Here is the second installment of tough decisions for newsagents which I covered in my presentation to the ANF Conference yesterday. Here are the store level tough decisions for newsagents as I see them.
Allocate space based on financial return. This may seem logical. It does not happen in newsagencies. Stores are often laid out by retail designers who have not been shown financial data to determine allocation.
Quit declining products before they hurt. Newsagents hang onto stock long after it is useful They need to quit old stock early.
Adding categories which fit your demographic. Newsagents need to forget the rules and play outside the square, chasing new opportunities which connect with their businesses.
Get serious about business. This is business after all. A newsagency is not a retirement fund. It is not a place to hibernate once you are made redundant. It is business and ought to be treated as such.
While the points in part 1 are bigger picture and have greater ramifications, these store level challenges are also important for newsagents.
Take the issue of allocating space on financial return. We get it wrong so often and allocate space because it is how it has always been. We get it wrong so many times.
Mark (1) You are right about non-sensical space allocation and (2) the sad fact is it does not apply only to newsagents but most SME retailers. We teach space allocation basis on contribution to GM$, but it is important to also remember there is a qualitative overlay: you must also consider your overall proposition.What kind of store are you? What product categories do the customers expect you to have etc. There is also obviously the need to introduce new (unproven) categories from time to time. Then of course some product categories are less space intensive (small size but high margin) and they don’t require proportionate space. And finally, you are so right about stores being designed by designers or shopfitters – very few of whom know anything about retailing.