GNS today announced to newsagents the cessation of its cash and carry business. As I covered here in a comprehensive piece recently, this is one of several important changes the business needs to urgently make to remain relevant.
Here is today’s announcement:
Over the past few months, we at GNS have been constantly reviewing our business model with respect to our service capacity and processing efficiency around the Cash & Carry service. Mid last financial year, GNS successfully implemented a transition of service change from Cash & Carry to a formal ‘Pick Up & Pay’ service in our Perth operation centre. This service protected the C&C price for customers, but made way for important warehouse logistics changes to better drive efficiencies.
Whilst the Cash & Carry model has been effective in the past, its relevance and efficiency has declined as the market has declined, hence calling for significant change in order to allow GNS to continue providing a compelling value proposition and true wholesaler benefits to our market.
Consequently, after months of further analysis and review, GNS would like to formally advise our customers that the current Cash & Carry service in Sydney, Melbourne and Brisbane will cease on the 18th September 2016 and be replaced by a formal ‘Pick Up & Pay’ service. In the coming weeks, we will provide further information around the changes and important aspects of the procedures to facilitate the transition. We will also be arranging a final Cash & Carry warehouse clearance sale in all eastern states on the weekend of the 17th and 18th September, so stay tuned for more details.
This service transition will enable the commencement of important logistic changes over the next 12 months, that will improve our main pick-and-deliver service, which makes up the majority of our wholesale activity. These changes include:
- The introduction of a new warehouse inventory management system which will include warehouse relays based on product movement, automated receiving on PDA to improve inventory flow for sale of goods, PDA stocktakes to increase the volume of inventory verification checking, and pick location scanning and PDA replenishment to improve processing accuracy.
- Implementation of a customer showroom that provides support in the way of product knowledge, sales opportunities and a meeting place for industry benchmarking.
- Commencement of system centralisation to establish a national approach to our customer account management, WMS system processes and central customer reporting, such as consolidated national customer statements.
We understand that for some customers, a transition from Cash & Carry to ‘Pick Up & Pay’ can be uncomfortable. This is not a small undertaking and this level of change is not easy, but it is absolutely necessary for our business if we are to stay focused on building and improving our service.
In the coming months, you will start to see these key tasks kick-off. As part of the project, we’re committed to keeping you informed and involved as we implement these improvements. We will provide regular communication to ensure you know what’s going on.
The price of some of the stock at GNS is too high. Even with cash n carry. I especially cannot cop the excessive prices on games colouring books and everyday toy lines. Gift bags are a joke. Boring designs and high prices intersecting.
These new efficiencies are obviously badly needed and very soon too. I hope it all happens soon.
Also it would help our stock reordering system immensely if the units and pack sizes all worked properly. Stationery is a classic candidate for properly functioning auto reordering in my shop.At the moment we use the auto reorder but then spend time going through it and changing the answers.
I have been going to GNS for 6 years now and all that time they have been saying they will sort out these issues. I hope it is not too late.
Bruce I’d never purchase gift bags, colouring books or toys from GNS.
I agree Mark! But I cant see why they don’t get serious about these lines. Why take up the space and the costs of the stock if they don’t compete.
The reason I went to GNS once or twice a month was to look for things and ideas while i was doing the “shopping”
I had been asked for something in the shop quite a few months ago. It looked to have been discontinued as (over the course of a few weeks, it was never in stock, and then dropped from GNSonline altogether.
On my last visit, I saw something similar to what the customer had asked for all that time ago, so I grabbed it in the hope that the customer hadn’t found it elsewhere.
A $25 sale was made that afternoon, and a repeat business accoount customer has been formed because of it.
I don’t beleive this item would have ever ended up in a showroom for newsagents to see while visiting
Subaru you have hit upon another pet gripe of mine. The fact that items that are low volume often dwindle down and then go out of stock – for weeks and weeks and you never know whether they will reappear or when? Things like pen refills. I do not want any out of stocks in my shop – but i dislike waiting or chasing very small quantities elsewhere.
Is the capital levy still necessary? capital levy should be refunded?
I was about to ask the same question Shane.
they should return our levy. GNS has just lost half of my business. i have found alternative suppliers already since no more cash and carry
The concept of Cash & Carry has had its day. I have far better uses of my time than driving across the city to collect stationery. With my software I can produce my weekly order for routine top up in less than the travel time.
Wandering round a warehouse chatting to old mates is great. But exploring on line showrooms, seeking out emerging brands and keeping up with market is the name of the game.
Get with the beat
More concerned about the reduction in stock lines eg acrylic stands; mailing boxes etc, and the increase in order processing and delivery times – was same/next day, can now be 3 days. Cash & Carry was always an unsustainable cost to GNS and to any newsagent who has the time to go shopping.
I went to GNS once a week. I am assuming I was a rare bird but picking up saved me between $100-$300 a week in delivery charges depending on the size of my order!
I would also drop my magazine returns to GG on the way (a positive as that meant I was able to prove the returns arrived at the warehouse plus I did not have to pay for the 15 boxes per week of oversupply!)
I would go with my business partner and we would use the time in the car as a great way to discuss the business whilst outside of the business.
Going to GNS was a very important part of our business week and yes we will change as we have over the years and we will keep changing even when the change is at the detriment to my business. I will always drive the positive aspect of any change.
The GNS website is horrible to order from and needs to be improved immediately for GNS to not see a big drop in sales from me.
Plus the website does not promote effectively the seasonal items it has which sell very well in my store (Yes I do buy some gifts from GNS as well as several other suppliers and they all sell well). As Subaru mentioned earlier, we always promoted the fact that we were able to try and find that special item for a customer as a point of difference but that level of service will not be there anymore so that is another small goodwill cost from this decision.
I will now be looking to order directly from suppliers as this will be easier for some items and will open up stock that was not available at GNS.
I always find it concerning when people pass judgement on how others operate without knowing their circumstances. Please have an opinion but base it on your own experiences, try not to make sweeping statements without knowing all the facts of every store!
noted Chris. Interesting to read a different opinion. Good luck with your business
iam in the same situation as Chris
Has anyone had any success getting back their levy fund , I cannot see why we pay this or continue to pay it . GNS are no longer the only stationary supplier and I think more and more and more newsagents are shopping around . Keen to see what other Newsagents thoughts are .
I was told you can’t get it back until you cease business whether that be through sale or shutting down.
I think it’s absolutely pointless and should be refunded and the practice discontinued.