Last week I blogged about the growth in home delivery business consolidation in Victoria. This week there has been a spike in activity in New South Wales and Queensland. I’ve fielded eight calls in three days from newsagents wanting to talk about the implications of selling their territory and retaining their retail business.
It is a challenge running a home delivery, wholesale and retail business all in one. My own experience is that selling home delivery and wholesale focuses the mind in a very profitable way. Yes there are risks but they are less, in my view, that if you retain all three businesses in one. I know from the delivery side that delivery only specialists say the same thing – by eliminating retail from their businesses they reap better rewards from focusing only on distribution.
The experience in Victoria over the last three years will help newsagents in NSW and QLD.
Mark, Do you have any idea how many agents in Victoria have sold off their territory to go retail only, in say the last 12 months….and vice-versa? Are we talking single figures or a significant number?