More NSW newsagents are expressing their frustration at being told they must supply News Ltd newspapers to Gloria Jeans outlets no matter how close they may be to the newsagency.
I cannot see the sense in News putting newspapers into an outlet so close to the newsagency. There is good data demonstrating that newsagency sales are lost to the new outlet – financially hurting the newsagent – and that the new outlet usually only achieves limited incremental sales.
Newsagents actively promote News product with in store displays and over the counter offers. Gloria Jeans will not do this. They are like the petrol and convenience outlets – newspapers play second fiddle to their main game. The cost to newsagents is greater than the benefit to Gloria Jeans and News Ltd.
I understand that such a move may be important in supporting a national advertiser (Gloria jeans) hwoever, burning a long serving and successful retail channel is a high cost strategy.