My New Idea supply has been cut by 25% without warning. The new supply quantity is less than I sell on a usual week. We will be sold out from early morning today leaving us five days without New Idea on the shelves. Our return rate from the last 12 issues has averaged just under 20% so I can understand a supply adjustment of, say, 10%.
If newsagents are as important as Pacific Magazines claim, they would not use a supply model which inflicts such a supply cut. The more appropriate approach would be to advise us of a planned cut of no more than 10% and to allow discussion. I could point to last week when the Brad Pitt Angelina Jolie baby edition sold out on the back of 10% more stock. Had they asked my opinion I would have also advised that they delay any cut until after school holidays as we traditionally sell out at those times. School Holidays started two days ago.
Elsewhere in my shopping centre the supermarket shelves are loaded high with New Idea. Customers who cannot get their fix from my shop with go there and maybe I will lose some for good.
It is decisions like this which are killing the newsagency channel in Australia. The New Idea decision is starving my business of vital oxygen this week.
UPDATE (11am): Pacific Magazines responded quickly and delivered enough New Idea stock today to see the week out. They are researching the initial supply cut. I’m happy to have the stock on the shelves.