I got back to Magnetix in Wellington today, the specialty magazine business I have written about here before. It is similar to MagNation, the magazine specialty business that started in Auckland and headed to Australia years ago. While Magnetix maintains an excellent range of magazine titles, it does not feel as broad as a year ago.
If my time there today is anything to go off, coffee is the main traffic driver, it inhabits the front third of the business and is primarily what you see from the street.
That we do not have more of these businesses indicates there is not a large enough demand. However, if more newsagencies close and supermarkets focus on the top 100 titles, I can see magazine range being a traffic driver – as long as it co-exists with a high margin category. This is where coffee is a good fit. In fact, beyond the excellent margin, it works with magazines in other ways too.
I say a higher margin category is key because off the continuing poor margin from magazines.
Mark,
A very interesting and in some way exciting post.
I imagine that three walls of a store with a complete display of well organised and presented magazines and perhaps a few newspapers tiltles for sale with excellent Coffee and cake etc could be trendy and extremely profitable.
The mags sale or return simple purchase this side of $25 fills in limited time producing high turnover tables or for one person bench space.
Have considered coffee, the space would come from exiting magazines and stationery. No intention of adding profitable lines to support dodos
I know of one newsagency that has introduced coffee along with a thoughtfully selected range of gifts and other lines, each brining in new shoppers. Magazines benefit from new eyes.
Yes they sure can new eyes with creating a great atmosphere as well. trow in gifts and one has a “new start” when it coild have been a transformation.
I have a sticky key board Basically I’m saying that this could be a transition within a current business and not a “new start”
These ideas are great blog material that may not suit all but opens the mind. Much better than being negative.