Supanews / Angus and Robertson, one footprint
Landlords like tenants with multiple formats, it makes for efficient leasing. The photo from Armidale says it all. Supanews on the left and Angus and Robertson on the right. They look like two businesses but are from the one corporate family. I’d expect them to be on the one lease and a good deal.
The competition challenge for independent newsagents in any shopping centre is considerable. I’d expect to see more joint tenancy arrangements such as this in the future.
Strong movie based partworks
The John Wayne Collection and Movie Musicals partworks series continue to enjoy good success, months after the first issues hit the shelves.
The sales patterns for these titles are different to what we usually see for partworks as customers are stepping in and out of the series based on the title of the film on offer.
The latest Movie Musicals issue – Chitty Chitty Bang Bang – is a good example. The film is a much loved classic and it’s not surprising to see people buy that issue who have not purchased any other in the part series. Our challenge is how we display these, long after the launch, so we get the impulse purchase based on a specific title.
Smartcard ticketing challenges
I was interested to read this morning that the NSW Government has dumped its ERG Smartcard ticketing project. Despite success of integrated smartcard offerings in some overseas cities, various projects here have had rocky starts. Of interest to newsagents, beyond the issue of commission, is the potential of a new payment type. These cards are like cash and can, if permitted by the issuer, be used for payment for anything from a newspaper to more significant purchases. This is, in part, what interests me. If commuters get used to using such a card while commuting then retailers on travel routes need to accept the card as a payment method or risk losing business. It’s like Eftpos, the more barriers we put up on how people pay for something the greater the challenge to our businesses.
It will be interesting to see which state in
The Bulletin magazine closes
The Bulletin, the magazine for which Australia’s first newsagencies were created in the 1800s and Australians longest running magazine, is closing. The current issue is the last according to the ACP Magazines’ announcement. Given the link to the reason for which we were created, this is a sad day for newsagents. Sure, the Bulletin was not a shadow of its former self. It’s closure must give us pause to contemplate our own longevity as a channel – not in a doom and gloom sense but thinking about the future and the opportunities before those of us with the guts to seize them.
Loudspeaker management
I received this from a newsagent who participated in our Tower Systems online business management event yesterday:
I had my phone on speaker phone sitting at my computer which is next to where my staff unpack magazines. When I got off the phone and wandered down to the front of the shop to discover a different shop to the one I had before the online meeting. The good ideas you raised had been put in place by one of my ladies (with big ears!!). We have a magazines display with our papers, on the front counter, and a wire display frame near the lotto counter. She wants to know if she will have time tomorrow to tidy and rearrange the whole mag section. Such keenness has never been seen.
So the moral of the story is, the next online meeting make sure my phone is on max volume.
I love stories like this – people taking initiative based on new information. That it was overheard makes it all the more special.
Part of the session yesterday was about found space, you know, the space we create out of thin air in retail off of which we can sell products. The best found space is that next to or near products which generate considerable traffic – newspapers, lottery counter, high volume magazines etc. While suppliers push us to display their products where they think they will work, it is often when we act as retailers and place products where we see opportunities that sales kick on.
Tower Systems is hosting these free business building meetings to help newsagents grow their businesses.
Co-ordinating suppliers
The folks at Notebook have supplied this heart as part of the point of sale for the current issue – it connects with Valentine’s Day. While I like the connect, I’d prefer the publisher and other suppliers to work together for seasons like Valentine’s Day.
By the time we bring in our greeting card, confectionery, gifts and other messages it can get a bit confused.
Getting Notebook on the same page as the card company offer as a minimum would make sense and reduce conflicting seasonal messages. This would make it easier to promote Notebook in the broader Valentine’s display as well as in magazines.
Bracing for Heath Ledger coverage
The passing of Heath Ledger is sad, especially of one so young and with so much potential. His star status will mean newsagencies will be extra busy for the next couple of weeks starting with today’s newspapers (the Herald Sun today devotes the first seven pages to the story). One only has to look at the Google News listings to see how big this story is on the world stage. Who magazine will lead on Friday with what is sure to be massive coverage by the weekly magazines. I wouldn’t be surprised to see one of the weeklies due Monday publish early.
While it may sound mercenary, newsagents could consider taking orders to ensure fans get their copy of Who, and any other magazine with a Heath Ledger feature in the next few days. We will need to create displays based around the story and co-locate titles.
How we handle major news stories like this says something about how relevant we see ourselves as being. Our competitors in the newspaper and magazine categories – supermarkets, petrol outlets and convenience stores – will do what they usually do and have stock in the right slots on the right shelves. We can prove our relevance by going the extra mile and owning the story. Many newsagents did this with the passing of Steve Irwin.
Magazine power ends
I received an email from someone asking about the aisle end to which I refereed in my post about our Wheels magazine display earlier today. In addition to our Wheels feature, we have this display for Burke’s Backyard. (All photos are from our Forest Hill location.)
And we have this display for InStyle magazine.
Plus we have several other magazine displays to drive impulse sales. Not everyone has the space or the resources to run with displays like this. We have found that in our situation the effort is rewarded.
Promoting Wheels magazine
File this under careful what you wish for. A few weeks ago I complained about ACP Magazines shutting down supplying in-store display materials over Christmas. Well, the drought is over and we have more material than we can reasonably use. Burke’s Backyard is this week’s feature title. Then, today, we receive display material for Wheels. Rather than take down Burke’s or the display we have for InStyle on our traditional aisle end displays, we have created a new space – next to newspapers, for Wheels:
We chose placement next to the newspaper stand since we feel it is more appropriate to the Wheels target customer. Time will tell. Hopefully the folks at ACP will be happy with this even though it is not a power end display.
Great Woman’s Day add-on
The free cookbook with this week’s issue of Woman’s Day is the best magazine add-on I’ve seen in a long time.
Shoppers know the value of the cookbook – as opposed to glasses, tea towels and other items where the value is less understood. The other aspect of the cookbook which I like is that it’s part of the broader ACP Magazines brand.
We are supporting the cookbook giveaway by placing the title in several locations and drawing attention to the offer.
Rap-Up not worth it
Rap-Up is a good magazine for the target market but it’s not working well enough in my newsagency. I cannot justing the pocket the single copy occupies. With these single copy titles we either need more and some support to grow the sales or to cut the title. I have decided to do the latter. The space saved in the music section will be used well to support another title. Rap-Up is a title which could benefit from a magazine czar who has access to newsagent sales another data – who could help the title find a better home.
Signing up for Myki
We have signed on to sell Myki cards and recharge at our Frankston, Forest Hill and Watergardens newsagencies. Myki is the new electronic ticket wallet being introduced by the Victorian State Government later this year.
I am writing here about our decision because it’s something I need to be transparent about. My criticisms of Myki remain – the State Government is not supporting small business with the new ticketing model. That aside, my assessment is that I’d rather have Myki available in my newsagencies than not.
7-Eleven have signed up and there is a risk that newsagents will lose valuable ticket traffic to convenience and other retail channels. Rather than see that, we have accepted the Myki terms and will wholeheartedly support it with promotional material in-store.
I’d note that this is a new product category for Watergardens and Frankston since it is only at Forest Hill that we offer Met tickets currently. Even at Forest Hill, the numbers were low enough to mean that the Myki terms are not that bad. If our volume was considerably higher we’d be worse off. They quarterly payments for as a base are what make Myki acceptable.
Given the feeling of many newsagents, I feel like a bit of a traitor in making this decision. However, I see it as right for my newsagency and many others. Maybe enough signing on will strengthen our case at the negotiating table with the Transport Ticketing Authority.
For people who love magazines
The Magazineer is a wonderful blog for people who make and love magazines. If you’re a publisher, submit your titles for a review.
Good things come to an end, temporarily
I am grateful for the run of Super 7’s OzLotto jackpots in recent weeks. The $20 million first division prize pool, which went off last night, made for some excellent additional traffic and strong sales – not only this week but over the last three weeks as it built up. Every week the dreams of the punters grew – I like that about lottery sales, you get to hear some wild dreams. Oh well, it will jackpot again soon…
Plush therapy
The chap in a suit walked into the shop, headed straight to the display of bears and other plush and thrust his arm deep inside. Therapy he said when I shot him a glance.Â
While this happened in one of our gift shops and not a newsagency, it made me think about therapeutic opportunities we provide in retail. I am sure people visit a newsagency for the comfort of memories from their old home in our foreign language newspapers or to fantasise in the pages of car or travel magazines or to buy a dream with a lottery ticket.Â
The chap withdrew his arm from the bears and told me he likes to visit every few days, he finds touching the bears calming.
Borders stationery group expands in the UK
Paperchase, the retail stationery and greeting card concept out of Borders UK is expanding according to Planet Retail. The Paperchase concept is very interesting and would present a serious competitor to newsagents if it took off here under its own banner.
Wal-Mart cuts 1,000 magazines
Wal-Mart, the largest retailer in the
The decision by Wal-Mart focuses attention on magazines. It will get other
Wal-Mart has to do what is right for its shareholders. It always has. Ask any family connected with a small business in
Maybe the Wal-Mart decision is an opportunity for small business in the
The price of cardboard
Cardboard is a staple stationery item for any newsagency. Everyone sells it and if you don’t you’re missing out on good sales every week. We sell the high end cardboard, it’s coloured to the pulp. This means the colour holds better and the board will not curl. Our price is currently $1.10 a sheet. I know of newsagents selling lesser quality cardboard for close to $2.00 a sheet and others selling the higher end product we sell for 95 cents a sheet.
This vast price difference surprises me. In an opportunistic sense, newsagents can charge more because we are almost the only source of a good range of such cardboard. From a business perspective, given the stock turn of some of the colour, the lower end price point, and I’d include our $1.10 price in that, is too low.
As for our $1.10, we’ll move that up over the next few weeks.
A Packer and Murdoch partnership?
Consolidated Media Holdings has announced the receipt of an indicative acquisition proposal from companies controlled by James Packer and Lachlan Murdoch. Stephen Mayne at his excellent Mayne Report has a perspective worth reading. The question for newsagents has to be: what’s the likely impact?
While it’s a challenge to predict the likely impact for newsagents, what I do know is that the bigger the suppliers the less connected they are with the newsagency channel. Their focus is on sales and they see these coming from a range of retailers. Decades ago, when newsagents were the go to outlet for newspapers and magazines, we were more interesting to publishers and distributors. Now, with supermarkets, petrol, convenience and all manner of other outlets in the mix, our relevance is less.
Of concern flowing from any possible announcement is whether there are implications beyond Consolidated Media itself.
Like all newsagents, I await the Consolidated Media announcement with bated breath.
Bold back to school
Check out this impressive back to school display being run by Graeme Baker and the team at newsXpress Macarthur. It’s a big outpost at Macarthur Shopping Centre.Â
I like the way the tables are setup – very easy for shopping having everything within arms reach and at a shopper friendly height.
The outpost is the result of countless hours of back room work, analysing previous results, choosing the right products and determining layout. It is a season which requires good local knowledge because what Graeme sells most of may not be popular elsewhere.
It is good to see such a strong presentation by a newsagent in back to school. The newsXpress back to school marketing pitch of no stress could equally apply to the parents doing the shopping, the kids preparing for the year and the newsagent making the sale work.
A medium back to school presence
At our Frankston newsagency, we are finding that Back to School is bigger. We are running a more traditional newsagency sale – but on a small scale since we are new to this business and the sales history suggests such an approach. It is working well for us – we have kicked the stationery pitch up with the book offer as well. The two work well hand in hand.
The book display is in our main entrance and our back to school offer right behind and down into the stationery aisle. While this is nowhere near as big as some back to school offers I have seen, it’s working in Frankston.
Back to school alternative
Back to school is not big at Forest Hill so we are promoting a range of holiday and back to school related books and activity packs instead. This is working very well for us.
We have the books on the dance floor, you can’t miss them. We’re supporting the offer with an A5 school fever flyer. For years we pushed hard with back to school, both in-store and with an outpost and the investment never worked. Hence our decision to find an alternative sale generator for this season.
eziPass voucher solution uptake grows
We are seeing a good uptake of eziPass by newsagents this year. While it is still currently only available to Tower Newsagents, that situation will change soon with the benefits of eziPass being available to all newsagents including those without any point of sale software.
People using eziPass tell us they like how easy and fast it is and the easier statements they receive weekly – there is no overnight sweep of your bank account.
Neither I nor my software company, Tower Systems, takes a clip of commission for phone recharge or other products sold through eziPass.
With rechrge business important to newsagents, I knew we had to deliver a product which reduced the opportunity for error at the counter, made reconciliation easier, respected newsagent cash-flow and, wherever possible, delivered better commission.
As commissions for phone recharge have fallen for newsagents, I suspect the amount others make from the efforts of newsagents has not. hence the importance of developing a fairer alternative for newsagents.