newsagents

In 0ur suburban Melbourne newsagency, March 2025 was a good month, up on 2024 and some terrific results for previously challenged categories.

But first, some context: this is a high street shop in Malvern, Victoria. It does not sell lotteries, candy at the counter, tobacco or any convenience lines. When I bought the business three years ago it was traditional, without gifts, toys or anything outside of papers, magazines, cards, stationery and transport tickets.

Overall sales in March 2025 over 2024 were up 2%. Gift revenue is up 100%. Toy revenue is up 70%.

Here are the surprises: magazine unit sales (we never compare revenue) were up 4% (2,569 magazines sold in the month) and newspaper unit sales were only down 3% (a third of the national trend) to 2,937 units sold. These results are despite us further educing magazine space and placing newspapers in a lower cost space further into the business.

The high value growth in the business is coming from good margin products achieving more than 50% gross profit. This is what I like to see in a transitioning newsagency, a shift in gross profit contribution from low GP categories into high GP categories.

In the business a conscious decision has been made to focus on toys. The close to $4,000 in toy revenue in the month shows this focus paying off.

I am writing this at 6:25am on Tuesday April 1. We have now reviewed March and made some decisions for April and beyond. The analysis time was under ten minutes and decisions quickly flowed from that. I mention this to remind folks here that there is little to be gained from overthinking decisions you make about your shop.

The focus is simple, do more of what is working and less of what is not working. As soon as something that is working shows that it is not working, retreat. Oh, and always have ideas ready for when space and capital are available to make a new move.

I need to mention stationery. Sales were down 20%, by $1,500.  What we have found in this business over the last three years is that stationery revenue is unpredictable. Of I do a 3 or 6 month year-on-year comparison, it’s up nicely. Then, as we saw in March, there are odd months in which we see a drop. In this situation we take a quick deeper look at stationery. What hurt us in March is that we completely moved the location of stationery. The move cost sales. In the latter part of the month we see the move paying off.

In this moment in time where news outlets and commentators are yelling about the cost of living and talking down retail and focussing on store closures, there are businesses doing well. 2% growth in March is good for our small business. I’d note that for this analysis I am only looking at in-store purchases and not online.

I know from others I have talked with there is plenty of good news in Aussie newsagency businesses.

Take a look at your March 2025 sales versus 2024. Look for opportunities. I am sure there will be plenty.  For reference, the report I used for the above data is the Monthly Sales Comparison Report in the Tower Systems newsagency software.

If I can help, please reach out: 0418 321 338 or mark@newsxpress.com.au.

It takes less than a minute to see the value of dead stock in your newsagency. Your newsagency software can give you the number and, if you want, list the items that are not selling and have not sold in six months or more.

In the Tower Systems newsagency software the insights dashboard has the dead stock data ready for you without you having to run a report.

Too many newsagents say dead stock is not an issue for them when it is an issue. Too many newsagents prefer to live in ignorance than know their real situation. These same newsagents will desperately want to deal with their dead stock issue when they come to sell their business because plenty of buyers will not buy dead stock if they are smart.

Here’s my challenge today: find out the value of dead stock in your business. My advice is if you have not sold any of an item in six months, it’s dead.

Get your number and then resolve to cut this. As a benchmark, dead stock should make up less than 5% of your total inventory investment. I think the best goal is 3%.

So, what’s the value of dead stock in your newsagency?

Here is how we quit stock in retail businesses we operate:

1. Set a deadline. We’d suggest two weeks for quitting a product or range of products.
2. Set your initial price. The discount must be compelling. We’d suggest 50% off. A smaller discount in this marketplace will not get noticed. Think about your discount words: in some areas, HALF PRICE works better than 50% OFF. Sometimes, 2 FOR 1 can be even more effective. A $$ price can work better – for example a dump bin with everything priced at $1. People then don’t have to work anything out.
3. Move the product to a high traffic location. Display it as a line you are quitting – in a dump bin or on a table. This is not a time for pretty displays.
4. Put up a sign that is either black on white or white on read. Nothing fancy.
5. Adjust your price. If sales are not strong enough, go harder with your discount.
6. Give it away. If the products are not selling, consider giving the stock away to a local charity.
7. Keep track of time. If you decide to be out of the stock within two weeks, stick to that and make it happen with your pricing and placement decisions.
8. Use the bin. If you can’t sell the item and you can’t give it away, use the bin.
9. An alternative: If you have a large amount of stock to quit, consider hiring a local hall and running an off site sale.

Quitting stock takes strength and commitment. We urge you to do it to keep your business fresh. Product not selling gives shoppers a bad impression of your business.

This all starts with you knowing the value of your dead stock.

I have been contacted by two suppliers in the last few days with notice that their prices are increasing as a result of tariffs imposed y the Trump administration.

Despite the claims by Trump, tariffs are paid by the importer, who passes them on in a higher cost of goods. One supplier has advised there will be price increases they are yet to calculate while another US based supplier has written with details on an increase to apply from April 1.

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Given the routes some goods go through, priced paid in Australia by some suppliers will increase. While some suppliers will re-route goods to avoid the US imposed tariff, for others this will be a challenge.

The reality is that the tariff moves by the Trump administration are having knock-on affects on manufacturing around the world, leading to significant supply chain disruption.

The Trump tariff move has been made, according to him, to stimulate manufacturing in the US. For plenty of these goods Americans will need to be happy paying significantly higher costs due to higher local manufacturing costs if manufacturing is moved to the US for even the log wages paid in the US are considerably higher than in China, for example. Some US suppliers have noted already, the tariffs are lower in cost than US based manufacturing.

Plenty of economists have explained the folly of imposing tariffs, that the additional cost is borne by US consumers and not the exporting country.

A consequence of the tariff move is more people becoming aware of where what they buy is manufactured. You only need to see some of the news out of Canada in the last couple of weeks to see the extent of the own-goal by the US. I think there is good opportunity here for a more nuanced buy local approach.

While the current federal government in Australia has said it will not impose tariffs on the US in retaliation, trade into our country is already caught up in the US moves. It’s messy and expensive.

In my own case we are making alternative arrangements in at least one instance.

The situation is fluid as we have seen in recent weeks. None of this helps with business planning.

Ugh.