It’s a conversation I’m having more frequently lately: “Mark, how do I get out?”

Regardless of what brokers may say, gone are the days when you could multiply your lottery commissions by a standard industry “rule of thumb” and find a buyer willing to pay for a secure, government-backed income stream.

Based on everything I’ve shared on this blog over the years and what I’m seeing for myself and across the industry, here is the reality of selling in 2026.

1. You are selling a Retail Business, not a Contract

In 2026, a buyer isn’t going to pay you a premium for your lottery or a traditional newsagency operation. They know those margins are under pressure and that the digital shift is real.

What they will pay for is a shop that has a proven track record in high-margin, “want” categories, gifts, collectibles, or specialist stationery. If your business is still 80% commission-based, you aren’t selling a business; you’re selling a job. To get a high multiple, you have to prove that you have built a brand and a customer base that belongs to you, not your suppliers.

2. The “Clean Data” Premium

POS data is your greatest asset during a sale. Get it right. A smart buyer in 2026 is data-savvy. They won’t accept a shoebox of receipts or a vague “discretionary spending” figure.

They want to see clear, department-level reporting that shows growth in non-traditional areas. They want to see that your stock turns are healthy and that you aren’t carrying $50,000 worth of dead stock from 2023. If I were looking at your business today, the first thing I’d ask for is a scan-rate report and an aged inventory list. If you can’t produce those instantly, the price just dropped.

3. The “Owner-Independent” Test

One of the biggest hurdles to selling a newsagency is the “hero owner” syndrome. If the shop only runs because you are there 60 hours a week, the business is worth significantly less to an investor.

In 2026, the most attractive businesses are those that are system-driven. Can the shop run for a month without you? Have you documented your processes? Buyers today are often looking for an investment or a multi-site opportunity, not a 7-day-a-week sentence. The more you can prove the shop runs on systems rather than your personal sweat, the higher the valuation.

4. Stop “Tidying Up” and Start Renovating

Too many owners wait until they decide to sell before they think about the shop’s appearance. By then, it’s often too late. A tired, dusty shopfront signals a tired, dusty bottom line.

If you want to sell in 2026, you need to ensure the shop looks like it belongs in 2026. This doesn’t mean a million-dollar refit, but it does mean modern signage, clean lighting, and a layout that prioritises high-margin browsing over the “dash-in for a paper” layout of the past.

My Advice: Sell on a High, Not a Slide

The hardest thing to watch is a newsagent who holds on too long, watching their value erode as they wait for the “old days” to return.

If you’ve lost the passion for the floor, or if the July 1 lottery changes feel like a mountain you don’t want to climb, then now is the time to prepare for an exit. Clean up your stock, tighten your data, and present a business that shows a buyer the future of retail, not a relic of the past.

Selling is a process, not an event. Start the work today so that when the right buyer walks through that door, you can hand over the keys with your head held high and a fair price in your pocket.

…
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.

Artificial intelligence offers small business retailers like Aussie newsagents powerful tools to improve efficiency and customer engagement. Starting your AI journey does not require a technical background. It’s easy. Let me show you how.

Where to Begin

Begin with a specific, repetitive task. Common starting points include drafting social media captions, writing product descriptions, or summarising long reports.

Choose a popular platform –  ChatGPT, Claude, or Google Gemini and all good. These tools are accessible via a standard web browser. For text, currently I prefer Gemini.

Start with the free versions to explore their capabilities before committing to a subscription.

How to Write an Effective Prompt

A prompt is the instruction you give the AI. The quality of the output depends entirely on the clarity of your input. Follow these steps to achieve the best results:

1. Define a role. Tell the AI who it should be. For example, “I own an Australian newsagency in [name your town].”
2. State the Task Clearly. Be direct about what you need. Instead of saying “Write about cards,” say “Write a 50-word Facebook post promoting our new range of Mother’s Day greeting cards.” If this is your prompt, upload a photo of your cards.
3. Provide context. Include details about your target audience and brand voice. Mention if the tone should be cheeky, professional, or community-focused. For example, use a calm and professional tone is what I like to say.
4. Set constraints. Specify length, format, and what to avoid. You might request “three bullet points” or “no mentions of specific prices.” I like to say how many words I want. I also tell it to use short sentences and paragraphs.
5. Use Australian preferences. Explicitly ask the AI to use Australian English. This ensures the software uses ‘s’ instead of ‘z’ in words like ‘organise’ and ‘specialise’.

Refine and Review

Treat the first response as a draft. If the result is not quite right, ask the AI to adjust the tone or change a specific section. If it got it wrong, tell it so.

Always fact-check the final output. AI can occasionally generate incorrect information. Ensure the final text aligns with your shop’s unique personality and local community values.

The notes here are for beginners. You’ll quickly move beyond once you have experience.

Footnote: I use Claude, Gemini, Proximity and OpenClaw for a diverse mix of things. In each situation, I have the paid version for more power and functionality.

Small business ownership is a journey often defined by its highs, yet the lows can be incredibly isolating. In a recent conversation with Jen, a colleague who managed a gift shop for 17 years, we discussed the financial challenges that many retailers face but rarely discuss. We shared our personal stories because we want you to know that if you are struggling, you are not alone.

Jen’s experience involved the common “robbing Peter to pay Paul” cycle. High rents, franchise fees, and prolonged shopping centre renovations choked her cash flow. She delayed supplier payments and refinanced her home to keep the doors open. Like many, she carried this burden in silence, fearing that speaking up would signal failure.

My own story involves a different kind of crisis. In 2009, I received a director’s penalty notice for over $1.5 million. I discovered that a financial controller had been mismanaging funds and deceiving both me and the tax office for years. The debt eventually ballooned to $2.5 million. It was a dark time that required urgent, transparent action. I had to prove the tax office’s own privacy breaches to buy time, shut down underperforming locations, and face my suppliers with the cold, hard facts.

The most important lesson from both our stories is the necessity of owning the situation. Transparency is your greatest tool. When I told my suppliers the truth, they chose to support me rather than shut me down. Every single person was eventually paid back.

If you find yourself unable to pay your bills at the end of the month, take that as your first red flag.

Don’t wait for a total collapse.

Retail, especially in the small business space, is seasonal. You need to plan for the quiet months rather than relying on high-interest, “fast” lenders that can suck a business dry.

In our work with newsXpress, we offer a confidential, non-judgemental listening ear.

While we are not accountants or lawyers, we offer practical business experience. Sometimes, the first step is simply decluttering your store or creating a basic budget to regain a sense of control.

Do not measure your worth against the perceived success of others. Imposter syndrome is real, but it does not define your capability. If you are in a difficult spot, reach out. Taking one small, certain step on solid ground every day is how you begin to move forward.

For a listening ear, call Jen on ‭0434 560 350‬ or me on 0418 321 338.

If you like a checklist,  here are the practical steps we recommend for any retailer feeling the weight of financial pressure.

1. Acknowledge the Red Flags Early

The moment you cannot comfortably pay all your monthly bills, you have reached a critical marker. Do not wait for the next month to “be better” by chance. Sit down and look at your operating costs versus your actual income immediately.

2. Choose Transparency Over Silence

The instinct to hide financial trouble is strong, but silence usually makes the situation worse. Reach out to your suppliers. In my experience, if you provide them with the facts and a clear plan, most would rather give you time to pay than see you fail.

3. Beware of “Fast” Finance

There is a whole industry that preys on retailers in distress. Unsecured loans with interest rates of 18% or higher are a slippery slope. Many businesses that appear to be failing would actually be healthy if they weren’t being sucked dry by massive repayments to high-interest lenders.

4. Physical Action Through Decluttering

If the situation feels overwhelming, start with the physical space. Walk through your shop and identify “dead stock”—items that have sat on the shelves for far too long. Sell them for next to nothing or throw them away. This physical act of decluttering often provides the mental clarity needed to make bigger decisions.

5. Simplify Your Budgeting

You do not need a complex accounting degree to manage your cash flow. Create a simple monthly guide based on last year’s data. This helps you understand exactly how much you can afford to spend on stock during the quieter, seasonal months typical of the gift and card industry.

6. Outsource the Final Decision

If you find it difficult to stop spending, use a trusted advisor or a tool to approve your purchases. Removing the final decision from yourself for a period can help break bad habits and ensure that only essential, high-performing stock enters the business.

You don’t have to navigate this alone.

The 12% Parcel Surcharge: Is your retail margin safe?

With Australia Post and StarTrack announcing massive fuel surcharge hikes for April, small business retailers like Aussie newsagents are being squeezed from both ends of the supply chain. If you aren’t adjusting your pricing strategy now, you’re effectively paying for the cost of business hike out of your own pocket.

From North Queensland to WA, the cost of moving goods is skyrocketing. With diesel prices hitting record highs and suppliers adding new levies every week, “business as usual” is no longer an option.

The surge in global energy prices has hit Australian supply chains with force. For small business retailers, the notification yesterday from Australia Post regarding fuel surcharges is a clear signal of the new economic reality. Effective 23 April 2026, contract domestic parcel rates will jump from 4.8% to 12%. StarTrack Premium services will climb even higher to 22.7%. These are not incremental changes. They are structural shifts that demand a proactive response from every local shop and online seller.

Even if you don’t direct;y rely on Australia Post or StarTrack, their combined size means they are in your supply chain somewhere. Also, their announcement yesterday is a signal others are sure to follow.

Understanding the wider impact

Wholesale suppliers across the country are facing the same diesel price spikes. Many are already adding intermodal fuel fees and regional delivery levies to their invoices. In states like Western Australia and Queensland, these charges are becoming a standard line item. You are effectively being squeezed from both ends of the supply chain. Ignoring these costs will lead to rapid margin erosion.

The case for a transparent surcharge

Some businesses may be tempted to hide these costs by raising all shelf prices. This approach can backfire in a price-sensitive market. A more effective strategy is the implementation of a transparent fuel levy. Customers today are well aware of the volatility at the petrol pump. They are often more accepting of a clearly labeled surcharge than a mysterious jump in product prices. A surcharge also allows you to be agile. You can adjust the fee as fuel prices fluctuate without needing to relabel your entire inventory.

Delivering the message

The way you communicate this change will determine how your customers react. Avoid corporate jargon or defensive language. Provide a thoughtful explanation that connects your local pricing to the global situation. Explain that the levy is a direct response to the Australia Post and StarTrack increases. State clearly that the fee is reviewed monthly. This shows that you are only seeking to recover costs rather than padding your profits.

Strategic adjustments for regional retailers

For those operating in regional hubs, logistics are the lifeblood of the business. You may need to review your “free shipping” thresholds immediately. A threshold that worked when surcharges were at 4% is likely losing you money at 12% or 22%. Consider offering a “Click and Collect” discount to encourage local pickups. This reduces your reliance on external couriers and keeps your margins intact.

The current fuel crisis is a test of business resilience. By being transparent and adjusting your pricing model early, you can protect your bottom line. You will also maintain the trust of the community you serve.

Practical advice on managing the messaging

A clear and empathetic notice is essential. Below is a template you can adapt for your website or in-store signage. It is designed to be professional, transparent, and grounded in the current reality of the Australian transport sector.

Notice: Introduction of a temporary fuel surcharge

We are writing to share an update regarding our delivery services. We’re sure you would have seen or heard the news reports about the significant volatility in global energy markets. This has led to a sharp rise in diesel prices across Australia, with regional terminal gate prices recently increasing by more than 50% in some areas.

To ensure we can cover these rising costs, we are implementing a temporary fuel surcharge on all shipped orders, effective 23 April 2026.

Why this is happening. Our primary freight partners are increasing their costs to us. For example, including Australia Post and StarTrack, have announced substantial increases to their fuel levies to recover their rising operational costs. For example:

• Domestic parcel contract surcharges are increasing from 4.8% to 12%.
• Express and Premium service surcharges are rising from 15.5% to 22.7%.

Our commitment to you. We have resisted passing on these costs for as long as possible. However, the scale of these recent increases means we must adjust our shipping model to maintain the service standards you expect.

• Transparency: This is a standalone surcharge, not a hidden price hike on our products.
• Flexibility: We will review this levy on the 1st of every month. As soon as fuel prices and carrier surcharges stabilise or decrease, we will adjust our rates accordingly.
• Local Support: For our local customers in Malvern and surrounding areas, our Click and Collect service remains 100% free of any surcharges.

We appreciate your understanding as we navigate these broader economic pressures together. If you have any questions about a specific order or our shipping tiers, please don’t hesitate to reach out to our team.

There is another option here. Plan B: an general price increase

You could not implement a fuel charge and, instead, increase prices on products over which you have price control. This “cleaner” approach avoids the friction of extra fees at the checkout and protects your brand from being associated with “surcharge fatigue.”

However, because this increase is permanent and less “justifiable” by a single external factor, your strategy must shift from cost-recovery to value-preservation.

The Psychology of Plan B

Research in consumer behavior suggests that customers often react more negatively to a small, visible $2 surcharge than to a $5 increase in the base price. Surcharges feel like a “penalty” at the final moment of commitment. An across-the-board increase, if done subtly, often goes unnoticed.

How to Implement a Plan B “Modest Increase”

To make this work without losing customers:

• The “Cent” Strategy: Instead of a flat percentage, use “charm pricing.” If an item is $9.50, moving it to $9.95 is often more acceptable than moving it from $10.00 to $10.50.
• Target High-Volume, Low-Sensitivity Items: A 20-cent increase on a high-turnover item can often cover a 12% freight hike more effectively than a large jump on a big-ticket item.
• Review Your “Free Shipping” Threshold: If you offer free shipping for orders, Plan B usually requires raising that threshold (e.g., to $120). This encourages larger basket sizes to offset the shipping cost.

Messaging Without Mentioning “Fuel”

When you don’t use a surcharge, you shouldn’t constantly remind people about fuel prices. Instead, focus on quality and sustainability.

The Tone: Focus on “Investing in our service.” The Explanation: “To ensure we continue sourcing the highest quality products and maintaining our fast, reliable delivery standards, we have updated our pricing across our range. This allows us to remain a sustainable local business in a changing economic landscape.”

Which Plan is right for you?

Given the mix of products in an Aussie newsagency, even in a transformed newsagency, Plan B is more likely a better fit.

1. You have a loyal, local customer base who values the “relationship” over the lowest possible price.
2. You want to maintain a “premium” feel (premium brands rarely use surcharges; they just adjust their prices).
3. You want to avoid the administrative headache of changing a surcharge percentage every time Australia Post sends a 30-day notice.

Ultimately, what you do is up to you. Think about it carefully. Doing nothing means you soak up the extra cost yourself, and likely complain about it. Rather than complain, make a business decision.

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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.

Run well, you’ll make more money from your business while you run your business than when it comes time to sell.

You do this by following the mantra: Make every day your payday. Here’s how:

Here are the actionable strategies I recommend for building daily value in your retail business:

• Own Every Decision In Your Business. Every purchase, every pricing setting, every customer interaction. Be present and active. Ensure every decision is about maximising value for the business, and you.
• Regularly Quit Dead Stock. Cut what’s not working. Be ruthless.  Dead stock is one of the biggest drains on profit I see.
• Trim Your Roster. Every paid hour has to deliver value for the business.
• Use Smart Tools, Like AI.  It’s a time saver and opportunity creator. Learn the tools. Embrace them. get your people engaged with them.
• Curate Your Counter. The counter is still the best location for impulse purchases. Everything at the counter should work. if it’s not working, change it, now!
• Price Well. Mark up as high as you reasonably can without harming unit sales. If people buy anything from your for convenience, factor it into your pricing.
• Trade outside what’s expected. Offer products people don’t expect to see from you. This speed bump approach can slow people, have them notice, and buy.
• Buy The Best You Can. Negotiate the best possible terms and always pay suppliers on time to capture valuable settlement discounts.
• Increase Average Transaction Value. Help shoppers buy more each visit. Loyalty programs, product bundling, strategic product location and multi-buy offers are effective tools.
• Deploy Your Best People. Your best people should be always customer-facing..
• Change Things Weekly. You want people noticing the changes, and commenting. Don’t be predictable with the changes.
• Leverage Product Adjacency. Position products to encourage a deeper, more valuable shopping basket.
• When You Think You Have Done All This, Do It Again.

Take Ownership of Your Profitability

The financial health of your business is your responsibility.

1. Pay down debt.
2. Always have access to an up to date P&L.
3. Keep a clean balance sheet.

A relentless and clear focus on daily profit is the most reliable path to growth.

…

I first shared make every day your payday 18 years ago when I saw that valuations of small retail businesses, like newsagencies, fall. This post today is refreshed and refocussed.

If you’d like to talk about this, I can be reached on 0418 321 338 or mark@newsxpress.com.au

I am grate to ALNA CEO Ben Kearney for the opportunity to discuss using AI in your retail business.  Here’s the link: https://youtu.be/INNfxiOg8HM?si=dz7i3MaH_DCMAP4v and the video is embedded below.

This is a good practical discussion that I think all newsagents would benefit from.

AI is such a basic, everyday, tool in business now with uses from the immediately practical through to the strategic. In the newsagency software there are benefits of saving time , reducing mistakes and growing revenue.

I’m glad ALNA has the video publicly available.

Yesterday for Tower Systems I hosted a discussion about websites for retailers and how to get more traffic. Here is a video of that session. It offers up practical advice any newsagent with a website could leverage. https://youtu.be/E2GlTLAmeuQ

Is Your Website Actually Working for Your Retail Business?

For independent retailers like newsagents, a website is a vital tool for survival and growth. But there is a big difference between having a website and having a website that drives success.

This is a video of a deep-dive session on how local, specialty retailers can bridge the gap between their physical counter and the digital world. If you’ve been wondering how to compete with the “big guys” without losing your local soul, this video is for you.

Why Watch?

Retail in Australia has changed. Online plays a more important role than ever. In this session, I cover:

• The “Curated” Advantage: Why being small is actually your biggest strength online.

• Choosing Your Platform: Why we advocate for Shopify as the “bang for buck” leader for independent stores.

• Local SEO: How to make sure you appear when someone nearby searches for your products.

• Closing the Sale: Practical tips to turn website visitors into loyal customers.

Seamless Integration is the Key

Online and in-store operations should talk to each other. You need one source of truth when it comes to your stock data. POS-integrated websites are key here.

Why Shopify

Shopify is my e-commerce platform of choice because it’s easy to setup, easy to manage and easy to change. I use it for all the e-commerce sites in ym businesses. As of right now, I have 4 e-commerce sites with a fifth to launch today or Monday.

• https://mintcoinshop.com.au/
• https://hugsandlove.com.au/
• https://beanieboosaustralia.com/
• https://myornaments.com.au/

I mention these to show that the advice I cover in the website session comes from a place of personal engagement. there are too many web developers and web consultants out there who tell you what to do without having the experience themselves. This can be okay, but it can also be problematic.

Shopify is a good platform, and it connects to the Tower Systems POS software, which for me makes sense, of course.

Anyway, I’ve loaded the video here for anyone to watch without and gatekeeping. I hope you find it worthwhile.

Hungry beast

The final point I’d make on this is that a website is a hungry beast. If you don’t care for it and feed it, it will fail. The feeding and caring is the work I discuss during the session. Anyone who says a website will work right away once it’s created is kidding you.

…
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.

I am grateful to ALNA for the opportunity to participate in a webinar for newsagents focussed on AI tomorrow, Tuesday March 17 at 1pm AEDT. This will be plain English and readily accessible session. We have plenty to share in this rapidly moving space, practical advice and insights you can use today in your newsagency business.

This session offers a good step towards AI literacy for anyone new to this space.

Here is the announcement from ALNA.

Don’t Get Left Behind — Join Our AI Webinar Next Tuesday

When we surveyed members in January, 65% of you told us you wanted support adopting AI in your business, so we’re delivering.

Next Tuesday 17 March at 1:00 PM AEDT, ALNA CEO Ben Kearney hosts a free 30-minute Business Boost Live webinar with Tower Systems’ Mark Fletcher and Gavin Williams to cut through the hype and explore what AI can practically do for your newsagency right now.

This isn’t a tech lecture. We’ll be tackling the real questions on your mind: How many newsagents are already using AI? What are the risks? What if you’re not a tech person? And critically, what happens if you don’t engage at all?

Whether it’s saving time on everyday tasks or finding new ways to generate revenue, this session focuses on what’s achievable today without specialist skills and on a tight budget.

AI is evolving fast and the retailers who start exploring now will be the ones best positioned for what’s ahead. This is your chance to get practical, jargon-free guidance in under 30 minutes.

REGISTER NOW — your future self might thank you. Email: events@alna.net.au

Plenty of newsagents are using Ai already in their businesses, saving time, making better business decisions.

From the practical to the strategic, AI is provide got be a valuable business tool.

Tower Systems is well positioned in this space thanks to its work in the area for more than 3 years and having delivered the first embedded AI solution in newsagency software for Australian newsagents.

Join us tomorrow for what I think will be a good session for newsagents.

…
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.

How many times do you wonder why shoppers haven’t seen a sign right in front of them? We often get frustrated when customers can’t find products we think are easy to find, or when they ask for items we have never stocked.

“Shopper blindness” is a common complaint among local small business retailers in Australia. However, I don’t believe the shoppers are the problem. The issue is usually that we overwhelm them with too much information, too many colours, and cluttered displays.

When we give them too much to look at, they end up seeing nothing at all. To improve your sales and the customer experience, you need to edit your shop. Reducing visual noise will focus your customers—and your staff—on what matters most.

The Power of Editing Your Space

I recommend that every newsagent regularly performs a visual audit. Stand at the front of your shop and review every sign, notice, and placard. If it isn’t essential to a sale or a legal requirement, remove it.

Here are my key strategies for cleaning up the visual “noise” in your business:

1. Consolidate Your Housekeeping

We all have necessary notices regarding store policies, trading hours, or payment methods. Instead of scattering these across the front window and counter, place all customer notices in one unobtrusive place. This keeps the entrance clean and welcoming.

2. Simplify Call-to-Action Signs

If you have items on sale or heavily discounted, don’t spread them throughout the aisles. Place all clearance items in one dedicated location with clear signage. This creates a “treasure hunt” feel for the bargain hunter without cluttering your full-price displays.

3. Professional Product Signage

Inconsistent signs make a shop look messy. Use a neat, lean, and consistent format for all product signs. Ensure they are placed in the same relative position next to the products. This creates a visual rhythm that is easier for the brain to process.

4. Utilise Colour Blocking

Group your products by colour where possible. Colour-blocked shelves are significantly more appealing to the eye. They look organised and professional rather than noisy. A shopper is much more likely to stop and browse a shelf that looks intentional.

5. Clear the Counter

The counter is your most valuable real estate, yet it is often the most cluttered. Edit your counter space to focus only on the messages and products that matter right now. If a customer is overwhelmed at the point of purchase, they are less likely to engage with your high-margin impulse items.

Keep It Simple

The goal is to make the shopping experience effortless. When you reduce the “noise” in your shop, you highlight your best products and your most important messages.

A cleaner shop is a more profitable shop. It creates a better environment for your team to work in and a more relaxed atmosphere for your customers to spend money in.

Keep. It. Simple.

Keep. It. Simple.

Newsagency Visual Audit Checklist

Use this checklist to walk through your shop from a customer’s perspective. Aim to complete this audit once a month to ensure your store remains easy to navigate and free of “shopper blindness.”

.
Pro Tip: The 10-Second Rule
Walk into your shop and look around for exactly ten seconds. Close your eyes. What is the one thing you remember seeing?

If you can’t remember a specific product or offer because there was too much “noise,” your customers can’t either. Go back to the Keep It Simple rule and start removing items until your key message stands out.

…
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.

Negotiating rent is one of the most stressful tasks a newsagent, or any local and independent retailer, faces. Many of us look at the number of empty shops in our local high streets or centres and assume rent should be falling. However, the reality of the Australian commercial property market is rarely that simple.

If you want to reduce the rent you pay for your shop, you must make a compelling, fact-based business case. Simply wanting a reduction because “times are tough” is not enough. You are dealing with a landlord who often has their own financial pressures tied to the valuation of the building.

Understanding the Landlord’s Perspective

Rent is not always set based on a traditional supply and demand model. Many landlords have funding arrangements based on the value of the property. Because property value is directly tied to the rent roll, reducing your rent can actually decrease the building’s valuation. This can negatively impact the landlord’s bank covenants or funding.

When you understand this, you realise that a rent reduction is a significant request. You aren’t just asking for a discount; you are asking them to potentially devalue their asset.

Why You Should Do It Yourself

I have negotiated for myself many times. I have also used professional lease negotiators on three occasions. In my experience, I was always more satisfied when I did it myself.

While professional negotiators can be friendly and professional, I was never truly certain they put my needs ahead of their relationship with the landlord. In one instance, with hindsight, I think I paid a fee to someone who “softened me up” to agree to terms I later regretted.

Be wary of leasing brokers who charge a flat negotiation fee regardless of the outcome. My advice is to take the lead. You are the person with the most on the line.

How to Build Your Case

Your pitch must be professional, non-emotive and clear. Here is what I suggest retailers prepare:

• Financial Evidence: Provide your Profit and Loss statement. Compare the most recent year or quarter to the same period a year earlier.

• The “Unique” Factor: Highlight the constraints of our industry. We have little to no control over the prices of many core products we sell. This is a vital point to make.

• Market Data: Gather evidence of comparative rents for similar nearby shops.

• Be an Ideal Tenant: Show that you are low-maintenance, pay on time and attract foot traffic that benefits other retailers.

The Importance of Plan B

The old adage of “location, location, location” is less relevant today. A good newsagency now generates significant revenue from online channels. This gives you power.

You also need  a viable Plan B, beyond online, another location where you could operate if you had to. I have personally pivoted to retail locations outside of major shopping centres. This move resulted in less stress, lower occupancy costs and higher profit.

Keep your Plan B to yourself during negotiations, but let it inform your confidence. If you aren’t 100% happy with the deal on the table, you must be prepared to walk away.

Avoid These Common Mistakes

The most dangerous mistake a retailer can make is believing they should pay less rent simply because they feel they deserve it. Another common error is using a declining business as an excuse. A declining business is usually the responsibility of the retailer to fix, not the landlord.

The retail landscape in Australia is fragmented. While national CBD vacancy rates dropped to 11.1% in the first half of 2025, cities like Perth and Brisbane have seen rates increase. There is no single national trend you can rely on. You must know your local data.

Final Thoughts

Major shopping centres aren’t configured for newsagency related businesses. Once you add in marketing fees and other mandatory overheads, the cost of shopper acquisition in a shopping centre is high.

Start your planning early.

Take responsibility for the negotiation yourself.

By having appealing options outside of your current lease, you allow yourself to be more circumspect and achieve a better result for your business value.
…
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.

“Green shoots” are good news opportunities that are breaking through and otherwise crust of not so good news, a feeling of uncertainty. They are opportunities you might leverage to improve business, or your outlook on business.

To move from a feeling of uncertainty to a clear strategy, you need to look past the bottom-line figure and find the specific areas where growth is still possible in your retail business. That’s what my advice is about today.

Here is a practical checklist to help you review your Profit & Loss (P&L) statement and your sales data to identify those “green shoots” of opportunity.

1. Identify high-margin winners

Review your Gross Profit (GP) by department rather than looking at the total shop average. Which specific categories currently deliver a GP higher than 45%? Can you give these products more prominent floor space or “prime real estate” near the entrance or counter? Are there products related to these that you could place with them. In a newsagency, greeting cards fall into this space yet too many newsagents leave managing cards to the card suppliers, abrogating their responsibility as the business owner.

2. Spot the “quiet” growth

Compare your current year’s sales to the previous year, specifically by category. Is there a niche category (e.g., specific gifts, high-end stationery, or hobby items) that has grown by 10% or more, even if the total volume is currently small? These are your “green shoots.” Consider redirecting a portion of your low-margin stock budget into these growing areas. Lean into growth opportunities.

3. Review labour efficiency

Labour is usually your highest cost. Look at your sales-to-labour ratio across different times of the week. Are there specific hours where the cost of keeping the doors open exceeds the GP generated? History should not dictate when you open, profitability should. Adjust your roster or opening hours slightly. Reinvest those saved hours into “retail” activities, like refreshing displays or managing social media, rather than just standing behind the counter.

4. Isolate “Agent” vs. “Retail” income

Distinguish between the income you receive as an agent (e.g., lotteries, transport cards) and your retail sales (e.g., gifts, cards, magazines). Track what else agency customers purchase when in-store.

What is the actual net profit of your agency services after you subtract the specific labour costs required to run them? If an agency service is barely breaking even, it is “noise.” Focus your energy on the retail side where you have control over the margin and the brand.

5. Audit occupancy costs

Look at your rent and outgoings as a percentage of your total GP. Is your occupancy cost exceeding 20% of your Gross Profit? If it is higher, you must either increase your GP through higher-margin products or prepare to negotiate your lease based on the reality of your data. In a newsagency today, the suggested target occupancy cost is 11%.

6. Search for dead capital

Review your inventory turnover. How much stock has not moved in the last 6 months? This is cash tied up on your shelves. Clear it out, even at or below cost, to provide the funds needed to invest in a new, traffic-generating product category.

Manage by evidence. Be dispassionate about it.

When you look at the data this way, the “fog” often lifts. You stop seeing a failing business and start seeing a collection of assets—some of which are working, and some of which are not.
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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.