Retail outlets are important to newspaper publishers here in Australia. It is disappointing to see Fairfax today trying to switch people from retail purchase to home delivery using an ad stuck on the front of The Age newspaper. I’d prefer to see them invest in increasing retail sales like News Limited is doing with their mX coupon promotion this week.
It’s another example of the Publisher changing their strategy in order to survive, and once again it is at our expense!
Yes. I tried to remove one and ti damaged the paper. Ugh!
Vaughan, if the publisher is changing this strategy to survive, is it better they don’t change and don’t survive? What do you think they should do instead that won’t hurt newsagents? Or what should newsagents do? I am like many people who once visited a newsagent several times a week, but now can’t remember the last time I did.
John, While publishers must do everything possible to support their shareholders, they need retail sales as part of their mix, they need retail newsagents.
Newsagents need to build businesses which rely less on newspapers.
Newsagents need to question whether they need a contract with publishers in the future. We we are breaking up we ought to control the timing and terms.
John;
Publishers need to communicate more openly with newsagents instead of blatantly targeting customers that already shop in the retail newsagent. The publishers need newsagents, just as we rely on them for foot traffic and dollars.
Having said that, newsagents need to diversify their businesses away from the traditional mix of newspapers and magazines and focus on more on higher margin products. There are still many newsagents that are VERY reliant on revenue from newspapers and magazines.
Also, I think your comment regarding you not visiting a newsagent for a long time shows how much newsagents need to change. (I will presume you just purchased a paper)
If newsagents were to offer you a much more diverse range of products, along with exceptional customer service, would you come back?
Vaughan, I used to buy both newspapers and magazines from newsagents. I rarely buy a newspaper now, mostly just read the online versions. Much more convenient. I also rarely buy magazines because the information is out of date by the time I get it. By reading online I get it as it happens. Why would I buy a Cycling magazine in two months time to read about the Giro d’Italia when it is happening right now?
John;
Unfortunately for me your argument is solid and it is a view shared by many.
The challenge for businesses like mine and newsagents as a whole is adopting the business model to embrace this change.
Less reliance on newspapers and magazines and more focus on products that deliver margin.
Focus on products which are habit based (repeat business), attract new customers and which provide equitable margin opportunities.
It’s up to us.