In 0ur suburban Melbourne newsagency, March 2025 was a good month, up on 2024 and some terrific results for previously challenged categories.
But first, some context: this is a high street shop in Malvern, Victoria. It does not sell lotteries, candy at the counter, tobacco or any convenience lines. When I bought the business three years ago it was traditional, without gifts, toys or anything outside of papers, magazines, cards, stationery and transport tickets.
Overall sales in March 2025 over 2024 were up 2%. Gift revenue is up 100%. Toy revenue is up 70%.
Here are the surprises: magazine unit sales (we never compare revenue) were up 4% (2,569 magazines sold in the month) and newspaper unit sales were only down 3% (a third of the national trend) to 2,937 units sold. These results are despite us further educing magazine space and placing newspapers in a lower cost space further into the business.
The high value growth in the business is coming from good margin products achieving more than 50% gross profit. This is what I like to see in a transitioning newsagency, a shift in gross profit contribution from low GP categories into high GP categories.
In the business a conscious decision has been made to focus on toys. The close to $4,000 in toy revenue in the month shows this focus paying off.
I am writing this at 6:25am on Tuesday April 1. We have now reviewed March and made some decisions for April and beyond. The analysis time was under ten minutes and decisions quickly flowed from that. I mention this to remind folks here that there is little to be gained from overthinking decisions you make about your shop.
The focus is simple, do more of what is working and less of what is not working. As soon as something that is working shows that it is not working, retreat. Oh, and always have ideas ready for when space and capital are available to make a new move.
I need to mention stationery. Sales were down 20%, by $1,500. What we have found in this business over the last three years is that stationery revenue is unpredictable. Of I do a 3 or 6 month year-on-year comparison, it’s up nicely. Then, as we saw in March, there are odd months in which we see a drop. In this situation we take a quick deeper look at stationery. What hurt us in March is that we completely moved the location of stationery. The move cost sales. In the latter part of the month we see the move paying off.
In this moment in time where news outlets and commentators are yelling about the cost of living and talking down retail and focussing on store closures, there are businesses doing well. 2% growth in March is good for our small business. I’d note that for this analysis I am only looking at in-store purchases and not online.
I know from others I have talked with there is plenty of good news in Aussie newsagency businesses.
Take a look at your March 2025 sales versus 2024. Look for opportunities. I am sure there will be plenty. For reference, the report I used for the above data is the Monthly Sales Comparison Report in the Tower Systems newsagency software.
If I can help, please reach out: 0418 321 338 or mark@newsxpress.com.au.