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newsagents

What we can learn from The Lottery Corporation Investor Day in Sydney

The Lottery Corporation held an Investor Day in Sydney last week and I am grateful for insights someone who attended shared with me. Here are takeaways that could interest newsagents who sell lotteries.

1. DIRECT TARGET: CONVERTING RETAIL CUSTOMERS TO DIGITAL

The absolute biggest priority for The Lottery Corporation (TLC) is converting unregistered retail shoppers into registered digital users. They said this in Sydney and they have said publicly elsewhere. The hiring decisions announced last week also speak to this.

The Gap: TLC currently has approximately 8,600,000 active players, but only 4,300,000 are registered. That’s what they are chasing. Some retailers see these folks as their customers. TLC sees them as their customers.

The Strategy: TLC intends to identify these in-store customers, transition them into app users, and market directly to them to increase playing frequency and retention.

Retail Impact: This represents a deliberate strategy to shift the customer relationship away from the physical counter and directly onto TLC’s own digital platforms.

2. RETAIL NETWORK FRICTION & STRUCTURAL CHANGES

The balance of power is shifting, which is expected to cause what some call a “tricky period” of tension between TLC and independent retailers.

QR Codes: The introduction of new QR codes on physical tickets is seen by  newsagents as a direct mechanism for TLC to poach their foot traffic and data.

Cap on Outlets: TLC is freezing the expansion of its physical retail network. That is a huge message on where TKLKC sees retail. Growth will no longer come from opening new outlets; instead, the focus is entirely on extraction, productivity, and quality over quantity from the existing footprint.

The Margin Shift: For TLC shareholders, this migration is highly lucrative: every 1% of turnover that moves from physical retail to digital adds roughly $6,000,000 to TLC’s EBITDA.

3. GAME REFRESHES AND PRICE INCREASES

TLC is taking a more active approach to game management, price increases, and margin optimisation than previous management.

Set for Life (S4L): A major refresh is launching in September 2026. Ticket prices will increase from 60 cents to 70 cents, introducing additional cash payouts while keeping the top prize at $20,000 a month for 20 years.

Oz Lotto: This is officially under review and is expected to be the next major game overhaul.

4. THE YOUNGER COHORT PUSH

TLC is repositioning itself from a traditional lottery operator into a “digitally led entertainment business.” A key focus of this transformation is capturing younger adults. TLC plans to introduce more social features, syndicates, subscription models, and AI-driven personalised recommendations to attract younger sports-betting demographics who are hunting for “lottery-style” high odds.

To me, the big note here are the tight focus on migrating shoppers to digital – evidenced by the QR code move, new hires, freezing new outlets and absolute clarity in the business about the commercial value of the transition.

COMPLAINING IS A WASTE OF TIME.

TLC is a public company with one requirement – to drive shareholder value.

In my opinion, complaining about what they are doing will not improve the situation of any retailer, investing money in lobbying them will not deliver a lasting benefit for any retailer.

If I was representing lottery retailers or if I was a lottery retailer, my focus would be on lobbying TLC for permission to place other products in the lottery area – to support retail and provide a smoother path to the transition TLC is seeking.

The best thing a TLC lottery retailer can do is to urgently recalibrate the business to bring shoppers in for products outside of lottery products, do the bare minimum to satisfy the franchise agreement and create a business that is strong without any lottery revenue.

If you have lottery products are feel you will lose your business as they migrate lottery customers to digital, you have to act today to improve your business. Nothing else matters.

If you’re in Newspower, Nextra or The Lucky Charm, ask what they are doing about this. I say this as what I have been sharing here on this is part of what I share with newsXpress members.

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Lotteries

Why Lottery Retailers Are Challenging the New Lottery QR Codes

I made this video this morning because I keep getting asked about it — what the QR code on lottery tickets actually means for newsagents and why so many retailers are quietly frustrated.

The short version: it is a channel shift strategy. Print a QR code on an in-store ticket, point the customer toward an app, and over time that customer stops coming to the counter at all.

Watch the video. I cover the commission economics, the foot traffic problem, and why the contract terms make the whole thing harder to swallow.

The numbers

A $126.00 entry sold over the counter earns the retailer around $15.50 in commission. The same entry sold digitally keeps that with the corporation. Their infrastructure cost is essentially fixed whether they process ten transactions or ten thousand. Every customer shifted online is pure margin gain for them.

That is not a coincidence. That is a strategy.

The foot traffic problem

Lottery customers are habit customers. They come in on the same day every week. While they are there, they buy other things. Point them toward an app and that habit breaks. The cross-sell opportunity goes with it.

The contract makes it worse

Most lottery agreements require retailers to maintain prime counter space exclusively for lottery branding — no competing products, financial penalties for non-compliance. So retailers carry the cost of that space while the supplier uses it to redirect their customers elsewhere.

What to do

I said it in my post earlier this week and I will say it again here. Do the minimum required to hold your contract. Then build your business so it does not depend on lotteries. If losing lotteries tomorrow would threaten your viability, that is the problem to solve — not whether the QR code is fair.

This is urgent, I think.

WA is the exception. The government-owned model there works differently and the retailer relationship is genuinely more cooperative. In the eastern states under private corporate frameworks, the direction of travel is clear.

If you want to talk through how to restructure your range and reduce reliance on restricted categories, contact me at 0418 321 338 or mark@newsxpress.com.au.

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Ethics

Be Careful What You Buy Right Now

I want to say something plainly to newsagents who are buying new ranges over the coming weeks, whether at trade shows or through rep visits.

Some suppliers in this channel have not caught up with what is happening. They are pitching stock sourced at last year’s prices. That stock is arriving in Australia with this year’s freight costs baked in. The margin you think you are buying is not the margin you will actually get.

FOMO is the oldest sales tool there is. A rep will tell you this range is selling hard in other stores, that you will miss the season if you do not order now. Some of that will be true. Most of it cannot be checked in the room, which is the point.

Ask for evidence before you commit. Which stores are performing with this product? What does the sell-through data look like? What happens if it sits on your shelf? Vague answers mean the pitch is not ready to become a purchase order.

Here is something worth remembering: every sales person who walks into your store has a target. Your order helps them hit it. That is their interest in the transaction. Whether the product sells through in your store is entirely your problem once the invoice is signed.

Freight costs have shifted significantly. Products sourced offshore last year are landing now at higher costs. Some suppliers have absorbed that. Others have passed it on quietly through margin compression or reduced pack values. You will not know which category you are dealing with until after the sell-through.

Buy tight. Buy what your customers are already asking for. Buy what you are confident will sell within sixty days. Do not buy on a rep’s enthusiasm, on manufactured urgency, or on the hope that your store will perform the way another store did.

Your cash flow runs your business. Guard it.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers, including newsagents, who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagent suppliers

The Iran Situation Has Pushed Up the Cost of Stock. Newsagents Need to Respond.

The conflict involving Iran has pushed up fuel costs globally. Those costs flow through the supply chain quickly. Newsagents are seeing it on their invoices right now.

The most common approach from suppliers is a fuel surcharge, added as a percentage on top of the order total. From what I am seeing, these surcharges range from 5% to 20%. Some suppliers are also lifting product prices directly, separate from any surcharge. That means some newsagents are absorbing both — a higher base price and a surcharge on top of it.

That is a significant hit to margin, especially for businesses already operating on thin returns.

Some suppliers are already on their third increase.

Passing the Cost On Is Not Optional

I do not think newsagents have much choice here. Absorbing these increases is not sustainable. The business has to cover its costs to survive. That means prices need to reflect the current cost of doing business.

Raising prices is never comfortable. Customers notice. Some push back. But the alternative — holding prices while margins shrink — is a path toward serious financial stress.

The adjustment does not need to be dramatic. A modest, consistent increase across relevant product lines is usually enough to recover most of the additional cost without triggering significant customer reaction.

Transparency Matters

What I think matters most right now is being honest with customers about why prices have moved.

Most people understand that global events affect the cost of goods. Fuel prices are in the news. Supply chain pressure is not a new concept. If you explain briefly and calmly that your costs have increased due to higher fuel surcharges from suppliers, most customers will accept it.

A short note at the counter, a line on your receipts, or a post on your social media page is enough. You are not making excuses. You are being straightforward about your situation.

Having the Australia Post price increase announcements handy is a good move to legitimise your move.

What to Watch

This will not resolve quickly. The situation in the Middle East remains unsettled, and freight and fuel costs are unlikely to fall in the short term. Review your supplier invoices carefully. Track the surcharges being applied. And make sure your pricing reflects the reality of what you are paying.

Running a newsagency well means managing costs tightly and pricing honestly. Right now, both of those things require the same response.

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Newsagency management

Queensland’s Crackdown on Illegal Tobacco Is Working

For years, illegal tobacco operators undercut licensed retailers without much consequence. Newsagents watched competitors sell illicit cigarettes, loose tobacco, and unregulated vapes at prices no compliant business could match. Enforcement was patchy. The damage to legitimate retailers was real.

Queensland changed tack. The results are worth knowing about.

What Changed

From late 2024, Queensland Health gained new powers to act directly against illegal operators — and act quickly. The previous reliance on lengthy court processes gave way to on-the-spot closure orders. Legislation introduced in late 2025 went further, allowing Queensland Health to shut a store for 90 days without needing a court order at all. The state also hired 43 new enforcement officers to back the expanded operation.

The Numbers

Between November 2024 and August 2025, Queensland Health seized more than 52.4 million illicit cigarettes, 420,000 illegal vapes, and 7,500 kilograms of loose tobacco. More than 140 interim closure orders were issued and over 3,000 fines imposed.

In December 2025, a single 10-day operation, Operation Major it was called, shut down 148 stores and seized over $15.7 million worth of illegal products, including 11.8 million cigarettes, 1.7 tonnes of loose tobacco, and 87,000 vapes. One business was fined $45,000 earlier in the year for selling illicit tobacco and vapes.

Why Newsagents Should Care

Licensed newsagents carry costs that black-market operators never did, licences, display compliance, tax obligations. The Queensland enforcement model shows what happens when authorities are properly resourced and the legislation has real teeth. Less illegal product in the market means a fairer environment for retailers doing the right thing.

One Concern Worth Noting

Some retailers have raised concerns that competitors are using the complaints process as a tactic, reporting legitimate businesses to cause disruption. This appears hard to do in practice. Complaints are not anonymous. Anyone lodging a report must provide their own details. That keeps the process honest and makes bad-faith reporting a genuine risk for the person making it.

What Comes Next

Hopefully, other states are watching Queensland closely. There is growing pressure to match the approach, and calls for the Commonwealth to do more at the border to stop illegal stock entering the country.

Queensland has shown the model works. The question now is whether other states move quickly enough to follow it.

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Tobacco sales

How do we prepare for the October 1 card surcharge ban?

October 1 is not that far away. Retailers should already be implementing a plan to deal with the situation.

Know what you’ll lose. Look at what you pay in card processing fees annually. Request a clear, itemised breakdown from your bank or payment processor detailing your current cost of acceptance for debit versus credit. That’s the figure you want to cover in other ways.

There are two obvious options to deal with the RBA imposed surcharge from October 1:

  • Cut costs. Typically, this will mean labour as that’s usually the second biggest operating cost in the business. While you can cut the dollars, you risk cutting revenue too.
  • Increase prices. A small adjustment (1.0% to 1.5%) broadly based offers a good option. The thing is, if you can gently increase prices without negatively impacting sales volume, why haven’t you done this already.?

There are other options to throw into the mix:

Least Cost Routing. Ensure Least-Cost Routing  is explicitly turned on by your provider.

Look at processing alternatives. We are already seeing companies offer new deals to lock retailers in ahead of October 1. Do your research. Under the new rules, payment providers processing over $10 billion annually must publish transparent quarterly fee structures. Use this data to benchmark your current provider and negotiate a lower rate.

Work on your business.

  • Make sure it as efficient as possible.
  • Make sure all your stock is performing well – i.e. no dead stock.
  • Make sure you have and engage with a theft mitigation strategy.
  • Make sure you have what people want when they want it.

In a typical retail business, landing well on these four points can account for more than half of the net profit. What I am saying here is that by relentlessly pursuing these four things you can have a business performing such that the merchant fee situation is nowhere near as noticeable to you. Unfortunately, though, too many small business retailers will ignore these four things.

Now, it’s important to note that the surcharge ban does not currently cover American Express or Buy Now Pay Later services.

The bottom line is that October 1 is coming – are you ready for it?

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Newsagency management

What You Control Is Enough

There is a simple framework that can change how you run your newsagency. Four lines. Easy to remember. Hard to ignore.

Control what you can. Let the rest go. When action is yours to take, take it. And be self-aware enough to tell the difference.

Most retail stress, and stress in any business or personally for that matter, comes from worrying about or fighting battles you were never going to win.

In retail, it’s: Foot traffic shifting. Print declining. A supplier decision made in a boardroom nowhere near your shop.

These things are real. But they are not yours to fix.

What is yours? Your floor layout. Your product mix. How your team greets someone who walks in. The categories you back. The decision to change before the market changes you.

The noise is everywhere. Industry rumours. Economic headlines. What the shop down the road is doing. Some of it matters. Most of it is a reason to avoid the actual work.

The hard part is not knowing what you can control. Most retailers know. The hard part is acting on it. Backing a new gift range and actually ranging it, merchandising it, telling customers about it. Cutting magazine space and doing it now, not after Christmas.

That is where the fourth line matters most.

Self-awareness is the check on all of it. It stops you building a story about why you cannot move when the truth is simpler — you have not decided to. It also stops you wasting a week on things that were never yours to fix in the first place.

The retailers doing well right now tend to share one thing. They know what they own. And that is where they show up.

This is a mantra I have embraced for years:

Control what you can.

Let the rest go.

When action is yours to take, take it.

And be self-aware enough to tell the difference.

Footnote: I am sharing this today because I know there are folks out there investing too much energy in fighting things then cannot change, worrying about things outside their control. This mantra, which has its roots in the serenity prayer, it is designed to help you see through that which you cannot control to green fields and blue oceans of what you can control. Without wanting to be to weird about it.

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Social responsibility

2026 newsagency performance benchmarks / goals

Benchmarks are data points that let you compare your business against similar ones. What I share here today is a significant update to the last benchmark data points I shared, in 2023.

Gross Profit

For product sales only — exclude agency business revenue and costs.

  • Traditional newsagency average: 28%–32%
  • Transformed newsagency goal: 40%+

The traditional newsagency has no future.

The gap between traditional and transformed businesses keeps widening. Smart newsagents that have moved into clothing, artisan gifts, and other categories. They have products hitting gross profit margins of 50% to 65% on those lines. Businesses still leaning on legacy categories are finding that model harder to sustain each year. The 409% overall goal is a good low-point and attainable target for a business that is actively managing its mix.

Minimum Stock Turn

Stock turn is how many times you sell through your inventory in a year — current stock holding divided into total annual revenue. These are minimums. Below them, a department is not earning its keep.

  • Cards: 3 (the channel average is 1.55 — too low)
  • Gifts: 6 (tight range, fast movement)
  • Toys: 5
  • Plush: 5

Gift Revenue to Card Revenue Ratio

Minimum: 100%. Goal: 200% or more.

If cards bring in $50,000 a year, the target is $100,000 in gifts. Gift revenue is growing in businesses that have committed to it. It deserves floor space and buying attention.

Revenue Per Employee

Minimum: $250 per hour.

Labour costs have kept rising. This target matters more now than it did three years ago. Count the owner at fair market rates — a business that does not is not measuring itself honestly.

Revenue Per Square Metre

$4,500–$8,500. Where you land depends on location (country versus city), tenancy type (high street versus shopping centre), and product mix. Higher gross profit means you need less revenue per square metre to stay viable.

Revenue Mix Targets

  • Cards 25%
  • Gifts / Toys / Plush. 35%
  • Stationery 10%
  • Magazines / Newspapers 5%–8%
  • Other / Emerging. 22%–25%

Print is in terminal, structural decline. Magazine unit sales are down around 10% year on year. Newspaper unit sales in capital city stores are down as much as 13%. That floor space and buying budget needs to go somewhere more productive.

Clothing, coffee, homewares, and more are generating real money in transformed stores — some close to $100,000 annually from a single category. Build your own target here based on what is actually working.

Category Notes

  • Stationery The best stationery is that which people love, more so than the stationery they need. This type of stationery can attract a higher price, and higher margin. .
  • Magazines Niche and special interest titles are holding up far better than mainstream ones. Curate, if they let you.
  • Greeting Cards Lifestyle cards should be more than 40% of total card sales, with at least 12% year-on-year growth in this segment.
  • Counter Impulse Sensory and impulse lines should be more than 10% of toy and related sales. Engaged stores are growing this category. The product works; the question is whether you are backing it.
  • Online Revenue Online not an optional.

Floorspace Allocation

  • Cards 20%
  • Gifts / Toys / Plush 35%
  • Stationery 8%
  • Magazines / Newspapers 5%
  • New and emerging traffic lines 10%
  • Other products 12%
  • Counter / office / back room 10%

Newspapers should be is low cost space, away from the front door and counter. Keep the back room small — it does not generate revenue.

Mark-Up Goals

  • Stationery: 125%
  • Gifts: 110%
  • Plush: 110%
  • Jewellery: 300%
  • Clothing: 120%–150%

Occupancy Cost

Target: 9%–11% of total revenue (product sales plus agency commissions).

A shopping centre site will sit higher in that range than a high street one — that is expected. You control both margin and revenue. Both sides of that equation are your responsibility.

Labour Cost

Target: 9%–11% of total revenue (product sales plus agency commissions).

Use tools that handle repetitive work so your team can be on the floor. Count the owner at fair market rates. If you are not doing that, your numbers are not telling you the truth.

A Final Note

These are targets, not rules. Set your own based on your own situation. But think about it.

The stores doing well right now are run by people making decisions based on data and broader retail trends. Not on habit. Not on what suppliers suggest. On what is actually working.

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Newsagency management

It’s 2026. No website means no online customers

If your newsagency does not have a website, you are invisible to anyone who is not already walking past your door. That covers most people.

Your current customers are likely mostly locals. Regulars. People who found you years ago and kept coming back. That is not a bad thing — but it is a ceiling.

A website reaches the shopper in another suburb, another state, who typed “gift shop” or “greeting cards” or something else into Google and got results. Right now, none of those results are you.

The wrong website does not fix this.

A page with your address and trading hours is not a selling tool. Your site needs to show up in search, look right on a phone, and connect to wherever else you might sell — eBay, for example. A cheap site that dates badly inside a year costs you twice: once to build it, again when you have to redo it.

Your POS software should drive the whole thing.

Product names, descriptions, pricing, stock levels, images — all of it should come from your point of sale data. When something sells in the shop, the website should reflect that without you touching anything. If it does not, you are doing double entry. You will make mistakes. Customers will be annoyed.

The POS software and website platform need to talk to each other properly — not approximately, not with a workaround.

Now for the pitch:

Tower Systems builds this for newsagents.

Tower Systems is the POS software most Australian newsagents run on. It also builds Shopify websites specifically for newsagents — connected to your inventory, set up to handle payments and other things vital to success online.

The service is a fixed price. No scope creep, no surprise invoices.

Get in touch: sales@towersystems.com.au.

The thing about getting online is that it offers a plan B option – you can experiment with new product categories that may be far away from what you do in the shop. You can do this using existing infrastructure, like starting a second business with minimal capital.

I can’t imagine a reason any any retail business to be a physical only business. Not today. It doesn’t make sense to me at all.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers, including newsagents, who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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newsagent software

Want to discover ways to improve your business: visit it as a stranger

This may sound like a weird idea. Stay with me. It works. To regulars here, it may sound like something you’ve read here before. You have.

How to see your shop as your customers see it and what actions you can take to improve business.

Walk into your shop like a stranger. You might not like what you see.

Walk out, go to the end of the street, turn around, shake your head a bit to clear it, and walk back in as if you have never been there before. Not as the owner. As someone who has no idea what you sell, whether you are friendly, or whether it is worth their time to stop.

What do you actually see?

Most retailers cannot answer that honestly. They have been in the same space so long they have stopped seeing it. The cluttered corner near the door has been cluttered for two years. The handwritten sign that was meant to be temporary is still there. The window that has not changed since Easter is still there.

Your regulars have stopped noticing too. First-time visitors notice everything.

Do the audit properly

Walk in slowly. Do not rush to the counter. Give yourself 60 seconds near the entrance and take it in.

Ask yourself:

  • What is the first thing my eye goes to? Is that the right thing?
  • Can I tell within ten seconds what this shop sells?
  • Does the space feel welcoming or cluttered?
  • Is there anything that looks tired, broken, or out of date?
  • What does it smell like?
  • Is there music? Is it right for the space?
  • Are the price labels clear and current?
  • Is there anything near the entrance I would want to pick up?

Write down what you notice. Do not edit yourself. The instinctive observations are the useful ones.

The front third is doing most of the work

Everything within the first three metres of your entrance works harder than the rest of your shop. That space is where the decision to stay or leave gets made. If it is stacked with point-of-sale materials, dead stock, or products that have sat in the same spot for months, you are wasting it.

Rotate what is there. Make it seasonal. Give passing customers something new to see.

Your window is free advertising

Most small retailers underuse their front window. If yours looks the same as it did six weeks ago, change it this week. You do not need a designer or a budget. You need one clear idea, one dominant product or theme, and the discipline to keep it fresh.

A window that stops people is worth more than most paid advertising.

Get someone else to do the walk

This is what I actually recommend. Your own blind spots are hard to see. Ask a friend, a supplier rep, or a family member who does not visit often. Tell them you want the unfiltered version.

The things they mention first are the things that matter most. Do not disagree with them. What they see — and what they miss — is what your next new customer sees too.

Then do something about it

Do the walk. Write the list. Fix what you can fix today and book in what needs more time. That is it.

Your shop is your best marketing tool. Make sure it is doing the job.

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Newsagency management

Marketing Groups for Newsagents: Why Australia Leads the World

This post draws on publicly available information from industry websites, association pages, and newsagency sector resources, researched using AI tools as at May 2026. I have done this to reflect what the world sees, rather than what I see, or think.

If you run a newsagency in Australia, you have access to something almost no newsagent anywhere else in the world enjoys: a dedicated commercial marketing group built specifically for your business.

Most operators here barely register this. It becomes background noise quickly. But step back and look at how newsagents are supported in other countries, and the Australian model is genuinely unusual, and it works. You only have to consider newsagency closures in the UK compared to Australia to see a difference.

What these groups actually do

A newsagency marketing group pools the buying power and marketing resources of independently owned stores. It negotiates supplier deals, runs seasonal campaigns, supports store branding, delivers retail training, and gives independent operators scale they could not generate on their own.

This is different from an industry association. Associations advocate and represent. Marketing groups put money and effort into the commercial performance of member stores directly.

The three Australian groups

newsXpress launched in 2001 on a non-franchise model. Membership is voluntary. Fees are not based on turnover. The group runs exclusive seasonal marketing campaigns under the Seasonal Edge banner, negotiates supplier deals, and provides retail business coaching. It spends over $1,500 per member annually on prizes and collateral. A Perth conference ran in May 2026.

Newspower is the largest by store count and has been operating for over 20 years. Based in Padstow, NSW, it focuses on printer supplies and consumables alongside product and range negotiation for members.

Nextra (The nextra™ Group) is the franchise model of the three, established in 1995. It runs two store formats — nextra™ for flagship stores, news extra™ for medium-sized stores — and provides fuller franchise infrastructure covering marketing, business management, and product negotiation.

These groups sit alongside Australia’s industry associations, not in place of them. ALNA (the Australian Lottery and Newsagents’ Association, formerly the Australian Newsagents’ Federation) handles national advocacy. State bodies like NANA (Newsagents Association of NSW & ACT, operating since 1891) cover employment relations, insurance, and state-level lobbying.

A note from me: None of the AI searches I did for this included The Lucky Charm in their results. It could be because it’s too small of a group, or that it’s not broadly based geographically, or that it’s quite a different structure. Anyway, the search results are the search results. I mention it here to note that The Lucky Charm does exist and that it has newsagency business members.

What exists elsewhere

In the UK and Ireland, newsagents have trade bodies, not commercial marketing groups. The Fed — formerly the National Federation of Retail Newsagents, founded in 1919 — represents around 8,000–10,000 independent retailers across both countries, including newsagents, convenience stores, and card shops. In Ireland, the CSNA covers over 1,500 retailers with a similar advocacy and member-deal focus. NewstrAid is a welfare charity for people employed in the news trade, not a business support body.

In New Zealand, Canada, the United States, South Africa, and most of Asia, there are no dedicated newsagent marketing groups at all. Newsagents either fall under broader independent retail associations or operate with no sector-specific support. News publisher associations exist in some of those markets — New Zealand’s News Publishers’ Association, for instance — but they represent media owners, not retailers.

Why this matters

Australian newsagencies developed inside a tightly integrated distribution and retail ecosystem. Marketing groups grew out of that as a practical response to a practical problem: how does an independently owned shop compete on range, marketing, and supplier terms without the benefits of professional support?

In most other markets, that question has no structural answer. UK and Irish newsagents have advocacy. Elsewhere, newsagents mostly have nothing.

Having three competing groups in the one market is also worth noting. It creates genuine choice, pushes each group to deliver real value, and lets operators pick a model that suits their business rather than taking whatever exists.

Quick reference

Organisation Country Type Primary focus
newsXpress Australia Marketing group Business growth, supplier deals, campaigns
Newspower Australia Marketing group Product supply, community retail
Nextra Group Australia Franchise/marketing group Full franchise system
ALNA Australia Industry association Advocacy, lottery and newsagent support
NANA (NSW & ACT) Australia State association Employment, insurance, advocacy
The Fed (NFRN) UK & Ireland Industry association Commercial deals, lobbying, training
CSNA Ireland Industry association Retailer advocacy, member deals
NewstrAid UK Charity/welfare fund Support for news trade workers

The bottom line

If you are an Australian newsagent not yet connected with a marketing group, it is worth knowing what is actually on the table — and recognising that it does not exist in most other markets. newsXpress, Newspower, and Nextra (and The Lucky Charm) each operate on a different model and suit different types of businesses. The right question is which one fits yours.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers, including newsagents, who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagency management

Cutting through the AI noise

There are a lot of people selling AI workshops right now. Some are good. Many are expensive, generic, and aimed squarely at business owners who do not yet know what they do not know.

At my newsXpress business , we are taking a different approach.

I think AI literacy is the new computer literacy, something every retailer needs, not a premium add-on. So we are offering free AI training and support to our members and the broader retail community. No fee, no pitch, nothing to sign.

Just practical guidance, grounded in real experience running independent retail businesses in Australia.

If you are a small business owner trying to make sense of AI without wading through the noise, reach out. mark@newsxpress.com.au and ask for it.

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Newsagency management

If your loyalty program is not adding measurable value to your business, it’s failing you

I was talking to a newsagent a couple of days ago who is running a loyalty program managed outside of their business. It’s routine work and the newsagent was wondering if it was working. Only the people who control the program have the complete data. So I asked the newsagent if they are making money from it. I don’t know was the answer.

If you don’t know what you’re making from your loyalty program in your business, it’s a failure.

Most small retailers either have no loyalty programme or have one they set up years ago and largely ignore. Both are mistakes, but the second one is the more expensive mistake, because it creates the illusion of doing something without actually achieving anything.

A loyalty programme that nobody talks about, that staff forget to mention, and that customers have stopped caring about is not a loyalty programme. It is administrative overhead with a card attached.

Here is what actually drives repeat visits.

Recognition beats points

Customers come back to businesses where they feel known. Not to businesses where they are accumulating theoretical discounts they will eventually redeem on something they do not particularly want.

If your loyalty programme is purely transactional — spend this, earn that — it is doing less than you think. The retailers with strong repeat trade are the ones where staff know customers by name, remember what they bought last time, and make them feel like their visit matters.

That is not a technology problem. It is a culture problem.

The redemption trap

Many loyalty programmes are designed around a reward that is too far away to feel real. Spend $500 to save $10. Collect 20 stamps to get a free item. These mechanics do not change behaviour. The gap between spending and reward is too wide for most customers to stay engaged.

If you want a programme that actually works, shorten the loop. Make the reward feel achievable. A customer who earns something within two or three visits is more motivated than one chasing a reward that is six months away.

Your best customers do not need a points card

Think about who your most loyal customers actually are. They come in regularly, spend well, and send people your way. They were coming before you had a programme and they will keep coming regardless.

The loyalty programme is not for them. It is for the customers in the middle,  the ones who visit occasionally and could visit more. That is the group worth targeting. Design your programme around converting occasional customers into regulars, not rewarding people who are already regulars.

Staff are the programme

The single biggest driver of repeat visits in small retail is how customers feel when they leave. If they leave feeling good about the interaction, they come back. If they leave feeling ignored or rushed, they might not.

Your staff are more powerful than your points system. Train them to engage. Make sure they mention the programme at the right moment — not as a script, but as a genuine offer. If your team cannot explain the programme clearly in one sentence, simplify the programme.

What to do

Pull the data on your current programme if you have one. How many active members do you have? How many have redeemed something in the last 90 days? What is the average time between visits for members versus non-members?

If you cannot answer those questions, the programme is not being managed. If you do not have a programme, the question is not whether to have one — it is what behaviour you want to change and what incentive is proportionate to that change.

Start there.

Now for the newsagent I mentioned at the start of this post, my advice was to demand access to the data from those at the top of their pyramid. That’s the start to understanding if all the busy work in the shop is worth it.

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marketing

Good news for lottery retailers: Government Announces Crackdown on Online Gambling and Shadow Lotteries

The Federal Government on Tuesday announced a significant crackdown on online gambling products. These measures aim to limit gambling harm and close regulatory loopholes.

Prime Minister Anthony Albanese confirmed several new bans in Parliament. The changes will target online keno and “pocket pokies” specifically.

The government plans to ban online keno entirely. Current operators will be affected once legislative changes are implemented. This product is currently exempt from credit card bans and advertising rules.

Foreign-matched lotteries are also under scrutiny. These services allow Australians to enter international draws they would otherwise be unable to join. The government will consult with industry to enhance consumer protections in this area.

“Shadow lottery products” or rewards clubs will face new regulations. Some operators use loyalty programs to offer lottery-style draws for high-value prizes. The government intends to define these clearly as lottery products to ensure national regulation.

Enforcement against illegal offshore gambling will be boosted. The illegal offshore market is projected to reach $5 billion by 2029. These sites often lack consumer protections and pay no Australian taxes.

The government will work with the banking sector to block financial transactions. AUSTRAC will be used to track payments to offshore providers. This includes transactions involving credit cards, crypto, and account-to-account transfers.

ACMA’s website blocking powers will be streamlined and expanded. The ban on advertising illegal services will also extend to social media platforms.

For small business owners like newsagents with lotteries, these reforms represent a shift in the digital gambling landscape. The government will continue to consult with states and territories on the implementation timeline. Retailers should pressure their local members on this, so it happens sooner than later.

For newsagents, these changes highlight the distinction between regulated in-store lottery products and unregulated digital competitors. The ban on online keno and foreign-matched lotteries may encourage customers to return to traditional, compliant retail channels. Maintaining a safe and regulated environment remains a core strength of the local newsagency model.

None of these changes, however, will reduce the onward march of The Lottery Corporation in growing online sales. This is the biggest threat to over the counter in-store purchase of lottery products in my opinion.

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Lotteries

How newsXpress Is Helping Retailers Win Winter 2026

Winter is the quiet stretch that most independent retailers simply endure. Mother’s Day is done. Father’s Day is still weeks away. The foot traffic dries up, the social media ideas dry up with it, and the days start to feel flat.

newsXpress has decided to treat that problem seriously.

The group has produced a structured, practical resource for its members covering exactly this challenge: what to do in the weeks between the big gift occasions to keep shoppers coming through the door, keep the business moving, and use the downtime well.

What the Resource Covers

The document is divided into three clear areas.

The first focuses on drawing people in. Not through discounting or desperation, but through low-cost, community-centred micro events that give shoppers a genuine reason to visit. The ideas are grounded in what gift and related retailers actually sell and how their communities actually behave. Some require almost no budget. All of them create social media content as a by-product.

The second area addresses marketing. Not generic advice about posting more often, but specific strategies for building loyalty, deepening community connection, and extending the selling window into Father’s Day earlier than most retailers would think to start. Several of the ideas involve partnering with other local businesses — the kind of cross-promotion that costs little and tends to work.

The third area is operational. Winter quiet periods are the right time to do the business-building work that never gets done when trade is strong. The resource covers stocktaking, roster reviews, supplier audits, front counter rethinks, and content planning. It is a realistic list for a working retailer, not a consultant’s whiteboard.

There is also a bolt-on business idea included, a practical expansion strategy suited to main street retailers looking to attract shoppers they are not currently reaching.

Why This Matters for Independent Retailers

The gap between Mother’s Day and Father’s Day is predictable. It arrives every year. Most retailers treat it as something to survive rather than something to use.

That is a competitive opportunity for the ones who think differently.

newsXpress has framed the resource around that premise: Winter is not a problem to wait out. It is time that most of your competitors are wasting.

The document runs to 30 specific, actionable ideas. Each one is explained in enough detail to act on without further research. Taken together, they represent a genuine playbook for the quiet months, the kind of structured thinking that most independent retailers do not have time to develop on their own.

Access

This resource has already been provided to newsXpress members through the group’s regular comms programme.

If you are an independent gift, homewares, or newsagency retailer and you want access to this kind of practical, retail-specific support, it is worth finding out more about what newsXpress membership involves.

Visit www.newsxpress.com.au or contact the team at help@newsxpress.com.au.

This post was written by Mark Fletcher. Mark has been involved in independent retail in Australia for more than 40 years.

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Newsagency management

Too many newsagents are losing the stationery lover customer. Here’s why.

Stationery revenue in traditional newsagencies dropped 4% in 2025. In transformed newsagencies it grew 5%. A 9-percentage-point spread, same channel, same year. The difference is not location or demographics. It is what the store is stocking and how it is presented.

The reason for the performance gap is that what I call transformed newsagents are likely not chasing traditional stationery as much as they are chasing stationery people love.

The customer who drove that growth in transformed stores is not buying stationery because they need it. They are buying it because they want it. That distinction matters more than most newsagents realise.

The difference between a stationery need and a stationery want

A customer who needs a pen buys the cheapest BIC they can find and leaves. A customer who wants a pen spends $25 on a Lamy, asks you about refills, comes back three months later, and posts it on Instagram.

The stationery lover is a high-frequency, high-basket customer. They browse. They buy gifts for others in the same visit. They come back without a specific purchase in mind. They are worth significantly more to your business than a need-based shopper.

What your range probably looks like right now

Commodity pens, copy paper, basic notebooks, a few journals with flowers on them. That range attracts the need-based customer and repels the stationery lover. It signals that this is a utility stop, not a destination.

What the range should include

Premium notebooks (Leuchtturm, Midori, Nuuna). Fountain pens and accessories. Washi tape. Planners and inserts. Unusual formats — A6, dot grid, watercolour paper. Sticker sheets. Journaling supplies.

These are available through Faire, Biome, and various local and international distributors. The price points are higher. The margins are better. The customers are different.

The floor space ask is small

You do not need to overhaul your stationery section. Add one bay of premium product. Locate it separately from the commodity range — adjacent to your journals or gift section. See what happens to basket values from customers who stop there.

The customers who love stationery are already in your suburb. The question is whether your shop gives them a reason to find out.

Look, I appreciate this can sound a bit boring. The thing is – get this right and you’ll do well in stationery. But, to do well, you need to buy stationery outside of traditional purchase channels. For many more traditional newsagents this is tricky to achieve.

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Stationery

Protecting Your Business: A Guide to Counterfeit Note Detection

Counterfeit currency can impact your bottom line and disrupt operations. Use these essential tips from the Reserve Bank of Australia to ensure your staff can identify genuine banknotes with confidence.

This is on my mind today because of reports of fake $50s in circulation again.

Know the Features
Australian banknotes are printed on polymer, which has a distinct feel. It should be difficult to tear and should spring back when scrunched.

  • Check the Windows: Ensure the clear window is an integral part of the banknote and not an addition.
  • Observe the Tilt: On the NGB (Next Generation Banknote) series, tilt the note to see the rolling colour effect and the moving features in the top and bottom windows.
  • Look for the Coat of Arms: Hold the banknote to the light to see the Australian Coat of Arms and the seven-pointed star.

If you encounter a suspect banknote, follow these three steps:

  • Store It: Handle the note as little as possible. Place it in a clean envelope.
  • Note It: Record how the note came into your possession, including a description of the person and any vehicle used.
  • Report It: Contact your local police immediately.

Your Rights as a Retailer
You are within your rights to refuse any banknote if you suspect it is counterfeit. Always prioritise the safety of your staff and customers; never engage in a physical dispute over a suspect note.

By staying vigilant, you protect your business and the integrity of Australia’s currency. For more detailed security features, visit the RBA Banknotes website.

Share this information with everyone in your business.

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Management tip

Advice for retailers on navigating the Winter “valley of death”

Mother’s Day has almost passed and another tradition begins, the valley of death for too many retailers. I’ve call June, July, and August the “Valley of Death” for small retail businesses for years. These three months lack a major seasonal peak. There is no Easter, Mother’s Day, or Father’s Day to drive organic foot traffic.

The quiet of winter is not new information. We know it happens every year. However, knowing it is coming is different from being prepared for it. This period is where businesses either thrive or struggle. You still have rent to pay. Your staff costs remain. Overheads do not stop just because the shop is quiet.

In a new short video from me (https://youtu.be/-Zf6L4EtlZ8), I discuss how to stay proactive during this desert. You can watch it here:

Which Retailers are at Most Risk During the “Valley of Death”?
Retailers who rely own the major seasons (Christmas, Valentine’s Day, Mother’s Day and Father’s Day) are the ones at most risk, the retailers who rely on these seasons to bring people through the door. Think gift shops and home decor shops that don’t stand for something outside of the seasons. Okay, some of these retailers will say they do stand for something, only shopper traffic can prove that.

Another way to consider this question is through listening to the retailers who complain the most about how slow business is after Mother’s Day. They are the retailers at risk IMHO.

While it may come off as offensive, if a retailer complains about how quiet trade is, ask what they are doing about it. They can fix it, it may take some time and creativity is all.

Stop the “Busy Season” Hangover: How to Attract Shoppers to Your Shop When It’s Quiet
It is tempting to relax after a busy season. You might feel you deserve a break. However, retail requires constant momentum. You must have a plan to lift traffic to your store and your website.

Fresh Eyes, Fresh Shop
Your front window must be your best asset. Change it every week. At a minimum, change it every fortnight. The front third of your shop needs a regular refresh. Customers looking through the door should see something different every time they pass.

The Power of Simple Events
Many retailers avoid events because they seem like hard work. Do not let laziness dictate your success. Events do not need to be complex or expensive.

Consider a “favourite greeting card” wall. Ask customers to bring in a card they have kept for years. This shows the emotional value of physical cards. It highlights the difference between a card and a text message.

Alternatively, try a “colour block” event. Choose a bright colour like orange or yellow. Group every product of that colour in a front-of-store display. Partner with a local bakery for themed cupcakes. It is a simple way to bring vibrancy to a grey winter day. This idea is easy to implement and a favourite because each time I do the colour block I discover things, and my customer do too.

Taking Action Now
Plan the next three months. Run an event every two or three weeks. Give locals a reason to visit. A vibrant shop is a successful shop. Do not get stuck in the valley. Take action today to ensure your business remains viable and engaging.

Or Play the Victim
I know of retailers who will complain through winter, about how quiet it is, how tough things are. If they put as much energy into working on attracting people to their shop as they complain it’s possible they’d have nothing to complain about.

We all get to make a choice this winter. My advice is that you make the choice to do some things you have never done before. My hope is that these things help you achieve good results for your business that excite you.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers, including newsagents, who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagency management

Why I think being a community hub is not a good business plan for a newsagency

The community hub pitch for newsagencies has been around for years. It feels warm and fuzzy, and achievable. Feeling good does not put food on the table no matter how much customers and other locals may say they love it.

I get it, your shop at the heart of the neighbourhood – a gathering place, a notice board, a local institution. It sounds warm. It sounds purposeful. It is also, for most newsagents, a distraction from the work that actually matters.

I recommend against it if you want a bright future for your business.

Let’s talk about what the community hub idea usually means in practice.

It means doing things that take up time – usually for little or no revenue. It distracts you from being a retailer. It means positioning your shop as a service to the community rather than a business that needs to generate a return. It means measuring success in foot traffic and goodwill rather than gross profit and basket size.

None of those things pay your rent.

The warmth you’ll feel from being a community hub won’t pay the bills.

The community hub idea is attractive because it offers a story at a moment when the old story of newsagency businesses is declining.  It gives owners something to say when someone asks “what is a newsagency for now?” It also appeals to the genuine connection many long-term newsagents have with their customers and their street.

That connection is real and worth something. But it is not a business strategy. It is a characteristic of good retail. You can be warm, known, and genuinely connected to your local community and still run a commercially disciplined shop. The two are not in conflict.

Conflating “being a good local business” with “becoming a community hub” leads to decisions that cost money.

What the data say

Transformed newsagencies that are growing revenue are not doing it by hosting community events. They are doing it by changing their product mix, increasing their average basket value, improving margin across their gift and stationery categories, and reducing their dependency on low-margin agency income.

None of that appears in the community hub playbook.

The opportunity cost question

While you’d be busy in a community hub model, you’re unlikely to look over the horizon, to where the commercial future of your business lies.

Every hour spent planning a community event is an hour not spent on ranging, supplier relationships, staff training, or floor layout. Every square metre given to a community notice board is a square metre not generating revenue. These are real costs that don’t appear in any community hub case study.

The newsagencies that are genuinely embedded in their communities are embedded because they are excellent local retailers. They stock what locals want. They hire people who know their customers by name. They are open when people need them. They remember what regulars buy. That is not a program. It is the outcome of running a good shop.

You do not need a strategy to become a community hub. You need a strategy to build a commercially sustainable business. Do the second one well and the first takes care of itself.

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newsagency of the future

The Global Warning: Why the “Death” of the British Newsagent is a Mirror for Australia

I’ve been writing for a long time about the widening divide in our industry. On one side, we have transformed newsagencies, dynamic retailers who are embracing high-margin “want” products, curating their stock, and achieving double-digit growth. On the other side, we have traditional newsagencies stuck in a cycle of managed decline, clinging to low-margin “agency” lines and waiting for foot traffic that isn’t coming back.

If you think this “adapt or close” reality is unique to Australia, look across the globe.

A recent BBC article, Why traditional British newsagents are on their last legs, highlights the exact same crisis unfolding in the UK.

The story has sparked debate, even drawing an open letter of protest from local print publishers who feel the national broadcaster is declaring print dead. (Print is dead, of course.) If you strip away the media politics, the core message of the BBC story is a loud, clear wake-up call for every Australian newsagent, as if they need another wake up call.

The Myth of the “Pure” Newsagent

In the BBC piece, Hetal Patel, president of the Federation of Independent Retailers, summarised the crisis:

“A decline in sales of printed news and the shift to online, along with publishers reducing profit margins and wholesalers increasing carriage charges, has meant that purely dealing in news and magazines is no longer viable for independent retailers.”

Sound familiar?

For years in Australia, we’ve watched our traditional pillars erode. Magazine unit sales are slipping, newspaper unit sales continue to decline, and the distribution models from major publishers continue to financially and operationally disrespect newsagents.

The UK newsagents who are failing are the ones who remained “sentimental meeting places” or rigid “agents.” They expected the foot traffic of yesterday to pay the rising rents of today. But as one British commentator rightly pointed out to the BBC: “Newsagent struggling when nobody buys papers isn’t the shocker they think.”

The Danger of the “Agency” Mindset

The UK crisis highlights the ultimate danger of the agency business model. The agent is weak, and under compensated.

We are seeing this play out right now in Australia. With major shifts in the lottery landscape toward digital-first mandates, relying on a third party’s digital strategy to drive physical foot traffic is a losing battle.

If your primary business strategy is to stand behind a counter and hand over products where you have zero control over the margin, you aren’t a retailer. You are a clerk in a managed decline.

The British Lesson: Adapt, or Prepare to Close

The BBC article notes that the UK survivors are those who have “diversified.” But there is a massive difference between survival diversification and growth transformation.

In the UK, many struggling newsagents simply transition into generic convenience stores. They compete on thin-margin bread, milk, and chocolate, trying to go head-to-head with petrol stations and supermarket giants.

Why the British Convenience Pivot Will Ultimately Fail

I don’t want the British newsagent pivot to convenience to fail. I think it will though because they are competing with the major supermarket businesses. I’ve seen it myself across the UK. walk down the high street and you’ll see two, maybe three, supermarket small format convenience businesses, and you may see a local newsagent. The supermarket businesses have more details and a better range. The indie businesses can’t compete.

Rather than pivoting down market, British newsagents should have backed themselves and pivoted up market.

The Australian Story

Benchmark data I’ve reported here shows that the newsagencies thriving in 2026 are not the ones turning into low-margin corner shops. They are the ones transforming into destination retail boutiques.

  • They are ditching the “newsagent” shingle and giving themselves permission to be something else.
  • They are moving magazines to the side and putting “want” categories, high-end collectibles, niche stationery, boutique toys, high-value gifts, and clothing, front and centre.
  • They are achieving gross profits of 50% or more, resulting in an 11% surge in average basket value and a 9% increase in overall revenue

What We Owe the Future

The closure of traditional, multi-generational newsagents is always sad. Heritage and history are not shields against changing consumer behaviour and digital technology.

What we owe the legacy of our industry is not a stubborn refusal to change; it is the courage to pivot.

If you walk into your shop tomorrow and the first thing your customers see is a fading wall of newspapers and magazines from 1995, you are telling your community that your business is a relic.

Stop waiting for publishers, distributors, or lottery corporations to save you. They won’t.

The choices you make today will dictate whether you are a 2026 success story or a statistic. Take control, disrupt your layout, and start being a retailer.

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newsagency of the future

Learning from excellent local retail overseas: Labour and Wait

In the newsXpress retail study tour a couple of months ago we go to visit the latest Labour and Wait store, in Covent Garden. It is a masterclass in independent retail. Inspiring.

Having first visited their previous location several years ago, we remain inspired by their approach. Their unwavering commitment to functional, high-quality household, kitchen, and garden products is exemplary. These are items designed to last.

In this video on the newsXpress YouTube channel (https://youtu.be/ul18Dqu656s) I share some of the takeaways from our visit to their Dryden Street premises.

Avoiding the “Fast Retail” Trap

Labour and Wait stands out by ignoring temporary trends. Instead, they focus on well-made items with rich histories.

Many of their products are sourced directly from traditional makers across England, Europe, and America. By choosing durability over novelty, they build trust and establish a highly loyal customer base.

Minimalist Visual Merchandising

The store utilises a minimalist aesthetic that lets the products shine.

  • Purposeful Placement: From Trusco toolboxes on the floor to beautifully displayed stationery, every item has a clear purpose.
  • Sensory Appeal: Artisanal soaps and shaving creams are presented to encourage interaction.
  • No Clutter: The layout prioritises breathing room over maximum product density.

Masterful Space Management

One of the most valuable lessons for independent retailers is how Labour and Wait manages stock. Despite a vast range, the shop floor never feels cluttered.

By keeping minimal stock on the floor and utilising their storeroom effectively, they create a serene, high-end experience. This environment encourages customers to linger, browse, and ultimately spend more.

The “Counter Experience”

The checkout area is not an afterthought. Labour and Wait regularly updates a curated display right at the counter.

During our visit, this space focused on premium pet care products. It is a highly effective way to drive add-on sales and introduce customers to new niche categories.

The Retail Takeaway Quality and simplicity always win. By curation, discipline in stock control, and focusing on legacy products, independent retailers can create a destination that customers love to support.

Transform Your Retail Business

Are you ready to elevate your retail store with high-quality product categories and expert strategic advice?

newsXpress is here to help you move away from traditional models and transition into a more profitable, curated future. We provide our members with the tools, exclusive supplier access, and hands-on consulting expertise needed to thrive in today’s market.

Join the newsXpress community today. Contact us at help@newsxpress.com.au to find out how we can support your business journey.

6 likes
Newsagency management

A hard truth about magazine margins

There is a persistent myth that newsagents are “raking it in” from every glossy title sold. When a customer hands over a $9.20 gold coin and change for a monthly staple like The Australian Women’s Weekly, the assumption is that the shopkeeper pockets a healthy chunk of that transaction. However, once you peel back the layers of the Publisher/distributor model, the reality for the small business owner is far more sobering.

To understand the business of magazines, you have to look at the gross margin. For us, that figure sits at 25%. From a $9.20 magazine, the newsagent receives $2.30. This is the starting point. That $2.30 must carry the entire weight of the physical retail operation before a single cent can be considered actual profit.

THE ANATOMY OF A $2.30 MARGIN
Running a brick-and-mortar store in Australia is expensive. The costs are fixed, but the income is increasingly variable. Here is how that $2.30 gross margin is eroded by the unavoidable costs of doing business:

Cost Category Allocation Amount per Copy:

  • Labour Costs (Staffing/Wages) 45% $1.03
  • Retail Space (Rent, Rates, Fit-out) 30% $0.69
  • Shrinkage (Theft, Damage, Returns) 8% $0.18
  • Operating Overheads (Power, Insurance, Comms) 8% $0.18
  • Operating Profit 9% $0.21

SURVIVAL ON 21 CENTS
After paying the staff to unpack, check, price and put out magazines and keep them tidy and take them off and count them and handle them for return, the landlord for the privilege of the floor space, and the electricity company to keep the lights on, the newsagent is left with approximately 21 cents. It is important to note that this is “Operating Profit.” This is not money in the owner’s pocket. Out of these 21 cents, the business must fund its own debt, pay interest on loans, and finally, provide an income for the owner.

Magazines are labour intensive. The supplier management process is out of date, amplifying the labour costs imposed on newsagents. When you consider the labour of  receiving stock from the Publisher/distributor, managing the display, processing the sale, and handling the returns process for unsold copies and dealing with delivery errors, the return on effort is slim. A newsagent has to sell five magazines just to clear a single dollar in operating profit.

The next time someone suggests that newsagents have it easy, show them these figures. We aren’t just selling paper; we are managing a high-volume, low-reward logistics operation. For the local newsagent, the magazine category is a service to the community, sustained by tight discipline and very thin margins.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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magazines

Is the Traditional Sales Rep Model Still Viable?

The role of the traditional sales representative is evolving. In 2026, the retail landscape demands greater efficiency from every partner. Regulars here will know this has been on my mind for a while.

Here’s a new short video from me about it: https://youtu.be/Df3umeh8M0Y

With more newsagents running their businesses under management, the value of the rep visit is considered through a different lens to if they were running the businesses day-to-day themselves. I think suppliers need to consider.

Okay, let’s get into this in the context of what I discuss in the video:

The Cost of the Traditional Model
Every representative visit carries a significant cost burden. This includes salaries, vehicles, travel expenses, and commissions. On average, a rep may only be customer-facing for half of the year. This traditional approach can be slow and expensive for suppliers.

Speed to Market
Launching a new product through physical visits can take weeks. In a digital world, this delay is a disadvantage. Many suppliers now use software and AI to reach retailers instantly. One business replaced fifteen reps with two head-office staff. After an initial adjustment, their sales exceeded previous levels.

Valuing the Retailer’s Time
Independent retailers often see multiple reps in a single day. Each visit consumes valuable time that could be spent on the shop floor. Modern retailers prefer suppliers who respect their schedule. Efficiency in the back office helps keep margins sustainable for everyone.

Digital Integration
The future of retail relies on seamless data. Manual orders and paper invoices are becoming obsolete. Retailers need automated systems for importing invoices and placing orders directly through point-of-sale software.

Looking Ahead
Suppliers must reconsider how they represent their brands. This might mean leveraging technology or finding new ways for reps to add genuine value. As retail changes, our partnerships must also adapt to remain competitive.

Efficiency is no longer optional. It is the new standard for doing business.

Now, to the reps themselves. What I am discussing here is not new. It’s not an agenda from me, either. The writing is on the all four the rep role. Consider this in your own career planning. I would if I were you.

3 likes
Newsagent suppliers

How much do newsagents really make from each newspaper they sell?

Why can’t you put newspapers right at the front of the show?

They can’t afford that prime space?

Really, at $3.50 you’d be making good money.

This conversation got me thinking about how I could show what I make from each newspaper sold.

It is a common sight in any Australian suburb: a customer walks in, grabs a daily paper, and walks out. To many, it looks like steady, reliable business. The reality is a tougher story of paper-thin margins and rising costs.

While many believe newsagents make good money every newspaper sold, the gross profit (GP) is generally fixed at 12.5% (or less) of the cover price. On a $3.50 newspaper, that leaves just 43.75 cents in the till.

The Real Cost of a 43.75-Cent Margin

That 12.5% is the “gross” figure, but it quickly evaporates when the operational realities of running a local business are applied.

  • Labour Costs: Every paper has to be counter, checked off, displayed, and, if unsold, processed for returns. In a high-labour-cost environment like Australia, the time spent managing these low-margin units often exceeds the profit they generate.
  • Rent and Floor Space: Newspapers take up physical space. When you calculate the rent per square metre, allocating that space to a 12.5% margin product is often a loss-making exercise compared to high-margin gifts or stationery.
  • Operational Overheads: Lighting, power, and insurance don’t get a discount just because you are selling a low-margin product. These fixed costs bite hard into the cents remaining from each sale.
  • Shrinkage and Damage: A single stolen paper or a copy damaged by rain or coffee can wipe out the profit of the next ten sales.

This “margin squeeze” is precisely why the most successful newsagents are actively decoupling from the traditional newsagency model. Relying on a product where you have no control over the price or the margin is a precarious strategy.

The future for independent retailers lies in categories where the business owner has the power to set prices, manage margins, and build a unique local brand. Whether it is high-end gifts, specialist stationery, or niche collectibles, the move is away from being a low-margin distributor and toward being a high-value destination.

The next time a customer mentions the “big money” in newspapers, it might be worth a gentle reminder: in modern retail, it is the quality of the margin, not just the volume of the foot traffic, that keeps the lights on.

This infographic represents real numbers. I used AI to date the data and a copy of Friday’s Herald Sun to create it.

You’re welcome to use this image.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

9 likes
Newspapers
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IPS releases new magazine contracts

Published on June 21, 2011