The story by the ABC about the closure of Vizes City News in Rockhampton reports on the closure of a long-established newsagency. While the story offers balance in reporting on success at newsXpress Mount Morgan it fails in needed detail in some areas.
- The story says the business has adapted. I have been to the shops several times, as recently as late last year. yet, they adapted primarily into one new category. It was not enough. It was sort of a separate business, too. The newsagency core needed adaptation.
- The story says that newspaper closures are the reason for the closure of the business. I can’t see this as they were anticipated. I’ve certainly been writing about the need for newsagents to manage for the decline of newspaper and magazine traffic for 15+ years.
- The story talks down the value of newsagencies. Recent sales and the spike in interest in buying a newsagency suggest otherwise.
I get that people leaving or who have left the channel prefer a narrative that suites them, the evidence does not support them.
Newsagency closures reasons are complex. Newsagents often have had opportunities to avoid them, if they wanted to.
I have seen data today for a newsagency an hour or so away from this business in Rockhampton that is closing. Revenue is up 64% off a good base. New product categories are helping to drive revenue growth of some traditional newsagency categories like magazines and card. In this business, newspapers are down 24%, with no bottom line impact. The BIG news is that GP% is way up, based on the new product mix introduced over the last year.
We all make our own success.
Mark it’s a bit disingenuous to state that ” they adapted primarily into one new category. It was not enough.”
In actual fact they have pivoted the whole business 100% to this new category, a fresh food store. They haven’t closed the business they just made the decision to piff the parts that weren’t working, traditional newsagency, and concentrate on the parts that do work.
You may not like the hollowing out of the newsagency channel but when a newsagency diversifies, as you have championed for many years, and finds a new direction that means they can fully move in that direction why would you dismiss that success?
Steve, I’ve been to the shop several times in recent years. They made a good move getting into fruit and vegetables. The newsagency, however, did not change.
This business had good opportunities in the card, gift, toy, games and related spaces. It’s at the newsagency core where it was not being sustained.
Again, I have been there. I could not say anything and leave the narrative sit. However, that would not be accurate.
In terms of what you call hollowing out of the newsagency channel, I am all for that and encourage it. But that is not a feature of the ABC News story, unfortunately.
As I median here often, I am concerned that too many newsagents do not understand the extent off change needed in their retail businesses for them to be viable into the future.
It is not the richest or smartest that will survive, it is those most willingly to adapt!
I have said it before and I will say it again. If you can read this blog with an open mind and absorb even a small fraction of the advice, opinions and debate expressed here, you will discover a nugget of gold that will transform your business.
I am located on the other side of the World and what Mark has to say is as relevant in Ireland as it is for you in Australia!
In my opinion, Mark is spot on when he says: ” many newsagents do not understand the extent off change needed in their retail businesses for them to be viable into the future.”
Merry Christmas to you all and a Happy New Year!
I think a 70 year old plus newsagent in Rockhampton would be more than aware of the extent of change needed in their retail business to TRY and make them viable into the future. He chose a wholly new direction as a fresh food store. In my opinion this makes him the king of adaptation!
Correction, He owns every Govt.
It’s the Govt of the day that crawls to his papers not vice versa. All of them from Rudd/ Fraser through the different parties.
I think some of you are missing the point of the post. Newsagency shops are changing and doing well. Opening a new business is good but that’s a new business. Changing a newsagency to be viable is much harder. I am part of the way there, doing much better this year than last. learning every day.
The ABC could have told this story better. Blaming newspapers for a shop closure does not make sense to me.
I am referring to R.M. press here Should have been News Ltd throws newsagents under Bus.
Newsagencies are no longer a thing.
Retailers that sell newspapers and magazines as part of a broader offer are a thing.
The sooner the ABC and everyone else for that matter comes to terms with that the better off we will all be.
James, you are right.
It makes me wonder if our promotional machine -the one representing us is ot connectiing with the appropriate press releases informing the public of the “newstyle newsagencies” out there.