I my analysis for the April – June newsagency sales benchmark study I am fortunate to have data for this suburban high street newsagent. The year on year results reflect the challenges of the traditional newsagency and the benefits to be gained by approaching the challenges as opportunities:
- Number of sales: up by 1%.
- Average sale value: up 23%.
- Average items per sale: up 5%.
- Overall revenue (exclusive any agency revenue): up 11%.
- GP: up 17% as a result of the shift in focus to higher GP items.
- Cards: up by $1,750 to $13,500.
- Magazines: $37,000 – down 15%.
- Newspapers: 16,900 units – down 8% in unit sales.
- Stationery: $9,500 – up 9%.
- Gifts: $15,500 – up 75% from the year earlier.
- Plush: $6,250 – up 250% from the year earlier.
- Toys: $4,500 – up from $0 the year before.
- Confectionery: $1,500 – up from $800 a year earlier.
This is a newsagency in transition. It is in an area of considerable competition. The strip is busy with gift shops, two supermarkets with magazines, two convenience stores and another newsagency also with magazines. The owner made a decision to pursue a point of difference and to do this aggressively.
The challenge in transitioning the business is to not kill off core traffic. One needs to carefully balance taking space back from magazines and to only do with with products that attract new traffic of their own.
In the gift, toy and plush space you need to make quick decisions to get the maximum benefit out of trends and get out by the time everyone else is in on the trend.
I am sharing these results today to show that newsagents are growing their businesses. It starts with making a decision to pursue this.