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

Author: Mark Fletcher

GNS update on Rapid Antigen Test access for newsagents

GNS issued a statement this morning regarding access to Rapid Antigen Tests:

Dear Customers,

As you would be aware from press reporting, consumer demand for rapid antigen tests (RATs) has been unprecedented in recent days.  GNS sold out of these items (GNS codes 84779 and 84780) on 29 December and has been taking back-orders since, anticipating further supply being made available by our local supply partner based in Melbourne.

We were advised yesterday by our supplier that our expected delivery of RATs (due 5 January) was no longer to be supplied to us, as a result of Government action to seize RAT supply at point of import for public health purposes. Our supplier is currently waiting on an allocation of stock to be supplied from a new shipment due this week, although GNS has not been provided with a firm ETA at present.

In view of the uncertainty of supply, we have stopped taking orders for these products until we are confident we can fulfil existing demand. Please note, an allocation process will be in place to ensure a fair distribution for all back-order customers of that stock we are able to secure.

Future supply, and the terms on which supply may be made available, will be communicated to those customers with back-orders in due course.  If you wish to cancel your existing back-order(s) please contact Customer Service who will be able to assist.

Thank you for your understanding in what has been an incredibly challenging supply market, and apologies for any inconvenience caused.

Kind regards,

Adam Wedge
Head of Merchandise

3 likes
Social responsibility

6 local retailer resolutions for a more enjoyable 2022

  • Touch data less. Every time you touch data, entering an invoice, entering accounting data, it’s an opportunity for mistake or, worse, fraud. 
  • Manage stock in one place. If you sell online and in a physical shop, manage your stock in one place. Double handling is fraught, and it wastes time.
  • Add a revenue stream. Seek out new products or services. Broaden the appeal of your business. Broader appeal = stronger foundations.
  • Leverage you. It’s likely your knowledge and passion are a key difference for your business. Share it. Your competitors can’t compete with you.
  • Copy less. Big retailers advertise loyalty programs to trick shoppers to think points are a reward. Be different, run an honest loyalty program.
  • Be authentically local. When you buy local, talk about it, celebrate it and, show shoppers with the local message on products tags and more.
6 likes
Newsagency management

How to do a magazine relay in your newsagency

I first shared advice on how to relay magazines to drive growth in sales back in 2006. Over the years I have shared updated advice here.

While magazines are not as important as they were, and some newsagents don’t have the category at all, I revisited the advice. I share the revised advice below. This is one of 200+ articles on the newsXpress member knowledge base.

In editing the advice, I did a relay two weeks ago in the business I just bought, which does close to $300,000 a year in magazine sales. I read the earlier advice, did the relay and edited the advice. I mention this to make the point that I am writing from current experience. The relay in this business was the first step. next, coming soon, is a trimming of space taken by magazines, to reduce their occupancy cost and thereby improve their profitability. But, the relay had to be the first step.

How to do a magazine relay in your newsagency

A magazine relay is the process of recasting, improving, the layout of magazines in your business, with the main goal of increasing sales and a secondary goal of improving retail space efficiency.

Typically, a relay of 1,000 magazine pockets can be completed in 4 hours. This time investment can add 5% and more to sales. (I did this recently (December 2021) in a shop that had never had a magazine relay.)

In an older version of this advice we advised what to place where. That is not what we consider best practice today. No, today’s approach is more organic, more what you want for your business.

Think of it as starting with a blank canvas and no plan as to what the final art will look like.

DO IT YOURSELF, DO IT ALONE.

A magazine relay is a statement about the business, a marketing and management activity. It sets the tone and says this is who we are, what we do and what we stand for. Doing it yourself is a leadershipstatement. Doing it alone means less conflict, less noise. And remember, the relay is not a destination … because regular change in magazine layout is essential.

PLACEMENT.

Magazines are best located on a wall of the shop, and not in a centre fixture taking up premium retail space best allocated to higher margin and business differentiating products.

VISUAL NOISE.

Magazine covers are colourful. Adding more noise, such as product headers, can detract from the products. Consider a less is more approach, allowing the products to speak for themselves.

FULL FACING OR NOT.

Full facing is a term used in 2 ways: where 100% of the cover of a magazine is shown (true full facing) and where you have 1 magazine title per pocket in a tiered magazine fixture.

If you have the space on a wall and have less than 500 magazine titles, true full facing, showing 100% of the cover, can deliver best results.

In tiered fixtures, while full facing, one title per pocket works best, fitting 2 or 3 titles in a pocket can work with low volume special interest titles people will seek out.

BEACON BRANDING.

This is the process of using magazine mastheads to draw attention to a category of magazines. Use the top 2 or 3 pockets for a single title, allowing it to draw attention.

OWN THE RELAY.

There is no right or wrong. In our experience doing relays in. many different situations, the best approach to a relay is to start … just start. You will soon find your groove and see decisions you can make.

DOING THE RELAY.

Start at one end of a fixture. Take off all the titles for between 3 and 6 columns and rebuild, with purpose, to draw attention, tell a story and drive sales.

As you build up a column, take off magazines from another 1 – 3 columns, always keeping empty space between where you are working and the old layout.

Look ahead, read the categories on display and think about where you are at compared to where you are headed.

ADJACENCIES.

This is a bit of secret sauce. It is where you can make editorial decisions, business decisions to guide your shoppers. What works best with what. You don’t know, not for sure at least, how can you. Ok, there is basket data you could read … but that only tells you what is happening. What about what could happen? Who knows. Experiment!

For example, should you put model plane magazines next to flying magazines? Or, should model plane magazines be in a distinct section of all model titles?

Do puzzle shoppers shop by brand or puzzle type. Publishers want you to layout based on their brand whereas your shoppers are, in our opinion, more likely to shop by interest. For example, all sudoku titles could work better together, or all large print titles could work better together.

ADJACENCY SUGGESTIONS.

Here are some adjacency suggestions. They are not rules. They are shared here to help you think of your own.

  • Cricket, golf and swimming go well together. Wrestling, boxing and buff-type fitness go well together.
  • Soccer is not rugby or AFL. Don’t mix them together.
  • Classic car titles need to be distinctly separated from regular car titles.
  • Classic car titles work well with classic trucks.
  • Car lovers do shop by brand. Place branded magazine titles together.
  • People interested in home renovation could be interested in any renovation title.
  • Creative arts go well together: painting, writing, craft.

EASE OF SHOPPING.

If you have a tall fixture, think of your customers. There is no point placing titles targeting older shoppers up high or down low as reaching or bending could be challenging for them.

WORKING THE RELAY.

Work your way down the fixtures, creating the placement and adjacencies that you want.

Ideally, get it done in one session.

So people know you are focussed, put headphones on. Ignore everyone asking you questions.

Get it done.

HAND OVER.

Once you are done, walk the new layout with others working in the shop. Explain your decisions. Given them a response for customer comments. Make sure that everyone in the business is on your page.

WATCH AND MEASURE.

Next, watch shoppers and listen for feedback and, after a couple of weeks, look at the sales results. The results could guide adjustments, or not.

BE READY TO DO IT AGAIN.

If you have more than 300 magazine titles in your shop, a relay at least every year is a good investment … because magazine shoppers are usually loyal and that loyalty can benefit other, higher margin, parts of your business.

If you have made it this far, thanks for reading.  Magazines really are a point of difference which we need to work harder at embracing – despite the challenges of the distribution system.

5 likes
magazines

2021 vs. 2019 in Aussie newsagencies: new benchmark study launched

I have emailed newsagents yesterday morning calling for data for a 2021 vs. 2019 newsagency sales benchmark study.

I am collating data for a benchmark study, comparing sales covering 2021 vs. 2019.

To best understand 2021, it’s best to compare to 2019, a more stable trading period.

I need your emailed report ASAP please.

How to participate.

  1. Please run a Monthly Sales Comparison Report for 01/01/2021 – 31/12/2021 compared to 01/01/2019 – 31/12/2019.
  2. Tick the category box. IMPORTANT.
  3. Tick to exclude home delivery and sub agent data.
  4. DO NOT tick the supplier box.
  5. Preview the report on the screen. Save as a PDF.
  6. Email these reports direct to me at mark@towersystems.com.au.
  7. Read the report yourself and see what it shows you about your business.

I will email the results to all participating newsagents and publish the results on the Australian Newsagency Blog as a service for all newsagents.

I am keen to see how the numbers stack up. Early indications are terrific.

0 likes
Newsagency benchmark

Some newsagency related predictions from July 2011

Here’s an article published by The Australian Financial Review open July 4, 2011 (pg 10) in which I and several others are quoted about trends in newsagencies.

Some predictions were accurate, while some others were not.

Are we better off than in 2011? I think so, because more newsagents have ditched the fading agent model and found success in being innovative retailers.

Coffee has turned out to be a terrific success while ink shot up and faded. Gifts and homewares continue to grow, as do collectibles and several other niches.

Tomorrow is the start of a new year. I hope it’s successful for you professionally and personally.

13 likes
newsagency of the future

Magazines are being delivered Monday everywhere except WA

Several newsagents I have spoken with today from VIC, NSW and SA thought there were not getting magazines Monday. The confusion arose from the poorly worded notice from Are Media.

The Monday line should have been written: Monday 3rd January – normal delivery, except for West Australian newsagents who will receive their deliveries on Tuesday January 4th. That follows the standard set in the above line.

2 likes
magazine distribution

The free mask scam

Look, it’s no big deal, but, hey, human behaviour some days has me shaking my head.

We have a box of masks just inside the door, for anyone to take a mask if they need it. Several times we have seen shoppers, usually older males, take a mask, hold it to their face, walk over to the newspapers, flick through a couple of pages, and then leave, and go to the cake shop or chemist on either side of us.

Is it the free mask they are after? Or, do they want to see if there is any major news and they think holding a mask to their face is the only ay they can do that in our shop?

We’ll continue to offer free masks as the use some make of them is entertaining.

3 likes
retail

The high cost of buy now pay later for purchasing lottery tickets

Afterpay and Humm have cards that look like credit cards through EFTPOS terminals. They can be added to a digital wallet for watch and phone tap. It’s only when the retailer discovered the 3.5% and more cost per transaction that they realise the higher cost product has been used.

I’ll leave the social responsibility question of using buy now pay later for lottery ticket purchases for another time.

Since the EFTPOS terminal providers don’t know what’s in the basket they cannot block the transaction. They could. The tech is there to feed this to them. Now, by basket, I mean each transaction – the EFTPOS terminal and the network to which they connect do not know what is in each transaction.

The only real option right now for retailers is to ask each customer about the method of payment. But this will slow transactions at the counter and, likely, lead to shopper frustration and, maybe, embarrassment.

I have discussed the issue with a range of stakeholders and they are engaged with it. It is too early to say if that engagement will lead to change that satisfies retailers – I say this because one outcome could be the removal of BNPL from the channel altogether and I wonder if impacted newsagents would want that.

Retailers accept EFTPOS payments through a connected terminal in good faith. They have an expectation of a reasonable soft of that method of payment. The gap between .75% and 3.5% is too much, too great, especially for items over which the retailer has no control of the selling price.

I have looked at the basket solution as this is what has been established listed for the Indue card here in Australia where people with the card are permitted to spend it in a designated group of items. The tech. block them using the card on non approved product categories.

Some companies manage use of their finance services by not permitting certain retailers in a whole of business approach. The basket approach is better. But, in this instance with lottery products, the cost of implementation in tech. and at the counter in dialogue with shoppers could be problematic.

This is a complex matter that needs discussion.

10 likes
Lotteries

Spain’s lottery retailers strike for better margin

Spain’s lottery retailers went on strike last week as part of their campaign to list their commission from 4%. See the story from The Guardian.

The vendors, who had shut up shop for the day, say they deserve more than the 4% of the ticket price they currently get, arguing that 80 cents on a €20 ticket is not enough. They point out that their commission rate has been frozen for the past 17 years despite huge rises in living costs – not least Spain’s skyrocketing electricity prices.

“Prices go up, taxes go up and the commissions remain the same,” Natalia de la Fuente, the daughter of a lottery seller, told Reuters. “We have to pay our bills … This is impossible.”

4%. Sheesh, it makes the arrangements in Australia look good. But, from what I have seen of lottery outlets in Spain compared to Australia, the compliance cost there for retailers is much lower.

0 likes
Lotteries

Smart way to get newspaper home delivery customers to pay on time

While we don’t have many newsagents directly managing newspaper home deliveries in Australia any more, this competition for people paying their account from Lomas News in the UK is cool:

2 likes
Newspaper distribution

Major shopping centres less busy this Christmas?

Retailers in shopping centres are telling me that traffic this week before Christmas is down in the last two years. Click and collect sales are good as has been online for the last couple of months.

They put it down to people avoiding shopping places where there are likely to be large groups of people.

Not that they would release it but it would be good to get shopper traffic data from all shopping malls in Australia for the last two weeks for the last three years. If what I am hearing holds up, we’d see some centres down considerably, others steady and some even up.

A couple of NSW retailers I have spoken with say customers have contacted them to cancel LayBy collection saying they are too concerned about the virus. In each case they said in-store traffic is down 20% on 2019, the opposite of what they had seen through October and November, pre Omicron.

In my own situation, I have two businesses in major centres. One us up, way up, while the other is flat over the counter in-store but click and collect has surged. That second store has the centre’s Santa photo display out the front and it’s not booked out, not at all. That’s the best indicator of the challenge I am writing about.

On the high street we’re seeing a number Christmas, which is wonderful.

While I get push for personal responsibility, that is harder to plan for than government mandates controls, which are easier to plan for.

3 likes
Social responsibility

We bought a newsagency

Last week we bought a newsagency on Glenferrie Road Malvern in Victoria. It had been in the same family for almost 40 years and had stayed true to the traditions of years ago. We will take the same approach we did with the business we bought in Mount Waverley Victoria three years ago: slow and steady change, based on data, with a minimal capex budget and ensuring to not leave existing customers behind.

Here’s a short video I shot on day 2.

Already this week the shops is looking different. Each day it is changing, but with baby steps.

We are grateful to the family for the opportunity to pick up from where they left off serving Malvern shoppers.

Oh, and before the folks at Newspower shoot off a letter, the sign people are booked to remove the logo. Being Christmas and all accessing them has been challenging.

11 likes
buying a newsagency

When governments leave it up to people to be responsible

When the NSW government early last week shutdown check in at retail and did not follow the health advice on masks and other measures in retail, newsXpress shared the following with its members – in response to some requests for guidance:

Opinion / advice: Omicron, NSW and newsXpress businesses.

In NSW, QR codes are no longer mandatory in newsagencies, or in any retail. Deep cleans are no longer mandated in businesses where contact has occurred.

From the UK and Europe we can see that Omicron is transmitting quickly, and loading hospitals as a result. In the last few days we have seen this in NSW, too.

Our advice to newsXpress members in NSW is:

  1. Continue with QR code check in.
  2. Continue with staff wearing face masks. The NSW Chief Health Officer was clear with her advice on masks earlier this week, contradicting the advice from the health Minister. Dr Chant made it clear – wear masks, they work.
  3. Keep acrylic panels at the counter up.
  4. Continue to clean regularly.
  5. Continue to encourage staff to wash their hands.
  6. Continue to make masks and hand sanitiser freely available in the shop.
  7. Encourage all staff to get boosted as soon as they can. The government has cut the timing from 6 to 5 months. You can ask for it sooner and doctors will do this (I did that myself weeks ago).
  8. Message on social media about keeping the community safe, especially the vulnerable who cannot make decisions for themselves or who are health compromised.

I appreciate there is a strong desire to get back to life the way it was. That will not happen for years. Omicron was always coming as is the next significant variant and the one after that.

The more infections the stronger the breeding ground for virus variants.

From a business perspective you want to ensure that you can remain open.

What you do in your business is 100% up to you. We have shared this today in response to a couple of NSW members who asked us.

newsXpress also shared some collateral for positive reinforcement messaging on masks, including …

8 likes
Social responsibility

Is the Amazon Hub parcel pickup service a good fit for your newsagency?

Only you can answer this question for your business.

The core question, though, is: are you a retailer or an agent? An agent will want the transactional clip and therefore find the Amazon opportunity interesting. A retailer will wonder about the real commercial value of Amazon parcel collectors.

I have no interest in offering any form of parcel collection in any retail businesses. As a retailer, I see little value in any agency activity.

Parcel collectors rarely purchase anything else – no matter how thoughtfully you configure your shop to interrupt their path.

Parcel collectors bring to their parcel collection any feelings they have for the retailer source of the parcel, and this can be problematic.

Parcel collectors trend to be engaged … meaning they could rate you down for something outside your control.

Parcel collectors want speed. Often, they think they should be served ahead of others.

Sure there are some in our channel talking up parcel collection. Maybe find out the commercial relationships they have or their employer has with such services to understand their excitement. Buyer beware.

Newsagents I have spoken with recently who have offered parcel collection services have recommended against it.

If you think parcel collection could be for you, do your homework and ensure that providing such a service fits with your business plan and how you see your business into the future.

8 likes
Newsagency management

The Herald Sun today shows, again, it’s part of the problem

It’s embarrassing having the Herald Sun on display today. I think the front page ‘story’ about masks is lobbying, not journalism. The ‘story’ references NSW where the politicians decided masks were no longer required while, at the same time, their Chief Health Officer said masks should be worn.

Politicians, and media proprietor lobbyists can play their games, the science remains that transmission is greatly reduced where masks are worn.

Of course, news outlets have trotted out the usual ‘representatives’ of business complaining about masks. Those same media outlets should give more time to the scientific and medical experts.

13 likes
Social responsibility

Chronic staff shortage impacting retail and hospitality in Australia

Gee it’s hard to find reasonable candidates for retail. We have heard plenty about the challenges in hospitality – one excellent restaurant in Melbourne has halved their hours because of a lack of wait staff – but the extent of the retail staff shortage is recent.

I am advertising for people for three of my shops. In each situation we are offering $2 above the award hourly rate, and other benefits.

Seek has been unsuccessful. The same is true with social media. The platform working best right now is Indeed. But you have to be fast. For example, this week already, good and ideally experienced people we have contacted within half a day of applying have taken jobs elsewhere. Once we realised this we modified our approach, to get faster and on-point.

Thankfully, here we are on Thursday with three new hires, each having completed paid half-day trial shifts and ready for immediate start.

If the situation did not improve we were considering a longevity bonus at 3 or 6 months or something else to separate us from other businesses fishing in the same, almost empty, pond. This is especially true for good people.

The staff shortage in Australia is real. The impact os knocking through the economy.

3 likes
Social responsibility

The Age and Sydney Morning Herald Christmas 2021 and New Year publication details

The Sydney Morning Herald & The Age

  • There WILL NOT be a paper published on Christmas Day – Sat 25/12/21.

Sections

  • Good Food – WILL NOT be included in the Tuesday SMH and Age on Tue 28/12/21 and the first issue date it will return is Tue 25/01/22.
  • Money – WILL NOT be included in the Wednesday SMH and Age on Wed 22/12/21 and the first issue date it will return is Wed 19/01/22.
  • Good Weekend – WILL NOT be included in the Saturday SMH and Age on Sat 01/01/22 and the first issue date it will return is Sat 29/01/22.
  • Domain (Sat SMH) – WILL NOT be included in the Saturday SMH on Sat 01/01/22 and the first issue date it will return is Sat 29/01/22.
  • Domain (Sat AGE) – WILL NOT be included in the Saturday Age on Sat 01/01/22 and the first issue date it will return is 29/01/22.
  • Traveller – WILL NOT be included in the Saturday SMH and Age on Sat 01/01/22 and the first issue date it will return is Sat 08/01/22.
  • Sunday Life – WILL NOT be included in The Sun-Herald & The Sunday Age on Sun 26/12/21 and the first issue date it will return is Sun 30/01/22.

Tower Systems has released advice to Newsagency ts on how to handle the changes.

1 likes
Newspapers
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011