Opportunity knocks for newsagents

Using habit based products to replace falling newspaper and magazine traffic in newsagencies.

Newspapers and magazines are less important to newsagents than ten years ago. Since they are available in more high traffic outlets and with sales flat and, in some cases, falling, they are not the traffic promise they used to be. Few newsagents have addressed this fall in traffic.

One answer newsagents could consider is habit based product categories. That is, products which bring people back for more. In our store we have focused on Art Supplies for two years. It has a healthy GP and builds a loyal habit based following.

I like Art Supplies because they fit with our traditional mix of stationery and craft products. Also, we sell art magazines and if you put the two next to each other both benefit. Newsagents can buy their Art Supplies from their usual wholesaler or an Art Supplies specialist like Mega Shed – his is what we do.

There are other habit based categories newsagents could consider to build GP and lock in loyalty as traffic from other categories falls. These include:

Second hand books – out of left field but think about it, people buy / rent these because they are avid readers. This means they will, come back and back. The key would be to do it right and not bring your shop down.

Puzzles and jigsaws – these fit with crossword magazines; scrapbook products. Some newsagents do well in this space.

Ink and toner – sits with stationery. Again, some newsagents are doing well in this space.

Collectibles – say, small bears which you collect over a year.

These are just a few ideas in the habit based area. Our experiment with free WiFi is another example of what could be habit based – depending on those who use it.

Newsagents must start to evolve their retail businesses to address changing consumer habits. This is a wonderful opportunity to embrace change. Habit based products are a good fit. The challenges are to bring in good GP product and to do this in such a way as to not shock existing customers yet to ensure that new prospects are attracted.