This photo is of an inner suburban shop occupied by a newsagency until a couple of weeks ago. As a newsagency it covered the basics: lottery products, magazines, newspapers, cards and stationery. The business stood for nothing special. It did nothing to stop people shopping at card, gift, Officeworks and lotto shops within walking distance.
The business closed because the owner did not create and run a business which demanded attention from those nearby.
As a result of the closure, people living in this inner city residential area will have to walk fifteen to twenty minutes more to buy a paper or a magazine – or they can walk five minutes to a petrol outlet and get most of what they need.
What could the owner of this business have done to stay open?
They could have been a retailer, offering a point of difference relevant to the local shoppers. In this particular community there are many pet owners but not a pet shop in easy walking distance. The newsagency could have become part pet shop and this alone would have significantly broadened the appeal of the business.
But they did nothing.
Within the traditional newsagency framework they could have offered a broader range of gifts serving the interest of local.
But they did nothing.
They could have offered a stationery delivery service to the many businesses nearby.
But they did nothing.
Any newsagent operating a business which is completely traditional in approach has no future.
Now more than ever you need to be energetically engaged in chasing your own newsagency of the future – otherwise you end up like this business.
Newsagents need to own their situation, as every business owner must. This means managing the business for success rather than guiding its failure through inaction.
While the newsagent who owned this business did close it in an orderly fashion, closure need not have been the outcome – if they applied the same methodical approach the took survival as they did to the closure.
If you think this post is talking down the newsagency channel it is not. This post is a call for newsagents to fight for their future, to make their own success and to note that this starts with you owning your own situation.
I have gifts & toys and a good stationary range but its hard to get customers through the door. I looked at Officesmart but was told the customers use the GNS web site to order and we seem forgotten by GNS who don’t seem to see the value to their business in helping newsagents to increase their sale by providing good advice . It is extremely difficult to use as an experienced newsagent. I was assured a new site was to be developed but meanwhile Office choice has move in with fortnightly deliveries and a good online site. I feel sad for the owners because I feel myself sliding and feel powerless. Two minutes ago I had a phone call from the school looking for A3 Red paper about 120gsm ” Its too hard for us to find on the internet” was the statement. I will try to source this for them but the internet in remote areas seems to be first choice and we are the after thought. I’m still trying but its bloody hard.
One day, a customer suggest a book– Scarcity: Why Having Too Little Means So Much by Prof. Mullainathan.
Do we focus more on Scarcity of Time and Resource?
The customer suggest that putting more resource to free the owners from the shop, have someone external to help with the situation.
If the owners did everything in shop using all their time and energy, how can they did something extra to change the business.
The problem is: do we have the determination to unlock the extra resource for the change?
It is becoming tougher.
Fact 1: Consumers shopping habits have changed to “convenience shopping” – one stop shopping aka –
On The Run style service stations in SA who offer their customers fuel, lotto, Subway, Magazines, food & drink, Newspapers & gifts & & &.
And on-line purchasing (much lesser impact but is growing).
Fact 2: you have to have both “Location” and “Offer” to be a viable destination for your Consumer.
Simply saying have more gifts, or become a pet shop as well is irrelevant if your potential consumer is one stop shop STOPPING somewhere else.
In regional areas Newsagency are easier to diversifiy than Metro areas, due to lack of competition and geological constraints that prevent people from shopping at the Majors, at least not as frequently. From my own observation metro areas are becoming toughter, if you are on a shopping strip its getting harder to attract foottraffic, as major malls are getting bigger and offers more options (Chadstone, Knox,Eastland..). But if you are in a mall then rent is a big big issue. Plus the majors have the advantage of mass advertising, yes people actually do believe that prices at coles are going down and down. IMHO if newspapers do stop printing which is likely in 5-10 years time(based on reduced circulation numbers), then most hightstreet newsgency will close, ones in the mall will survive if they can get a good lease and diversify. There will be some that can continue to operate succefully for a long time to come but definitely not the majority.
I hear you Carol.
Despite their higher prices, Officeworks knock the hell out of us via their on-line offerings which, despite being generally dearer than us, suck customers in (they don’t mention their high delivery costs until checkout time).
It seems that people believe if it’s on the Internet then it must be cheaper and are therefore prepared to wait a day or two for delivery.
And if it’s not Officeworks, then Australia Post sinks the boot in as well with their tax-payer subsidised specials e.g. $4.99 Reflex with an extra 10%.
Recently, my son found his Wifi speakers broken and we brought it back to Officeworks. To his delight, he receive a set of replacement speakers and a $14 refund as the price dropped from 1 year ago.
Officeworks can replace anything less than $500 without any questions, and it is a strategy designed for maximum customer satisfaction, and fully supported by suppliers.
We need to understand and respond to their warranty service and price protection which winning the technology customers.