A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Author: Mark Fletcher

Shopping centre businesses need to go big or go home

Newsagency businesses in shopping centres need to be big, bold and constantly evolving. They cannot be the traditional newsagency business or anything even close to it, not now, not in the future.

Events are one way to differentiate and to compete with big businesses. They are important to attract shoppers from outside and from within the centre, especially in the big centres with 250+ stores.

I have two businesses in this major shopping centre situation, where everyday we fight to bring people in from the traffic in the mall.

Last Saturday, as part of the first ever National Beanie Boo Party, which was organised and run by newsXpress, as an optional marketing event for members, we hosted a party at the Knox store. This short video provides context for what we did in that business on the day to be setup – to achieve a revenue boost of in excess of $1,500 in three hours.

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Now, anticipating questions, read this:

  1. While I say this is a newsagency, it is a newsXpress business, focussed on plush, cards, gifts, collectibles first.
  2. This plush wall commitment is driving in excess of $100,000 in direct product revenue and not far of that in complimentary basket purchases.
  3. The party is an infrequent activity and deal based event designed to attract existing collectors from other retailers and to introduce non-collectors into collecting.
    net new traffic comes from not only the centre but from our significant out of store marketing on social media.
  4. Given the way this party was run at this location, there was no additional labour on the day.
  5. The video was deliberately shot at a time and in a way to not show those engaging.
  6. I’ve had this business for more than five years in this location.
  7. This feature wall works well. However, nothing is permanent in retail today, nor should it be.

I’d be happy to answer any other questions here. I can also be best reached on 0418 321 338.

Footnote: I am a shareholder in and director or newsXpress. In my newsagency life at different stages I have been a nextra retailer and shareholder and a newspower member. I have been with newsXpress since 2005.

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Management tip

What’s going on with magazine deliveries?

I have heard from ten newsagents, in several states, in the last week that magazines are either arriving very late or not at all.

In one case yesterday, a newsagent was without weekly magazines for half a day. In their particular business, based on sales history, the revenue loss will be significant.

In a case last week, the freight company has been changed and magazines are arriving twelve hours later than they used to. No announcement. No ability to easily adjust staff rosters.

This post is placed here for newsagents affected by magazine delivery challenges to comment. Publishers read this blog – let them know if you are being impacted and what it means to your business and their business.

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magazine distribution

Pitching cards at the exit

For years I have suggested newsagents promote cards off location, including at the exit from the business. Coles has been doing this across their network for most of the last year. This photo shows the current pitch, which I have seen in several locations.

To test this in our businesses we can do this without sourcing additional stock and without having a purpose made fixture. I encourage all newsagents to try it.

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Greeting Cards

Magazines as a traffic magnet for the newsagency

This placement of magazines on the back wall of the shop works well for us in one of my stores. It is easily seen from the mall, outside the shop, and attracts magazine shoppers into the store for a browse.

Being full face works for individual titles too as shoppers get o see the cover as the creative team intended.

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magazines

Pitching Unwind magazine

We are pitching That’s Life Unwind magazine in a unit placed in between our women’s and crossword titles to leverage the sweet spot for the shopper for the title. It is easily understood, hence the decision to place it where impulse purchases will work for us.

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magazines

Here’s a reason to get behind the royal wedding

Australians are searching Harry and Meghan in good numbers. Here is the number of times each is currently being searched each month through Google in Australia:

  1. Prince Harry: 74,000.
  2. Meghan Markle: 135,000.

This is rom verified search data.

You can position your newsagency business to leverage this with tactical inshore placement of magazines featuring them, running related in-store marketing and engaging on social media around the impending wedding.

If you are in a marketing group you should already know this and have been receiving information for months. That is what we have been doing with newsXpress.

The Pacific Magazines Nexus program is promoting in-store engagement with some excellent opportunities, which I encourage Nexus members to engage with.

If the royal wedding is not part of your marketing plan I urge you to make it so. The commercial value is set to be c considerable.

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marketing

Here is why I think newsagents have nothing to gain from a relationship with Lottoland

In my opinion, there is no value for small business newsagents in supporting or working with Lottoland. here is why:

  1. Lottoland launched in Australia mocking newsagents. Their attack on newsagency businesses and those who run them was relentless and hurtful. It cost newsagents respect and revenue.
  2. Lottoland now wants to partner with newsagents because federal parliament appears set to ban betting on lotteries. Boo hoo to them.
  3. Lottoland is an online-first business. Everywhere it operates it is about online sales. Any partnership with high street retail would be contrary to their core operation. I suspect if they did partner with retailers, online would always be their core focus.
  4. Lottoland is coming at this the wrong way around. If a high street pitch was important to them they should have put it in place when they launched into Australia.
  5. Lottoland says it wants to pay taxes and be a contributor to the Australian economy. If this was the case they would have established this from the outset and not pitched it now, moments away from their core offer being outlawed.
  6. Lottoland has been dishonest in its representations. Last year, they claimed to be talking to newsagents. No genuine approach had been made. From where I sit it looked like smoke and mirrors.
  7. Lottery products are highly regulated around the world. There are many reasons for this, most are good reasons. While I do not like the monopoly approach in Australia, the regulation is important and necessary.

The issue here is not about newsagents and their businesses. Nor is it about regulation or protection. Newsagency businesses need to live or die as a result of the actions of the owners in running a compelling and appreciated local businesses for the communities in which they serve. This and local community desire will determine if newsagency businesses survive.

The issue here is about Lottoland, their operation and their ethics.

They launched into Australia running a campaign over which they had 100% control. That told us about the company and what it stands for.

Their TV commercials were, in my opinion, dishonest and disrespectful. They are reaping what they sowed.

Footnote: the newsagency today cannot be the newsagency Australians remember from the past. Today’s newsagency is a shop leaning into change, offering different products thoughtfully selected and carefully curated for local community needs. Whereas in the past people walked in the door of a newsagency for papers, magazines and lotteries first. Today, many newsagencies have people walking in for more high-end sought after lines with papers, magazines and lotteries becoming the impulse add-on.

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Competition

The future is digital

A check of the current Fairfax subscription pitch page for The Age shows the extent to which Fairfax is focussed on digital and weekend delivery ahead of seven day print. Print sales plus production and distribution costs of print versus digital explain this focus.

I share this here not to alarm but to inform. Newsagent who are not actively pursuing new traffic opportunities for their businesses are behind.

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Newspaper distribution

The Collective magazine to close print edition

The print edition of The Collective is to close.

Since its launch, this magazine has been consistently oversupplied in businesses for which I have seen data. Small business newsagents have been a bank, providing funding to prop-up the title.

The publisher asked to meet with me prior to launch, to discuss ideas for engaging respectfully with newsagents. While they listened with courtesy, they did none of what I suggested. In my opinion, we were used from the start.

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Magazine oversupply

Vale Stephen Kaye

Stephen Kaye, former circulation executive at News in Victoria, passed away on the weekend.

I first met Stephen many years ago, when he was Circulation Manager at The Mercury in Hobart. back then, dealing with circulation managers in News around the country, Stephen was one of the bright lights in my view. He was tough but fair, always open to discussion and respectful of the role newsagents played.

When he moved to Victoria, Stephen continued to serve News professionally while being fair to the newsagents on which his company relied.

It is a tough gig working for a large and domineering company like News with employees often having to enforce rules and requirements they as individuals found challenging. You can do this by being uncaring or reflecting some personal empathy. In my dealings with Stephen I found he did the latter.

I appreciated the note he sent on his retirement from News last year:

Hi Mark,

Well all good things come to an end.  Back in October last year I was diagnosed with stage four lung cancer, a big surprise considering I’ve never been a heavy or regular smoker.  Since then I’ve battled along with my chemo treatment and have been coping reasonably well, but not well enough to return to work.  News Corp have been very supportive and done the right thing by me by offering redundancy which will help with our financial planning.  My last day with News Corp will be June 30.

I just wanted to take this opportunity to contact a select number of newsagents and suppliers to say goodbye.  They are people I have had a lengthy association with over many years and despite having different views over that time, I have both liked and respected.

I wish you well for the future and hope our paths cross at some stage.

Kind regards, Stephen

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Newspapers

Tatts online lottery revenue growth

This graph shows the percentage of Tatts’ own lotteries revenue reach year from online sales, over three years, as reported in annual reports published by Tatts Group.

The big battle for lottery retailers is the online push by Tatts and OzLotteries.

While the Lottoland battle win is good and sure to be appreciated by many lottery retailers, I think the bigger challenge remains the migration from over the counter to online purchase.

I am told Tatts reps say to retailers to not worry about this. Of course they would say that.

I think lottery retailers need to run their businesses as if the migration continues, and picks up pace. There is no downside to any lottery retailer running their business believing this. The only result can be a healthier business.

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Lotteries

New benchmark study under way

I have started collecting basket data for the January – March newsagency sales benchmark study. Thanks to early input of data I hope to have results by the end of next week. I already have data from seventy stores of a variety of business situations.

The January – March study is usually valuable in providing an insight into what the rest of the year can look like in key categories of magazines, newspapers and greeting cards.

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Newsagency benchmark

Pitching the Commonwealth games pins

The Queensland arm of News was first with details of the Commonwealth games pin offer. Then, very slowly, other outposts of the company provided details of their pitch.

This should be a national campaign, managed nationally and consistently. Okay, not in WA maybe, but certainly elsewhere.

It is a slim margin offer and the dribbling of pitches from the various News Corp. state offices adds to the cost off businesses that support newsagency businesses across state / territory borders.

This stuff should be easier.

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Newspapers

News Corp. has another crack at distribution changes

In pursuit of ‘efficiency’ News Corp. has invited expressions of interest from parties interested in pitching for secondary distribution business. That is, providing one delivery point for News for small geographic areas for further distribution to retailers and home delivery customers.

This has elements of T2020 and some elements of a UK wholesaler model.

This from the News Corp. pitch doc sent last week: 

BRIEFING DOCUMENT NEWS CORP SECONDARY DISTRIBUTION – MARCH 2018

Currently News Corp (“News”) meets consumer demand for print media via a large network of distribution partners (“Distributors”) servicing small geographic areas. News delivers newspapers (and other promotional items from time to time) to these Distributors from our print site. These Distributors provide the distribution of newspapers to subscriber’s homes and workplaces, delivery to retailers for retail sales and delivery to other commercial partners such as Airlines, Hotels and other businesses in bulk form. Some of these Distributors also manage directly the relationship with some retailers and subscribers. Collectively this service is known internally as “Secondary Distribution”.

The media landscape is continuously evolving and the current Secondary Distribution operating model has challenges for both News and our Distributors.

Our intent is to review our Secondary Distribution model to determine the right, fit for purpose and sustainable model that offers News a cost-effective solution, data integrity in the network whilst ensuring a network that is viable for our Distributors.

OBJECTIVE
The objective of this market engagement is to explore and identify interested parties and potential solutions or

alternate options that will support a sustainable distribution mechanism to the subscribers in NSW for the next five years.

The key objectives of this process are to :-

  1. Deliver a commercial model that is agile, efficient and sustainable for News and its Distributors.
  2. Provide News with transparency of data in the end to end process including sub agent data and where applicable subscribers.

SCOPE
We are inviting you to propose for consideration by us how you or your organisation would provide a service that

meets our requirements for all or part of the coverage areas listed in the attachments provided with the RFI document, specifically outlining your approach, any indicative pricing, details of technology solutions and what further information you would require to enable you to participate in a formal RFP process (should we proceed).

We also understand that any solution must be viable for the Distributor and we would ask you to propose a contract term to support investment in technology, systems and infrastructure required to support any new model.

We would encourage greenfield thinking for both the operating and commercial model.

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HIGH LEVEL REQUIREMENTS

Your submission should consider that secondary distribution is for all News paid publications. Primarily, The Daily Telegraph and The Australian, as a stand alone solution and does not rely on or include publications from other publishers.

However we do understand and accept scale is a key driver of efficiency and therefore News would consider industry collaboration where practical.

Regions for consideration have been split as: Sydney Metropolitan area and the major regional centres of Wollongong, Newcastle, The Central Coast, Blue Mountains and
region could

Current volumes, estimated arrival time to nominated drop points and postcodes in each region will be provided to those who complete the initial expression of interest.

RETAIL DELIVERIES

Minimum requirements are as follows for Retail Deliveries and Home Deliveries but we would encourage alternate solutions that may be more cost effective, agile and sustainable in the long term without affecting the customer experience.

You will be required to provide a delivery service to both Direct retailers and Indirect retailers 7 days per week, ideally before 6.30 am.

Where there are substantial efficiencies from later delivery times or prioritising 24 hour retail outlets, these should be provided for consideration.

You should have the capability to provide data by each retail outlet; sales and unsold copies by title by day. News may also require evidence of unsold copies which may include preparation for collection if required and auditing by a News authorised representative.

Indirect retailers – these are retailers that you will have the commercial relationship with whereby you will manage copy allocation and be responsible for the financial relationship.

Direct retailers – these are retailers that you will deliver a predetermined quantity on behalf of News and News manage the financial relationship.

HOME DELIVERIES

Home delivery copies will need to be presented in a format that is acceptable to News and subscribers. (Currently the product is rolled and wrapped but we encourage alternatives to traditional wrapping that may produce a more cost effective alternative or a more desirable product presentation to the subscribers.)

You will be required to provide delivery service of newspapers up to 7 days per week to a nominated delivery point for a subscriber ideally before 6.30 am but we would like to understand the cost implications of alternate delivery times.

Canberra. Subject to proposed solutions, each be broken up further into a number of geographic zones if this delivered a more sustainable network.

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Have the ability to stop and start the delivery of home deliveries as directed by News and have the ability to implement customer changes in a timely manner (ie within 24 hours of being advised by News).

Provide an issue resolution contact and process to ensure issues can be actioned on the delivery day.

THE COMMERCIAL MODEL

We would encourage your thoughts on proposing a commercial model that explores possible differing service levels or alternate scenarios which may vary from the stated high level requirements – yet deliver a more cost effective outcome.

OTHER CONSIDERATIONS

Any proposed solution must have the following as minimum standards:

  • Proven capability in distribution and logistics management
  • Delivery reporting and data transparency with DIFOT a key metric
  • The ability to measure and manage delivery issues via a structured issue resolution process
  • A technology solution and infrastructure to enable seamless and timely data flows to and from News at customer and retailer level
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Newspaper distribution

Tatts pitches ease of purchase

On my phone today. I could complete a purchase in under 10 seconds.

While the Lottoland victory is important, the migration of over the counter purchases to mobile and online is the main challenge newsagents with lotteries face. I fear too many are not managing heir businesses with this migration on their mind. It is easy to ignore something you do not easily see.

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Lotteries

School holidays marketing ideas for newsagents

School holidays are a wonderful opportunity its for finding new shoppers for your business.

To win new customers you have to act different to what you have done, you have to pitch your business in fresh ways and to people who otherwise may not have seen your business or considered your business.

But most of all, to make the most from school holidays, you need to have fun!

Here are marketing suggestions to help school holidays be more valuable for your newsagency. They are just some of the ideas you could embrace. Hopefully, you will think of plenty for yourself.

  1. Give teachers a discount and a thank you. Give it a name. For example: a Thank you for teaching 0ur kids discount. Run it for school holidays.
  2. Host a school art display. Invite kids to bring in art they have created so far this year. Be the place to shine a light on this, just because. Kids, parents and their families will love it.
  3. Promote holiday activities products at the entrance: colouring, puzzles, toys, games and more.
  4. Host local show and tell. Invite kids to create something, art, a poem, or something else connected to a local place of interest or local history. Host an in-store show and tell event where parents and kids can participate. The prize is less relevant than giving kids a voice.
  5. Pitch local. Create a simple flyer to hand out listing local holiday locations and events of interest.
  6. Let people play. Have products out and open for people to play with in-store. be the destination fun shop in town.
  7. Do product demonstrations in-store during the expected peak days, demonstrating thinks like a slinky, kinetic sand, slime, jigsaws and the like. Create some retail theatre.
  8. Place two or three dump bins with special offers at the front of the store containing products to appeal to the largest age group of school kids in your area.
  9. Publish posts on your business Facebook page with ideas of what people can do locally during the school holidays.
  10. Maybe have t-shirts made for staff: Holiday Crew or something similar. This helps them look different to everyday and that is key to making the most of the holidays.
  11. Host an event appropriate to the season:
    1. A papier machier pumpkin mask competition for September holidays.
    2. A paper plane throwing competition for summer holidays.
    3. A Easter art competition for all ages for the Easter break.
    4. A winter bake off for Winter – maybe connected with the cookbooks you sell.
    5. Run a best joke of the holidays competition.
  12. If you run discount vouchers, change the name to something like: SCHOOL HOLIDAY BONUS or HOLIDAY SURVIAL $$$. Have fun with it.
  13. Find out what groups host school holiday events in your area and publish a list as a resource for parents.

These ideas are designed to help you create a business during any holidays period that is looked at differently to the rest of the year, to help you gain a reputation as the best school holidays place locally.

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Management tip

Petition to save Brisbane mall newsagency

The owner of Rankins newsagency in Brisbane has setup a petition to lobby the council to reverse their decision to evict the business to make way for new development.

See more about the story here:

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newsagency of the future

Tips for a last minute push on Easter products

If you have Easter stock still in-store, I suggest you pitch it hard to clear the stock, so that none is stored for next year.

I never keep unsold seasonal items as I see that as a waste o0f money one all fronts: space, labour, inventory.

Here are tips for quitting Easter stock:

  1. Put everything on sale right now.
  2. Be generous with your deals. Getting anything for Easter stock right now is better than getting nothing.
  3. Offer a deal on cards too. It is better you sell more than return. It is false economy to think oh, I can return them, and there y not push cards today.
  4. Work the front of the shop, pitching products.
  5. If you have small easter chocolate items, give them away – spread some happy chocolate joy.

Start the day with the goal of selling out. Price adjust to achieve this.

Hanging on to stock for next year is hoarding and wastes money.

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Newsagency management
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