I have commented here in the past about the Sensis (Telstra) owned Trading Post and falling sales. It seems that no matter what promotions are built around the product, sales are flat at best (in some outlets) and falling significantly (in others). in The real numbers behind the Sensis hype published at crikey.com.au, Mike Houghton provides some analysis of the Trading Post situation including this:
The re-branding of Trading Post nationally has failed to grow circulation. If the decline in circulation continues, the entire Trading Post business model could implode requiring a massive restructuring of the business and forcing Sensis to admit it paid too much and potentially forcing a revaluation.
2004-2006 Trading Post sales:
Sydney 65 to 43
Melbourne 95 to 68
Brisbane 65 to 45
Adelaide 35 to 27
It seems to me that the Trading Post newspaper is crucial to keeping their brand top of mind as they focus most of their attention into building their online model. While that may be appropriate for Sensis, it does not respect the investment by newsagents in real-estate and time propping in a stagnant or even decaying retail product. There will be a tipping point with sales where just to keep the product in store newsagents will need to receive some form of retail display allowance since it would not make sense to provide real-estate and labour when you’re not making enough gross profit to cover your costs.