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

How to Negotiate a Rent Reduction for Your Newsagency

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.

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Newsagency management

Advice on finding “green shoot” opportunities in your retail newsagency

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

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Newsagency management

Penalty rates apply if you work in a newsagency on a Saturday or Sunday

I received a call over the weekend from someone working in a newsagency concerned that they are not being paid penalty rates for working on a Sunday. They said their boss had told them they could either work for the regular hourly rate or not have a job at all. Given they had already raised it with their employer, I told them to contact the Fair Work Ombudsman directly or anonymously.

I also told them that threatening an employee with termination for reporting they are underpaid is illegal in Australia and that such actions constitute adverse action and are a breach of the general protections provisions of the Fair Work Act 2009.

They wanted me to talk to their employer, which I declined because they will have more power using the Fair Work Ombudsman, and because I have been down that path before and was attacked for raising the matter. The newsagent in question has form when it comes to payment of penalty rates. They show little regard for newsagency employee penalty rate obligations.

I think there needs to be a zero tolerance approach to this. Report any situation of underpayment, directly or anonymously.

Now, for clarity, here is the newsagency penalty rate situation:

Sunday penalty rates as indicated in the General Retail Award.

  • Full-time and part-time employees: 150% of the minimum hourly rate.
  • Casual employees: 175% of the minimum hourly rate (this figure is inclusive of the casual loading).

These rates are specified in Table 12—Penalty rates on page 46 of the document.

For adult employees not performing shiftwork, the hourly rates for Sundays are summarised in Schedule B:

Classification FT/PT ($) Casual ($)
Retail Employee Level 1 39.83 46.46
Retail Employee Level 4 42.18 49.21
Retail Employee Level 8 48.68 56.79

Saturday penalty rates are:

  • Full-time and part-time employees: 125% of their minimum hourly rate.
  • Casual employees: 150% of their minimum hourly rate (this includes the 25% casual loading).

Based on the current rates in the document (effective from 1 July 2025), here are the Saturday rates for key levels:

Classification FT/PT ($) Casual ($)
Retail Employee Level 1 33.19 39.83
Retail Employee Level 4 35.15 42.18
Retail Employee Level 8 40.56 48.68

I am writing about there here to provide more results for any newsagency employee doing a search online about penalty rates. I have included links so you can get to the source documents.

Penalty rates are not optional suggestions; they are legally binding minimum standards.

The General Retail Industry Award 2020 specifically covers employees of newsagents , and failing to pay the prescribed Sunday and Saturday penalty rates is a breach of the Fair Work Act 2009. The Award and the Act provide clear “general protections” that prohibit an employer from taking adverse action, such as threatening termination, against an employee for exercising their workplace right to inquire about their pay.

Protecting the integrity of the newsagency channel requires everyone to play by the same rules, ensuring fair compensation for those working the weekends that keep our local businesses running.

Contacting the Fair Work Ombudsman

The Fair Work Ombudsman is the national regulator responsible for enforcing compliance with workplace laws, including underpayments and penalty rate breaches.

  • Phone Assistance: Call 13 13 94. Hours: 8:00 am – 5:30 pm, Monday to Friday (except public holidays). Have the business name, ABN, and pay records ready before calling.
  • Anonymous Reporting: If an employee fears repercussions, they can use the Anonymous Report tool. This information helps them build a risk profile of non-compliant employers for future audits and legal action.

Now, from the Fair Work Ombudsman, there is good information about the dispute management process that could provide comfort to anyone considering lodging a complaint:

Under Clause 36 of the General Retail Industry Award 2020, there is a formal step-by-step procedure that must be followed to resolve disputes about Award matters or the National Employment Standards:

  • Workplace Discussion: The parties must first try to resolve the issue at the workplace through discussion between the employee and their immediate supervisor.
  • Management Escalation: If unresolved, the matter must be discussed with more senior levels of management as appropriate.
  • Fair Work Commission Referral: If the dispute remains unresolved after these workplace steps, any party can refer the matter to the Fair Work Commission.
  • Commission Action: The Commission may use mediation, conciliation, or consent arbitration to reach a settlement.

While a dispute is being handled, work must continue as normal in accordance with the Award and the Act.

As I mentioned, I am posting this here to provide a resource for any newsagency employee searching about being underpaid or not being paid penalty rates.

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

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Ethics

Hey newsagents, what’s more valuable, making a few cents from a parcel pick-up or $75 in gross profit from selling a gift?

I was talking with a newsagent yesterday who was asking what I had against parcel pick-up in newsagency businesses. My opinion is my opinion for my own business. Everyone should make their own decision based on their circumstances and capacity.

For me, though, parcel pickup does not make sense and here’s why:

  • It doesn’t pay its way. Accounting for the space and time, and considering the average volume, it’s unlikely you’ll read even let alone make any profit.
  • Parcel collectors are not your shoppers. I’ve not seen any evidence of parcel collectors buying other items during the visit.
  • Parcel collectors bring their baggage. I’m talking here about emotional baggage: frustration with parking, frustration about the supplier they bought from.
  • Parcel collectors tend to not be patient. They are there for one thing only, which they think should take a couple of seconds and, often, think they should be served ahead of real paying customers.

Someone spending $150.00 on a gift in the shop delivers $50.00 in gross profit. They will, more often than not, buy other items during the visit and, more often than not, come back and buy more. The gift customer is stickier with your business, more valuable.

You’d have to serve between 75 and 100 parcel collections to achieve the equivalent of the $75.00 in gross profit from the gift sale.

Parcel collection in the Aussie newsagency channel is rooted in the days of newsagents being agents, making cents in the dollar for providing a local service over which we have little control and that relies on minimal business skill. Now I know some newsagents like the simplicity of it, that it does not require business skill.

Successfully selling gifts requires skill. Get it right and you can add hundreds of thousands of dollars to you business gross profit performance. yes, there are newsagents doing this. I doubt there are people achieving the same from parcel collection.

The other factor to consider about parcel collection is where the money is made. There are some spruiking parcel collection in the newsagency channel who are making money from it, a commission if you like. They are incentivised to talk it up to newsagents.

What’s more valuable, making a few cents from a parcel pick-up or $75 in gross profit from selling a gift? The gift sale, of course.

I have no skin in whatever decision you make. What I have written here is designed to give you more information to think about, so you have more to consider.

Ultimately, my focus is on long-term viability over short-term foot traffic. While the simplicity of parcel collection appeals to some, I prefer to invest my floor space and energy into high-margin categories that reward actual retail skill. Every square meter of your shop should be working to build your bank balance, not just a delivery driver’s efficiency.

You have to decide if you want to be an agent or a retailer, because in a competitive market, you can’t afford to let “busy-ness” get in the way of real business.

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

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Newsagency management

Advice for Aussie newsagents: Beware The Hidden Cost of Excess Card Inventory

If you have greeting card stock sitting in drawers beneath your fixtures, it is not working for your business. Stock  in drawers is invisible to customers, it cannot sell. This practice, encouraged by some card companies, ties up your capital without generating a return.

The Strategy Behind Over-Supply

Some card companies persuade newsagents to hold extra stock as a buffer. They argue that this allows you to quickly replenish displays as pockets become empty. While this ensures the shelves look full, the primary beneficiary is often the card company.

Large corporations are driven by quarterly performance. Sales representatives are incentivised to meet targets, which can lead them to sell in more stock than a newsagency truly needs. They book the sale today and deal with any potential returns much later. If that stock sits in your drawers, it is “dead money.” You have been invoiced, you have paid the bill, but the product is providing zero commercial value.

Reclaiming Your Capital

My advice to Australian newsagents is simple: audit your storage. Go to your card fixtures and open the drawers. If you find stock that has been sitting there for months, it needs to be cleared. You should not be acting as a warehouse for your suppliers.

Modern supply chains are efficient enough that you do not need to hold massive reserves. Most newsagents can receive an order within two to four business days. Even in remote areas of Western Australia or North Queensland, a week is generally the maximum wait time. Relying on the supply chain to satisfy your needs is a far more efficient use of your cash flow than keeping surplus stock on-site.

Taking Action

There are major card companies currently dealing with Australian newsagents that actively engage in over-supply. They train their representatives to push more products into your store to bolster their own quarterly results.

Review your stock levels today. If your drawers are loaded with untouched cards, return them. While some suppliers may point to contract clauses requiring you to accept what they send, there are protections in place to prevent suppliers from over-supplying small businesses. Your cash is the lifeblood of your newsagency. Do not let it sit idle in a drawer where no one can see it.

Choose Your Card Company Carefully

There is a big difference in card companies in Australia. Too often I see newsagents sign with the company that is prepared to pay for their business. My advice is think for a moment about why a supplier is using cash to get you to take their product. The most valuable cards you can stock are those that sell. I have seen a cash offer used to distract from sales performance.

Take your time. Do your research. Choose a card company based on what you need in your business.

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Greeting Cards

newsXpress leads with AI support for newsagents

newsXpress has delivered practical help for newsagents on best-practice use of AI in business across a range of areas of the traditional newsagency business. This help is not an end point, rather it is the next step in an on-going program to help newsXpress members lead the channel in AI adoption for business profitability.

The first step in the project was around AI literacy, helping small business retailers to understand basics – like learning to write, once you have the foundational skills down you can. get into it.

AI is no longer hype, it’s a mainstream business tool which some use well while others struggle with.

The newsXpress AI support ranges from the everyday of creating prompts that work for your business through to creating strategic business plans that take into account more data than any human created plan could in such short time. Much of the work is outside the traditional scope of newsagency software.

The AI project is not about the AI slop you can see coming from some. other, it is focussed on actionable advice ready to implement for the commercial benefit of the business. It is helping newsagents focus more outside what has been traditional, ensuring the business does not become fodder for another media story on a newsagency closing.

Key to the newsXpress success with AI is that it is taken seriously, used seriously. While there is fun in image creation and leaving AI to do everything for you, the smarter approach is through a collaborative mindset, respecting the AI capacity and bringing human needs an insights in to guide results.

What newsXpress is delivering here is free for its members.

newsXpress ensures that even the smallest family-run shop has access to the same high-level strategic advantages as major corporate retailers through this AI project. This initiative democratises sophisticated technology, transforming it from a daunting technical hurdle into a practical daily asset.

As Australian retail continues to shift, which it is doing at pace, this newsXpress commitment to AI mastery provides members with a sustainable competitive edge, proving that while the “traditional” newsagency may be evolving, its future is bright.

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

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newsagency of the future

Concerns for retailers from the latest results from The Lottery Corporation

The Lottery Corporation (TLC) half year results for the period ending 31 December 2025 reveal a business model that is becoming increasingly sophisticated in its use of digital integration and pricing levers. While the company reports good underlying performance, lottery retailers should look beyond the numbers to understand how TLC’s shifting priorities may impact them.

The digital shift

The most critical trend I see for physical storefronts is the continued migration of business to digital channels. Digital, direct to consumer, is clearly the preferred model for TLC.

Digital share of Lotteries turnover has risen to 41.2 percent, an 80 basis point increase despite a low jackpot environment.

TLC’s stated priority for 2026 is to accelerate its evolution as a digital entertainment company.

Retailers should be wary that as TLC embeds digital across the enterprise, the role of the physical store may shift in the company’s strategic hierarchy. That’s what some might say. I think the evidence is there in the results. Retailers are there today to support TLC in its direct top consumer model. In other words, what was an in-store first model is clearly an online first model, supported by in-store branding and service (when needed).

The company is focusing on creating seamless and contemporary experiences for customers, which prioritises the convenience of online platforms.

The jackpot performance gap

The reports confirm that this half was the least favourable half for jackpot outcomes since the demerger.

Powerball and Oz Lotto volumes were heavily impacted by a 14.2 percent drop in cumulative jackpot value compared to the prior corresponding period.

The results report that active customer reductions are skewed toward lower-spending patrons who are sensitive to large jackpot offers. This impacts lottery efficiency for you.

Concerns

Watch for potential customer fatigue; while retention has been high so far, there is a risk that repeated price hikes across the portfolio may eventually alienate price-sensitive local segments.

The shift is how payouts may be handled strengthens the connection with direct to consumer at possible cost to the retail relationship you have.

Brand architecture review: TLC plans to review its brand architecture and positioning. This often leads to requirements for retailers to update in-store signage or point of sale materials to remain compliant with new corporate identities.

Organisation simplification: The goal to simplify and better align the organisation structure may change how retailers interact with corporate support or territory managers.

Opinion – advice.

Don’t rely on lottery revenue to keep your business afloat. Be sure to nurture other valuable reasons for people to visit your shop. Do what you must to keep TLC happy while you do more for your own business and its own, local, identity.

TLC does not serve you, nor do they need you. You should not need them.

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

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Lotteries

The 2026 Cliff: Why A “Wait and See” Strategy By Any Retailer, Especially a Newsagent, is a Business Killer

This is serious. It’s why I am writing about this again. Another newsagency has just closed. It was old-school, living in the past. The owner’s decisions, or lack thereof, caused the closure, not that they see it that way.

The divide in the Australian newsagency channel is no longer a crack is huge. As we move deeper into 2026, the data from my 2024/2025 benchmark study confirms a brutal reality. Retailers clinging to the “agency” model—relying on lotteries, newspapers, and magazines—are watching their business value evaporate in real-time.

If your revenue is down 10% or 15% year-on-year, you are not experiencing a “slow patch”. You are witnessing the end of a business model that began in the 1800s. The 2026 closures have already started. To ensure your shop is not on that list, you must act with a level of urgency that matches the speed of the market’s decline.

Stop Being an Agent, Start Being a Retailer

The “agency” model is a trap. Whether it is parcel services, bill payments, or transport tickets, you are at the mercy of controlling companies that will always squeeze your margins to maximise their own. You take the risk, you pay the rent, and they take the profit.

The most successful newsagencies I see have made a psychological break from the past. They no longer see themselves as agents. They are independent retailers. They understand that their future lies in high-margin, “want” based categories where they, and they alone, control the retail price and the gross profit.

The Data of Survival

The contrast in performance is stark. While traditional lines are flat or declining, transformed shops are seeing:

  • Gift and Homeware Revenue: Up by triple digits in some locations.
  • Specialist Stationery: Attracting enthusiasts who spend $250 per visit.
  • Collectibles and Toys: Tapping into massive online search trends for brands like Pokémon, Lego, and Hot Wheels.

These shops are not “lucky”. They have used their data to identify what is working and have had the courage to double down on it. If you are not running a Monthly Sales Comparison Report today to see where your quantity sold and dollar value are shifting, you are flying blind toward a cliff.

If You’re Up For It, I Have A 24-Hour Action Plan

Transformation does not require a five-year plan. It requires a 24-hour reset.

  • Purge Dead Weight: If you have stock that has not moved in six months, it is not an asset; it is a liability. It is taking up space that could be used for a high-margin “breakout” category like clothing, books, or high-end plush toys. Discount it by 50% and move it out now.
  • Reclaim Floor Space: Walk to your front door. If the first thing a customer sees is a wall of newspapers or fading magazine posters, you are telling them your business is irrelevant. Move the papers to the back. Clear the windows.
  • Invest in a “Moat”: In 2026, a blog on your own website is your most effective digital marketing tool. Stop posting “generic slop” on social media. Write about your products. Solve a customer’s problem. Build a digital presence that reaches people who will never walk past your physical shopfront.

Take Responsibility 

No marketing group or software provider can “make” you successful. They provide the tools, the data, and the opportunities, but you must be the one to engage. Many entered this industry because of the perceived ease of the traditional model. That ease is gone.

The opportunity for a thriving, valuable, and enjoyable business is still there, but it is reserved for those willing to disrupt themselves. Do not wait for 2027 to wonder where it all went wrong. The time to pivot is not next month. It is today.
…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

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Newsagency management

Adapt or Close: The Urgent Case for the Transformed Newsagency

Yes, here we are again. I’ve written about this before and will likely write about it again. It’s important, and urgent.

The newsagencies most likely to close are those who ignore this advice or advice similar to it. Now, let’s get into it.

The Australian and New Zealand retail landscape is shifting beneath your feet. For the local newsagent, the message from the 2025 data is blunt: the traditional model is failing. We will see more newsagency closures in 2026. Your business does not have to be one of them, but survival now requires a radical departure from “business as usual”.

Data Doesn’t Lie

My recent benchmark study of newsagencies across rural, regional, and suburban locations reveals a widening gap between two types of businesses. The traditional newsagency is in a state of managed decline. Revenue is down 3%, and transaction counts have fallen by 5%. Core categories like magazines and newspapers continue to drop by double digits.

In contrast, transformed newsagencies are thriving. These businesses have seen revenue grow by 9% and average basket value surge by 11%. They are not waiting for foot traffic to return to dying categories. They are actively hunting for growth in areas where customers are actually spending.

Look at your data. Don’t hide it from yourself. Ignorance is not bliss. Let me know if you’d like help: mark@newsxpress.com.au.

Growth is Hiding

While traditional stationery revenue is down, “want” stationery—high-end, collectable items for enthusiasts—is driving transactions of $250 or more. Transformed stores have seen gift revenue jump by 119% and greeting card revenue rise by 8%.

The most successful retailers are no longer bound by their shingle. They are generating substantial annual revenue from non-traditional segments:

  • Trading Cards: Revenue exceeding $100,000 with 30% growth.
  • Books and Homewares: Contributing over $75,000 each to the bottom line.
  • Clothing: Generating $80,000+ in annual sales.
  • Toys and Games: Seeing year-on-year increases of up to 18%.

First Steps: Start With Your Numbers

Transformation is not a matter of guesswork. It begins with financial accountability. You must have a clear picture of your business health right now. Use this checklist to assess your standing:

  • Up-to-date profit and loss statement.
  • Current debtors and creditors reports.
  • A dead stock listing for items with zero sales in six months.
  • Floor map showing gross profit contribution by category versus space allocation.
  • Revenue per rostered hour calculation.

If you have $10,000 in dead stock sitting on your shelves, it is poisoning your cash flow. Clear it immediately. Set up a clearance table, apply a 50% discount, and turn that stagnant inventory into working capital.

Disrupt Your Layout

If your data is not up to scratch but you feel the urgency to move, start on the shop floor. Disrupt your current setup to force a fresh perspective. Take the traditional magazine fixture out of the centre of the shop. Move newspapers to the back.

Remove cold, clinical retail fixtures and replace them with tables or unique items from secondhand marketplaces. Add a rug. Make the space warm and inviting. Stock one or two categories you would never usually consider. This radical approach breaks the cycle of tradition and signals to your customers that something has changed.

Be a Retailer Not an Agent

For too long, newsagents have acted as “agents” for suppliers. It is time to become a retailer again. This means taking control of your store, curating your own product selection, and creating an experience.

The true hurdle is not the cost of investment. It is the decision to leave tradition behind. There is no limit to what you can sell. The future belongs to those who stop living in the past and start engaging with the passionate communities of consumers eager to spend.

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

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Newsagency management

Advice on buying a retail business

When you buy a retail business, any business for that matter, you do so based on the performance of the business.

Do your homework. Satisfy yourself that the sales numbers are the numbers. Cross check against P&L, tax returns and source data from the software. They need to match.

The purchaser of a newsagency recently discovered the hard drive of the main computer reformatted on the day of take over, all historic data lost. No backup.

A good contract of sale for the business should provide adequate protection in this situation. Thorough due diligence prior to purchase should have uncovered possible fraud.

If you are buying a shop, do your homework. Make sure you understand what you are buying, what your dollars are paying for.

Here is an updated list of data I suggest prospective newsagency business purchasers access from the vendor or their representative:

  1. P&L from the accountant for the last two years. i.e. not a spreadsheet created for the purpose.
  2. A list of add-backs used to achieve a profit figure on which the asking price is based.
  3. Tax returns for the same two years. While note always appropriate given business structures, they can provide a cross check with the accountant P&L.
  4. Sales data reports, for the last two years, from the POS software in use – to verify the income claim. This source data is key.
  5. Sales data reports from the lottery terminal to verify the income claim.
  6. BAS forms to confirm data in the P&L.
  7. A list of all inventory in the business including the purchase price and date last sold for each item. And, copies of invoices from which you can randomly select to verify.
  8. A copy of the shop lease.
  9. A copy of any leases the vendor expects you to take on board.
  10. A list of all forward orders placed on behalf of the business.
  11. A list of all employees: name, hourly rate, nature of employment, start date, accrued leave and accrued long service leave.

This is good basic information, a starting point, which will enable any purchaser to undertake reasonable assessment of a business.

My advice to newsagents looking to sell who may be concerned about this list is: think about it now and focus on your business so the data I have listed looks good. The time to prepare your newsagency for sale is every day you are in the business.

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buying a newsagency

Newsagent disinterest in the latest newspaper cover price increase is telling

The recent increase in newspaper cover prices might have once been a significant event for Australian newsagents, but today’s reality tells a different story. While publishers are adjusting prices to manage a “soft landing” amidst declining sales, the impact on the retail frontline is minimal.

Before I get into my thoughts, be sure to read James Manning’s terrific piece at Mumbrella today: 4 cents to 5 dollars in 60 years: As cover prices go up, newsprint’s time is running out

A shift in revenue focus

Historically, newsagents were keen on cover price increases because their income is based on a percentage of the sale price. In the past, when prices remained static while labor, rent, and operational costs rose, the only way to increase revenue was to sell more physical copies. This was always hard. Given the current market, that is not viable at all.

With over-the-counter sales declining by roughly 10% to 12% year-on-year, a price hike is technically welcome, yet its practical effect is negligible. For the average newsagency, the latest price increase likely adds no more than $2 to the weekly bottom line. This small gain does little to offset the rising costs of doing business.

Managing the decline of print

The lack of concern from newsagents regarding these price changes reflects a broader shift in the industry. Like the publishers themselves, newsagents are now focused on managing the steady decline of print media. Many stores have relocated newspapers to the back of the shop, prioritizing more profitable categories for premium floor space.

The current system for managing the supply and return of newspapers is often seen as broken and labor-intensive. Publishers have shown little interest in modernizing these outdated management practices. Consequently, newspapers often fail to “pay their way” when accounting for the space they occupy and the labor required to handle them.

Looking toward the future

The industry has reached a point where a newsagency’s survival depends on its ability to diversify. While newspapers remain a part of the product mix, they are no longer the foundation of a successful business model.

Any newsagent still relying on newspapers as the primary driver for their future growth is facing a difficult path. The real focus today is on evolving the business beyond the traditional print model to ensure long-term sustainability.

How do you manage newspapers today in your newsagency?

Here’s my advice:

  1. Place them in a low-cost location in-store, likely toward the back of the shop.
  2. Don’t participate in publisher promotions.
  3. Don’t promote newspapers on your social media.
  4. Don’t put p promotional posters.
  5. Take newspaper branding off your shop.
  6. When the losses from newspapers are at a concerning level, stop stocking them.

Newspaper publishers don’t care about Aussie newsagents. They will say they do care. Their actions say otherwise.

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Newspapers

Misleading Media Narratives and the Reality of Newsagency Success

The recent ABC Gippsland coverage regarding the closure of the Sale Authorised Newsagency illustrates a persistent issue in modern journalism. When a long-standing business closes its doors, the media often defaults to a eulogy for the industry. However, by focusing almost exclusively on closures, editorial teams ignore the substantial growth occurring elsewhere in the newsagency channel.

But before I get into the broader topic here, the ABC Gippsland story refers to Sale Authorised Newsagency. Australian newsagents lost their Authorisation in 1999/2000. That the business still used the name is a tell, that they were living in the past. The Jethro Trull Living In The Past song comes to mind.

Let us close our eyesOutside their lives go on much fasterOh, we won’t give inWe’ll keep living in the past

The story of the Sale closure is framed as the “end of an era,” yet the owner, Terry Stewart, was clear: he is retiring after 38 years, not fleeing a failing business. Despite this, the reporting leans into the “death of the high street” trope. This reflects a lack of editorial depth. Reporting on a single closure is easy; investigating the successful evolution of the broader industry requires more effort.

A significant tell in the ABC report is Terry’s observation that his stock has not changed much over the years, aside from adding phone accessories. While this worked for his specific circumstances in Sale, it is not representative of the modern channel. In the most successful newsagencies today, those experiencing double-digit growth, up to 80% of the product mix has changed over the last decade.

Forward-thinking newsagents have transitioned away from a reliance on shrinking categories, agent categories. They don’t deliver newspapers and don’t get up at the crack of dawn to open. They have diversified into high-margin giftware, boutique stationery, educational toys, and traffic generating products like mint coins and trading cards. These businesses are thriving, yet they rarely receive the same level of media attention as a shop closing for retirement.

By focusing on the stagnant businesses rather than the innovators, as ABC Gippsland has, the media provides a skewed and inaccurate view of the industry’s health.

Poor reporting often overlooks the immense economic contribution of these businesses. Terry Stewart employed over 1,200 local residents during his tenure. This level of community investment is common across the country, yet it is frequently overshadowed by a focus on digital disruption.

If the media truly wished to report on the state of Australian retail, they would look at the newsagents who are currently breaking sales records through clever diversification and modern retail strategies. Instead, the public is given a narrative of decline that relies on a handful of specific examples of retirement. The newsagency channel is not disappearing; it is evolving. It is time the national broadcaster acknowledged the success stories that define the modern reality of our industry.

I am tired of writing about this.

Successful newsagents are tired of poor reporting like this story from ABC Gippsland.

Our success deserves better coverage.

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

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newsagency of the future

Advice for independent retailers: The power of the retail edit: why less is more for your shop

It is a common frustration for small business retailers. You wonder why a customer missed a clear sign, struggled to find a prominent product, or asked for an item you have never stocked. In retail circles, this is often dismissed as “shopper blindness.” We assume the customer is simply not paying attention.

We blame the customer when it’s our fault.

Most shoppers are not blind; they are overwhelmed. When a retail space is crowded with competing colours, excessive signage, and dense displays, the brain struggles to process the environment. Instead of seeing everything, the customer ends up seeing nothing.

Clarity of message is a competitive advantage. Success comes from a “retail edit.” By removing the clutter, you allow your most important products and messages to stand out.

To begin, stand at the front of your shop and look at it through the eyes of a first-time visitor. Review the mix of signage and displays. If every surface is covered, nothing is a priority. Use these strategies to refine your space:

  • Remove media posters: Avoid using generic magazine or newspaper posters. There is no concrete evidence that these drive sales. They usually serve only to add visual noise.
  • Consolidate housekeeping: Store policies and operational notices should be kept in one unobtrusive location. Do not scatter them across the shop floor.
  • Centralise clearances: If you have discounted items, place them in a single, dedicated clearance area. This keeps the rest of the shop looking premium and focused.
  • Standardise product signs: Maintain a consistent style and font for all in-store signage. Smaller signs placed at eye level near the product are far more effective than large banners hanging from the ceiling. Most shoppers do not look up while navigating an aisle.

Visual harmony reduces the mental effort required to shop. One of the most effective ways to achieve this is through colour blocking. Grouping products by colour makes your shelves look intentional rather than messy. It creates a “quiet” display that is naturally more appealing to the eye.

The service counter deserves special attention. This is your final point of engagement. Edit this area strictly to ensure the focus remains on the transaction and the most critical messages.

Reducing visual noise improves the experience for everyone. Your shoppers will feel more relaxed and find what they need with ease. For your staff, a curated environment makes it easier to maintain standards and stay focused on the business goals that truly matter.

The most effective retail strategy is often the simplest one. By editing your space, you give your customers the clarity they need to buy.

Every time a shopper asks a question that frustrates you because the answer is there for them to see, it is a call to action to reduce the visual noise in your shop.

If you’d like a helpful process for undertaking a visual edit of your shop:

Gemini said

The Visual Edit Checklist

This checklist will help you objectively assess your shop floor. Use it to identify areas where visual noise may be distracting your customers.

The Entry Perspective

  • [ ] Stand at the front entrance. Can you identify the three most important products or messages immediately?

  • [ ] Are there outdated posters, media advertisements or notices cluttering the windows or doors?

  • [ ] Is there a clear, unobstructed path for the shopper’s eye to follow into the store?

Signage and Communication

  • [ ] Are all product signs using a consistent font, colour, and size?

  • [ ] Have you removed “hanging” signs that require shoppers to look at the ceiling?

  • [ ] Are “housekeeping” notices (return policies, trading hours, payment methods) consolidated into one neat area?

  • [ ] Do your signs use a direct call to action rather than lengthy explanations?

Product Merchandising

  • [ ] Are products grouped by colour (colour blocked) to create a clean, organised look?

  • [ ] Is there “white space” on the shelves, or is every centimetre of the shop floor occupied?

  • [ ] Are clearance and sale items confined to one specific zone rather than scattered?

The Point of Sale (Counter)

  • [ ] Is the counter surface clear of non-essential items or miscellaneous “clutter” products?

  • [ ] Does the area behind the counter look organised and professional?

  • [] Is there only one primary message or “add-on” item at the register?

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

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Management tip

The complexities and challenges of balancing digital growth and the future for the local lottery retailer

For context, this post is for newsagents outside of WA with lotteries since the WA situation is very different, more beneficial for retailers.

The Lottery Corporation is moving through a significant period of transformation. Its latest financial reports show more growth digital sales, which now account for 41.8 per cent of total turnover. For the company, the benefit is financial. Digital transactions offer a variable contribution margin of roughly 26.9 per cent, significantly higher than the margins produced through physical stores.

This digital expansion is not just about a website or an app. It is a strategy to capture a younger demographic. Statistics show that over 60 per cent of new customers are under the age of 45. These players value the convenience of mobile play and the ability to set personal spend limits, a feature recently mandated for Keno players to improve long-term sustainability.

For retailers with lottery, lottery products are often a key driver of foot traffic. However, the retail experience is becoming more expensive to maintain.

Retailers currently face rising merchant fees and card payment costs. Retailers pay interchange rates significantly higher than larger corporations. This pressure is compounded by the “store-within-a-store” branding requirements that The Lottery Corporation mandates, which can limit how newsagents use their floor space for other profitable goods.

What retailers need to understand is the financial metrics for TLC.  For every $100 spent, TLC earns roughly $15 EBITDA online compared to $5 in-store. This $10 difference is largely because the company retains the commissions that would otherwise go to a newsagent.

While I get that lottery products are important for retailers, I don’t see upside. Customers are migrating online. The increase in in-store operating costs is not adequately covered by price increases or traffic growth.

I think retailers need to be careful when considering capital investment in lotteries. Don’t get sidetracked by big numbers. It’s important you understand the full cost of the agency business.

In my own situation, I’ve not had lotteries in my newsagencies since 2013. I have more control over my retail space and have more control over my business as a whole. My mental health is better as a result, for sure.

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Lotteries

Driving retail growth through effective blogging in 2026

This is not a marketing pitch. It’s free advice for small business retailers, offered to help you attract more people to your business.

I’ve written it based on my experience as a retailer. Let’s get into it:

In early 2026, Google Search has undergone a paradigm shift that many in the industry are calling the “Age of Authenticity.” It’s a fundamental defence against the flood of AI-generated content that has saturated the web.

This shift by Google is an opportunity for retailers prepared to do the work to build a moat around their business, and attract new customers:

Blog posts are the most effective form of digital marketing for small business retailers. While the rise of AI-generated summaries has led some to believe that website visits are declining, the metric that matters most is conversion. If you sell a product or service, you do not just need traffic; you need customers.

A common mistake in retail blogging is writing content that no one is searching for. Business owners often write about what they feel is important rather than addressing the specific needs of their audience. Conversely, some focus too much on high search volumes. Chasing broad terms is often a losing battle against larger competitors. Instead, focus on niche-specific keywords and purchase-intent searches. These are the queries people make right before they commit to a buy.

These specific keywords are also exactly what large language models search for when generating answers. To ensure your business is the one recommended by AI, you need to provide clear, structured information.

High-impact content templates

You can generate a significant amount of content by using a few simple templates:

  1. Selection guides: Titles like “How to choose the best X for Y” are highly effective. For example, a hobby shop might write about how to choose the best protective sleeves for high-value trading cards.
  2. Cost analysis: Addressing the “Cost of X for Y” allows you to be transparent about pricing. This is your opportunity to explain the value of your offering and why the cheapest option often fails the customer.
  3. Problem-solving: Create guides that solve a specific problem your product addresses. If a customer is searching for a solution, they are already primed to buy the tool that provides it.

Now, I am talking here about authentic content, human generated content, shared real knowledge – not the lazy slop you see on some blogs.

Delivering value

For a blog to be successful, it must deliver on the promise of its headline. The content has to be genuinely helpful to the reader. Furthermore, it must explicitly recommend your brand. Simply showing up in a search result is not enough; the content must lead the reader toward your business.

In the current retail landscape, people rarely browse a blog archives page. They arrive at a specific post because they asked a question on a search engine or an AI platform. By writing direct, high-quality posts, you ensure that both the machines and the customers find exactly what they need at your store.

I follow this advice myself for my businesses, and it works. I’m doin well from the Google shift his year.

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

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Newsagency management

Grow Urban: inspiring retail

Grow Urban (https://growurban.uk/) in Edinburgh is a perfect main street garden centre / gift shop / coffee shop. It’s one of the most inspiring and perfect shops I have visited. I am grateful to have seen it again a couple of days ago while in the UK on a retail study trip with and for newsXpress. I first visited a year ago.

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retail

Generic slop on your social media page does nothing for your business

Too many local newsagents have handed over control of their business social media accounts to their marketing group. These group publishes content on behalf of the business, often resulting in a feed filled with centrally served, generic posts. Slop, to be honest.

It is the kind of material that users scroll past. In many cases, posting nothing would be a better strategy than relying on this filler. When a marketing group promises to manage your social media for you, they are making a poor offer for a local retail business.

Centrally controlled posts often make a newsagency appear out of date or like a dying business. Typically, these posts pitch low-margin products where the newsagent acts as a mere agent rather than a retailer. You have minimal control over these products and earn small fees instead of genuine retail profit.

If you have granted a marketing group access to your accounts, consider disconnecting them. It is time to take control of your digital presence. Your social media should reflect you and your unique local business.

Why local control matters

There are three primary reasons to manage your own social media:

  • Authentic Voice: It preserves your shop’s unique personality and builds a genuine connection with your local community.
  • Agility: You can share timely updates, such as new stock arrivals or spontaneous promotions, without waiting for a third party.
  • Engagement: Managing your own channels allows for direct, knowledgeable interaction with customers, which is more effective and less expensive.

As a local shop, your greatest advantage is your people. Allow customers to connect with the human side of your business. Share photos of your team with short bios to make the business more approachable. Post behind-the-scenes snippets of your daily routine, such as unboxing new orders or setting up displays. With permission, featuring happy customers acts as a powerful real-world testimonial.

You can also strengthen community ties by highlighting the neighbourhood. Mention the cafe next door or share information about local festivals and markets. This positions your newsagency as a helpful community hub.

Instead of constant selling, offer content that adds value. Share expert tips related to your products or answer frequently asked questions about materials and origins. Curated gift guides are also helpful for customers and provide a soft way to showcase your range.

Running a newsagency involves hard work, and time is always limited. However, investing in the public face of your business is essential. Delegating your social media to a distant party is a mistake; it is equivalent to delegating the responsibility for your shop’s success.

Don’t outsource the heartbeat of your business. Generic content is a waste of pixels and suggests a lack of personal investment in your customer relationships. Take control of your social media to ensure your business remains a relevant, vital part of your community.

11 likes
Newspaper marketing

At Spring Fair in Birmingham

Walking the floor at Spring Fair in Birmingham these past few days, I’ve watched as small, independent retailers the hunt for the unique. There is a collective drive to find products that provide genuine differentiation, a sentiment I know is shared by many of us back home in Australia.

My goal here has been to look beyond our own backyard. Often, the best way to find something different is to search where competitors aren’t looking.

However, the shift in the trade show landscape is hard to ignore. Like our local events in Australia, Spring Fair feels smaller. Trade shows no longer hold the singular importance they once did. Suppliers are feeling it too, often lamenting lower attendance numbers while facing the high costs of exhibiting.

Just as the way we sell to our customers has evolved, the way we buy as retailers has fundamentally changed.

One of the most notable shifts is the decline of the traditional sales representative. While some suppliers still believe that having people on the road is the most effective way to pitch to retailers, it is becoming increasingly difficult to justify. Smart suppliers are now leveraging technology to help us manage our buying more efficiently, accurately and quickly, allowing us to transact smarter.

Despite these industry shifts, I am grateful for the opportunity to be here. It has been a productive trip, and I’m looking forward to bringing some terrific new suppliers and unique products back to our side of the world.

Here are some photos, not of products as I am keeping those insights close for now.

Even though this trade show is smaller than it once was, it is bigger than trade shows in Australia, and there is a difference in the mix of products available, and that’s what I visit for.

4 likes
newsagency of the future

Actions speak louder than words when it comes to AI tools for newsagents

There’s some odd commentary being put to newsagents about AI, mainly from people who don’t have anything of practical value to deliver. It’s disappointing, and designed to divert your attention from genuine innovation.

In the Tower newsagency software you can run a report, click a button and get the AI analysis of the report.

Check out this video I did a few days ago with a colleague demonstrating this:

It’s in the Tower newsagency software today. It saves time and helps you see what you may otherwise miss.

Business success has its foundations in your business data. Understanding your data is key to the best next steps you can take.

The AI tools  demonstrated in the video are the latest in what’s now a large package of AI tools that are fundamentally changing how we run our retail businesses. They’re safe to run, easy to access and focussed 100% on helping retailers run more successful businesses.

I’ve shared the video because it offers a real demonstration rather than marketing noise. The it comes to AI that matters. Anyone can write to suggest they have an AI solution, not as many can demonstrate AI tools delivered.

The other big benefit AI tools today are easy import of supplier invoices without needing EDI tools, discovering what you’re missing out on, discovering theft, discovering what’s not working and getting a text summary of the day which for plenty is proving more useful than a traditional report.

AI is fundamentally changing how we run our retail businesses. For competitiveness it’s vital we have good tools that keep up and understand how to use them.

While others theorise about the future, Tower has already built it into the newsagency software newsagents use every day. .

In an era where every percentage point of margin counts, having an AI partner that sifts through the noise to find your next big opportunity isn’t just a luxury; it’s your most significant competitive advantage. Don’t let the distractions hold you back—the future of your newsagency is already here, and it’s waiting for you to hit “play.”

It’s 2026 and we’ve got to move faster and smarter to be successful in our businesses. That’s what this is about.

…
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.

9 likes
Ethics

If you have a website and struggle to create traffic generating content, I have a tip for you

With too many websites loaded with AI slop and this slop being ranked down by AI platforms themselves, now more than ever your voice being represented in your content matters. Here’s a video is a tip I shared a couple of weeks ago with newsXpress members and last week with Tower Systems customers.

This is easy to follow advice that results in content that reads as human written. Since it comes direct from you and with the boundary setting prompt, you can rely on it.

Don’t publish AI slop – it’s soon enough seen for what it is.

5 likes
Newsagency management

When it comes to greeting card sales, are you chasing Retail Efficiency or Retail Volume, or do you even know?

Is more stock actually hurting your bottom line?

The latest analysis of 50 comparable retail locations reveals a fascinating trend: Growth is not about the size of the range, but the efficiency of the “Pocket.”

While many of 125 newsagents for which I have data saw a healthy 10.1% increase in total sales this year, the real story lies in the “Sales per Pocket” metric. Here are 3 key takeaways for any retailer managing high-volume inventory:

  1. The “Sweet Spot” is in the Middle: Mid-sized stores are significantly outperforming larger footprint locations in efficiency. The biggest stores often suffer from a “Long Tail” problem—where the bottom 15% of stock is simply taking up space without earning its keep. Big is not always best.
  2. Everyday Essentials are Powering Growth: While seasonal peaks get all the glory, “Everyday” category sales are up 12.7%. The most successful stores are those using this consistent foot traffic to “trade up” customers into premium tiers.
  3. The Father’s Day Blueprint: In the data is evidence of a massive 24.1% jump in Father’s Day performance in a bunch of stores. Christmas, too, was impressive, with terrific growth in a decent number of stores..

The strategy that’s working:  Focussing on a better yield is delivering results. By rationalising slow-moving lines and replacing them with high-margin trending gifts, we are proving that you can sell more by actually carrying less. Supporting this with local in-store activation is key: competitions that local customers can win, giving customers reasons to consider buying cards when they might otherwise, that visit, not have considered this.

All of this means more focus on card pockets – by you more so than your supplier. You pay for the retail space and the stock so it makes sense that you management investment of your assets.

Success with cards starts with your engagement as the retailer. Be in control. Make decisions based on the data.

Never sign a contract that gives the supplier complete control. Their business needs and your business needs to not align, despite the sales pitch they might give.

The newsagencies achieving results I have covered here don’t have long term lock-in contracts with card suppliers.

What I have covered here in this post is only a small amount from a far more comprehensive report looking at same store card performance in newsagencies for which I have data. I’ve kept it brief so as to not lose your attention and in the hope that you go back into your business, looking at your card results.

…
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.

9 likes
Greeting Cards

My thoughts on embracing change in the Australian newsagency in 2026

Following the release of the latest newsagency sales benchmark study, I did a new short video sharing my thoughts on change opportunities for Aussie newsagents in 2026. Here’s the link: https://youtu.be/uucSE2LNAmo

As I note in the video, the traditional newsagency model is undergoing a significant shift. For decades, these businesses relied on a predictable mix of newspapers, magazines, lotteries and basic stationery. However, recent data confirms that a reliance on these legacy categories is no longer a viable long-term strategy. To thrive in 2026 and beyond, owners must embrace a broader retail identity.

Insights from the 2025 Benchmarking Study

Recent sales data and basket analysis reveal a stark divide between newsagencies. Businesses that continue to operate as they did twenty years ago are facing a difficult future. Conversely, those that have transformed their product mix are seeing double-digit growth. This transformation involves moving beyond the role of a traditional “agent” who handles bill payments or parcel collections for small commissions. Success now stems from becoming a destination for innovative and high-margin retail categories.

The Power of Diversification

The opportunity for growth lies in categories that offer higher gross profit margins. Innovative newsagents are now finding success with products such as high-end homewares, collectible items, trading cards and mint coins. Some have even ventured into clothing, coffee and books.

A notable example of this shift is the introduction of apparel. Five years ago, the idea of a fitting room in a newsagency might have seemed misplaced. Today, many successful stores include them. These items often command gross profit margins of 50% to 65%. Furthermore, these new categories attract a different demographic, bringing fresh foot traffic into the store. It is increasingly common for a customer to enter seeking a basic item and leave having spent significantly more on a high-value gift or unique collectible.

A Flexible Approach to Business

The sign above the door does not need to dictate the inventory inside. Customers are less concerned with the “newsagent” label and more interested in the value and variety of the products offered. Flexibility is the most important tool for a modern business owner.

Transitioning does not require a massive investment in shop fitting. Significant revenue growth can be achieved through a frugal and strategic approach to stock. In one instance, introducing pop culture products and gifts accounted for over 25% of total revenue and 50% of gross profit within three years, all without changing the physical layout of the store.

Moving Forward in 2026

The goal for any newsagency owner today is resilience. While newspapers and magazines still have a place, they must be managed cost-effectively so they do not drain resources. The focus should remain on seeking new opportunities and giving yourself permission to evolve. By looking beyond the historical expectations of the industry, newsagents can build businesses that are not only profitable but also essential to their modern communities.

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

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newsagency of the future

The Evidence is Clear: Transformation Drives Newsagency Growth

Thank you to the diverse group of newsagents across rural, regional, and suburban locations who participated in this latest benchmark study by providing their sales data. This contribution, facilitated by Tower Systems newsagency software, provides an invaluable look into the current state of our industry.

The results reveal a stark contrast between businesses maintaining a traditional model and those that have embraced transformation.

Benchmarking the Results: Traditional vs. Transformed

Metric Traditional Newsagencies Transformed Newsagencies
Revenue Down 3% Up 9%
Transaction Count Down 5% Down 4%
Average Basket Value Down 1% Up 11%
Gift Revenue Down 3% Up 119%
Greeting Card Revenue Down 4% Up 8%
Stationery Revenue Down 4% Up 5%
Counter Impulse Sales Down 12% Up 20%
Online Revenue $0 Typically $75,000+ annually
Magazine Unit Sales Down 7% Down 7%
Newspaper Unit Sales Down 12% Down 8%

What’s not covered in this is niche category detail in a range of businesses. here are some examples:

  • Books. Three shops providing data had book revenue of more than $85,000 for the year and each was up 18% on the previous year.
  • Homewares. Two of the shops had homewares revenue of more than $75,000 for homewares and each was up 20% on the previous year.
  • Clothing. Three of the shops had clothing revenue of more than $80,000 and each was up 30% on the previous year.
  • Trading cards. Nine of the shops had trading card (Pokemon, basketball etc) revenue of more than $100,000 and each was up 30% on the previous year.
  • Plush. Four of the businesses had plush as a breakout category. Two showing growth of 25% had revenue for plush at more than $60,000 for the year and two that had plush at $15,000 or thereabouts had plush growth at 5%.

The other note I’d make at the category level relates to stationery. There is stationery and then there is stationery. Stationery people need versus stationery people want. This second component of stationery is high-end, good-margin, harder to find stationery for stationery collectors and lovers. This type of shopper, in a shop with stationery they love, will spend $250.00 a visit and more. They are a valuable shopper. Traditional newsagency stationery suppliers done;t offer product for this shopper.

Breaking the Cycle of Tradition

This is a perfect headline, because the future relies on newsagents breaking the cycle of tradition.

These figures above highlight fundamental differences in product offerings, pricing strategies, customer demographics, and overall business approach. While traditional categories like magazines and newspapers continue to decline across the board, transformed newsagencies are leveraging new opportunities to drive significant growth.

Interestingly, transformed businesses are even outperforming traditional ones within core categories like greeting cards and stationery. This success is not the result of increased supplier support or adherence to traditional product demands. Instead, it stems from a more dynamic business environment, a positive in-store atmosphere, and a broader customer base.

Diverse Revenue Streams

As already noted, beyond the standard metrics, we are seeing newsagencies generate substantial revenue from non-traditional segments. It is not uncommon to see businesses approaching $100,000 in annual revenue from:

  • Coffee and related products

  • Clothing

  • High-end collectibles

While inconsistent categorisation makes broad benchmarking for these segments difficult, the trend is undeniable: moving away from the traditional model is both profitable and vital for survival.

There is no limit as to what you can sell in your newsagency. The key is to not be bound by your shingle.

Our channel has dinosaur leaders who think the future is in agency business like parcels and bill payment or connected to odd-branded chocolate. As Jethro Tull sings they’re living in the past.

The Challenge of Change

Transforming a business is hard work. While many cite concerns over cost, in my experience, the financial investment is often not the greatest hurdle. The true challenge lies in making the decision to leave tradition behind.

Many entered this industry because of the perceived ease of the traditional newsagency model. However, traditional suppliers would now benefit from actively supporting newsagents as they diversify beyond the traditional shingle. The data proves that for those willing to act, the opportunity for a thriving, valuable business is there for the taking.

Need help?

If you want to change the trajectory of your retail newsagency, yes, you can. You’re not restricted by a shingle. There are plenty in the channel who can help. be careful though. Make sure that advice you get relates to your business, that it’s based on your data and your situation.

We will see more newsagency closures in 2026. Yours does not have to be one of them.

…
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.

15 likes
Newsagency benchmark

The Widening Divide in Australian Newsagencies

In the decades I have worked with newsagents across Australia, I have seen many changes. However, I have never seen such a significant gap between successful newsagencies and those that are failing as I am seeing now in January 2026. This divide is not a matter of luck; it is a direct result of the business models and mindsets being employed by owners today.

I have been in this industry for a long time. I started Tower Systems in February 1981 to develop newsagency software, which is now used by nearly 1,900 businesses nationwide. While I sold the company in 2024, I remain active in the business. I also bought my first newsagency in 1996 and have been involved with newsXpress since 2005. Through these roles, I have seen the industry from the perspective of a supplier, a marketing group director, and a retail owner.

A Tale of Two Performances

As I review the benchmark data comparing 2025 performance to 2024, the contrast is stark. On one side, there are businesses enjoying double-digit growth. These newsagencies are focusing on high-margin categories where they achieve more than 50% gross profit. They are thriving in terms of revenue, gross profit, and bottom-line net profit.

On the other side, I see businesses down by 10%, 12%, or even 15% year-on-year. These are typically traditional newsagencies focused almost exclusively on low-margin “agency” lines: lotteries, newspapers, magazines, and greeting cards. This traditional model is dying.

The Danger of the Agency Model

The agency business model, where you take a small commission on a product or service controlled by someone else, has no upside. Whether it is parcel services, bill payments, transport tickets, or lotteries, the controlling companies will always keep your margins as slim as possible to maximise their own profits.

Lotteries can be a good foot-traffic driver, but that value diminishes as more customers move to online platforms. As a retailer, you will always make more money on products where you have control. For example, if you sell unique gift items, you set the retail price and achieve a healthy gross profit. This is the shift from being an agent to being a true retailer.

Mindset and Responsibility

The difference between the two groups I mention here often comes down to the person behind the counter. Successful newsagents tend to be forward-thinking and willing to take calculated risks. They make decisions based on broader retail trends rather than just what they see within our specific channel.

In contrast, declining businesses are often run by individuals who are doing the bare minimum. They may feel stuck in the business or expect someone else to solve their problems for them. Our industry began in the 1800s as a network of agents, but some have not yet realised that they must evolve into innovative retailers to survive.

Moving Forward

No marketing group can “make” you successful. A good group will provide opportunities, data, and unique products that offer better margins and area exclusivity. However, the owner must be the one to engage with those ideas as their capacity allows.

If your business has not seen growth this year, it is likely because of the decisions you have made rather than external factors. Your success is your responsibility, as is your failure.

The good news is that it is not too late. I have seen newsagents completely turn their businesses around in just a few months. The first step is acknowledging that the old way of doing business is no longer viable and taking proactive steps toward becoming a modern, independent retailer.

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

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