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

small business retail

Most newsagents are giving their best space to their worst-performing departments

This post promotes a service my business sells. Read it with that in mind, and judge it on whether the argument holds.

Here is the argument.

The typical newsagency floor was laid out for a business that no longer exists. Newspapers and magazines got the front, the window, the walk from the door to the counter, because that was what people came in for. Print bays have been shrinking for fifteen years. In most stores the space they hold has not shrunk anywhere near as fast.

Now, while you may have made some changes, most I see are not enough for a bright future.

Meanwhile cards, gifts, stationery, art and craft, collectables, plush and the newer categories are squeezed in around the edges. They earn their keep in poor positions, which is exactly why they are worth more space. A category performing from a bad spot is telling you something.

I see this constantly. Not because newsagents are careless, but because layout changes slowly. Nobody wakes up and decides to hand prime real estate to a declining category. You take out one bay, then another, then you shuffle a fixture, and five years later the shop is a compromise between what it used to be and what it is becoming.

The numbers most newsagents never see side by side

Two figures per department. The share of your selling space it occupies, and the share of your sales and gross profit it returns.

Almost nobody has these two figures next to each other. Yet the gap between them is the single most useful number in a newsagency, because it tells you where your rent is being wasted.

There is a second pattern I look for, and it is the one that worries me most.

Revenue flat, transaction count down.

I see it constantly in this channel now. Revenue holds because prices rose and because lotto and agency lines carry a dollar value. Underneath, fewer people are walking through the door. Foot traffic is the whole basis of a newsagency, and when it goes, everything built on it goes with it, usually about two years after the owner could have acted.

You cannot see this in one year of data. It shows up plainly in two.

What newsXpress is offering

A Store Opportunity Review. Send two years of sales data from your POS software and a sketch of your shop showing what is located where. That is all.

It comes back as a written report — how your two years compare on revenue, transactions, average sale, items per sale and department performance; how your space allocation stacks up against what each area actually returns; research on your local area and who is in it now; and research on the category opportunities that suit your catchment. Opportunities listed in the order I would tackle them.

Three business days. Then a follow-up consultation with the retail professional who wrote it, included.

$595 inc GST. $395 inc GST until the end of September. Prepaid to qualify you. And you know what, since I own newsXpress, if the report you receive is of no value to you whatsoever, let me know and I will refund your payment.

It is open to any local retailer, not just newsXpress members and not just newsagents. Gift shops, bookshops, jewellers and homewares stores face the same space and margin questions.

help@newsxpress.com.au.

Why I think it matters more in this channel than any other

Because newsagents are running out of runway, and space is the lever they still control.

You cannot fix print decline. You cannot negotiate lottery terms. You cannot stop a masthead closing or a distribution frequency changing. What you can do is decide what occupies the best two metres of your shop, and most newsagents are making that decision by inheritance rather than by evidence.

The stores I see doing well in 2026 are the ones that stopped waiting for the old model to stabilise and started treating themselves as retailers with a good site. The layout usually changed before the results did.

And the honest caveat

A report will not save a shop in the wrong location on the wrong lease with the wrong rent. Nothing will, and I would rather tell you that in the follow-up call than take your money and pretend otherwise.

But if the business is fundamentally sound and simply arranged for a version of itself from a decade ago, this is a cheap way to find out what to move and what to back.

Draw the sketch badly. It is the part I find most useful.

To kick this off, email help@newsxpress.com.au.

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Newsagency management

What AI found in one shop’s sales file

I have been testing the newly announced newsXpress AI business performance analysis service with a few different shops and it is fascinating what it discovers, that the retailers love.

In each case, the retailer invested a few minutes to run a report and answer a couple of quick questions. The skilled and carefully prompted AI did the rest of the work.

What the retailer got back was immediately actionable, quickly money making.

One retailer found a new product category they had never considered, something they can trial for monomial cost but that, if it works as expected will be a game changer, that’s what they called it, a game changer.

Another retailer retail was direct: this is the kick up the arse I needed.

Another retailer didn’t believe the insights and advice. Two days later they came back saying they had done their own research and \had to apologise because the report was right. How could it know?, they asked. That’s the secret sauce here – discovering the unknown about local retail businesses and helping them make good decisions quickly.

Another retailer was amazed at the ToDo list. This would have taken me days to research and put together. That was weeks ago. The made half the changes and are already making more money as a result.

These are true stories that have come from the AI services that newsXpress is now offering to other retailers, not just newsagents.

This has changed how I see my business was the response from the most skeptical retailer we worked with. They thought AI was a gimmick and only became involved in the trial reluctantly..

None of this is magic, and none of it required new software. The numbers were sitting in the POS all along, the way they are sitting in yours right now. Every shop’s system quietly records what sells, when, at what margin, alongside what does not sell at all. What has been missing is not the data. It is the time and the tools to ask the data anything useful. AI has made the asking fast and cheap, if you know how to ask.

Teaching retailers how to ask is exactly what the AI training packs do, on your data, live and one on one. The snapshot is the free taste of it.

The offer stands this month: send a sales extract from your POS, any POS, and one page comes back showing what AI can see in your numbers. No charge, no obligation, and most owners are surprised by something on the page.

Start here: help@newsxpress.com.au.

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AI

Why a franchise model may not suit Australian newsagencies in 2026

The newsagency channel is in the middle of change that will not reverse. It has been for years, but in 2026 the pace of change has increased. Print is declining. Lottery purchases are shifting online. Foot traffic patterns have changed. How, when and where people shop has changed. The business model that worked in 2010 does not work now.

In my opinion, this is the wrong time to lock a business into a franchise agreement.

Let’s consider the regulatory framework of franchises first.

Franchising in Australia is regulated under the Franchising Code of Conduct, but the Code governs disclosure and dispute processes, not the day to day restrictions written into the agreement itself. Those restrictions are extensive. A franchise agreement typically binds you to approved suppliers, set trading hours, mandated fit-outs, brand standards and system-wide promotions whether or not they suit your shop.

You also inherit the behaviour of every other franchisee in the network. One store cutting corners, one public dispute, one head office misstep, and the brand you pay to trade under takes the hit in your suburb too. You carry obligations to a system you cannot control, run by people you did not choose, alongside operators you have never met. Independence has risks, but at least they are your own.

Innovation happens in stores, not head office

Franchise head offices move slower than the market. A new product category or a local marketing idea has to pass through approvals and brand reviews before anything happens in-store. Sometimes it needs a contract amendment.

An independent retailer can trial a new line this week. They can negotiate a local supply deal or move fixtures tomorrow morning. I have watched stores add a category in a fortnight that a franchise network would still be scoping six months later.

No two shops are the same

A regional newsagency and a shopping centre store need different product mixes. Franchise models tend to enforce supplier mandates and centralised ranges.

When your local market shifts, you need to move into whatever works there. Niche gifts. Collectibles. Product from a maker two suburbs away. Waiting on franchisor approval means missing the window.

You carry the risk, they keep the control

In most franchise arrangements the franchisee carries the lease, the working capital and the staffing liabilities while giving up strategic control. If you are taking all the financial risk, you should have full authority over direction, brand and where your capital goes. Especially now.

Franchise fees are inflexible when margins are not

Royalties and marketing levies are predictable overheads in stable conditions. When core categories are shrinking, they are cash drains you cannot switch off. Every dollar of mandatory fees is a dollar less buffer for volatile trading.

Independence does not mean isolation

A good marketing group gives you buying power and shared marketing without telling you what to stock. Good POS software gives you the data to make your own decisions.

Right now, autonomy is the most valuable asset a newsagent has. Signing it away to someone else’s model is a strange way to prepare for the next five years.

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Newsagency management

For newsagents who want more than an average newsagency delivers

I have owned newsagencies since February 1996. In that time I have seen the best of this channel and plenty of the worst, and I understand why some newsagents feel stuck. The categories we were built on are in decline. Papers, magazines, lottery. That is not a criticism of anyone. It is arithmetic.

I also understand what stuck feels like, because newsagents describe it to me every week. You open early, you work hard, you do everything the old model says you should do, and the numbers drift backwards anyway. It wears people down. Some of the most capable retailers I know have quietly concluded that this is simply what owning a newsagency is now, and that the best they can hope for is a slower decline than the shop up the road.

I do not accept that.

Watching hundreds of these businesses up close has taught me that average is a choice. The newsagents doing it toughest are usually running the model as it was handed to them years ago. The ones enjoying their businesses, making good money and looking forward to Monday, are running something quite different, often from the same shop, on the same street, with the same landlord.

The difference is rarely luck or location. It is decisions. What to stock, what to quit, how to use the space, where new shoppers might come from. Made one at a time, with evidence, those decisions add up to a different business. I have watched a wall of slow magazines become the most profitable run of shelving in a shop, and shops attract customers who would never have crossed the threshold two years earlier. None of it happened overnight, and all of it started with one decision made on evidence rather than habit.

So where is the growth coming from? Not from the old categories. In the shops that are growing, the customer traffic, revenue and gross profit contribution growth is coming from categories traditional newsagents do not stock. This is where real innovation lies in our channel. The shops finding a brighter future are ranging products the traditional newsagency never considered, and they are being found by shoppers who never thought to walk in.

That belief is why newsXpress exists, and I should be upfront here: I own the business, so read what follows knowing that. What we offer members is hope backed by practical support. Hope on its own is just waiting. So the support is practical. We start by listening to what you want from the business, because that is different for everyone. With your permission we look at your data, and we almost always find early wins sitting in plain sight. From there we work beside you on a plan specific to your shop, your resources and your goals, at whatever pace suits you. Nothing is mandatory, and what you build stays yours.

There is also the company of others on the same road. Our members share what is working in their shops with a generosity that still surprises me after all these years. Nobody has to figure this out alone.

I will be honest about the other side too. If your plan for the business rests on newspaper home delivery, lottery commissions and parcel collection, we are probably not the right fit, and I would rather tell you that in the first conversation than take your money.

But if you are wondering whether there is a brighter future for your business than the one currently in front of you, I am happy to talk. No pitch and no obligation, just an honest conversation about your situation and what might be possible. Email me at mark@newsxpress.com.au or call me on 0418 321 338.

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newsagency of the future

Asking your landlord for a rent reduction? Prepare before you knock

Asking a landlord for a rent reduction is a reasonable thing to do. Rent is one of the biggest costs in any retail newsagency, and when circumstances change it makes sense to talk. But how you ask matters as much as what you ask for.

The first question is a hard one, and you ask it of yourself: are you making good money? A smart landlord will want to see your profit and loss statement. If it shows a healthy, growing profit, your argument may disappear before it begins. Think that through before you knock on the door.

If there is a case, build it before you make the request. Know why you are asking. What is the commercial reason? Gather the evidence and present it clearly. Bring your P&L. Bring your sales figures. Explain the situation rather than simply asking for a discount.

Too many retailers ask before they have prepared. I have seen it plenty of times. Some have no real case. Others have a strong case but never present it, so the request quietly fades away. It is hard to blame a landlord for saying no to an argument that was never made.

The detail matters. What is your occupancy cost as a percentage of revenue? Are sales up or down? Is the location delivering the foot traffic you expected when you signed the lease? Compare this quarter with the same quarter last year, and this half with the same half a year earlier. The Tower Systems newsagency software can produce these numbers in minutes.

Do not be afraid of difficult numbers if that is what the records show. Honest data builds a stronger case than vague complaints.

Remember, too, that landlords are more likely to help a tenant they want to keep. If you pay on time, look after the shop and bring traffic that benefits the stores around you, you are worth keeping. Neighbouring retailers may even support your case, and it is worth asking them.

Preparation is everything here. Have your evidence in hand and a specific number in mind, because a landlord can take a prepared case to their own decision makers.

Walk in ready.

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Newsagency management

Payments providers are chasing newsagents. My advice: don’t rush

Payments providers are chasing newsagents right now. Suncorp Bank exiting this space has plenty of newsagents thinking about what to do next, and the providers know it. The calls and emails have started, and reps are turning up in shops.

My advice is to not rush into a decision.

It is still early days. I know of three deals being pitched to newsagents right now, and I know of more options being prepared that are not public yet. Better deals may emerge. In my experience of moments like this, they usually do.

There is time, too. The new regulations banning surcharging start October 1. That sounds close, but for a decision like this it is not. You can watch the market for a few more weeks and still have plenty of time to move comfortably before the deadline. Nobody should feel pressured into signing with the first rep who calls.

When you do compare offers, look past the headline rate. What is the total cost per transaction once every fee is counted? What is the contract term, and what does it cost to leave early? Who owns the terminal, and who answers the phone when it stops working on a Saturday morning? When does the money land in your account? Cash flow depends on that last one more than people expect. Whatever answers you get, get them in writing.

Most of all, think about, and ask questions about, who is making money from the decision you make. Every deal being pitched earns someone a margin somewhere. Maybe the provider, maybe a referral partner earning a commission along the way. Once you know who gets paid and how much, you can judge whose interests the deal really serves.

This is not a criticism of the providers. They are doing what businesses do. But it is your decision and your money. Waiting a few weeks costs you little. A bad contract can cost you for years.

Take your time.  Do your research. The right decision could save you a ton of money, which will matter after October 1. So, be careful, do your due diligence. Ask the tough questions. Sign only when you are sure.

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Newsagency management

How Many Newsagencies Are There in Australia? Industry Size & Store Numbers

There are roughly 2,500 local newsagency shops operating in Australia in 2026, and the newsagency industry is worth about $1.8 billion in annual revenue.

Now, some will disagree with this number so I want to explain how I reached 2,500. I considered the data I have access to from the Tower Systems dataset (Tower is the biggest software company serving the channel) as well as insights from the major magazine distributor and my own decades of experience working with newsagencies and my tracking of store closures over the lats 10 years.

Store numbers have fallen from just under 5,000 in 2000, but the surviving network is substantial and, in transformed stores especially, healthy.

Counting is imprecise because agencies, sub-agencies and standalone lottery agents can sometimes be lumped together. This page sets out the size of the Australian newsagency industry — revenue, store numbers, employment and the long-term trend — with sources, so you can see where the commonly quoted figures come from and why they differ.

Australian newsagency industry: key numbers (2026)

Measure Figure Source
Industry revenue (2025–26) ~$1.8 billion IBISWorld6
5-year revenue trend Declining ~5.2% a year IBISWorld
Number of businesses (IBISWorld count) ~1,750–1,784 IBISWorld
Number of local newsagency shops (industry estimate) ~2,500+ ALNA / Tower7
Broader lottery + retail + distribution agents 4,000+ ALNA (ACCC)8
People employed ~15,800–20,000 VANA / ALNA9

References:

  1. IBISWorld, Newsagencies in Australia, https://www.ibisworld.com/australia/industry/newsagencies/5495/
  2. Mediaweek, ABC report that newsagency sector in decline, https://www.mediaweek.com.au/abc-report-that-newsagency-sector-in-decline-fails-to-investigate-closures-claims-retailer/
  3. ALNA, Australian Lottery and Newsagents’ Association ACCC submission (April 2018), https://www.accc.gov.au/system/files/Australian%20Lottery%20and%20Newsagents’%20Association%20(April%202018).pdf
  4. VANA, newsagency industry statistics, https://www.vana.com.au/wp-content/uploads/2018/10/Newsagency-industry-Statistics.pdf

Why the store-count figures disagree

Estimates of how many newsagencies exist in Australia range from about 1,750 to over 3,000. The gap is real and comes down to definitions:

  • IBISWorld counts registered businesses in the newsagencies industry classification: around 1,750–1,784.
  • ALNA and POS software providers count operating retail newsagency outlets: 2,500 or more, described as the biggest independent retail channel in Australia. This is the number that I consider to be most accurate as it is from on the ground experience.

Broader agent counts (including sub-agencies, distribution agents and standalone lottery agents) push past 4,000.

A retailer with a lottery terminal, an Australia Post agency and a magazine account can look like a newsagency without being classified as one — which is why headline “decline” numbers should be read with care.

The long-term trend in store numbers

Year Estimated newsagencies
2000 ~5,000
2007–08 ~4,635
2016–17 ~3,150
2026 ~2,500 (operating shops)

Long-term decline in newsagency numbers. Historical figures via Wikipedia; current operating estimate via ALNA / industry sources.10

The direction is clear — fewer stores over 25 years — but the network that remains is significant. Australian newsagents still sell close to half of all magazines sold in shops and around a third of all greeting cards sold nationally.

Is the newsagency industry dying?

No, it is transforming. Industry revenue is declining (around 5.2% a year through 2025–26 on IBISWorld’s measure, which I think is problematic) because legacy categories like newspapers, magazines and tobacco are shrinking, and even lottery sales are moving online (40%+ now direct to consumer).

Transformed newsagencies — those leaning into gifts, cards, specialty stationery and emerging lines — are growing revenue and basket value. The decline is concentrated in stores that have not changed their model.

Frequently asked questions

How many newsagencies are there in Australia in 2026?

There are roughly 2,500 operating local newsagency shops in Australia. IBISWorld counts around 1,750–1,784 registered newsagency businesses; industry bodies count 2,500 or more retail outlets, and over 4,000 when broader lottery and distribution agents are included.

How big is the Australian newsagency industry?

The Australian newsagencies industry is worth about $1.8 billion in revenue in 2025–26, according to IBISWorld, and has been declining at around 5.2% a year over the past five years.

How many people do newsagencies employ in Australia?

10Wikipedia, Newsagent, https://en.wikipedia.org/wiki/Newsagent

newsagencyblog.com.au • Page 8 of 9

Estimates range from about 15,800 to 20,000 people, depending on whether broader lottery and distribution agents are included.

Are newsagencies in decline?

Store numbers and industry revenue are falling, driven by declines in print, tobacco and in-store lottery sales. However, transformed newsagencies focused on gifts, cards and specialty lines are growing, so the decline is uneven rather than universal.

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newsagency of the future

Not another boring EOFY post

No. Not from me.

You already know the required stuff. Run the stock listing, take the backup, ring the accountant. You’ve read that post a hundred times and you’ll read it a hundred more this week. I’m not adding to the pile.

What interests me today is the other list. The one you never write down. The jobs you keep meaning to get to and keep finding a reason not to. New financial year tomorrow, so it’s as good a night as any to stop dodging them.

Start with the dead stock. You know exactly what it is. You walk past it every day and your eye slides straight over it, because you stopped seeing it months ago. It’s been sitting there a year doing nothing. Mark it down hard, bundle it, give it away if that’s what it takes, but get it off the floor and put something that actually sells where it was.

Then have an honest look at your hours. Are you open at times nobody comes in, just because you always have been? In there from eight when the first real customer turns up at half nine? Trading Sundays for a figure that doesn’t cover the cost of being there? You can reorder stock. You can’t reorder the hours of your life, so spend them where they count.

The roster is the same question, and it’s a harder one because it’s about people you like. Are you rostering for the trade or for habit? Two on when one would cope? Be fair and be kind about it, but be straight with yourself about what each shift brings in.

Put your prices up. There, I’ve said it. You’ve been frightened of it for years, sure the customer will walk. Most won’t even notice. The few who do were never the ones keeping the lights on. You were never the cheap option and you were never going to win that fight, so stop pricing like you’re in it.

And bring in something mad, new. Something fresh, something with no business being in a newsagency, something that stops a regular in their tracks to ask what on earth it’s doing there. Back a hunch. Take the punt you’d usually talk yourself out of. Worst case, you mark it down next EOFY with the rest of the dead stock. At least you’ll know.

None of this is on the required list. That’s the whole point. Get one of these done and next year is genuinely better than this one, not just compliant.

So before you flip the calendar, pick one. Just the one. Be ruthless about it. Start the next when that’s sorted.

Happy new financial year.

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newsagency of the future

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

Looking at the Newspower marketing email sent out yesterday.

Yesterday, Newspower sent a marketing email to newsagents. Plenty of newsagents have shown me the email. It is neat, upbeat and confident. It promises buying power, social media done for you, seasonal campaigns, digital solutions and support.

On the surface, it reads well. Look a little closer, and what I think are gaps start to show. What I share here is my opinion about what the email reveals, and what it does not. Do your own research though, draw your own conclusions.

Big claims, light proof

The email leads with “largest”, “most trusted” and “35+ years helping stores grow sales and improve performance”. Those are big claims.

There are no numbers. No current store count. No retention percentage. No satisfaction or trust metric. No average growth figure. No example showing how performance actually improved.

What does most trusted mean, what evidence supports this?

“Proven” is used as a label, but there is nothing in the text that proves anything. For a major decision like joining a group, that is a problem.

“Retail growth made easy” – really?

The theme of the email is “Retail Growth Made Easy”. Growth is presented as simple: time-saving tools, seamless online and digital solutions, “nothing for you to do but display and sell product.”

Anyone who has run a newsagency knows that is not how it works. Real growth usually comes from hard, sometimes uncomfortable, decisions about ranging, space, stock, staff and local engagement.

When a marketing pitch underplays the work required, it is selling comfort more than change.

Buying power without context

“Save up to 25% on key product lines” is a headline promise.

Up to. On key lines. Compared to what? Standard wholesale? Going direct? Another group? There is no category example, no base price, no sense of how common this saving actually is.

“Exclusive discounts and offers” sounds attractive. But exclusive could mean “different”, not “better for the retailer overall.”

If buying power is a core part of the pitch, it deserves more than a single “up to” sentence.

Digital offer reads like a commodity

The digital list is complete: social media management, Google Business Profile setup, targeted online ads, affordable website and ecommerce.

The problem is it could be any agency website for any small business in any category. There is nothing newsagent-specific. No examples. No numbers.

The Facebook posting service promises up to six posts a week across standard categories. Posts are described as designed to drive customers, but there is nothing about engagement quality, local distinctiveness, or measured sales impact.

Volume is not the same as value.

Ink and toner promise is too broad

One of the flagship programs is about ink and toner. The pitch is to “become the go-to ink and toner retailer.”

Anyone trading in this space knows it is not that simple. Big-box retailers, specialist chains and online players set tough benchmarks on price and range. The economics vary sharply by location. In many metro and inner suburban areas, chasing destination status in this category is a real risk.

The email does not mention stock risk, SKU count, location filters or exit plans. It presents a broad opportunity without the cautionary detail this category deserves. That is a significant gap.

Support sounds busy, not defined

Support is a major theme: dedicated business managers, a members-only network, educational videos, weekly virtual meetings, events, trade fairs, bulletins.

It is a long list. But it reads like a brochure. There is no sense of how often a retailer will actually hear from their business manager, what support looks like when a store is struggling, or any example of a store that was turned around and how it happened.

Activity is not the same as outcome. The email does not make that distinction.

For everyone, not quite right for anyone

The email speaks to “independent newsagents” as one group. That is the only segmentation.

No nuance for regional versus metro, high gift versus low gift, lotto-heavy versus lotto-light, centre versus high street, or operator appetite for change. No sense of who the group is not a good fit for.

Retailers are not one thing. A pitch that treats them as one thing will struggle to be genuinely useful to any of them.

Why this matters

A polished email from a marketing group is not a decision-making tool. It is an invitation to ask harder questions.

When you read something like this, look for big claims with nothing behind them, category promises that ignore obvious risks, support that is listed but not described, and comfort language that papers over the work a genuine business change actually takes.

If a group wants you to trust them with a slice of your future, the least they can do is give you enough detail to judge them on more than slogans.

The email in question is slick. The weaknesses are in what it chooses not to say.

…

I own newsXpress and can be reached on 0418 321 338 or at help@newsxpress.com.au.

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Newsagency management

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

An unfair and smart advantage: AI tools built for independent retail

newsXpress has deploying purpose-built AI tools to help member businesses make faster, smarter decisions — without needing a consultant or an IT team.

Margins are tighter than ever, consumer expectations keep rising, and the big chains have access to data and technology that most small operators can only dream about.

It can feel lonely and stressful when you see what others are doing to be more competitive.

I think that gap should close for indie retailers, especially newsagents. It’s why I have why I have invested in a suite of AI-powered tools — built specifically for newsXpress member businesses — that put professional-grade analysis and strategic thinking directly in the hands of small business retailers.

These are not generic chatbots. They are purpose-built AI skills, each trained to handle a specific challenge that independent retailers face every day.

It’s taken months of assessment of different LLMs, consideration of prompting options and the capacity for niche retail channel training. Then it took time for deep testing, refining, and more testing.

The result is an initial kit of AI skills that make expert insights far more readily available for our channel.

“The same quality of strategic advice that used to require a consultant and a five-figure fee is now available to every newsXpress member.”

Three tools making a real difference.

Why this matters for your business

Independent retailers have always competed on service and community connection. AI doesn’t change that. What it does is remove the bottleneck of time and expertise when it comes to analysis, strategy, and planning.

A financial health report that once took days — and a trusted accountant — can now be generated in minutes. A rebrand strategy that required a branding agency can be explored instantly. A website audit that demanded specialist knowledge is now a URL away. These are just some of the examples.

This is not about replacing good judgement. It’s about giving you better information to act on — faster.

What’s next

These tools are live and available to newsXpress members now. There is no cost. We’re continuing to build out the suite based on member feedback, with more category-specific and seasonal tools coming throughout 2026.

No gimmick, this is practical use of AI

While there are plenty of AI gimmicks out there, including in our channel, what I am sharing here is real. These tools have already delivered commercial value to newsXpress members. They are making a difference at a time when that matters.

Oh, and I have used these tools to help newsagents not in newsXpress.

…

Here’s the pitch

These tools are just one part of what newsXpress offers independent retailers across Australia. Members also gain access to preferred suppliers, marketing support, seasonal campaigns, and a network of like-minded business owners. If you’re running a newsagency, gift shop, or garden centre and want a genuine edge, it’s worth a conversation. Visit newsxpress.com.au to find out more.

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Newsagency marketing group

Why some newsagents will outperform others this Mother’s Day

Major seasons are important in newsagencies and card shops. Customer traffic spikes as infrequent card shoppers visit for their seasonal card. Mother’s Day is the second best season of the year.

This year, some newsagents will do better than others. I say that based on the sales data I have seen from major card seasons over the last two years.

Businesses running an appealing in-store competition with good collateral and backed by social media content will be the winners. This video speaks to the newsXpress Seasonal Edge program and it shows why it works: https://youtu.be/Ll3rrtT6WSs

So, it’s the curated gift pack, in-store promotion, social media support and backend management advice. All of this comes together supporting 10%, 15% and 20% sales lift of cards for the season. There is plenty to this that makes it hard to copy.

It’s free for the retailers. Hassle-free, too.

Yes, I’m pitching newsXpress here. No other marketing group offers anything like this local in-store activation program. I’m doing so because I want to see more newsagencies thrive.

newsXpress handles the curation, the supplier relationships, and the logistics, so newsXpress members can focus on what they do best: serving their customers. Watch to see the newsXpress difference in action and learn how we empower independent retailers to achieve extraordinary results.

Since everyone gets the same prize pack, there is an opportunity to compare engagement, compete on the best display, drive the best commercial outcome. members also provide feedback on future promotions.

The Seasonal Edge program drives foot traffic and increases card sales, a high-margin category for traditional newsagencies and gift retailers.

newsXpress Provides participating members with professionally curated prize packs for major events like Mother’s Day, Father’s Day, Valentine’s Day, and Christmas. These packs, which retail for up to $500, are provided to members at no cost, allowing them to run high-impact competitions that excite their local community.

The Father’s Day prize has already been announced and it is the best yet.

Ultimately, the newsXpress Seasonal Edge program is more than just a marketing tool; it is a testament to how independent retailers can level the playing field through collaboration and innovation. By removing the logistical hurdles of sourcing and setup, we empower our members to deliver high-impact, community-focused experiences that drive 15% to 20% category growth.

Whether it is through luxury curated prizes or the seamless “strut card” system, newsXpress ensures that local stores can stop worrying about the “how” and start focusing on the “who”, their customers.

Does Seasonal Edge save a newsagency? No, not of itself. But, it is a piece of a broader jigsaw that provide a business with opportunities through which they can thrive, and that;’s got to be the focus of 2026 – thriving, for sure!

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newsagency marketing

Thinking of Buying a Newsagency? Here is Your Due Diligence Checklist

Buying a newsagency or any retail shop is a big step. The channel offers both opportunities and challenges right now. You must ensure the price is justifiable.

It should not be an emotional decision. You are investing your hard-earned money. You need a return on that investment.

When I assess a business, I want specific evidence. If a seller cannot provide this, I remain sceptical.

Here’s a new video from me about this:

Here is the kit of information you should request, as covered in the video.

The Financial Evidence

Demand the profit and loss (P&L) statements for the last three years. These should come directly from their accounting software. Do not accept “ad-backs” or “magical” broker adjustments at face value [00:39].

Match this with sales data from their point of sale (POS) system. I also suggest asking for their tax returns for the same period [00:55]. You are looking for a consistent narrative between what they tell the tax office and what they tell you.

Stock and Staff

Check the current stock on hand. I also want to know the age of that stock. I will not pay full wholesale for items older than six months [01:34]. That is not your problem to fix.

Review the roster and employee details. Understand their long service leave and other legal obligations. You need to know exactly what you are taking on [01:48].

Assessing the Risks

Consider how much the business depends on external factors. Lotteries are migrating online [03:45]. Newspapers and magazines are seeing annual declines [03:50]. Factor these risks into your valuation.

Determining the Price

A business is only worth what someone is prepared to pay. Do not focus on the asking price. Focus on what the evidence tells you it is worth [04:44].

Some owners hold out for high prices based on what they paid years ago. That is their issue to process, not yours. Your goal is to pay the least amount possible for a viable future [06:18].

Final Advice

Ask for all this information to be delivered at once. Avoid being drip-fed data [07:28]. Take your time. Be thoughtful.

New owners are the future of this industry, no matter what we call our businesses. I want to see you start on the best possible terms.

…
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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buying a newsagency

AI Literacy is the New Computer Literacy

In the 1990s, the “computer literate” newsagent had an advantage. They embraced POS systems while others stayed with paper ledgers. In 2026, we are at the exact same crossroads with AI Literacy.

The gap with AI is between those who use it for play or curiosity and those who use it as a core business competency.

We use it every day in my businesses.

The world has moved from search to promoting / asking questions.

For decades, we “Googled” by typing keywords. In 2026, we “Prompt” by giving instructions. This is a fundamental shift in how a business owner interacts with information.

  • Old Searching for “how to increase gift sales” and reading ten generic articles.
  • AI: Prompting your AI agent with your specific POS data by loading your sales history and current stock on hand data: “Analyse my sales and stock and advise what I need to cut and why.”

Why AI is the new computer literacy

If you can’t “speak AI,” you are effectively locked out of the most powerful productivity tools ever created.

Make sure everyone in your business knows how, when and why to use it. Set ground rules. Train people. Be clear in the outcomes you are chasing. This focus has to start with smart prompts. If you are not sure where to start, start – doing is the best way to learn here.

  • Clean your data: AI is only as good as the information you give it. Accurate POS data is the “fuel” for your AI’s literacy. Like stock on hand. if it is inaccurate, AI results will be worth less. Let’s be blunt here: if your stock on hand data is shit, the AI results for and about your business will be shit.
  • Stop Googling, start instructing: Treat AI like a highly capable, slightly literal intern. Give it context, a persona, and a clear goal. If you’re not happy with a response, say so, and be clearer about what you seek.
  • Empower your team: AI literacy shouldn’t stay in the back office. Train your floor staff to use AI tools for customer enquiries and gift recommendations.

The Bottom Line

In 1995, you didn’t need to be a programmer to use a computer, but you did need to know how to turn it on and navigate a menu. In 2026, you don’t need to be a data scientist, but you must be a master of the prompt.

The newsagents, and all retailers, who lean into AI literacy today will be the ones running the most efficient, high-margin businesses tomorrow. The rest will be left wondering how the world moved so fast.

This is not a game.

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Newsagency management

Streamlining Splosh Australia Invoice Management with AI

Manual data entry of supplier invoices takes time and, too often, results in mistakes.

The Tower Systems POS software AI tools make importing supplier invoices easy, and accurate. here’s a new video demonstrating an import of a Splosh invoice:

Processing a large invoice from a supplier like Splosh Australia can often take hours, especially when balanced against serving customers and managing a busy shop floor. By leveraging AI-driven invoice recognition, we have made it possible to process complex, multi-page invoices in a matter of minutes.

What the video demonstrates is just one of many AI tools in the Tower software that save time, offer fresh business insights and help you make more money. Tower has been delivering embedded AI tools to retailers since 2023.

Now, let’s get into the Splosh invoice example I share here.

Automating the heavy lifting

In our recent demonstration, we processed a four-page Splosh invoice containing 87 individual products. Historically, entering this much data manually—including barcodes, stock codes, descriptions, and pricing—could take the better part of a day.

With the new AI Import feature, the process is simple:

Upload the PDF: Drag and drop your Splosh invoice directly into the system.

AI Analysis: The software reads the document, identifying the supplier, invoice number, and every line item.

Automated Setup: If the supplier is new, the AI extracts their contact details from the header to create a new profile automatically.

Smart Categorisation: You can nominate default departments, such as ‘Gifts’, ensuring all 87 items are correctly categorised instantly.

Why this matters for your business

The primary goal of this technology is efficiency. By reducing the time spent in the back office, you can spend more time on the shop floor. The AI doesn’t just work faster; it reduces the risk of human error in pricing and stock code entry, ensuring your inventory remains accurate.

Whether you are receiving a small delivery or a massive seasonal order from Splosh, the system handles the complexity for you. What used to be a tedious administrative task is now a streamlined, two-minute process.

Are you wasting time?

If you are manually typing invoice in from suppliers, you are wasting and, likely, making mistakes. You’ll be less efficient, less competitive.

…
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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Newsagency management

Retail advice: in your product markup strategy right for your business today?

Rethinking your retail markup strategy

Small business owners often feel pressured to be the cheapest in the market. I know I do. There is a common belief that lower prices are the only way to attract and keep customers. However, competing on price is rarely a sustainable strategy for independent retailers. Instead of following the crowd, it is time to evaluate how your pricing reflects the actual value you provide to your community.

I know of many local small business retailers who price compare to big competitors who advertise plenty claiming they are the cheapest, and adjust prices to be competitive.

Value beyond the price tag

People shop with local businesses often for reasons that have nothing to do with the lowest price. Convenience is a significant driver. If your shop offers easy parking, longer trading hours, or a central location, you are providing a service that saves your customers time.

Consider the pricing at a cinema or a convenience store. Consumers understand they will pay more in those environments because the items they need are available exactly when and where they want them. This is essentially a convenience tax. Independent retailers should feel confident in applying a similar logic to their own markup policies.

Challenging the recommended retail price

Suppliers often provide a suggested or recommended retail price (RRP). This figure is based on a general national average and does not account for your specific overheads. If your business is in a regional area with higher freight costs or limited local competition, your pricing should reflect those realities.

Take the time to review your inventory category by category. If your supplier agreements allow for pricing flexibility, use it. You may find items where you can increase the margin by a few percent without affecting sales volume.

Navigating rising business costs

The current economic climate includes rising fuel surcharges, increasing rents, and higher labour costs. These expenses occur annually and can quickly erode your profit margins if your pricing remains static.

Many suppliers are already passing on their increased costs to you. Because customers hear about these economic pressures in the news, they are often more understanding of price adjustments. Adjusting your markup helps create a financial buffer. It ensures your business remains viable when external costs inevitably rise.

Avoiding the race to the bottom

Trying to match the prices of national chains is often a losing battle. Large retailers spend heavily on marketing their low prices while using internal tactics, like home brands, to recover their margins elsewhere.

Independent shops in sectors like fashion, gifts, homewares, or pet products have more room to move than those selling high-ticket white goods or basic groceries. Consumers generally expect to pay a bit more at an independent store. Meeting that expectation is not being cheeky; it is sound commercial practice.

Small steps for long-term health

You do not need to make drastic changes to see a benefit. A small increase in gross profit across several categories reduces your reliance on sheer sales volume or finding new customers. It allows for steady, incremental financial growth.

Review data from your POS software and your current markup settings. Don’t blindly follow what you have always done. By taking control of your pricing, you build a more resilient and professional retail business.

This works.

I have done this with plenty retailers who have subsequently increased prices. Unit sales did not fall. The businesses banked more money as a result.

Try it for yourself. There is no point in denying your business additional margin dollars.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative local 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.

8 likes
retail

RBA Card Surcharge Reform: What It Means for Small Business

The Reserve Bank of Australia has handed down its long-awaited review of merchant card payment costs. The ban on card surcharges takes effect 1 October 2026. Here is what retailers need to know.

What the RBA Has Decided

The RBA has recommended three key changes to Australia’s payment network.

  • Surcharge ban from 1 October 2026 — applies to Visa, Mastercard and eftpos. Businesses must absorb card acceptance costs into their sticker price rather than passing them on separately at the point of sale.
  • New interchange caps on domestic cards — also effective 1 October 2026, intended to reduce the fees businesses pay their bank for processing card payments.
  • Greater fee transparency — large acquirers will be required to publish wholesale fee data and interchange pass-through rates on the RBA website.

Politicians, of course, aided and abetted by lazy media outlets in service of the banks, crowed for the last week about how good all this is for Aussies, ignoring small business completely.

What this actually means.

If bank fees remain high after the surcharge ban, small businesses will absorb those costs rather than recovering them at the terminal. The cost does not disappear — it becomes embedded in prices, affecting all customers regardless of how they pay.

Who is lobbying on your behalf.

The most effective lobby group on behalf of newsagents and small business retailers is the Independent Payments Forum. Only newsXpress and ALNA are members of the IPF from our channel, financially supporting the IPF work in this vital area.

Key Dates

  • 1 October 2026. Surcharge ban takes effect (Visa, Mastercard, eftpos). New interchange caps on domestic cards begin.
  • 30 October 2026. Large acquirers begin quarterly publication of wholesale fee data. Card networks publish aggregate scheme fee and rebate data.
  • 30 January 2027. Large acquirers publish their interchange pass-through rates.
  • 1 April 2027. New interchange caps on foreign cards take effect.
  • 31 July 2027. Reporting compliance for interchange fees and updated requirements for monthly merchant statements.

Ongoing Concerns for Small Retailers

While the RBA acknowledged many of the problems faced by small businesses, a number of risks remain:

  • Bank and scheme fees are not capped — businesses cannot surcharge to recover them.
  • Corporate credit cards (which carry high interchange costs) remain common, including a large Government fleet of NAB corporate cards.
  • Least-cost routing (LCR) — which directs transactions through the cheapest network — is not yet mandated.
  • Foreign card interchange caps are delayed until April 2027.
  • Some fintech terminal providers may exit the market as their business models become unviable under the ban, potentially reducing competition.

My personal view is that the RBA screwed us over, ignoring genuine concerns about small retailers, especially those with minimal control over prices and margin.

The ACCC v Mastercard Case

The ACCC is returning to the Federal Court in a four-year case against Mastercard. The case alleges Mastercard struck a deal with major retailers to defeat the RBA’s least-cost routing rule, in exchange for cheaper credit card fees. The outcome could have significant implications for card fee competition in Australia.

Further Reading

Why this matters.

As things stand, you have a cost recovery option available today about to be ripped from you, adding to your operating costs and, I think, empowering the banks.

You need to support organisations representing you. If you are in a marketing group, ask what they are doing, ask for the receipts (evidence) of what they are doing. If you are in an association, ask the same question.

Again, as of right now, newsXpress and ALNA are the two organisations in our channel involved with and supporting the vital work of the IPF on this matter. Their website lists their member organisations.

Come October 1 you might well be angry and wondering who let you down.

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Newsagent representation

Small business retail advice: Embracing Intentional Disruption: A Strategy for Local Retail Growth

When customers walk into a newsagency, they expect to see lotteries, magazines, and stationery. When they visit a garden centre, they look for plants and mulch. While these categories provide a helpful framework, they can also become cliches that limit our potential for growth and creativity.

In a this video, the concept of “intentional disruption” is explored as a powerful tool for small business owners. This strategy involves stepping outside the boundaries of your traditional retail channel to offer something entirely unexpected. The goal is not just to change for the sake of change, but to learn, attract new foot traffic, and discover untapped opportunities within your community.

The Power of the Unexpected Disruption can start with personal habits. The video shares an anecdote about a commitment to reading banned books. By intentionally choosing material that others sought to restrict, the reader discovered new genres and perspectives that would have otherwise remained hidden. This personal exercise in breaking cliches serves as a metaphor for business: by doing what is “not allowed” or simply not expected, we open doors to new ideas.

Real-World Examples of Retail Disruption Successful retailers are already putting this into practice. Consider these examples of businesses playing outside their traditional roles:

  • A newsagency that has found significant success selling garden bulbs and outdoor products.
  • A pet shop that has become a go-to destination for high-quality calendars, a category traditionally dominated by bookstores.
  • Overseas models, such as bookstores that operate as late-night bars or homeware stores that run professional smokehouses in the evenings.

Why Should You Disrupt Your Own Business? It is far better to disrupt your own business model than to wait for a competitor or market shift to do it for you. Intentional disruption offers a win-win scenario:

  1. If it succeeds: You have found a new profit stream and a way to attract customers who might never have entered your shop otherwise.
  2. If it fails: You have gained invaluable data about your local market and your own professional capabilities.

Taking the First Step For local retailers, the challenge is to pick one thing—one product line or service—that is completely outside your “expected” inventory. Execute it with the highest level of professionalism and see what it teaches you about your business’s potential.

New people walking through the door are the lifeblood of retail. By breaking the cliches of your channel, you give your community a fresh reason to visit. If you are looking to thrive rather than just survive, it may be time to embrace the unexpected.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative 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

Rethinking Retail Markup: Why Being the Cheapest Isn’t Always the Best Strategy

There is a common trap that many indie retailers fall into: the obsession with being the cheapest. We often convince ourselves that price is the only factor driving customers through the door. However, if your entire value proposition is based on having the lowest price, you are likely leaving significant profit on the table and making your business more vulnerable to economic shifts.

The Convenience Factor

When was the last time you truly reviewed your approach to markup? Often, retailers are so fixated on competing with national chains that they forget why people shop with them in the first place. If your shop offers easy parking right out the front, remains open longer hours, or provides a curated experience, you are selling convenience.

Think about the cinema or a local convenience store. Customers know they will pay more for candy or a soft drink in those locations than they would at a supermarket. They accept this “convenience tax” because the product is available exactly when and where they need it. As an independent retailer, your location and service levels provide similar value. Your pricing should reflect that.

Navigating Rising Costs

We are currently operating in an environment of fluctuating overheads. From fuel surcharges to rising labour and rent costs, the pressure on small businesses is constant. Many suppliers are already applying fuel surcharges to their deliveries. This provides a legitimate “cover” to explain price adjustments to your customers.

Because consumers see these rising costs on the news every day, they are generally more accepting of commercial decisions to adjust pricing. If you aren’t adjusting your markup to account for these external pressures, your business will eventually slip behind.

The Power of Incremental Changes

A successful financial model is often built on a series of small steps rather than giant leaps. You don’t need to overhaul your entire price list overnight. Instead, look for opportunities to increase margins by just a few percent in specific categories—especially in “non-essential” or gift-related items like fashion, homewares, or jewellery.

By building a better buffer into your gross profit, you become less reliant on high sales volumes or a constant stream of new customers to stay afloat.

Take Control of Your Pricing

Stop blindly accepting the Suggested Retail Price (SRP) or the defaults in your point-of-sale software. Your suppliers set those prices based on what they think a product will sell for, but they don’t know your specific local market or your unique costs.

Take the time to look at what you sell and ask: “What are my customers prepared to pay?” Even a small shift in your markup policy can create the financial resilience your business needs to thrive in the long term.

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Newsagency management

Beyond the Shingle: Redefining the Future of Australian Indie Retail

Traditional retail labels are obsolete in indie retail. For decades, the “shingle” over a shop door dictated exactly what a business should sell. A chemist sold prescriptions, a newsagent sold papers, and a bike shop sold parts. However, as we navigate 2026, these rigid industry boundaries are fading. Successful Australian retailers are no longer staying in their lanes. They are embracing a “treasure hunt” approach to commerce.

Breaking the Industry Label

The name of your business does not need to define your inventory. Traditional labels often restrict the owner more than the customer. While you may feel your shoppers expect a certain product range, modern retail is actually built on discovery. Customers enjoy being drawn into a store to find something unexpected. This element of surprise creates a unique experience that big-box competitors cannot easily replicate.

Consider the evolution of major brands. Pharmacies now stock extensive gift and baby ranges. Large hardware chains have dedicated pet aisles. Independent retailers must adopt this same mindset. A newsagency in Tasmania is currently thriving by selling garden bulbs. In Central Queensland, another is famous for serving the region’s best coffee. These businesses have moved beyond their original purpose to become community destinations.

The Power of Surprise and Discovery

Surprising your customers pushes the boundaries of how they perceive your business. It generates conversation and encourages repeat visits. To achieve this, your shop should feel like a curated experience. Garden centres are excellent examples of this evolution. Some now incorporate workspaces, high-end giftware, and chocolate or wine tasting. They have transformed from simple plant nurseries into lifestyle hubs.

The “Bucket of Cash” Strategy

Experimenting with new categories does not require a massive investment. You can start with a “bucket of cash” dedicated to low-risk trials. Set aside a small amount, perhaps $300 to $500, to purchase a product category entirely outside your usual range.

The ideal test products should meet three criteria:

  • They are completely different from your known inventory.
  • they are impulse-buy items that customers understand immediately.
  • They are visually striking enough to sit in your front window.

A non-traditional window display can arrest the attention of passers-by. It drives fresh foot traffic from people who might otherwise have walked past your “shingle.”

A Resilient Retail Future

Small business retail is about providing a curated experience. Whether you run a toy shop, a jeweller, or a bike shop, you have the freedom to play outside the box. By diversifying your offering, you build a more resilient business model. Do not let a traditional label limit your growth. Use your space to surprise, delight, and sell efficiently.

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Newsagency management

Is A $150,000 Shop Fit a Strategic Asset or a Sunk Cost?

Traditional retail wisdom often insists on a professional shop fit. Many independent retailers believe a high-end renovation is the only path to success. While professional shop fitters provide exceptional craftsmanship, the associated costs are substantial. In 2026, these overheads can become a significant financial burden. High capital expenditure does not always guarantee a return on investment.

The Shift Toward Authenticity

The modern High Street is undergoing a transformation. Local shoppers are moving away from the polished, corporate aesthetics found in major shopping centres. There is a growing preference for “real” experiences. A sterile, “faked up” environment can often feel cold and uninviting. Customers today value warmth and unique character over clinical perfection.

Our own journey illustrates this shift. We previously invested hundreds of thousands of dollars in stores at Westfield Knox and Southland. These fit-outs were professional but incredibly expensive. We eventually discovered the power of “frugal” dressing. By using everyday items, we created spaces that resonated more deeply with our community.

The ROI Reality Check

A $150,000 shop fit requires significant sales just to break even. These costs can crush the margins of an independent business. Before committing to a massive quote, consider the “smell of an oily rag” approach. We recently observed a magnificent shop in Mount Morgan. It looks world-class, yet it was achieved without heavy capital investment. This proves that creativity often outweighs a large budget.

Creative Solutions for Your Space

You can create immersive displays using items you already know. Consider these alternatives to custom cabinetry:

  • Dining tables for central product displays.

  • Lounge chairs to encourage customers to linger.

  • Secondhand finds to add history and texture.

These pieces make a shop feel like a home rather than a showroom. They create a comfortable environment that makes customers smile.

Choosing the Right Location

Location influences your freedom to experiment. Major retail hubs often mandate strict fit-out guidelines. Conversely, local landlords on the High Street typically offer more flexibility. This freedom allows you to test new ideas without seeking corporate approval.

Your shop’s primary job is to sell products efficiently. It does not need to be an altar or a shrine. It should be a functional space that supports your sales goals. Before you sign a contract for a major renovation, pause. Consider how you can refresh your space yourself. Authenticity is often the most effective sales tool you have.

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