While I am all for competition, it is frustrating to have another outlet in my shopping mall about to sell The Age newspaper. There are already five outlets in the mall with The Age, spread evenly throughout. The new outlet, Starbucks, will probably not increase newspapers sold in the centre. Indeed, given the browse opportunity while drinking coffee one could reasonably expect sales in our outlet and other outlets to fall.
Fueling my frustration is that Starbucks sells the newspapers for 50% off the cover price. I cannot see how this enhances consumer perception of The Age brand.
While my newsagency outlet actively supports all newspaper brands including The Age and energetically embraces each promotional opportunity, Starbucks will support their brand above other products and be quite passive in promoting the newspaper brand.
In my newsagency and others like mine, the key brand we identify with is the newspapers we sell. At Starbucks it’s a reversed relationship. This is a small add on to them and disappointing to businesses like mine which have been long term supporters of newspapers.
I would like to think that there will be an analysis of newspaper sales in our shopping mall three months after Starbucks opens tomorrow with disclosure back to us as the main newspaper retailer as to the impact of the Starbucks relationship.