Why newspaper publishers need not worry if newsagents put newspapers at the back of the shop and why newsagents should place them there

More and more newsagents are placing newspapers deeper into the business, allocating less expensive space as well as allocating less space overall.

While newspaper cover prices now (finally) increase regularly, the additional margin dollars earned do not keep the return at a reasonable level because of the unit sales decline.

Newsagents cannot afford to provide front of store space to newspapers nor can we allocate the space needed for the old style publisher mandated fixtures that many of us called boat anchors. Publisher designed fixtures naturally feature specific mastheads, often taking more space than can be justified based on the return achieved.

Basket data analysis indicates newspapers are not the destination purchase they used to be.

The best approach I see is where newspapers are placed in generic fixtures toward the rear of the newsagency and in space that otherwise might not be financially valuable for the business. Customers will seek them out, especially if getting there is not too hard and if newspaper products are presented in a shopper friendly display where you place them.

My experience is that moving newspapers from the publisher preferred front of store display to a mid store or rear of store display does not, of itself, reduce newspaper sales.

Publishers do more to harm over the counter newspaper sales through home delivery discounts, supporting other retailers, deals with fast food outlets and by giving papers away. I see this as competition against my newsagency.

In response to all these activities newsagents need to treat newspapers as any other product. They have to pay their way. One way to do this is to encourage shoppers to shop the shop. This can be done by placing newspapers such that shoppers pass more other products to and from the newspaper stand. Placement needs to be tactical. get it right and newspapers can help drive a better return through a deeper shopping basket.

In my own newsagency newspapers are two thrifts into the shop, on the front of the main magazine aisle. They are well laid out. The full cover of each of the top selling newspapers is on show, helping to drive impulse purchases. from time to time we supplement this with counter promotion – based on the cover story. We also occasionally contemplate lease line promotion – again based on the cover story.

Newspaper publishers think that supplying a purpose made fixture gets newsagents to place newspapers in a better location. Those days of a nice stand driving behaviour are gone. Now, our focus is on financial return on floorspace, inventory and labour. One way to improve return is through a contribution to space cost. Any publisher offering this will get my attention.

In the meantime, my advice to newsagents is to exert control on where newspapers are best located in your business to make the best possible use of space for your personal benefit.

To publishers I say – don’t see this move as negative. rather see it as newsagents finding a way to keep newspapers in the newsagency longer. The alternative is they quit them altogether.