This year local independent retail businesses, like Aussie newsagents, face a confluence of challenges that further threaten traditional business models and viability. These challenges stem from economic pressures, evolving consumer behaviour, rapid technological advancements, and a complex regulatory environment.
There are the ramifications of post-pandemic economic recovery, characterised by persistent inflation and rising costs, which have led to diminished consumer spending power and declining sales in discretionary items such as printed media and gifts.
Newsagents with lotteries have the challenge of the migration to online purchase as well as the ever present supplier challenges (outside of WA).
The ongoing shift towards digital news consumption continues to erode the market share of physical newsagents, compelling many already to have reconsidered their operational strategies in order to remain relevant. This will continue in 2025, at a faster pace.
Regional disparities amplify these challenges, with newsagents in economically robust areas faring better than those in regions with high insolvency rates, particularly on the East Coast of Australia.
Smart newsagents have diversified their offerings, including online services and specialty non-traditional products, to mitigate the impacts of declining revenue from traditional sources. The industry has already witnessed a reduction in the number of newsagents, this will continue in 2025.
With labour and retail occupancy costs set to rise by 5% this year, newsagents are having to find ways to achieve more from existing resources. This brings us back to the importance of diversification and the importance of online. I have seen online add 10% and more in revenue to a retail business. I have seen newsagents diversify and add 20% of revenue.
Diversification and online are the top focuses retail newsagents need to have in 2025, even those who are online already and those who have dioversified already.
What you did last year is not enough for 2025.
The biggest risk to any independent retail business in 2025 is sitting still.
Despite these hurdles, the industry presents opportunities for adaptation and growth. Newsagents can leverage a predicted recovery in consumer confidence to enhance customer relationships and service offerings in 2025. By embracing technology, bringing in shoppers for what you’ve not been known for previously and aligning with changing consumer values—such as the demand for local products and sustainability—Aussie newsagents may find pathways to not only survive but thrive in an increasingly competitive market.
What happens in your business this year is up to you.