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

Haigh’s wins sales with free tastings

Everyone shopping at a Haigh’s chocolate shop is offered a free tasting. They have done it for years and continue to offer it I am sure because it works.

I was at the Haigh’s in Hawthorn near the office Friday last week to pick up a gift. They offered me a piece of broken Easter egg chocolate and, sure enough, I bought several Easter eggs. In fact, I bought all my Easter gifts.

I went in intent on purchasing one product, a non-Easter product and walked out with seven products.

For sure at some point I was going to purchase Easter chocolates, not last Friday though. The free shop floor tasting offered me at Haigh’s brought forward the purchase decision and won business for them as I may have purchased elsewhere. A simple shop floor tasting changed my intended behaviour on Friday.

Yes, offering free product tastings is well-known as good shop floor engagement. Experiencing it as I did was a more powerful reminder of the value that being told to do it. Thinking about it further, the Haigh’s approach reinforces the importance of consistency. They are known for offering sample tastings at the counter – though that was not what got me shopping there. I visited Friday because I knew they would have the gift I wanted to buy. Again, the tasting is what turned a simple visit into something far more valuable for them.

Haigh’s are good about it too, generous.  I think that is important. Their generosity nurtures generosity among shoppers.

In person shopping is experiential. If we don’t leverage experience opportunities why should people visit you compared to another shop, or online?

If you sell products people can eat, be sure to offer free samples and tastings.

If you offer products with a scent, be sure to make it easy for people to smell the products.

If you offer products where the feel or touch is important, ensure people can touch the products.

Do these things consistently and with an unquestioning generosity of spirit.

If you have a Haigh’s shop nearby and have not been in for a while, go visit in the lead up to Easter. Experience for yourself the basics they get right that make theirs an excellent business to learn from. It’s inspiring.

2 likes
Management tip

How AI in your POS system can help your retail business

AI in retail doesn’t have to be complicated! I got together with two experienced retailers (Michael, Luke) yesterday to demystify AI in POS systems.

Watch our video to see practical, real-life examples of how these tools are helping businesses like yours save time and increase profitability. Essential viewing for small business owners!

While we discuss Tower Systems AI, the business advice is valuable for everyone.

Now, for an actual demonstration of the AI tools in the Tower newsagency software:

The chatter around Artificial Intelligence (AI) can be overwhelming, with a constant stream of news and social media buzz. However, beyond the hype, a genuine shift is underway as businesses embrace AI to streamline operations and enhance decision-making. For local small business retailers, smart AI technology, when combined with accurate data and insightful prompts, can be a valuable ally.

Tower Systems has integrated AI into our Point of Sale (POS) solutions. It’s the first in newsagency software to do this. Indeed, the company released its first embedded Ai tools in mid 2022. These AI-enabled tools offer practical assistance in various aspects of retail management.

I am grateful to so many of Tower customers who are accompanying the company on this path. Their in-store feedback from lived experience using the Tower AI enabled POS software is helping Tower better serve their needs.

The Tower AI POS software empowers retailers to optimise their online presence by generating compelling product names and Search Engine Optimisation (SEO) ready descriptions. Furthermore, it simplifies administrative tasks by effortlessly converting PDF supplier invoices into import-ready electronic formats. Retailers can also leverage AI for price comparison, identifying opportunities to improve profitability and stay competitive.

For any local small retail business, AI is crucial for both in-store and online success. Tower Systems is here to provide you with the necessary software tools. When assessing other POS solutions, it’s essential to verify AI capabilities firsthand, as marketing claims may not always align with reality.

This is a must-watch for local newsagents considering how AI can benefit your operations.

How we conduct business has changed forever. These videos are designed to show real world examples of tech on which you can rely.

1 likes
newsagency of the future

Strong sales in March 2025 in the newsagency compared to March 2024

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.

12 likes
Newsagency management

Local retail done well: The Potting Shed by Carlisle

I was in orange County, California, a few days ago and happened see The Potting Shed by Carlisle. I’d never heard of the shop before and was drawn. It looked appealing. Anyway, I soon found myself in an excellent local retail business.

Takeaways for newsagents from what I saw are: playing outside your shingle is a smart move, upcycling everyday items for product placement and display is smart, not collecting all products from a category in one space is good and working with local makers to provide tastings and viewings reinforces your localness.

While The Potting Shed by Carlisle is a garden centre, it is a type of local retail business that any newsagency could evolve into. Visiting was a reminder that we should not restrict ourselves by what people assume about our ‘type’ of business.

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retail

If your newsagency is like most, 20% of the stock you have is dead

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.

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Newsagency management

The art of the deal: negotiating the sale of your newsagency in 2025

Never sell your business for a price unacceptable for you.

I have seen newsagents sell recently for a price considerably lower than they wanted and then in the lead up to settlement lash out at others in the channel, not about the price but on other things because of the anger they have at selling for the low price.

The price you sell your business is the price you agree to sell your business for.

If you are unhappy with the price, you can say no.

If you are desperate to get out of the business and have only one party interested and they have given you a very low price, it is 100% up to you whether you accept the low price or not.

It’s okay to be unhappy with the price you achieve, every business seller wants more, it’s natural. It is another thing altogether to be so angry about the price that it harms relationships and fuels poor mental health for you.

The transaction of selling your business is one you control. Sell for a price acceptable to you, and once you have signed the agreement, stop looking back at the price, stop allowing negative thoughts to fuel your behaviour as doing so is a road to much harm.

Beware: there are buyers in the market today who present as separate buyers yet who are working together to drive down the price of businesses they target. I have seen this happen and the vendor agree on a price way below what they wanted because they saw potential purchasers withdraw when, in fact, those potential purchasers are part of the group that purchased the business. Have your wits about you.

Set your price at a fair level, a price supported by the performance of the business. Be sure as to whether you would negotiate on the price. Be certain of your reasoning. Be clear in your communication with buyers about the price. Understand the consequences of saying no.

To get the best price for your business ensure it is as profitable as it can be. Every decision you make every day should support this goal. Also, ensure your business is easy to run. It has to look appealing. An appealing business will attract more interest. The challenge is that what appeals to one party may not appeal to another.

Never sell your business for a price unacceptable for you.

28 likes
Selling your newsagency

Trump tariff moves starting to impact prices in Australia

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.

Screenshot

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.

8 likes
Newsagency management

Quitting MYKI in the newsagency, another agency line

At my Malvern (VIC) newsagency we advised customers earlier this week that we are quitting offering MYKI public transport ticket recharge services.

We will stop offering all MYKI services including card top-up from the end of March.

For years, offering MYKI services has been loss making, costing us more in time than the government pays.

Most MYKI customers don’t buy anything else, making it hard to justify the service.

We’re a business and need to pay our staff as well as rent and other overheads. MYKI is not commercially viable for us.

We understand this will be disappointing.

By letting you know now you have time to consider other locations for your MYKI services.

Thank you.

Your newsXpress Malvern crew.

This is the only agency service we offer at the business. They were doing it when I bought the business a few years ago and we kept it on so as to not disrupt the relationship with customers, just as we have remained committed to the $400K a year on magazine sales.

While MYKI top-ups offer good shopper traffic, it’s unprofitable traffic. Commission is small and 80% of MYKI customers do the top up and nothing else. Of those who purchase something else with a MYKI top-up, for most it is a newspaper, another small margin product (12%).

A review of gross profit contribution versus labour cost made the decision appropriate. It was made even easier by the decision, finally, by the government that public transport users will be able to use their credit card to tap on and off from early 2026. In the meantime, our MYKI customers have a train station where they can top up a few minutes from out shop.

It will be good to be finally done with this last agency line we have. MYKI customers tend to want to tell us their public transport challenges. They also expect us to resolve issues they have with MYKI and no amount of telling them we are not the company by MYKI time is spend being polite to them.

At this newsagency and elsewhere we are not chasing shopper traffic. While good shopper traffic can make you feel busy, it, too often, does not sufficiently support profitability. We are focussed on efficient business profitability.

Selling high ticket price high margin lines for which the business is known and sought out is more valuable than these micro margin agency lines.

I’ll take being profitable over shop business every time.

In considering all of this we have to let go of the shopper expectation of the shingle. Aussie newsagents can sell anything. Being bound by the shingle in 2025 is unprofitable.

The reaction to our MYKI decision has been one of disappointment by customers. They are grateful for the advanced notice and our convcersations around how unprofitable offering the service is.

15 likes
Newsagency management

AI tools in newsagency software help newsagents thrive

There have been considerable advances in Artificial Intelligence (AI) tools newsagents now have access to through their Tower Systems newsagency software, tools better and nimbler than what some big retailers have.

I mention this today as there is plenty of noise about AI with only few software companies actually delivering. I am grateful to note that Tower Systems has been delivering AI tools for newsagents since 2022.

AI innovations are engineered to drive operational efficiency and enhance sales revenue for retailers, like newsagents.

  1. Optimised product listings: AI-generated, SEO-friendly product descriptions, enhancing online visibility and driving consumer demand.
  2. Strategic content marketing: Streamlined creation of engaging blog content, amplifying product awareness and customer engagement.
  3. Data-informed pricing decisions: AI-powered price comparison tools, enabling retailers to maintain competitive pricing strategies.
  4. Efficient inventory management: AI-driven stock forecasting, minimising stockouts and maximising sales potential.
  5. Operational streamlining: Reduction of administrative overhead, allowing retailers to focus on sales and customer service.

Tower Systems’ AI-enhanced POS software empowers retailers with tools to excel in today’s rapidly changing retail market and the even more rapidly chaning newsagency market. AI is a terrific way newsagents can keep up, and get ahead.

The strategic advantages  include:

  1. Increased product discoverability: Enhanced online product visibility through SEO-optimised content.
  2. Improved retailer operational efficiency: Streamlined inventory management and reduced admin costs,.
  3. Data-driven sales strategies: AI-enabled price comparison and sales analysis, facilitating informed decision-making and sales growth.
  4. Reduced stock depletion: Accurate inventory forecasting, ensuring consistent product availability and maximising sales opportunities.
  5. Strengthened retailer partnerships: Provision of advanced technological solutions, fostering long-term collaborative relationships.

Key AI features Tower Systems delivers today for retailer performance:

  1. AI product name and description generation (SEO Optimised)
  2. AI blog post creation and publishing
  3. AI price comparison
  4. AI stock out reduction
  5. AI dead stock reduction.

By equipping newsagents with these sophisticated tools, Tower Systems is committed to nurturing success.

I’ve been to the National Retail Federation conference in New York and the UK Spring Fair in Birmingham this year and have seen first-hand what many other POS companies are offering and am confident that what Tower Systems supports its retail partners with a suite of best-practice tools.

Smart and engaged retailers who will weather rough waters. They are the retailers Tower Systems is focussed on helping to thrive.

Call 1300 662 957 (0800 444 367 – NZ) or email sales@towersystems.com.au for more information or to arrange your own free demonstration.

Footnote: now is this all sounds a bit too like science fiction or too hard to grasp, the implementations within the Tower software for Ai are accessible, meaning anyone can use them with confidence and safety.

5 likes
newsagent software

ACM’s Newcastle Herald digs a new low with front page transphobic ad

The apology issued by ACM Media following the publishing of the ad feels inadequate. At the very least, their ad process is broken. At worst, they knew what they were doing and were happy to sell their space.

In my opinion, this ad is wilfully ignorant, offensive and appalling. If I had this newspaper in my shop I’d misplace the entire delivery until returns time. The ad fails the company’s own published values, which include:

Kind – Being considerate, well-intentioned and thoughtful to others

  • We are considerate and well-intentioned toward colleagues, clients, customers and communities

  • We seek to create understanding and tolerance in times of discord

  • We take time to support our team members and recognise a job well done

Tolerance. They failed.

10 likes
Ethics

Payments for purchases of illegal tobacco in the frame

Payday News has published about payments processing in shops selling illegal tobacco:

Illegal tobacco stores are popping up around the country in what is fast becoming multi-billion dollar market for organised crime which appears to be serviced by multiple banks and fintechs for payments.

What are the legal obligations on acquirers, PSPs and card schemes?

An investigation by Payday News last week revealed that a large number of illegal tobacco outlets are using card payments terminals provided by banks and fintechs to sell their illegal products which, according to experts, could have serious legal implications. Some of these shops also have ATMs inside their premises for customers to access cash.

Financial Crime Compliance expert Luke Raven told PAYDAY NEWS illegal tobacco was fraught for payment processors, who often mistakenly think they aren’t captured by Anti-Money Laundering (AML) or Counter-Terrorism Financing (CTF) laws, or misunderstand the extent of their obligations.

“Many payment processing firms think that they aren’t regulated under the AML/CTF regime in Australia, and candidly, they’re wrong,” Raven said.

Retailers of tobacco products operating legally will appreciate this latest coverage.

The recent  story on the illegal tobacco by Australian Broadcasting Corporation (ABC)‘s Dan Oakes exposed the extent of illegal tobacco industry and how ubiquitous the trade has become across Australia.

4 likes
Ethics

Why I think convenience, including tobacco, is not the future for Aussie newsagencies

From my perspective, the convenience retail sector, especially when it comes to tobacco and associated products, is a competitive and challenging landscape for Australian newsagencies. This market is dominated by large, national and multinational businesses, possessing substantial financial resources, advantageous supplier relationships, and the competitive edge of streamlined, centralised decision-making.

For an independently owned, local newsagency attempting to compete in the convenience space, particularly with tobacco as a key driver, the challenge is significant. It’s not insurmountable, but it certainly presents a formidable undertaking. The regulatory environment surrounding tobacco is constantly evolving, adding further layers of complexity and cost. Add to that the risk of arson and other attacks and you have a challenging business.

The primary selling point of any convenience store is, naturally, convenience and location. The secondary proposition is value, pricing. However, with the increasing standardisation of convenience offerings, particularly regarding tobacco products, these points of differentiation are eroding.

Recent acquisitions intensify competition in this space.

A newsagency attempting to focus on convenience while situated near a nationally branded convenience store, or a fuel-based convenience offering, will invariably face difficulties. The brand recognition of these national chains carries considerable weight, as consumers have established expectations. Furthermore, the reliance on tobacco sales ties the business to a product with diminishing social acceptance and increasing regulatory risk.

While an independent retailer might attempt to compete on price with a national convenience store, they will lack the capacity to negotiate equivalent purchasing price points, nor will they possess the resources to subsidise prices. They will rarely have the ability to market as effectively as a national chain, particularly with in-store price messaging, especially regarding regulated products like tobacco.

A local shop operating as a standalone convenience business, heavily reliant on tobacco, feels like an increasingly precarious battle.

I see more value in pursuing alternative retail segments, where product differentiation is more achievable, consumer enthusiasm is higher, and repeat business is more assured. In these sectors, margin dollars per transaction are typically higher, competition is less intense, and customers are more likely to travel by choice to patronise your business. Diversification away from tobacco reduces the business’s exposure to regulatory changes and declining consumer demand.

An Australian newsagency, regardless of location, can specialise in higher-margin product categories. While this requires research and investment, the payoff can be considerable and many have already discovered. The outcome can be a more manageable business, requiring less reliance on high foot traffic and a less critical location, while also reducing the reliance on tobacco sales.

This approach, to me, appears more strategic, sustainable, and valuable in terms of overall business worth. It results in a business that is more readily marketed externally and more difficult to replicate, while also being more resilient to shifts in consumer preferences and regulatory landscapes.

Niche specialty retail is less likely to attract competition from national or multinational retailers. The primary competition is more likely to be online, and while this certainly presents challenges, online competitors are more easily analysed and understood.

If your newsagency is successful with a convenience model, congratulations. If you play in the convenience space are re not successful, get out now. There are plenty of us in the newsagency channel who can help.

Footnote: the majority of UK newsagents focussed on convenience years ago as the sales of print media products started to decline. While some have done okay, the majority have not been able to compete with the national retailers who dominate convenience retail there.

10 likes
newsagency of the future

Sourcing quality gifts and homewares in Bali

I and some colleagues from newsXpress are back from another buying trip to Bali. Thanks to a new local agent relationship we have sources an even better range oif suppliers to visit with and consider.

This trip was unlike any other in that we got to meet with local makers and manufacturers who supply specialty retail businesses in the US and Europe. We were able to benefit from the work put in by these other retailers in honing in on quality makers.

By switching to a better established and full time local agent we have significantly expanded the range of products we can consider, thereby enabling an expansion of our local Aussie businesses.

In organising this buying trip, newsXpress does not commercially insert itself into the supply relationship. Rather, I encourage the participating retailers to buy direct from makers using the local agent. This maximises the margin for retailers as well as providing more control to them as to shipping timing.

It is interesting seeing Aussie realise that what is available in Bali in terms of range and product quality is nothing like they expected. We didn’t look at all at cheap shit  you may find in a discount variety store. Rather, our focus was on high end ceramics, homewares and gifts you’d find in David Jones and similar, but without the price tag of such shops.

As we traveled to different suppliers we found the makers of some products we see in Australia from name brand furniture and homewares businesses. These name brand designers use Bali production for their products. The quality is excellent with a good attention to detail.

We also got to meet with makers who supply some local Aussie wholesalers to newsagents and similar businesses. It was fun calculating the wholesaler margin on some items.

Trips like this are also useful to take us outside of what is traditionally considered for our businesses, even those newsagencies that have transformed away from what has been traditional. We get to challenge ourselves as to what we could do rather than staying stuck in a world of what customers expect us to do.

6 likes
newsagency of the future

This federal election, politicians need to prove their commitment to small businesses: Real Work Week

I first wrote here in 2013 that state and federal politicians should be required to undertake a week of genuine paid work experience in a small business in their electorate every year. I have shared this here and elsewhere several times since. I believe it today more than ever.

This next federal election will likely go as many before it when it comes to small business. we will be told how important we are, that they will cut red tape and that they support us. No matter who forms government, it’s likely that little will change when it comes to small business.

While they are happy to visit small businesses, have their photo taken, shake some hands and move on to the next photo op. each visit is stage managed to show them engaged with small business. I say this from personal experience. 16 years ago John Howard and a huge entourage of poress and local politicians visited my shop in Forest Hill for an hour. The coverage was good, and there were good opportunities to talk. The visit was about the GST. None of the small business points raised in the visit were followed up. The shop was a prop.

Here is my proposal to all politicians for this federal election:

I propose a legislated annual “Real Work Week” for all state and federal politicians. This program would require each politician to spend one full week working in a randomly selected small business within their electorate.

The ‘wage’ earned by the politician is paid to a local charity chosen by the business owner.

Besides the practical work experience, the politicians would gain a better understanding of the life and challenges of everyday Australians.

I am confident that after a couple of years we would see this small business work experience program drive a more practical narrative from politicians of all sides- and not just a small business focused narrative but one also more connected with real life.

Local independent small businesses cannot match the resources of well-funded lobbyists. However, we can equip our politicians with the invaluable currency of real-world experience. This “Real Work Week” is about restoring a vital connection between our elected officials and the people they serve. It’s about ensuring that political decisions are rooted in the realities of everyday life, leading to a more equitable and prosperous future for all Australians.

One way to get to better government no matter who is in power is better educated and better experienced politicians. What I propose here is experience. Even this small experience could make a big difference.

For the record: This post has been written and authorised by Mark Fletcher, Richmond, Victoria.

14 likes
Social responsibility

Generational shift: why plenty of local small businesses are for sale right now

Many small businesses are for sale in Australia right now, including many newsagencies.

While some talk about economic conditions as the reason (queue the cost of living spin cycle of news outlets), the bigges reason I can see is the age of the business owners selling. Typically, they a boomers planning for retirement.

The baby boomer generation, born between 1946 and 1964, comprises a substantial portion of small business owners in Australia. As this cohort reaches traditional retirement age, a natural wave of business transitions is occurring. Whether they make the decision to see or hand the business to family members depends on their own circumstance.

While this demographic shift has been predicted, not many took notice. Instead they are worrying as if something unpredictable and bad is happening. It’s not.

In my experience, many baby boomer business owners lack formal succession plans. This can stem from various factors, including the absence of interested family members or employees capable of taking over.

Consequently, selling the business becomes the most viable option for owners seeking to secure their retirement, which places us where we are today.

Plenty of baby boomers have accumulated ‘wealth’ or assets tied to their businesses. As they transition into retirement, they seek to liquidate these assets to fund their post-working lives.

The sheer volume of baby boomer-owned businesses coming onto the market creates a unique opportunity for aspiring entrepreneurs, particularly younger generations. It also makes for a challenge for those seeking to exit – especially in sectors where there are plenty for sale, like newsagencies. This plays into price and the easy of finding a buyer.

Smart small business owners, including newsagents, have acted long ago to create profitable businesses knowing that they are likely to make more from the day to day trade of the business than when they sell. I have written about this plenty of times here and elsewhere. Make every day your payday.

Too often I see small business owners who have not planned for a profitable exit make emotional decisions and strike out against others as if they are responsible for decisions the small business owners themselves have made.

It’s a buyers market right now. It’s not too late, though, to focus on making every day count for more value for you, making the selling less stressful and sharp.

11 likes
Newsagency management

Appointment retail is not what it used to be, and some retailers are missing out

I’ve been thinking a lot about how we consume media these days, and it’s really changing the retail landscape. Gone are the days when we’d all sit down in front of the YV at a set time, or listen to the radio at a specific hour. Okay so the TV networks thing the nightly news is still a thing when in reality in terms of accessing news it is not a thing or at least not as much of a thing it used to be. Now, we’re all about streaming, podcasts, and YouTube, grabbing our content whenever it suits us.

And it got me thinking, if we’re not tied to appointment-based media anymore, why should we be tied to appointment-based shopping? You know, those traditional brick-and-mortar stores with their fixed opening hours. Like newsagents. It just doesn’t make sense when considering the future.

Too many retailers are missing out on a huge chunk of potential customers by not having a strong online presence. People want the flexibility and convenience of shopping whenever they want, from wherever they are. If you’re not online, you’re basically telling those customers, “Sorry, we’re closed.”

Having a website isn’t just a “nice to have” anymore; it’s essential. It’s about meeting your customers where they are, which is increasingly online. If you want to stay competitive in today’s market, you’ve got to offer that flexibility. It’s all about convenience.

This has all been on my mind for a while. It’s one reason I captured some more thoughts here:

Physical retail is not dead. It is changing though. What I am writing about here is, I hope, food for thought.

There are many of is who support newsagents and own newsagency businesses who can speak to these changes and help you hitch a ride on the changes occurring.

Too many newsagents leave anything to do with online for their business to others to do. Take Facebook posts. Letting someone else do them for you is ridiculous. This results in boring fodder. It see it on many newsagency Facebook pages – posts created in an office far from your shop and with little consideration of your shop. Stop it. It’s a waste of time and money.

Please, consider your online strategy. Are you truly catering to the modern consumer, the one who expects on-demand access to everything? If not, it’s time to make some changes. Embrace the digital age, build a strong online presence, and give your customers the flexibility they crave. You’ll be glad you did, and so will they.

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newsagency of the future

Digital remains a key focus at The Lottery Corporation

Retailers selling lottery products, especially outside Western Australia, should read the latest results released by The Lottery Corporation. The investor presentation desk along with the ASX release contain useful information, including this from the CEO:

“We grew our active registered customer numbers and digital share on the pcp and, pleasingly, held onto most of the gains we made during the large jackpots in 2H24.

“This was delivered against a backdrop of 14 per cent lower Division 1 prize offerings across our three most popular games, and economic pressures that saw consumers increasingly seek value and purchase less frequently. The below-model jackpot outcomes are part of the variation in jackpots that can impact volumes in the short term, but naturally smooth out over time.

“We have been pleased with the success of the new Weekday Windfall lottery game, which is resonating strongly with customers. Our next game refresh will be to Saturday Lotto – our second-largest game – which includes increasing the Division 1 prize from $5m to $6m.

“The lotteries market continues to be attractive, delivering uninterrupted, long-term growth, generally ahead of combined population growth and inflation. This, together with the strong fundamentals of our business, underpins our ability to generate strong returns for shareholders through the economic cycle.”

Elsewhere in their published materials they call out digital for its value to their business:

Digital share growth vs pcp, driven by own-digital turnover, benefited margins

Digital is sitting at 40.4% of turnover. Two years ago TLC was reporting digital sitting at 38.4%.

A challenge for retailers remain unchanged: restrictions on use of retail space, especially in city and suburban locations that are more regularly and easily visited for compliance checks.

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Lotteries

Ryman Design is a good stationery shop – it’s no Choosing Keeping of Goods For The Study though

Stationery is having a moment in retail for sure, specialty, niche, high-end stationery especially – stationery bought by people who collect stationery with little regard for price.

Ryman Design is a step up from the regular Ryman shops in the UK. It feels corporate though, and by corporate I mean safe, bland even. In a country, the UK, with so many excellent high-end stationery businesses, this move by Ryman surprises me. They are good retailers though and I am sure have data backing up their move.

Ryman Design (https://www.ryman.co.uk/ryman-design) is a new retail format out of the UK Ryman stationery business. It’s pitched as:

Ryman Design is the one stop shop for stationery enthusiasts, artists and professionals looking for unique, high-quality products. We want to inspire your creativity and self-expression.

Our goal is to build a loyal community of stationery lovers who share our values of creativity, quality, and authenticity. We want to provide you with the products and resources you need to achieve your goals and to express yourself.

Our vision is to make stationery more than just a product – we want it to be a lifestyle that inspires and enriches the lives of people around the world.

While it is a good stationery shop it does not, for me, reach the bar of high-end stationery seen at Choosing Keeping in London, Goods For The Study in New York and other shops in this specialty stationery space. That said, it’s a better stationery offer for the creative user of stationery than we typically see here in Australia.

Here are some photos for those looking for inspiration:

There is plenty of opportunity in our Aussie newsagency channel to play outside of traditional for stationery. It’s an area where newsagency marketing groups can engage. I know newsXpress is.

High end stationery, collectible stationery – these are opportunities in Australia that we can use to attract new shoppers who will gladly give us their money.

This year already I have seen many specialty stationery stores in this hgh end space overseas that are truly inspiring to embrace change beyond the traditional when it comes to stationery.

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newsagency of the future

They lied about my coffee, and I have the receipts

After waiting fifteen minutes for my coffee this morning and seeing several who had ordered after more pick-up theirs, I asked if there was an issue. The staff member couldn’t find the order, said there was a computer glitch and said they’d get onto it.

There was no computer glitch. The staff were busy talking to each other and busy talking to customers they knew. They were not consistent in pulling order dockets and racking them up on the coffee machine.

The computer glitch was a staff glitch. They lied thinking I’d believe their story.

They quickly made a coffee. I’d ordered a medium size flat white. They gave me a small flat white. I told them I couldn’t wait while they got the order right. They offered me a free slice of banana bread. I hate banana bread.

At an airline lounge desk a couple of days ago I asked about the possibility of getting on and earlier flight. Sorry, they’re all full was the immediate response. Would you mind seeing if everyone has checked in I asked. I can but I know they are all full was the response as they turned to continue a conversation with a colleague. I stood there and waited for the staff member to see me again. I’d really appreciate you checking I said when they noticed me again. Oh look, there is a seat on the next flight someone mustn’t have checked in. They switched me over and I was able to fly an hour earlier.

What the airline staff member did not know is that I pay for an app that provides loadings on flights. I knew they had an empty seat.

While the staff members directly involved the two situations described here are to blame for what I experienced (or, didn’t experience), the businesses themselves have a responsibility as they set the goals, create the customer service processes and oversee these.

Each experience dilutes my trust is what I am told in a customer service situation. While it may be unfair to apply this to all customer service experiences, it’s what we do I think.

In 2025, customers have more power than ever thanks to review platforms. A bad word about a business can be spread faster and wider than ever before. There are some who make trash-talking a business their mission.

I think it’s vital we note for ourselves and for our team members the importance of every customer service interaction. It’s important we have easy to follow guidelines on customer service interaction:

  • Be aware of all customers.
  • Be friendly while remaining focussed on the work.
  • Treat everyone equally.
  • If someone asks a question, respond from facts you can proive, not what you think.
  • Always be truthful, even it exposes a mistake we made.
  • Apologise if we made a mistake and offer a make-good if possible.
  • Good customer service does not require us to be best friends.
  • Customers can be wrong. Letting them know this required delicate mastery.

Plenty of big businesses get a free pass because of how much they advertise, that customers expect p0oor service and their prices.

For many local small business retailers, customer service is all we have that differentiates our business. It is vital that we approach it knowing this.

While I’ll fly on the airline again, I’ll reframe my question about flying earlier if the situation arises. I’m going to bypass the coffee shop for a while. Where I live I am spoilt for choice when it comes to coffee. All it took for me to skip today’s coffee shop is one bad experience.

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Customer Service

See the latest AI tools available in newsagency software

Join us and a room full of small business retailers as we demonstrate the latest AI integrations in our POS software for newsagents and others and take question from retailers.

Open to any small business retailer, this session recorded on February 20, 2025 is another example of the transparent and accessible customer service from Tower Systems. We regularly host sessions like this.

While use of AI in business remains relatively new, at Tower Systems we are several years in offering time-saving AI integrations for our small business retailer community. Plenty of newsagents have been using AI tools in the software since mid 2022.

The new functionality about to be released to Tower Systems customers opens new opportunities for retailers, helping them do more, sooner. Sessions like the one in the video show how we bring our customers along for these innovations. The demonstrations are real, and relatable as the customer questions and feedback demonstrate.

In the session I host we discuss different AI integrations as well as how retailers can make use of these the AI tools in our POS software.

Beyond simply showcasing features, this session fosters a collaborative environment where retailers can share their unique challenges and explore tailored AI solutions.

We understand that each specialty retail channel we serve has distinct needs, and our goal is to empower retailers with the tools and knowledge to leverage AI for their specific business goals. Whether it’s optimising inventory management for seasonal fluctuations in garden centres or easily importing invoices from suppliers or writing content to promote new products on a blog, we are committed to demonstrating the practical applications of AI that directly translate to increased efficiency and profitability.

I am grateful to everyone who attended live and who will watch this video. Engagement on these types of advances is vital as we evolve our software to serve the needs of independent small business retailers in Australia, New Zealand and nearby.

The advances shared in the video reflect major advances in the AI space for newsagents, in the software. Many newsagents have participated in testing the latest results. And some are already testing the next wave due for release in a couple of months.

There is plenty of noise about AI. I am grateful to be associated with a software company that is going beyond the noise and delivering.

12 likes
newsagent software

Are print newspapers worth it any more?

I read the print edition  Australian Financial Review cover to cover yesterday for the first time in years, for free, in a hotel lounge in Sydney.

32 pages.

No breaking news – how can there be anyway with such an old production method.

Plenty of PR dressed as analysis.

Odd news too, like the story about the Toppi family and Machiavelli restaurant.

Even the business gossip was tired.

It wasn’t bad, it just wasn’t good, or valuable – that’s it, it wasn’t valuable.

At the end I had no feeling of $5 of value from the experience. Again, not that I paid for it.

While it’s unfair to consider the future of daily capital city and national newspapers on this one experience, it is the only such recent experience I have.

Back in the day, I’d read newspapers for news – that is, new information that has been rigorously research and fact-checked. I never read newspapers to confirm my own beliefs or biases. I wanted news, discovery.

The AFR yesterday did not provide news. Stories felt more like reinforcement of held views of the intended audience. The whole product felt like a platform of promotion, to a niche audience. I am surprised some people will pay $5 for it.

The AFR yesterday to me did not feel like a newspaper. On some pages it felt more like a lobbying pamphlet.

Certainly in newsagencies, for years, we have seen the value of newspapers to our businesses fade in terms of traffic and margin dollar generation. Those are reasons smart newsagents place newspapers in low cost space rather than the premium value front of store locations they once commanded.

A problem for us with newspapers is the costs of carrying them: retail space, labour in out of date handling practices dictated by the publishers and, theft.

I suspect many newsagents lose money on carrying newspapers.

Reading the AFR yesterday reminded me of the diminishing value of what was once a vital product category for our businesses. We have to be careful to manage the demise of newspapers in our businesses. Newspaper publishers have been doing this for years – making decisions to deliver a soft landing for when they eventually stop print editions. They put their business needs ahead of all else, we should look more critically at this for ourselves.

We know that print newspapers are dead.  The timing of the death of each will depend on the value of them to advertisers, readers and publishers.

There remain some good and valuable print newspapers out there I am sure. If my experience yesterday was anything to go by, the AFR is not one of them. Who am I to judge though – I don’t feel like I am their target audience.

12 likes
newsagency of the future

2024 Newsagency Sales Benchmark: The Gap Widens Between Traditional and Transformed Businesses

A big thank you to all the newsagents across diverse locations (rural, regional, and suburban) who participated in this benchmark study by providing their sales data. Your contribution, facilitated by the Tower Systems newsagency software, is invaluable.

This year’s analysis reveals a stark and growing divide between traditional and transformed newsagencies. The benchmark sales datasets paint a clear picture: traditional businesses are struggling, facing declining revenue and an increased risk of closure. Conversely, transformed and transforming businesses are demonstrating profitability and higher sale values.

The key differentiator lies in diversification. Transformed newsagencies have successfully expanded beyond the traditional “newsagency” model, often with minimal impact on customer perception. In fact, customer purchasing habits indicate strong support for these evolving businesses.

Key Performance Indicators: A Comparative Snapshot

Metric Traditional Newsagencies Transformed Newsagencies
Revenue Down 3% Up 5%
Transaction Count Down 5% Down 3%
Average Basket Value Down 1% Up 8%
Gift Revenue Down 3% Up 11%
Greeting Card Revenue Down 4% Up 3%
Stationery Revenue Down 4% Up 5%
Counter Impulse Sales Down 12% Up 15%
Online Revenue $0 Typically $75,000+ annually
Magazine Unit Sales Down 12% Down 7%
Newspaper Unit Sales Down 13% Down 8%

.
These figures highlight the fundamental differences in product offerings, pricing strategies, customer demographics, and overall business approach between the two groups.

While the data provides valuable insights, some of the most compelling examples are difficult to categorise. In the results I have observed newsagencies generating substantial revenue (approaching $100,000 annually) from coffee and related products, clothing, and high-end collectibles. The inconsistent categorisation of these segments across stores makes direct benchmarking challenging, but the overall trend is very clear to see.

Transforming the business away from traditional is profitable and vital.

Transformed newsagencies are even outperforming traditional businesses within core newsagency categories. This success isn’t driven by supplier support or increased compliance with traditional product demands. Instead, it stems from a more dynamic business environment, a positive in-store atmosphere, and a broader customer base.

Traditional suppliers would benefit from actively supporting newsagents in diversifying beyond the traditional shingle.

There is no doubt that transforming a traditional newsagency is hard work. Some do not embrace the opportunity because of concerns over costs. In my experience the costs are not great. The biggest challenge is making the decision to act as in doing this you have to leave tradition behind. There many who purchased newsagencies because of the ease of tradition.

The Path to Transformation

There’s no one-size-fits-all solution for success. Anyone claiming otherwise is mistaken. The first step is understanding your current position through data analysis. Next, develop a tailored plan and execute it with clarity, commitment, and by leveraging the experience of others.

newsXpress, a marketing group supporting newsagents, can assist in this process. We help newsagents navigate this transformation. For more information, contact Michael Elvey (not a salesperson, but a dedicated support team member) at help@newsxpress.com.au or 0400 331 055.

Sincerely,

Mark Fletcher
M | 0418 321 338
https://www.linkedin.com/in/mark-fletcher-tower/

16 likes
newsagency of the future

Sydney Reed Gift Fair begins

At 9am today the Sydney Reed Gift Fair gets underway. As an exhibitor I know the fair is smaller than last year. I am as excited as ever for the show as number of suppliers displaying and feet through the door is not a measure of success. It’s new customer accounts that matter the most.

Last year at Reed there was a more diverse type of retail businesses represented. This proved to be commercially valuable. I am expecting the same this year. Being the only software company at the event helps.

For Tower Systems, this trade show is all about AI in retail. The advances are real, available today and huge.

There is a good mix of suppliers here, including plenty of new suppliers – including a couple who have flown in from overseas for the event. Everyone is feeling up beat.

6 likes
Newsagency management
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