A couple of people mentioned to me they heard a rumour Woolworths was getting out of magazines. I checked several Woolworths stores, including George St Sydney, and while their magazine offer is patchy (at best) there is no evidence of them exiting yet.
What does appear to be the case in Coles and Woolworths is a reduction in magazine pockets at or near registers. This location was high value of impulse purchases of magazines. The retreat from the large number of pockets that used to be at registers must have impacted magazine sales in supermarkets.
I suspect supermarkets will be a space to watch in terms of magazines over the rest of 2019.
Mark,
Very strong talk in SA of OTR removing all Magazines from it’s sites, whether supplied by the local HD Newsagent or a direct G&G Account. Some sites have already been reconfigured to no magazines.
If OTR do get of Magazines, it could become a tipping point for many HD only to ditch Magazines as well.
John, my understanding on the convenience channel more broadly is that the magazine category is under close review due to diminishing returns on space, labour and capital.
I think time will demonstrate to magazine publishers the importance of the newsagency channel. If I am right, it will be important for newsagents to deal with magazines on a business model basis and not as agents.
Smart magazine publishers will pick up on an opportunity here.
Our local Woolies has just had a total refit. They have reduced their mag space by about 90%. Their entire space allocation now consists of 12 pockets over the newspapers (also greatly reduced) and 8 pockets at each staffed register. There are no mags inside the self checkout area. That’s it.