If what I have seen is the case across the country, shopping malls here in Germany usually have just one newsagency. The store in the photo was no more than 60 square metres. The products offered are: magazines (between 700 and 800 titles), Lotto, tobacco products, drinks and not much else.
The cornerstone of the magazine model is range. Two, sometimes three, copies of a title. Very few titles in volume to flat stack.
Talking to the retailers they see their value proposition as range of magazines and being local (convenient).
It is terrific having an opportunity to see these stores up close and to chat to owners or managers (where they speak English). Seeing how a sister channel operates in other countries is part of essential research to navigating our own future.
Footnote. In the mall where I took this photo, I could not find a single greeting card retailer. Some retailers had a spinner of cards, but not the range we see in many stores in each Australian shopping mall.
Very interesting that they don’t have card shops or newsagencies with big card ranges over there. One of my card co. reps is from Germany and he said the two main types of retailers who have large ranges of cards are department stores and supermarkets – and apparently cards are very popular over there. He said its been like that forever, so its just interesting that they are so different to us. It makes me think that we’ve been lucky to have shops like ours in the past, but the future is changing before our eyes.
how do they survive with only selling lotto and mags. they must pay cheaper rent than here???
Margins , Eric, Margins
How do they survive? Zey haf vays of safiffing.