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The suburban newsagency card department

This post is an update on the high street location business we opened a week ago. This is a business we purchased from the administrator of a failing specialty card and gift business. The business has been opened with minimal capex. Indeed, the only capex has been for signage.

In the middle of the shop we stuck with the existing card fixtures for the next few months while we learned about the local shoppers and what they like. The reaction in the first week has been terrific.

We took off some gift shelving that was on the top of the card unit, to create better across the shop sight lines.

Here is what the card department looks like with around 1,200 pockets filled:

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Greeting Cards

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  1. Megan

    One of the things I like about all of your shops, Mark, is that everything is always so neat. This communicates to me as a customer that the owner of the business really cares about the business, and that’s something I like. There’s not much pleasure in being a customer in a shop where one is left with the impression that the owner and staff don’t care much.

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  2. Leo

    v interested in seeing the business evolve Mark.

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  3. Chris

    Can I ask what percentage is Hallmark and how many other niche card companies are stocked.
    There is a brilliant car store in Newton (Syd) which is so popular because the cards are not Hallmark, John Sands etc but are sourced from various local card suppliers.
    I understand the commercial relationship with Hallmark but if I was opening a store that’s main focus was cards I would try to get a variety of locally sourced cards in stock. What is the USP for the store? A large range of cards? They look mainly Hallmark so that does not really provide a difference from other stores.
    It is early doors as you mentioned and you are experimenting with what will succeed but it does look very much like a newsagency. If I walked past the store and quickly glanced in, my guess would be it was a newsagency from the layout.
    These are not negative comments but my feedback and as you posted on the blog I assume you would like honest opinions.
    As Megan said, your shops are always neat and tidy which should be compulsory for every shop. It does get tedious sometimes but every day toys, cards, magazines, pens etc etc are always put back in their correct spots from where customers have put them.

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  4. Mark Fletcher

    As I have noted, we opened is the only capex being for signage. The plan is to review performance in several months and then decide how to best use the space.

    Both sides of the main card fixture is hallmark product. We have cards from four other companies as well. We knew the Hallmark performance in this location prior to making the decision.

    In another of my stores, in a very competitive location and where 100% of our cards are Hallmark, our card sales are up 20% year on year. I think here are people in our channel who allow non data-based bias to guide their thinking.

    It is easy to knock a brand. The thing is, people love the cards they love. We control the messaging about brands by how much we signpost the brand in the business. At this new location, the brand is muted as we let the card designs speak for themselves.

    Chris if you walked past and glanced if you would not see any magazines nor a stationery department. The only hat-tip to newsagency is four newspaper titles, at the back of the shop, which you could not see from a glance.

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  5. Matt

    With cards,there are two categories: one who look for wordings, message etc. and the others look for design and colours.
    Hallmark still good for the previous category ,but there is heavy competition in the second area.

    we have 60% Candlebark cards in the Sydney Innerwest newsagency with price from $ 5.95 to $ 7.95 and its a huge hit with young shoppers.

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  6. Chris

    I wasn’t talking about product but layout of the shop. If you look at the first snap shot of your video above it would look on first glance like a newsagency in my opinion.
    You talk about USP. what is the USP for this store. If it is a good range of Hallmark cards then there is tough competition for that as lots of stores stock Hallmark.

    I understand the need for data to guide thinking but what a boring world this would be if all business decisions were based on data and not gut instinct.

    I do not remember knocking the brand as I stock Hallmark as well and have had growth year on year for the last 3 years.

    Good luck

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  7. Mark Fletcher

    Chris, this store is too young to have a USP. As I have noted, our objective was to open and learn. That is what is happening. Our customers will guide us to the USP that is appropriate for thus unique area.

    One the Hallmark comment, I know the data for this location when it was a Hallmark gift shop for years. If we match that it will be a very successful business, profitable. I severed a customer in the business today looking for a get well card, they were happy with the Hallmark card they chose but wanted to see other options. We had two other brand options and they went with one of those.

    There is plenty of product and category freshness in the business, to enable us to discover what we can sell in this area. The video, by choice, only covered the core card offer. This is less than half the business, but it is at the core.

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  8. HENRY HENDERSON

    Mark, I really admire you for allowing us to follow your development of a failed business. Not many people would be prepared to back themselves upfront and in the public gaze.

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  9. Mark Fletcher

    Thanks Henry. What we are linking about this particular business is it is more local than any I have owned before as they have all been in shopping centres. This is in a more traditional strip situation. The shoppers are local and engage in personal chat. That’s new.

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  10. Steve

    Mark is this store primarily branded as NewXpress or given its a further step away from a traditional newsagent, with no mags or stationary and newspapers sent to the back of the room, are you promoting it under a different name?

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  11. Mark Fletcher

    Steve it’s a multi-branded shop. newsXpress with five key brands on the shingle, coupled with the byline: celebrating your news.

    That is what we have gone with for the moment.

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  12. Mark C

    A question for fellow newsagents on the subject of cards, does anyone know anything of Expressions Plus as a greeting card supplier?

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  13. Amanda

    Sorry Mark but I have to ask did Hallmark contribute financially to your new store.

    This post seems like a Hallmark advertisement.

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  14. Mark Fletcher

    No Amanda, no supplier has financially contributed to this business. It has Hallmark product as I enjoy double-digit year-on-year growth with Hallmark in my other stores.

    1 likes

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