, been praised for keeping the country going during the hardest of times, the contribution of newsagents has been largely overlooked.
As fears about the likelihood of a Covid-19 outbreak in the UK spread prior to lockdown, many shoppers who had previously bypassed their local newsagent in favour of the larger supermarket chains started dropping into convenience stores closer to home in order to avoid the crowds in towns any city centres.
…
Some newsagents have gone to great lengths to help customers and their local community during the pandemic.
Asiyah and Jawad Javed, who run the Day-Today Express store in Stenhousemuir, Falkirk, have given away hundreds of free Covid-19 hygiene kits to elderly and vulnerable people in their area to help to keep them safe during the public health crisis.
The kits include antibacterial hand gel, sanitising wipes and facemasks, and have cost the business more than £4,000. The couple also offered free delivery services for any residents unable to get to the shop.
What a great story!
Magazines worth promoting right now
Plenty of magazines are worth promoting right now given the unique circumstances of this point in 2020. Food titles, of course, as well as craft, crossword and hobby titles.
This create and decorate one shot from Bauer is an easy pitch with crafting currently popular in homes around the country.
I only rarely pitch magazines on social media as I’d rather attract shoppers for higher margin and stickier products. However, these days are different.
With Spotlight and other craft related businesses experiencing a huge sales surge, magazines like this can give us some connection to the opportunity.
Victorian shops closing, again
I was in a couple of Victorian shopping malls yesterday and plenty of stores in those malls were already closed for the lockdown – jewellery, clothing, services and some gift.
Of the gift and related businesses that were open, in more than usual there were sales on – 20% through to 50% off. One national brand franchise gift business had everything in-store at 20% off with the look of quitting the centre.
Shopper traffic was down by, I am guessing here, 75% – based on people I saw and based on car park emptiness.
Out on the high street, from those I spoke to who were open, it was business as usual.
Looking at my own businesses in Westfield centres, yesterday we were down by 25%. I expect the decline to be greater today and into the weekend. What is interesting this time around is that card sales have not collapsed as they did in the early days of the first lockdown.
Melbourne 2020 Gift Fair rescheduled to 2021
Reed just issued this statement:
An Important Update From Reed Gift Fairs
Reed Gift Fairs would like to express our ongoing concern for everyone impacted by Coronavirus.
After closely monitoring the rapidly escalating situation in Victoria and following the State and Federal Government directives, we have made the decision to reschedule the upcoming edition of Reed Gift Fairs Melbourne to 2021.
Reed Gift Fairs Melbourne will take place at the Melbourne Convention and Exhibition Centre from 31 July to 4 August 2021.
We are in unprecedented times and continue to witness first-hand the challenging impact of COVID-19 on all industries, both professionally and personally. Prior to the recent escalation of COVID-19 in Victoria, we were optimistic that Reed Gift Fairs Melbourne would run safely and successfully in October this year, and our principle focus was on ensuring that the rescheduled dates were ideally positioned to support our community. However, following consultation with you, our customers, and all other stakeholders, we have concluded that the best option is to refocus on maximising business opportunities for wholesalers and retailers in 2021 at both Reed Gift Fairs Sydney (February, ICC Sydney) and Reed Gift Fairs Melbourne (August, MCEC).
We appreciate that this is disappointing news, however we have made this decision with everyone’s health and safety as our number one priority. We can now look ahead to the 2021 editions of Reed Gift Fairs in Sydney and Melbourne with more certainty.
We will continue to do our utmost to help all our customers, partners and attendees to prepare for the 2021 events. While we are disappointed that we are unable to meet face-to-face in Melbourne in 2020, we remain committed to keeping Australia’s vibrant retail community connected over the coming months.
We once again thank all of our exhibitors, visitors and partners for their encouragement and support during this challenging time and we apologise for any inconvenience that the rescheduling to 2021 may cause. We look forward to Reed Gift Fairs in both Sydney and Melbourne returning next year with even stronger events.
Fascinating Wednesday as Melbourne prepared for lockdown
The sales of toys, games, plush, cards and nesting (candles etc) surged yesterday, Wednesday, in Melbourne as the city prepared for lockdown.
In my own experience, sales more than doubled in these and some other categories as people stocked up. The surge was greater in shopping centre businesses than on the high street – I suspect because shoppers expect the shopping centre businesses to close.
the card result was particular interesting. It said to me that people understood what was coming and that they wanted to ensure they had birthdays etc. covered through lockdown.
UPDATED: state and territory covid grants
This is an up to date (as at July 7, 2020) list of state and territory government Covid related grants. There are some new opportunities in this mix. Click on the state / territory name for their landing page. Then, where possible, I have links to specific current grants.
- NSW. Covid recovery – up to $3K.
- QLD. Covid adaptation grant – up to $10K. Regional QLD allocation under 50% of available funds applied for.
- ACT. No current grants.
- VIC. Local lockdown support grants – up to $5K.
- TAS. No current grants.
- SA. The Jobs Support Fund may be of interest: businessandjobssupportfund@sa.gov.au.
- WA. No grants but several one-off assistances.
- NT. Business Survival Fund – some grants still available.
Do your research as to eligibility. If you are eligible, do it now as waiting could see you miss out and there will be no point complaining then.
Bauer launches new TVC promoting magazines
Bauer today launches on the 7 Network a new TVC pitching magazines: https://f.io/8gpyUtcH
‘The little things’ will run on the 7 Network from today as a 4-week campaign through to early August. Across the 4-weeks our investment will see more than 360 spots run – booked in as a 70% peak split. Highlighted programming includes Big Brother, Home & Away, Seven News, Sunrise, Night movies.
April – June newsagency sales benchmark study under way
I am collecting basket data from newsagents for an April – June 2020 compared to April – June 2019 newsagency sales benchmark study.
I already have data from seventy stores and am hoping for data from another 50 at least.
My goal is to have the data collated and assessed early next week.
based on what I saw for May 2020 compared to May 2019 and May 1 – 30 2020 comp[ared to April 2020,l I anticipate seeing a strong result from regional and rural Australia and a good result from high street suburban.
It is the shopping centre b businesses that I anticipate will provide challenging results as that was the trend in both May data sets.
There are plenty of newsagents doing well right now and kudos to the engaged retailers who have taken the steps necessary to position themselves for this success. Agility is key to this success.
How local newsagents have helped Aussies through COVID-19
Small business newsagents have helped their local communities in many ways through COVID-19 and here are some of them:
- Being open. While many retailers closed, newsagents remained open all through Covid as they were classed essential. This presented rostering challenges along with workplace health and safety challenges.
- Diversifying. With other local shops closed, plenty of Newsagency businesses temporarily filled those product gaps that emerged.
- Helping others clear stock. With other shops closed, plenty of newsagents took some stock others had and helped them clear it. I know of cases where newsagents took on stock from closed nearby shops, helping friends out.
- Expanding the range to serve evolving needs. Helping with home office supplies, nesting products, iso home entertainment like jigsaws … newsagents have moved quickly to serve emerging needs, and not often at huge profit, like, maybe, some supermarkets.
- Making shopping easier. Packaging selected items to make shopping faster and easier for things people might buy together.
- Offering safe curbside pickup. Newsagents have made shopping easy and safe for shoppers to collect items orders over the phone or online. Staff in-store shop for the items, bag them and have them ready for contactless collection.
- Offering new home delivery. This has been done in situations where retailers have not offered home delivery. For example, delivery of care packages to nursing homes, delivery of gifts to locals ordered by family members elsewhere.
- Offering safer shopping. By re-shaping the in-store space and experience and making shopping safer, newsagents lead locally on this early in Covid.
- Being local. Living local and being engaged local offers a big difference. Being the one local shop people could go to for some, distanced, human interaction.
Covid has been challenging and continues to be challenging for retailers. Newsagents are here every day, trading, serving their communities and often helping beyond what one might expect for a business. It is this commitment to community that runs through the veins of newsagents.
With older Australians as their customers, newsagents have been particularly focussed on safe retail for them.
Covid has a long way to go, as the current situation in Victoria shows. Newsagents are doing their best to offer local safe and helpful service to their local communities.
Another local newspaper announced: Gympie Today
Great to see Gympie Today announced today, for an end of July launch.
Will Tabcorp breach retailers who do not self assess?
Tabcorp pays a business to send people to lottery outlets to check (audit) compliance with signage and other requirements.
Through Covid, Tabcorp suspended this service and instead asked (encouraged) retailers self assess. The company offered no compensation for this. Indeed, it was put as a polite request.
Retailers have told me they have been threatened with a breach by a Tabcorp representative if they do not complete the self assessment.
If true, this is the company using a heavy financial weapon against these businesses because the businesses have not done for Tabcorp, for no compensation, something that Tabcorp wants only for themselves.
This would be appalling and bullying behaviour.
Tabcorp preferences paperwork over sales, it preferences keeping small business retailers performing like circus monkeys with threats if they do not complete the circus performance routine exactly as Tabcorp demands.
You can have a small business retailer delivering net sales growth to Tabcorp and yet the company will issue bullying emails and threats of breach if the retailer does not do the act that Tabcorp demands.
Making financially harmful threats to small business owners in the middle of covid is appalling and bullying behaviour.
The harm of threats by Tabcorp against small business retailers have been considerable emotional, but the compare does not appear to care. It takes a toll at a difficult time, in the middle of Covid, with challenges in-store and in local communities, but Tabcorp and its people do not appear to care.
Tabcorp has been no help through Covid, it has offered no support.
I get that there will be people at Tabcorp who will say he is just ranting against us as he usually does. They’d be right for there has been plenty to rant about when it comes to Tabcorp and its treatment of small business retailers. They screw up time and again, hurting businesses and those who run them. Indeed, the personal emotional cost I have seen has been considerable.
Frankly, I don’t personally care as I don’t have The Lott (Tabcorp) in my businesses and never will. I cannot and will not work with that company as their treatment of small business retailers is unprofessional, disrespectful and bullying.
News Corp. fails at newspaper delivery in central Queensland
As regional central Queensland newsagencies started to close yesterday afternoon, Saturday, some had not received their News Corp. newspapers for the day.
What a failure by News Corp.
There is no point delivering newspapers for sale after the Newsagency has closed.
What makes the News Corp. cock up worse is that some newsagencies get their papers by 7am while newsagencies 15 minutes away do not get theirs until hours later.
This is an appalling situation. What makes it work is that newsagents are finding it challenging to find anyone at News Corp. who accepts responsibility suability for the situation.
Newsagents have a right to be angry. News Corp. has stuffed this up. The changed implemented are their changes, months in the planning. No consultation., No listening to local experts.
What a mess.
What makes it worse is that News Corp. through its mismanagement is hurting small business newsagents. News Corp. It is adding to personal stress, an emotional toll, on these newsagency families and the communities they serve. Yet, no one in News Corp. is accepting responsibility.
Part of the problem appears to be News Corp.’s decision to not employ drivers. It wants people with an ABN, to be contracted. I wonder if this is a decision by the company to circumvent labour laws. If what I have heard about driving time is true, I can understand why you’d want to contract a business rather than hire someone. A 10 hour drive each day feels unsafe to me, but this is, I am told, what is being required by the company.
A newsagent colleague wrote this to a News Corp. executive, who washed their hands of responsibility in response:
What happened to all the conditions we signed up too, when we were interviewed all those years ago to be acceptable newsagents for your company.
You don’t hold yourself to the same standards.
This is not only, not acceptable to your loyal retailers, loyal customers but it is a huge health and safety risk to your contractors.
This should never have happened. This should have been sorted out before the closure of The Morning Bulletin and the closure of the Rockhampton Print site.
…
We are beyond angry at the appalling standard of service Newslimited is giving it’s long term retail partners, but not surprised.
News Corp. failed early on this and they have maintained their failure. It’s like they don’t care.
Great news for new local Ararat newspaper
This tweet tells the story:
It’s been 10 weeks since the Ararat Advocate was born. 10 weeks of bringing the community the news that they would have otherwise missed out on. A local independent team working hard to give the Ararat community what they deserve: a “local” paper. 🗞 pic.twitter.com/gWeLttaWhl
— Jack Ward (@JACKTWARD_) July 3, 2020
Nine newspapers do a deep dive on Bauer’s Aussie foray
The Age and the SMH today offer up How a German media company brought Australia’s greatest magazine empire to its knees, a deep dive into the Bauer family’s impact on the once great ACP magazine empire and the wreckage it left. It is worth the read for the reminder of history, the (finally!) acknowledgement of what a stuff up the Bauer influence has been in Australia. It ends on a note of hope for a brighter future.
Victoria is beta testing what it will be like for living with corona until their is a proven vaccine
What has happened in Victoria this week as a result of the spike in COVID-19 cases has been a challenge. I say this as someone living in Victoria and with several businesses based in Victoria.
Whereas since march, we have all been in this together, now some postcodes are in and others are not. The tougher lockdowns in some postcodes have resulted in challenges outside those postcodes.
Major shopping centres have seen a sharp decline in shopper traffic and this is playing out at the register with sales down 50% and more from early in the week. That decline is playing well for high street retailers with most I have spoken with experiencing steady and even slightly up sales.
Jigsaw sales are up again as are other categories such as nesting.
While some in other states have made fun of Victoria, the reality is we are beta testing living with corona for the longer term. By beta testing mean we Victorians are working out how to live with this for the longer term.
The reality is that due to mixed messages from shouty media and plenty of politicians on all sides, it makes sense that people became complacent. What we have seen is that complacency is dangerous, it has consequences.
Social distancing is key. Washing hands matters. Using hand sanitiser is important. Keeping a clean and well organised shop is our responsibility. Health and safety barriers at retail counters are important. Seriousness about health is core. Discipline and commitment to these things is what life in this corona world until there is a vaccine is what matters.
From a business management perspective, we have learned that the corona lockdown months are the new normal and that we need to adapt our businesses. Some of what we have experienced these months is sticking. More businesses are adopting for the long term lockdown changes, such as working from home.
In all of these moves there are opportunities for local retailers.
The infection spike in Victoria has been a timely reminder that March through June were not a blip. No, they are experiences we in business need to leverage for all those who rely on our businesses for income and support.
The mantra from March is relevant today: be frugal, hoard cash, make safe business decisions, ensure that every person in your shop needs to be there.
If you feel disconnected with what has been happening in Victoria, know that you are one person away from experiencing this where you are.
News UK cuts newsagent newspaper margins
Newsagents in the UK are angry that News UK has increased the newspaper cover price and cut newsagent margin. Better Retailing has the details:
The NFRN has said “enough is enough” on newspaper margin cuts after News UK increased the price of The Times, but introduced a 0.5% drop in percentage terms for retailers.
From today (6 July), the cover price of Monday-to-Friday editions of The Times have risen by 20p to £2, while the margin for retailers has dropped from 21.5% to 21%, bringing the margin in line with the title’s weekend editions.
Its weekend titles will also increase in price, with the Saturday edition rising 20p to £2.20 and The Sunday Times moving up to £3. However, margins will be maintained at 21%.
This is an appalling move by News UK and one that should capture the attention of Australian newsagents.
The margin percentage cut and the cover price increase play on each other to intensify the financial hit to retailers including small business newsagents.
News Corp. in Australia is on a mission to cut operating costs and improve their own financial position as much as possible. Newsagents have seen this through the change in treatment of margin in recent years, closing of newspapers, changes to distribution arrangements and more.
UK newsagents are known for being strong and swift to act when they are wronged. I expect there will be considerable push back against the News UK move.
News UK is not alone in having on cover price and retailer margin in the UK:
HOW TO KILL THE NEWS TRADE BY @REACHPLC! Another 10p increase cause the greedy shareholders want more! Plus the unprofessional Publisher have under handedly Cut Newsagents terms without having the balls to be honest, yes truth always hurts! pic.twitter.com/iypL7xEmKq
— HNDA Delivers News (@hndanews) June 7, 2020
Newspaper retailers can make their decisions as to what they stock. I know of newsagents who have decided to not stock newspapers because of the declining percentage of gross profit and because of declining sales. One I spoke to recently said that even though customers ask about papers almost daily, not offering reduced a key personal stress point for them.
AFL record pitches newsagents, and Coles
They have pitched to their 17,000+ Twitter followers. It’s good they call out newsagents.
We’re back for another week. $5 at all Vic newsagents plus @Coles and Coles Express outlets. Every club, every game, all the key stats. #essentialreading #aflbluessaints @1116sen @AFLNation @Crocmedia pic.twitter.com/xYOyLo4Gt2
— AFL Record (@AFLrecord) July 1, 2020
A Russian curiosity
It was interesting to hear via the BBC that bookshops in Russia had been asked, encouraged to stock the new Russian constitution prior to it being adopted by vote in the country.
Talk about taking up retail space with something dry and for diehards.
What is it with big businesses and communication?
On top of corona challenges, small business newsagents are confronted by channel-specific challenges right now because News Corp., Tabcorp, Ovato and others are letting them down on basic business communication.
Ovato made magazine distribution changes in NSW/ACT and even this morning there are newsagents unsure of when magazines will arrive and where they will be delivered.
News Corp. closed papers and changed distribution arrangements and there are Queensland newsagents a week on still not getting papers until close to lunchtime.
Big supplier businesses need to do better if they are genuinely interested in small business retailer business. I suspect their major customers, like the supermarkets, will have received better and more regular communication.
If their comms is anything to go by, they don’t value small business newsagent business in the medium to long term. Maybe that is the message.