The latest newsagent sales benchmark study indicates that magazine unit sales in newsagencies dipped 5.5% in December 2010 compared to sales for December 2009. This decline is on the back of an even more significant decline in 2009 over 2008.
Special Interest, Craft and Hobbies, Adult, Computers and Women’s Weeklies were the main categories contributing to the decline.
Comparing the sales data for December with October through December, suggests a slowdown in December for magazine sales. The quarter long numbers are better.
While sales are declining, the accounts newsagents pay to magazine distributors are not. I have seen some newsagents paying more than 10% more for magazine stock now than compares to a year ago. This comparison is a total supply cost so it allows for the shifting of NDD titles to Network. Cover prices are not up 10% across the board.
If anything, there should have been a decline in magazine invoices, given the decline in sales. That is, as long as the magazine distributors do supply based on sales. There is evidence which indicates that they do not supply based on sales or an expectation of reasonable sales.
The benchmark data is from a group of more than 100 newsagencies with accurate business sales data. I’d love to see data for supermarkets and petrol and convenience for the same period.
I’ll have a more complete assessment of the sales benchmark data in a few days.