How to beat Officeworks, Target, Big W and K Mart at back to school

Back to school season, when parents buy books and stationery required for the school year ahead, used to be owned by newsagents. For decades newsagents served schools well, locking in booklist orders months before the end of the school year.

While some newsagents are successful in the back to school space, the majority are not, having given over the space to Officeworks, Target, Big W, K Mart and others. These national retailers have made the back to school season enjoyable – have you see Target’s funny at on TV at the moment? It’s excellent. They are clever at making shopping this them seem like fun and low-cost.

It does not matter whether it is not fun, or the products are not the same quality in a newsagency, the service not as good or the ultimate price no better. What matters is the perception created which draws people to the major retailers.

Newsagents have not done any significant positional advertising. I’m not about to go into why here – that’s more a political discussion for another time.

While marketing groups such as newsXpress and Newspower have good marketing around back to school and some of their members are among the best in the category, channel-wide, we are losing at back to school.

What we have is what we have right now: excellent back to school business for some newsagents, good business for others and poor and falling business (in terms of return) for the majority.

It’s my view that newsagents can build a stronger back to school business by leveraging our strengths rather than pandering to our weaknesses.

We can’t compete with Officeworks, Target, Big W or K Mart so why try? No one makes money out of 5 cent exercise books. We can’t cope with pallet loads of stock on the floor of our newsagencies to create the theatre of the deal.

We can compete on local knowledge, local contacts and local speed. This is where we start to rebuild our back to school stationery and school books business – by acting locally. Not just a few of us as happens now, but a sizeable chunk of the newsagent network.

By being business-like and making local connections at schools, clubs and other groups, we can built loyalty which transcends the major retailers. Local residents will want to support local businesses which support them. There is where our local knowledge and speed of response can play to our favour.

Our best opportunity for back to school 2009 is to start playing the local card now, at the start of 2008. Be unashamedly local in making contacts. Turn it into a valuable transaction. Show the parent groups, community service clubs, schools and any other local group that your local business is in business for the local community. Along the way, be clear in comparing your local business with the Officeworks, Target, Big W or K Mart which ships profits out of the community.

Most important is local speed, coupled with knowledge. What are the needs of teachers and students locally which are not being met by the majors. Ask the question – you may unlock an opportunity the major retailers are too big or too slow to discover for themselves.

The model of the national retailer does not respect local needs – this is your opportunity!

If your prices are within sight of the majors, it is your local connection and service which could be the difference.

Back to school is a season newsagents can reclaim by thinking and acting locally. All it takes is for us to be committed.