Customers are buying less folded wrapping paper and more bags for packaging gifts. When I first heard of this trend from a supplier a year ago I was surprised because I was not seeing it in sales data. Then, I realised that all the sales data I see comes from newsagencies where until very recently, bags were rarely ranged.
Sales data from a small sample of stores for a year and a half to December 2006 shows, at best, no growth in folded wrapping paper sales and, most commonly, declining sales. With retail real estate expensive and increasing by between 5% and 7% a year, this decline is most unhelpful to newsagent. Suppliers, too, are not served well by the decline.
We have three metres of wrapping paper in my newsagency. Without reducing that and in response to feedback from our supplier and our sales data, late last year we added three metres of bags.
While I would have preferred to locate the bags next to the wrap to demonstrate a wide packaging choice, locating them at the front of our card-shop-within-a-shop is working well. This is in part due to it being close to our seasonal displays.
The next step will be to consider a reduction in the folded wrapping paper space allocation.
Newsagents need to look very carefully at their sales data and discuss this with their wrap suppliers. There is no point in ranging product which is not delivering an economically viable return.
hello. i am researching for a unit of coursework i am completing as part of my alevels. I have read your report and find it very relevant, I am just wondering, were the statistics and sources for this information can be found?
If you could help me, I’d be very greatful.
Many thanks
Emma Mulcrow
The stats come from a group of newsagents using software from my software company – Tower Systems.