I have been contemplating the future of newsagencies in the context of the GEC (Global Economic Crisis) ahead of my speech today to the Queensland Newsagents State Conference. I’ve been reading plenty about the GEC and the likely impact on businesses like ours, about how retailers traded through the Great Depression and other tough economic cycles.
I am optimistic. If we are smart, newsagents have a bright future. The GEC is an opportunity for us, an opportunity to celebrate being small, local (Australian) and flexible.
- Being small. Smart newsagents will exploit the opportunity by making quick decisions big businesses are slow (too big) to make. Decisions like changing range, price and positioning.
- Being local. Smart newsagents will promote their Australianness and the convenience of their location – and do so in the wake of non-locally connected bigger retailers. Newsagencies are in every town yet we do not promote that our excellent geographic positioning saves fuel and time through convenient shopping.
- Being flexible. Smart newsagents will take their businesses from being newsagencies to being – convenience stores, gift shops, stationery retailers, cafes. They will play with the model in pursuit of what is right for their local situation. Most of all, they will reduce the space allocation for products over which they have no control.
Of course, if we do nothing then we become spectators of the passing opportunity.
We will get more from our businesses if we engage and participate in the GEC.
We have embraced the downturn as a means of giving ourselves a kick in the pants as far as looking at our product mix and shop layout that in the good times we took for granted.
So far this year our sales are down 3% but we have had to work hard to keep it this low, we have reorganised ourselves as far as products and services we offer so our costs are at a minimum and our profits are maximised and I think that this may not of happened if the so called GEC had not happened.
We hope that when people get over the fear factor and start spending again that we will be in a strong position to capture the $$$.
Shop owners should be looking at the positives at this time in reduced competition as the not so good operators are thinning out and the good operators are holding their own. I’m sorry if businesses are going to the wall but once it turns around their will be increaswed markets for those left standing and I plan to be one of them.
Our town has 8 newsagencies and at present 3 are up for sale or closing down, to me this is an positive as those that remain will capture increased $$$.
“Participate” in the GEC? You mean like contributing to unemployment by sacking employees in the interests of “efficiency” and “technological progress”?
Mark, no. Read the post again. It is about getting closer to your customers and exploiting that for business growth.
I do not know of any employer that would sack an employee that was making them money, only the ones that are just there to collect a wage and think it is their right to have a job even thought he business is not making any money.
If employees want to have job security then maybe they should make themselves indispensible and generate profits instead of just showing up. I say this from an employer that will not be letting any of my people go as they are helping our business combat this down turn and are putting in the hard yards, and yes we are paying above award wages for these people.
Mark Delport and potentially others,
It’s Labor that is contributing to the unemployment – raising award wages for small businesses when there is an economic crisis.
Have you stopped to ask why small businesses are actually letting go of staff? Try to put yourself in the small business owner’s shoe for a second. Why would you sack an unproductive and rude employee? Why would you sack a lazy and constantly late employee? The one “company” that can afford to keep these “employees” is Centrelink.
In this economic downturn, good, hard working staff is exactly what you need. They understand that the pay they receive at the end of the week is earnt through helping the business survive. So why would any employer sack these people? Read the blog again.
Blame the media for scaring people! Im sick of them over blowing everything, honestly if they didn’t infect everyone with the GEC Flu we would still be spending!