Further to my posts here last week about the new newsagency at Watergardens in which I am involved, aspects of that new business owe their inspiration to learnings from the Sophie Randall model which we launched seven months ago. Sophie, even though a card and gift shop (no newspapers, magazines, lotteries, stationery), has provided excellent learnings about card and gift buying, learnings which can apply to newsagencies as they are reinvented.
We are even applying some Sophie learnings in our newsagency which is in the same centre – on a different level. We are also sharing the learnings with newsXpress members.
Now, more than ever, newsagents need to experiment outside their comfort zone. This experimentation needs to pursue better margin and greater control – to replace fixed margin product which will fade from the newsagency mix over time(lotteries, newspapers, magazines) and to balance the newsagency business away from supplier domination as has been the case in the past.
These are strategic moves which will provide for a bright future.
Our next Sophie location will be Epping Plaza followed by Melbourne Central.
“Now, more than ever, newsagents need to experiment outside their comfort zone. This experimentation needs to pursue better margin and greater control – to replace fixed margin product which will fade from the newsagency mix over time(lotteries, newspapers, magazines) and to balance the newsagency business away from supplier domination as has been the case in the past.”
In just one paragraph you have managed to sum up the challenge that all newsagents face with our fixed price reducing profit products. Change must come or the future for those that stick with the formula of the past will not be good.
The UK has lost well over 10,000 old formula newsagent shops in the past 15 years and if that is not enough evidence….
Steve