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

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!

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Social responsibility

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.

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magazines

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.

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Newsagency management

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.

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Newsagency challenges

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.

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Newsagency management

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.
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.
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Newsagency opportunities

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.

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magazines

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.

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Newsagency management

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:

  1. 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.
  2. Diversifying. With other local shops closed, plenty of Newsagency businesses temporarily filled those product gaps that emerged.
  3. 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.
  4. 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.
  5. Making shopping easier. Packaging selected items to make shopping faster and easier for things people might buy together.
  6. 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.
  7. 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.
  8. Offering safer shopping. By re-shaping the in-store space and experience and making shopping safer, newsagents lead locally on this early in Covid.
  9. 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.

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Social responsibility

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.

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Ethics

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.

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Ethics

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.

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magazines

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.

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Social responsibility

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:

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.

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Ethics

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.

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Ugh!

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.

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Ethics

Ovato yet to advise NSW/ACT newsagents about new magazine delivery arrangements

News Corp. is taking over delivery of newspapers for Ovato, starting from tomorrow. As of right now arrangements have not been put in place by Ovato, leaving newsagents up in the air as to arrangements.

One newsagent I have spoken with has staffing arrangements to organise. Another I spoke with has keys to hand over for secure delivery of magazines.

Here we are, hours away from the change and nothing is organised. Someone is responsible for this, responsible for the stress being felt by newsagents, responsible for what tomorrow might look like if the current lack of arrangements plays out.

The decision by Ovato was announced weeks ago. The have had time to get this done right. Even if they call newsagents this afternoon, it is too late, rosters were set last week.

What a mess.

Footnote: as I noted a while back, I think there will be consequences for newsagents from the decision by Ovato to use News Corp.

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magazine distribution

Urgent advice on Ovato invoices today

Earlier this morning I advised Ovato of what appeared to be an issue with some invoices not including GST. The head of client and retailer sales for Ovato has now responded:

From our investigations we are aware of some DD2 file being sent without GST. We believe this will not impact the retail price that includes GST so stores will be scanning at correct price tomorrows magazines. We believe this will impact the PoS finance side and are currently reviewing all DD2’s sent for tomorrow’s on-sale to identify the ones without GST. We are then planning to resend these DD2 files with the correct GST. Please confirm for Tower agents this will be ok.

We are also speaking to XIT to let them know of the error on some DD2 files.

We also now know the reason why this happened and can confirm this will be fixed for future on-sales.

My newsagency software company is emailing customers with advice on handling this, to mitigate against data errors.

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newsagent software

Corona spike messaging in Victoria

I posted this on the Facebook pages for my Victorian businesses and the newsXpress national Facebook page.

Hey Victorians, we hope you are safe. All our locally owned newsXpress stores in Victoria are open and safe, here to serve you with news, awesome cards, jigsaws, games and gifts. We can arrange easy pick-up. Some of our stores can arrange local home delivery.
While it is frustrating being the butt of jokes from other states, corona is invisible and will spike in other places too. This week and next we Victorians get to show the rest of the country how to deal with a second wave.
Be well and happy! xx

I share it here as other Victorian retailers may wish to post their own messaging early in this period a surge of corona infections. I felt it was better to be on the front foot about this given the wall to wall coverage in the news and given how some media outlets outside the state are speaking about us.

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Social responsibility

Round 2 for some Victorian locations

Dan Andrews, the Premier of Victoria just announced a return to stage 3 lockdown for some Victorian postcodes in response to COVID-19 infections.

The return to stage 3 lockdown presents challenges for residents and businesses in these areas. Newsagents, based on past experience, will be exempt. High street newsagents in particular will see foot traffic changes as the shopping malls empty out, which has started already.

Click on the image to see the full statement by the Premier. I have shared it here as I suspect news outlets will not run the full statement.

Related, earlier this week I announced to people working in my own office-based businesses that I anticipate we will continue our work from home approach for most through to the end of this year at least. The feedback I had was that people wanted certainty.

90% of our workforce is working from home with Microsoft Teams, Zoom and our VoiP phone system key to maintaining contact and productivity.

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Social responsibility

News Corp regional newspaper deliveries are a mess

I doubt we will get papers today.

They don’t care about regional Queensland.

It’s a joke.

News Corp. Is killing our newspaper sales.

Plenty of newsagents in Queensland are angry at botched and late deliveries by News Corp. Hearing about late and entirely missed deliveries from regional newsagents, in towns where a paper with local news still matters, is heartbreaking. Customers are angry too.

This is the last time I try and buy a paper at the newsagents.

Haven’t you paid your bills. (On seeing no newspapers)

I came all the way into town to buy a paper. It’s 10am. (Yelled)

One newsagent contacted News Corp. to discuss the delivery route, to try and get papers to their shop before 11 each morning and the News Corp. response was could you create a new route for us to follow because you know the area better than us. This might have been a reasonable position if the company was preparing for the changes. It is unacceptable from the company after their changes, controlled by them, have been implemented.

By any measure, what News Corp. is doing with regional newspaper delivery in Queensland is a mess. Regional and rural locations are missing out, and, from what I can tell, the company cares less.

It’s like they want this to fail.

I wonder if the newsagent who said this is right.

The reality is that newsagents make too little from newspapers to invest time in resolving the problems caused by the News Corp. newspaper distribution changes. Some have questioned whether quitting papers altogether is what they should do rather than putting up with the mess created by News Corp. This is not made up, there are newsagents discussing this.

What a mess by News Corp., a company that invests heavily through various platforms telling Australians and Australian governments what to do. Here they have demonstrated inability to properly and professionally manage their own backyard.

News Corp. controlled the decision making and the timing of implementation. The closure of regional papers and the merging of limited local news in remaining times are decisions the company made. It has only itself to blame for the mess, the anger of customers and the utter frustration of newsagents.

The company needs to urgently resolve the situation and to considerably improve its communication lines for retail and distribution newsagents. Again, that this is being asked for after the implementation of the changes is core.

What a mess.

9 likes
Ethics