Some newspaper publishers in Australia are aggressively pursuing petrol and coffee outlets as part of their retail strategy, to the detriment of their relationships with newsagents. This is a mistake and this past weekend is perfect evidence of this.
Buying coffee is a leisure activity. It’s discretionary. Depending on the queue, I can satisfy my interest in news by browsing the newspapers as I wait. No purchase necessary. Also, since I am on the go, I’m less likely to buy a newspaper to juggle with the coffee.
Buying petrol makes me grumpy with the prices rising and falling as a mark of how far the oil companies think they can dupe the government. (Not a big challenge based on pre-Easter prices.) I’m not happy by the time I get inside to pay and face a long line of people who are usually paying with a card and therefore further delaying me. Newspapers are more often than not near this line and there is no push for me to consider the purchase – they prefer to push, push and push candy.
In a newsagency I’m in the purpose built retail space for newspapers. The newspapers are better displayed. Newsagents actively engage with in-store promotions. The overall environment is more conducive to supporting newspapers. Take this past Saturday for example. Thanks to the $21 million super draw newsagencies had more of a carnival atmosphere. There were plenty of happy shoppers thanks to the possibility of them winning $21 million. This happy demeanor means they spend more and newspapers are one category to benefit.
Newspaper publishers ought to try harder to re-connect with newsagents. They have a better opportunity for growth from their existing partners than trying to create a new relationship with more demanding corporates like petrol and coffee chains.