An account manager from GNS contacted the senior manager of my retail stores asking what gifts we stock that GNS could consider offering.
The account manager advised that they asked us because their boss asked them to.
My initial reaction was that this is a joke. I could see no logical reason for GNS seeking this information from my stores.
It is not a joke. It happened. The request for help from us by the GNS account manager was real, it was genuine. They wanted to know what was working to determine if they could offer these gift lines.
The more I thought about their request for information the more frustrated I became at their request.
GNS has no role to play in the gift space in my opinion. They would add a layer of cost, making gifts more expensive for newsagents. They would also bring to the category poor ranging and other challenges of their old-school approach to wholesaling.
I don’t think GNS handles stationery all that well. They should get this right before expanding their focus in the gift space.
I can understand why GNS would be looking at further expansion into gifts given the state of stationery sales in the newsagency channel. However, GNS leadership would get a better return by investing in strategies for driving stationery traffic for newsagencies, ensuring they have the right stock at the right time and driving efficiency in their operation.
Based on what I hear from other newsagents there is frustration among newsagents at GNS leadership on their lack of leadership on a range of fronts.
But back to the question put to the senior manager of my retail stores. I am shocked they did not think through their question. Seriously.
As I understand it, GNS is the majority shareholder of Newspower. Surely Newspower could help in this area. Why, then, go to the senior manager of newsXpress corporate stores and ask for help on what gifts GNS should stock? It does not make sense. It is like Newspower asking newsXpress for help – but probably without the knowledge of the folks at Newspower.
Either someone has not through this through or the GNS situation is parlous or Newspower has nothing to offer. I don’t know! I have no inside knowledge. All I do have is the evidence of the request for help and the advice from the GNS account manager that the help was sought because of a request from their boss.
newsXpress has a carefully selected range of preferred suppliers, many of whom will not supply newsagents direct. The supplier mix is an asset of the business, it is unique. Through its ownership of Newspower GNS is a competitor of newsXpress. Again, the request for help does not make sense.
I would be interested to know if others have been approached by their GNS account manager seeking advice as to what gifts are successful to determine what GNS could stock.
Gift, toy, plush and collectibles revenue is up year on year on a same store basis in more stores. This is driving overall GP %. There is plenty of good news out there, plenty of optimism. This is thanks in part to a broad range of niche wholesalers. It has little to with the big warehouse style wholesalers. Those types of businesses are challenged in my view.
I have not gone to GNS management about what happened as I saw no point. There would be an explanation, which I may or may not have believed. It would not alter what they have done.
Agree with all your points. An inappropriate move for this type of organisation for sure however in this highly competitive market I’m not too surprised at the tact.
I have had the same thing happen in my store from a GNS representative and I am a Newspower store. I think it is quite a tenuous link by attached Newspower to this story. It really disappoints me that you try to score cheap points this way.
We spend a lot of time keeping up with the suppliers and our competitors. We receive many visits, some official some not, of others doing the same.
The approach might have come across as amateurish but dialogue and research is what we all do.
Not scoring cheap points re Newspower. The post is about the move by GNS.
Driving into work today I was and still am contemplating my future with Office Smart. before I reads this.
Thanks for the feedback Mark!
As you have obviously put a significant amount of thought and time into your post, please let me respond.
Most if not all GNS Business Development Managers have strong and long term relationships with their customer base. We see that as a positive. Hopefully that strength of relationship allows them to ask a range of questions that assists them in understanding each business within their territory. As a wholesaler we need to continue to uncover what is working and what isn’t, mainly in stationery but that isn’t to say we wont try to respond to the needs of our customers in other areas. The request I made of the BDM’s was based on a series of questions and scenarios I put together. It was quite detailed but didn’t imply we were asking for ” help with what we should sell” Some BDM’s may have misinterpreted the request, some may not have communicated it as effectively as they could have. Apologies to the store owners or managers who felt that this type of conversation was amateurish or clumsy. Our focus is plainly on stationery, delivered in full, on time and at competitive pricing. We have improved in a challenging environment, but we are very aware we still have a way to go. When we get this right, a strategic, targeted, complementary, well priced, good margin approach to gift and toy lines should always be another potential revenue stream for GNS and, more importantly, it’s customers, and I personally don’t see the reason it shouldn’t be pursued. Will it work? Possibly. Won’t know if we don’t try.
On a final note, a synopsis of the feedback from this exercise across a significant amount of newsagents across the country ( remote, country, regional, metropolitan, tourist area, etc) has uncovered two main points. They want us to demand better pricing from suppliers to support them in a volatile and aggressively competitive market ( totally agree), and they were keen to see what GNS could do in the Gift/Toy etc space to support and service ALL types of newsagents across ALL areas. Surely there’s a value proposition in there somewhere?
David, I am surprised at the profound difference between what you requested and the information sought at the store level.
I do not ant to see GNS pitching products we can already source direct and thereby making currently tightly controlled stock more widely available. The consequence of that would be to see more specialty engaged retailers drop the products GNS brings on board.
Not every newsagent has the ability to go direct Good on GNS for trying to help Not all newsagents are big im thinking small country newsagents in small country towns
So Mark you do not want other newsagents to have access to the same products you do if GNS can source them. I think this could be good for the newsagents who operate on a very small scale as it would give them the ability to order from a variety of suppliers all through GNS. GNS need to evolve to survive and they have to be given credit for trying. I can understand why they would ask retailers who they thought they had a good commercial relationship with for feedback. I would hazard a guess that GNS will instruct their BDM’s to steer clear of newspress outlets from now on! When I was asked I gave my opinion without jeopodising any of my relationships, maybe your staff could have done the same and we could all of moved on but ahh yes there was a great opportunity to promote your marketing group and take a swipe at GNS and Newspower. Well played.
Chris I look for a point of difference as many newsagents do in the gift and allied category spaces. I see no point in remaining with a supplier if that supplier has been direct and selective in retail outlets in the past and moves to a wholesaler model that is less discretionary.
While you can label this post how you choose, I know what it is. I do think the approach from GNS was clumsy. It was certainly different to what David outlined. I think for their future they should leverage the Newspower relationship. Otherwise, why own the business?
Good on you Chris you at the very least want to see more newsagents survive, however they can. Mark more newsagents equals more software
Paul don’t presume what I think or what interests me. You have no idea what I do. Most of what I write here is helpful for any newsagent. The marketing advice. The management advice. The benchmark studies. None of it sells more software. Yet any time I write what some like you disagree with they complain. The same people who stay silent when they read things they like, they agree with and / or they use in their businesses.
Look at what I did on Bill Express. No one else went after them. Yet Paul you say I am only interested in one think.
Look at what I continue too do re Lottoland. Yet Paul you say I am only interested in one thing.
Look at my activism on behalf of newsagents re Tatts. Yet Paul you say I am only interested in one thing.
You’re entitled to behave that way just as I am entitled to write what I want to write.
You keep coming back so I guess you either want to be angered or you get plenty from this place.
Either way, you make a mistake presuming you know what I do, what I stand for and help I provide.
Jesus – wow,calm down i get alot of very useful info from here i think it is a great place for us newsagents whether we agree or disagree Im not really sure what gets you off in regards to me presuming what you know or don’t just as you don’t know what i think or don’t
Maybe you need a nice stiff drink relax and take a deep breath
because we all want what is best for ALL newsagents
Yet Paul you say I am only interested in one thing.
What is that one thing im confused
The best for all newsagents comes from each newsagent pursuing the best for their business. A wholesaler, any wholesaler, will not provide that. Strong retailers will prevail. Not agents.
While everyones arguing over what their GNS business development manager should or shouldn’t ask them I’m just amazed you have one and they actually visit you.
Over the years as GNS has a change of direction or staff I’ve received generic emails telling me about this mythical creature and how they are very much looking forward to meeting me sometime soon, but not so much as a phone call let alone anyone walking in the front door.
Wow – the battle of brands! Lets put the focus back to a productive conversation! Personally, I have had no issue with GNS and as a single operator, welcome any discussion around how it helps me sell a better range or cost of goods! IMHO it doesn’t matter if this is asking for help or welcoming competition from a variety of suppliers. Gifts remain the lifeblood of new and varied lines in my business…..
Following the herd gets you slaughtered. I wouldn’t stock GNS gifts much like I wouldn’t stock gifts with preferred supply arrangements with any banner group. Im not interested in commodities.
Gee
Paul’s comments 8 & 11 clearly had a message invisible to others.
As for suppliers who move to models that are less than discretionary, a certain card company springs to mind.
Joe I agree. Not all groups, in any channel including the newsagency channel, force you to buy from preferred suppliers or force you what to take from preferred suppliers.
Mark, is your comment (20) not contradicting your newsXpress criteria? That is, if I join newsXpress I am forced to stock Hallmark as my main card supplier.
Amanda my comment at #20 is accurate.
newsXpress welcome newsagents who commit to take a percentage of cards from Hallmark but they have complete control as to which products. In a company with 1,000s of SKUs the choice is vast. Hallmark is the only supplier for which there is any requirement. The numbers show it is a smart move for retailers.
Unless you have data on the sales performance of Hallmark in a 50/50 split against another supplier, you can’t say the numbers show it is a smart move for retailers. You are simply pushing a company for which you have a commercial relationship with.
Amanda you can think all you want, as can anyone. I am very happy with the sales data I have for my businesses and others. Year on year card revenue and unit sales growth on a same store basis in a very competitive location is a terrific result by any measure.
newsXpress is a growing marketing group group. I think it is growing at a faster rate than other groups and has been for the last couple of years. It has 244 member locations now.
There have been newsagents who have joined newsXpress after several years of procrastination because of the Hallmark relationship. The most common feedback several months in is surprise at how well cards are going and commentary that they should not have held off for so long because of all the other benefits they tap into as a result of joining.
The cards newsXpress members select from the massive range is up to them, if they wish.
David, (6)
GNS has lost must of it’s core Newsagency customer base because of it’s failure to provide those customers with quality, competitively priced stationery.
Newsagents needed GNS to be competitively priced on BTS, Diaries, Inkjets, Copy Paper but failed and smart newsagents looked elsewhere and found alternative suppliers.
Newsagents needed GNS to find attractive fashion stationery so they could compete with the likes of Typo, Kikki K, Smiggle, Officeworks and Kmart, but failed and smart newsagents looked elsewhere and found alternatives.
Look at overseas trade fairs and get on top of trends before they hit the Australian market
I don’t want GNS to supply me toys and gifts. I want GNS to source quality stationery products for me to buy so I don’t have to buy elsewhere.
Steve (16)
please email me and I will do all I can to get a GNS rep out to see you
david.gifford@gnswholesale.com.au
Gift are important, but lets not miss a larger opportunity. The wholesale stationary market is on the verge of an explosion IF the ACCC allows the merger of Staples and Office Max to proceed. Ther eis about two weeks to make a submission on the ACCC merger site, and Newsagents should watch upstream what happends here as it affect the buying power of the GNS and other groups.
As a newsagent, I should thank GNS for their long-term support, and we witnessed GNS’s uphill battles on Ink cartridge, BTS, Copy paper and fashion stationery. GNS in-house staff and reps try their best.
I don’t have any idea on GNS’s future but one recently article on FT Chinese website talked about one new startup Chinese rural e-commerce platform DuiTongDa. It empowers 72,000 rural Chinese dad-mum stores, and achieve RMB30 billions direct annual sales over existing RMB100 billion channel.
DuiTongDa has many innovation measures and unique market positioning, but most of important, it empowers its clients, those dad-mum stores, from physical store into digital space, dramatically reduce its clients inventory level, improve the sales of its clients, and provide complete solutions, such as consumer’s apps, store level apps and POS systems, area level management system.
Its focus on management of its clients, not just management of its products.
GNS may learn something from it, help thousands small suppliers, and thousands small retailers by changing the B2B2B2C channel.