I was in a newsagency in Sydney yesterday with plenty of the most popular adult colouring titles. They were selling well. They were also attracting shoppers to the business from in the centre.
At another newsagency, they are out of stock of the most popular titles because they did not order enough. They were too cautious even though previous shipments had sold out.
The newsagent who backed their instincts has the stock and is reaping the rewards while the cautious newsagent is not making what they could have made.
Many newsagents have grown up in a world where suppliers order for them. In the growth categories today we have to do this for ourselves. We need to develop strong inventory management and reordering skills. We need to back ourselves as the newsagent I visited yesterday has. Sure, there is a risk. However, the rewards could be greater.
There are plenty of resources in our channel in the marketing groups and in supplier businesses where we can tap into advice on such ordering. That is exactly what the newsagent I visited yesterday. Indeed, his business is flourishing because of a series of bold decisions across several product categories, some of which he has not offered previously. But it is in the adult colouring space where his entrepreneurial skill is on show and the financial rewards, thousands of dollars in good margin revenue, are being banked.
We cannot be timid in our businesses, not if we want to grow revenue and profitability. Our best future will be found by us reaching outside what is traditional for newsagency businesses and acting in ways that are not traditional for newsagents. That is what excited me yesterday – seeing a newsagency and a newsagent energised and changing transformation.
These comments tie in with my thoughts about newsagency businesses and the convenience model. It is a model adjacent to a newsagency business model, a model requiring only small change.
Pursuing a broader retail model away from convenience and the traditional newsagency is tough hard work – and you need to buy with confidence. However, this is where the rewards are greater. It is also where we have a better opportunity to create a business that is genuinely different in our area.