Many newsagents still do not have a gift department in their businesses even though gifts is one of the strongest performers in the sales benchmark studies.
Gifts usually deliver a better margin, drive good impulse business from existing customers and attract new traffic.
I know of newsagencies where the gift department is the defining point of difference department for the business – financially and in terms of Yes, the opportunity is considerable.
When I see a newsagency without a gift department and ask why, the most common answer is … I don’t know where to start. Here are some tips on how to start with gifts in your newsagency…
- Carefully assess your greeting card sales. Many cards are purchased for occasions at which a gift would be given. If you are particularly strong in a certain gift occasion then consider this as an ideal starting point of establishing your gift department.
- Consider joining the AGHA (Gift and Homewares Association). For a small fee, membership gets you access to an excellent database of suppliers.
- Look at gift shops nearby, take note of what appears to be working and not.
- Establish space within your store. This needs to be near the card department and near high traffic.
- Go to Gift Fairs. Don’t buy unless you have a plan. Spend at least the first visit looking carefully at what is around.
There is no doubt that creating a gift department has its challenges. It is a significant step away from the protected world of sale or return retailing. You need to be prepared to back yourself.
I have seen newsagents take a couple of years to access a reasonable return. Others have been successful almost immediately. It all depends on the work you put in prior to making your move and the extent of your investment.
Gifts present an excellent growth opportunity for newsagents and a good use of space reclaimed from older categories. Gifts also fit well with the consumer perception of the traditional Australian newsagency.
Hi Mark,
We were one that made the move to gifts in a decent way 2 years ago and have not looked back – they now account for over 10% of our general sales and are increasing…
We initially started with a price point of no more than $20, and have nor got 3 main retail price points up to $20, up to $40 and $60plus..
We find the chrun rate of our under $20 is at least 10 times per year, whilst our higher price points, move, but slower.
We have identified a gap in our gifts which we have not been able to source and are unsure who to close.
We are in an elderly area, and have not really gone into ‘kids’ gifts – toys… As we dont have children we do not know where to start and what to stock? Any ideas would be great…
Cheers
Peter
may I recommend the range of ABC Kids program products. Spot the dog, Pengu and Big Ted etc. they sell well at a premium price point. The old classics like Trouble, monopoly and twister as well as nerf products are great as well.
@peter
if you don’t mind me asking, what are some samples of gift lines did you stock? we are also in an elderly area and recently moved things around the store and now finally, we have 1 whole area we can dedicate to gifts.
we just have no idea to start. Are there gift suppliers that offer sale/return?
thanks.
We moved into gifts just over 2 years ago.
We are in a shopping centre with lots of competition around us but we have successfully created a very profitable department (calendar year just gone we were a shade under $130k for the 12 months).
It is hard work, but it is great to have the control and reap the rewards.
Its also amazing to see what sells, you have to keep an open mind when buying and simply just try things, some work some don’t.
One of the other most important points is that you have to keep you offering fresh and at times that means quitting stock at cost or below cost just to get new lines in.
Jump in, it’s been the real hero in our business over the last couple of years
Rowan – thanks for the thoughts – what about toys?
ED – we were initially hesitant and tried a few lines, we did not over order and just had 1 -2 things of many things until we found out what sold…
For us Shelf Sitters have been a real hit (vegtables and others) – they are reasonably priced and the oldies love them…
Mozaic Lizzards and Gehcos (we have sold hundreds, Perfume Bottles, Sail Boats, Pill Boxes, Bag Holders, Key Rings, Little Jwewlery Boxes to name a few…
Some of the more expensive items have been bowls, plates etc…
Key suppliers we have dealt with are Malmar, Gibson and Want…
Would suggest you go to one of the gift fairs and have a look and dabble a little… If you know your customers its easier, however we also asked outr customers the type of things they would like…
If you like you can give me a buzz and I explain in a bit more detail 0407 077721
Cheers
Peter
ED go back to my original post. There are good ideas in there for you. The best gift department rises from your business and not from what others do in theirs.
The best advice I have is DON”T buy SOLELY based on your taste. We have found gifts that we would not buy ourselves have walked out while others that we thought were great have had to be moved at around cost.
Lookat your local area and establish a few guides. The following will effect what sells. Is it a rural, outer suburban or inner city location. What is the ethenticity of residents (this can be very important as you need to provide for tastes other than your own).
I’d also suggest starting with a supplier that has a broad range of product such as Gibsons. Larger suppliers may even agree to assist in fine tuning your range until you find what moves. Gifts are normally firm sale but you may be able to come to an arrangement with some suppliers to swap stock for a period of time, its worth asking the question.