Thank you Real Commercial are a more balanced reporting on the state of the local Aussie newsagency

I am grateful to Henry Johnstone of Real Commercial for their questions about the state of the Aussie newsagency reflected in a broad article published recently: ‘Move with the times’: How the humble newsagengy became a retail destination.

Newsagency evolution  

It’s no secret that the newsagency of 2024 looks nothing like it did 20 years ago. 

With over-the-counter newspaper sales declining at a rate of 11% year on year, many traditional newsagents have evolved into convenience-based businesses, which has afforded owners the opportunity to embrace a wider choice of revenue streams. 

A 2024 IBISWorld report revealed that of the industry’s $2.2 billion in annual revenue, 21.5% of sales can be attributed to books, 20.5% to newspapers and magazines, 16.9% to stationery, cards and gifts, and 12.9% to lotteries.  

According to the intelligence organisation’s data, the remaining 28.2% of sales are listed as ‘other goods and services.’ 

Mark Fletcher, CEO of Tower Systems – a company that supplies software to specialty local retailers – said newsagents have the potential to thrive in the digital age by not seeing themselves solely as newsagents. 

“I know of businesses that have opened cafes, while others have gone into garden centre products. I know of a newsagency in Victoria that created a baby shop within their business and are now going gangbusters in that space.”  

“By all means sell papers and magazines, sell lottery tickets, but don’t let those things define you,” Mr Fletcher explained.  

“There are newsagents in regional Australia making up to $500,000 a year selling gifts and homewares. They still do the legacy stuff, but their real interest as retailers is in non-newsagency items. That’s where the future lies.” 

…

Last month, ABC News published a story on the Mansfield Newsagency in regional Victoria and its failed attempts to find a buyer.  

“Unfortunately, it’s an industry nobody wants to take on anymore,” owner Frank Livingstone told the ABC, blaming the decline of his business on the demand for online news outstripping print media. 

It’s something Mark Fletcher vehemently disagrees with.  

“You can’t blame the decline in print for newsagencies closing,” Fletcher posted on his blog after the article was published. “A business closing because of this is a business rooted in the past. Smart newsagents started transforming their businesses 20 years ago.” 

While the official number of newsagency retailers is difficult to pin down, IBISWorld currently quotes a figure of 1,784, while software supplier Tower Systems believes the number is somewhere closer to 2,800.  

It’s good to see a better balanced view on this than copvered recently by the ABC and some others.

Here’s what the Newspower CEO said:

“Newsagents are the hub of a community. And that’s a great word to keep in mind – community. For a lot of small towns, the newsagency is a one stop shop, so it’s all about what they can offer their community that’s not there already.”

I think Helen is wrong. Every newsagency in Australia is a commercial business and ought be run as one. Profitability has to be the priority ahead of any community service as it is only profitability that will give the business a future and the owners what they need / want from their business.

I think Helen’s quote shows where Newspaper is at today. It reminds me of the Jethro Tull song, Living In The Past.