The December 2015 quarter was tough for many newsagencies, especially with print media products. Here are the year on year same store comparison numbers.
- Customer traffic. 78% of newsagents report average decline of 1.2%.
- Overall sales. 76% reported an average revenue decline of 1.6%.
- Basket depth. 68% report a 1.5% decrease in basket size.
- Basket dollar value. 63% report an decrease in basket value of 1.2%.
- 37% of respondents using a structured loyalty offer.
Benchmark results by key departments:
- Magazines. 81% of newsagents report an average decline in unit sales of 9.5%. The average decline in weeklies was 10.5%.
- Newspapers. 82% report average decline in over the counter unit sales of 7.9% . Capital and regional city dailies lead the decline.
- Greeting cards. 51% of report average revenue decline of 2.1%.
- Lotteries. 51% of those with lotteries report an average decline of 2% in unit sales.
- Stationery. 67% of newsagents reported a decline, with an average of 5%.
- Ink. 25% of stores report ink separately. Of these, 52% reported decline of 2%.
- Gifts. Of the 68% in the offering gifts, 60% reported growth with an average of 7%.
- Tobacco. Of the 45% with tobacco, 70% reported an average decline of 16%.
- Confectionery. 50% of stores reported an average decline of 2%.
- Toys. Of the 25% with toys, 65% reported growth of 5%.
While these numbers do not reflect good news for the channel, the positive side of the numbers are good for the businesses reporting them. For example, close to half newsagencies reported a decline in greeting card sales while almost the same number report growth. The difference between the two, the gulf, is considerable. Allowing for local situations, there is a point difference of eight between the average decline and the average growth. This is considerable. The businesses achieving 6% year on year growth from high margin card sales are in a different situation than those experiencing 2% year on year decline.
Look at gifts, the story is similar but even more complex. While the gam between those reporting growth and those reporting decline is considerable, more than ten points, that 32% of newsagents do not have a gift department is alarming given their greeting card sales. Even more interesting is the difference in gifts sold. Whereas in an average newsagency, gift revenue is equal to around twenty percent of card revenue, there are newsagencies where gift revenue is more than double card revenue. These are businesses aggressively pursuing change.
I saw data for one store that is a stunning turnaround. Indeed, the result was so good I made a YouTube video about it and other stores in this benchmark group: https://youtu.be/f-YilFlFG68
In my own newsagency: My key category numbers off a good base, are: Books: up 500+% due to trend chasing. Diaries: up 219%. Cards up 19%. Gifts up 60% and account for 15% of sales; Magazines down 1% and weeklies down 3%; Stationery up 5%, Plush up 18% and accounting for 9.15% of sales. Traffic: down 2%; Average Sale Value: up 9%; Average Item Value: up 11%.
2016 OUR YEAR TO EMBRACE
Success is there for the taking in any newsagency situation. I firmly believe that. In cities and country towns. In shopping malls and on the high street. We, each of us, can make our own success by embracing change and being serious about how we run our businesses – through the deliberate choices we make.
We have more control over our businesses than ever before. What we do with this is up to us. The trends affecting us are obvious. Our future is ours to own.
Please take this benchmark report as a call to action. Make 2016 the year you want.
I AM FINDING IT HARD TO UNDERSTAND THIS REPORT.
“Basket dollar value. 263% report an decrease in basket value of 1.2%.”
What does 263% mean here?
Similarly when you say.
“Magazines. 81% of newsagents report an average decline in unit sales of 9.5%.”
Does this mean 81% of newsagents report a decline, and the overall decline by units is 9.5% or do you mean 81% of newsagents reporting a decline had an average decline in unit sales of 9.5%?
Similarly when you say.
“Greeting cards. 51% of report average revenue decline of 2.1%.”
I presume this means.
Greeting cards. 51% report revenue decline, the overall decline for everyone was 2.1%.
Could you clarify?
‘Mark’ (nice fake name), I fixed the first point as it was a typo. Sorry.
Magazines. 81% of newsagents report a decline. The average decline is 9.5%.
Cards. 51% report a decline and the average decline was 2.1%.
I am not a part of the benchmark study but ever category of mine is up on this time last year (except newspapers and cigarettes). Magazines have held steady but we have had growth in ever other area with plush being our biggest growth area. Beanie Boos through to YoGabbaGabba or Minecraft plush. Our Christmas was the best in approx. 10 years for cards. 2016 is a year of consolidating the new lines introduced in 2015 and being more aggressive in terms of competing and getting our message out to customers.
Mark,
When you say average is it the mean average or the median average.
Mean.
For those unsure of what the question means, check here: https://www.vocabulary.com/articles/chooseyourwords/mean-median-average/
Mark, the reason for my question is that given 81% of newsagents were down is the median average similar to the mean average or has the mean average been influenced by results at either end of the spectrum, i.e. how is the middle of the road newsagency going.
Mark, if you have enough data across the groups it would be good to see a comparison between Nextra, newsXpress, Newspower and indepandants.
We knew that we were on the right track expanding our non traditional categories, but we felt we were not gaining anything from the group we were a member of.
In 2013 we had sales of Gifts at $40,000 and plush $62,000.
In 2015 our sales were Gifts $192,000 and Plush $94,000.
There is no way known as a business we could have achieved these figures without being a newsXpress member.
Last year we had a person supposedly interested in joining newsXpress, and after speaking with us we watched them on CCTV walk the shop and take product notes. Nothing that we all haven’t done, but in declining to join newsXpress this person missed the whole point of being in a successful group.
Why would I bother to give our figures, because I would like the newsagency channel to be strong and united. The newsagency channel is a large network, but being smashed from all sides by larger, greedy, organised corporations. The traditional bodies running and marketing this industry are disjointed and failing to look to the future whereas newsXpress offered us a direction with limitless horizons. As a united group we ALL will benefit.
There is always room for improvement no matter how well you think you are travelling.
Onward,
While I do have data enabling comparison between a set of Nextra, newsXpress and Newspower stores I will not publish it here as it could result in legal threats and action by Nextra and Newspower. Newspower has threatened me before and nextra has taken me to court who things I have written here.