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

Author: Mark Fletcher

Should we be concerned about the Federal Court ruling relating to casual workers?

Note: I’m not a lawyer.

My take is that this issue has a way to go to play out. The case was about a specific situation. While some are talking it to say it sets a precedent, there others saying it does not.

I suspect the politicians will ultimately settle, clarify, the matter. There are many big business interests that will want this, which will focus the minds of the legislators in Canberra. I am sure the lobbying is well under way.

In the meantime, casual employees should be managed as needed by the business with shifts changing as the business needs change. Variation to the roster to serve the business needs is key.

3 likes
Newsagency management

Tonight: a free online workshop for newsagents on how, when and why to take your business online

Tonight, May 21, at 7pm, I am hosting another free online workshop for newsagents on how and why to take your Newsagency online. I have scheduled this additional session in response to requests.

This is not a marketing event. I’ll offer practical advice newsagents can use regardless of current in use. We will explore as much as you want about changes in and opportunities for retail newsagency businesses. This will be an interactive session.

We will explore what to sell online, how to sell online, why it matters and go under the hood and look at what people are looking for right now.

Topic: How to take your newsagency online
Time: May 21, 2020 7PM Melbourne time.
https://zoom.us/j/92611394787?pwd=elMrZCtpTXVpZy9wcEVKWFpOVTl4Zz09
Meeting ID: 926 1139 4787 Password: 847135

Anyone is welcome to attend.

1 likes
newsagency of the future

Bauer looking at other outlets?

A report at B&T has Bauer CEO talking about magazine retail and distribution:

On what’s next, Hill said from a publishing perspective, Bauer will continue to look at where it distributes and where new opportunities lie both in retail and digital edition distribution.

It will be interesting to see what this actually means.

0 likes
magazines

How seriously are you embracing Australian made?

Australian made is having a moment in the sunshine. Right now, people are seeking out Australian made products.

We can grow sales by promoting Australian made products. I have seen this first-hand in-store and even online. If you lead with the Australian made opportunity it can be easier to win a purchase of that ahead of similar non Australian made.

There are social media groups, local and national, dedicated to promoting businesses that support Australian made.

I think this is an opportunity for newsagents. It’s hard work though, much harder than buying in cheap China product and marking that up by 150%.

The Australian made shopper is more loyal in my experience.

If you want to engage with promoting Australian made, it starts with making sure you know the source of what you sell. This means asking suppliers and listening carefully to their answers.

You could test it out for yourself, focus on one supplier and even one line that you know is designed and 100% made in Australia. Promote it through that prism and cause shopper engagement. Use social media to explain your story, the research you did. Build trust.

If shoppers engage, respond well and spend, that could be the encouragement you need.

Australian made matters more today as a result of COVID-19 than it did before. It’s an opportunity for engaged retailers.

4 likes
Social responsibility

Media disruption, TikTok and newsagencies

This story at Axios earlier today is an example of how mainstream media is being disrupted. TikTok, pilloried as a fad site gets more corporate legitimacy and consumer traffic daily.

I first took a look at TikTok over a year ago. It’s a fascinating platform that some businesses are using effectively. More important than business use is that the platform itself creates businesses. For some it is a live and rapidly evolving start-up incubator.

How does this relate to newsagents? Well, our businesses are rooted in history. Our future is ahead of is, in the world from which TikTok and others have come.

3 likes
newsagency of the future

Evening free online workshop: How, why and when to take your newsagency online

Thursday May 21, at 7pm, I am hosting another free online workshop for newsagents on how and why to take your Newsagency online. I have scheduled this additional session in response to requests.

This is not a marketing event. I’ll offer practical advice newsagents can use regardless of current in use. We will explore as much as you want about changes in and opportunities for retail newsagency businesses. This will be an interactive session.

We will explore what to sell online, how to sell online, why it matters and go under the hood and look at what people are looking for right now.

Topic: How to take your newsagency online
Time: May 21, 2020 7PM Melbourne time.
https://zoom.us/j/92611394787?pwd=elMrZCtpTXVpZy9wcEVKWFpOVTl4Zz09
Meeting ID: 926 1139 4787 Password: 847135

Anyone is welcome to attend.

4 likes
Newsagency management

The fundamental changes in high street retail due to COVID-19

COVID-19 likes crowds, it likes people who don’t know each other to be physically close, not intimate, just close enough for the coronavirus to jump person to person.

Proximity is toxic and will remain so until there is a vaccine, if there is ever a vaccine.

Shops cannot be crowded, and if shops cannot be crowded, there is a risk more shoppers spend more money online.

This is why having an online strategy is critical. But it must be multi-faceted: delivery, click and collect, curbside pickup and curated for faster shopping. These options and more are critical for the new retail in this COVID world.

Online businesses need to be managed separately, with their own performance goals. They need to be focussed on reaching ne new shoppers for the parent business.

Proximity being toxic is also why having clear and well managed in-store strategies, too. Making shopping safe and to be seen to be safe is critical to encourage trust among shoppers and would-be shoppers.

It would be easy to say physical shopping is done and shopping has migrated to online. That is what many ‘experts’ are saying in articles. I don’t agree. I think local high street retail is in good shape where retailers have what people want, offer safe shopping experiences and are community connected.

Both needs are critical – online and refreshed in-store. It’s easy to think that the majors will win this. For sure, there will be media stories about this because the majors have PR offices placing stories. The reality is that innovation is as present in small business high street shops. Many of them have embraced online and recast their in-store experiences.

The retailers doing to best, in my view, are those that have embraced the new models in ways that feel natural, that feel more than short-term. These retailers have evolved their businesses with nuance.

So, while there is plenty of noise about things getting back to normal, they are not and cannot. The new normal, for the foreseeable future, is shops being structured for safe shopping and these businesses also offering a separate online presence to reach shoppers outside of the usual reach of the business.

Opportunities abound for engaged, data-driven, retailers.

3 likes
Social responsibility

Tips for safe retail

I have heard from a range of retailers over the last few days that shoppers are ignoring social distancing, they are acting as if it’s back to normal. If you are experiencing this, here are some tips for your consideration:

  1. Refresh social distancing floor markings and signage.
  2. Ensure that you have barriers or similar at the counter so staff can feel safe.
  3. Consider regulating entry and exit flow.
  4. Have hand sanitiser at the entrance and at the counter.
  5. Remind staff about washing hands and using hand sanitiser.
  6. Workshop with staff what to say to customers who ignore social distancing.
  7. Speak in social media about the need for healthy and safe shipping for all.
  8. Use social media to appreciate customers who respect your moves.

Purely from a workplace health and safety perspective, social distancing is key. While some customers are demonstrating disinterest in respecting social distancing, it’s not health for the business or employees to pander to those folks.

In our own situation we do not see us returning to in-store software installation any time soon. More than 2 months ago we moved that work to remote and out has worked a treat thanks to video conferencing and other tools. We have embraced a safer and physically distanced approach and we are grateful that our customers have too.

4 likes
Newsagency management

Online workshop: How and why to take your newsagency online

Tomorrow, Tuesday, I am hosting a free online workshop for newsagents on how and why to take your Newsagency online. This is not a marketing event. I’ll offer practical advice newsagents can use regardless of current in use.

We will explore what to sell online, how to sell online, why it matters and go under the hood and look at what people are looking for right now.

Topic: How to take your newsagency online
Time: May 19, 2020 09:00 AM Melbourne time.
https://zoom.us/j/93928597710?pwd=Njh6M2FzRVNaeVdnK3NJK1pGTDEvUT09
Meeting ID: 939 2859 7710 Password: 778081

Anyone is welcome to attend.

If you’d like a session like scheduled at another time, including the evening, please let me know.

2 likes
newsagency of the future

Shoppers ignore social distancing in shopping malls

It seems that the announcement of easing of some coronavirus related restrictions has given people permission to ignore social distancing. We have refreshed the signs and installed new floor markings yet people walk around as if social distancing is over. We ask for appropriate distance to be maintained and what’s the problem is a response or don’t you want my money.

I’ve heard about this from plenty of retailers over the last few days. Concern is heightened with staff often concerned for their own health.

I’d like to see clearer messaging from government, especially in the light of recent fresh outbreaks.

3 likes
Social responsibility

Advice on finding online shoppers

More and more newsagents are creating online stores, which is good. Too often, these businesses are online versions of the physical store, which is bad. For months I have been hosting live online workshops about getting online. Earlier this week, the session was on SEO / SEM (search engine optimisation and search engine marketing) – the difference between them and why you need to consider what people are looking for before considering what to sell.

For those interested, here’s a video of that live session.

8 likes
Newsagency management

The candles and fragrance opportunity in innovative newsagency businesses

Here is same store year on year data looking at candle and fragrance sales for April 2020 versus 2019 in 13 different newsagency businesses. City and country are in the mix. High street situation mainly.

The surge in sales of candles makes sense given the growth in sales of Home and Living category titles.

The growth had no location or business size limits. That’s code for anyone can grab candle and fragrance revenue growth for your business.

Now, to qualify my claim that anyone can do this … candles and fragrances work when pitched with context. Context can be in the form of a broader range of products, product knowledge, local sourcing and more.

Products put out without context tend to not work.

Yes, success in retail takes work.

As you can see from the first store in the list – they were already well established in this category. That said, I’d not complain about the 2% growth as in their specific situation, with shopping centre challenges, this category did well for them in a tough month.

What any retailer can sell beyond what they usually sell can restricted by what is thought to be possible.

10 likes
Gifts

Home & Lifestyle magazines doing well in newsagencies

Here is a closer look at sales data for Home & Lifestyle magazines from 20 newsagencies that provided data for the latest benchmark study for April 2020 vs. April 2019. This data is from some of the newsagencies It is part of a deeper dive into category level performance, specifically focussing on break-out trends.

The growth for most retailers of Home & Lifestyle category titles is a broader opportunity beyond the magazines themselves. The growth in sales indicates, I think, greater interest in nesting or dreaming about nesting.

The growth suggests opportunities in the homewares space. Elsewhere, I have seen a surge in sales of candles, diffusers, wall signs, mugs, plates, throw rugs, cushions, lights and similar from the home and lifestyle product category. Some of this product data is from newsagencies while I have other from businesses outside the channel.

We can all leverage our magazine category data to inform gift and homewares ranging in our shops. we can make more money from the growth in a magazine category than from the sale of magazines themselves. This is where the real value of this information lies – in our leveraging of it.

This approach of buying stock based on magazine categories is not new. It’s something newsXpress has done for many years and something I have talked about here before. What is different now is this April data is relevant today, revealing trends different to the pre COVID-19 trajectory.

I’m sharing this data here to encourage newsagents to look at their own data for opportunities like this.

10 likes
magazines

Shopping centres charging for marketing when there is none? You betcha!

Marketing is an expensive part of outgoings charged by major centre landlords to its tenants.

Imaging how small business retailers feel about being charged through this COVID-19 situation with no marketing services being delivered.

What a scam! But, they will get away with it as they always do. They have deep pockets and good lawyers.

So yes, there are major landlords charging marketing fees with no services being provided whatsoever while at the same time not charging anything to big name retailers who closed their doors to sit out the lockdown.

It sucks and provides yet another example of the awfulness of being an indie retailer in an Australian shopping mall.

7 likes
Ethics

Tabcorp tells retailers they are important – but actions don’t match words

Check out what Tabcorp sent their retailers this week. Yep, they sent this to retailers who are feeling ripped off by this company that absolutely does push online over in-store and pays retailers an offensively small sum for support growing Tabcorp’s online revenue.

Retailers won’t complain publicly because they fear Tabcorp. I don’t care as I don’t have lotteries in my shop.

Here’s the Tabcorp ‘fantasy fiction’ note in full:

Retailer Fast Update – The importance that retail plays within broader marketing channels
COVID-19 has impacted us all in many ways, and as we navigate our way through this uncertain time, rest assured the initiatives we have implemented, support all our channels, including retail.
You may be hearing a lot of talk about customers going online; however, retail sales during these uncertain times have been strong and steady. It is also important to remember the Lott’s omni-channel marketing strategy focuses on the customer and their experience so they can engage with our brand regardless of the channel. Customers, therefore, value their experience rather than a particular single channel, such as online.
Initiatives retailers have taken, such as driving loyalty through our Membership Program and supporting Pay In-store payments (excluding SA) reduce barriers. These initiatives also create the foundation so we can continue to interact with customers, and they can continue to engage with our brand. This helps ensure customers remain connected and have a consistent experience even if they move between channels during this pandemic or during a retailer’s temporary closure.
Retail is core to our omni-channel strategy and will continue to be into the future. Testament to this are the initiatives listed below which continue to support our retail channel. So, while you may hear a lot of talk about a customer going online, rest-assured the efforts you have made to support the Lott’s omni-channel strategy during these times are of benefit. While you might be seeing fewer customers around, those omni-customers will continue to have fun engaging with our brand, looking forward to returning when their favourite retailer reopens.

Actions speak louder than words.

Tabcorp is not fair or transparent with retailers on their much-hyped omnichannel bonus. It’s a flawed approach offering a disrespectful amount to retailers to compensate for then Tabcorp demand that retailers actively promote online.

The Tabcorp TV advertising does mention retail, however, it does not promote it. Listen to the ads carefully, they have been cleverly produced to punch online and the app with retail mentioned briefly as a lead in.

In my opinion, Tabcorp has failed its retailers through COVID-19 but they will not speak up because of threats from the company that come with financial penalty.

17 likes
Ethics

Practical advice for retail newsagents as we move out of lockdown

As Australia takes steps out of COVID-19 lockdown, small business retailers like newsagents are confronted with challenges to provide a safe and healthy workplace while maintaining a commercially viable business.

As we have been doing since late January, I have shared advice with customers of my POS software company on steps that can be taken in retail businesses in this evolving post COVID-19 lockdown world.

I was at one of my newsagencies yesterday ensuring implementation of this advice and more – we have set a one-way path for shoppers with more in the mall we needed to better manage traffic.

Here is some of the recent advice I have published. This list will evolve over time as we discover new resources.

  1. Coronacast. The yesterday’s episode of this excellent podcast, released May 11, 2020, is about what we need to do in this lockdown easing situation. It’s about keeping you, your team and your family safe and healthy.
  2. Social distancing. Reprint and replace your posters. Use this poster from the federal government. It is the one recommended. Consistent messaging is key. Place this at the entrance as well as in-store.
  3. In-store advice. Click here to access up to date post lockdown advice for retailers from the Business resource Council of then UK. I have included this as I found some points to be interesting and relevant to Aussie retailers.
  4. Refresh floor markings to show distance.
  5. Maintain counter measures of distance at the counter.
  6. Maintain good supply of hand sanitiser at the store entrance and the counter.
  7. Reinforce hand washing and hand sanitising at the counter.
  8. Maintain a regime of surface cleaning.
  9. Out of store messaging. Use social media to rem ind your community what you are doing to keep them safe.
  10. Home delivery. The vulnerable cohorts are as vulnerable as ever. Maintain home delivery and curbside pickup services.

We think it is critical for everyone to realise that nothing has changed from when the novel coronavirus was first discovered. There is no vaccine. It is highly contagious. It can be lethal to several cohorts of the community. The best was to deal with it is to reduce infections rates. The best way to achieve this is through personal hygiene and social distancing. Doing this in an environment of easing of lockdown is challenging.

We hope that our advice for small business retailers is useful.

6 likes
Newsagency management

Accountants are not always right

  • A newsagent in Tasmania was told by their accountant that they would not qualify for a state government COVID-19 grant. On urging from others, they applied and now have the grant money in their account.
  • Four newsagents in Victoria were told by their respective accountants that they would not qualify for the state government’s $10,000 COVID-19 grant. Thankfully, each followed advice from colleagues, applied and now have $10,000 in their bank account.
  • Six newsagents I know, who do not know each other, were told by their respective accountants that they did not qualify for JobKeeper. On the advice of others, they applied and were accepted. 4 of the 6 have received their first payment.

These are examples of three types of government assistance where the advice of accountants was not right. There are plenty of other examples.

I feel for accountants. It has been challenging to be across the extraordinary changes over the last two months and to be across the extraordinary detail of some of the COVID-19 programs.

My advice to any small business retailer is to get a second opinion. If you are not sure, apply anyway and let the grant or payment provider determine your eligibility.

Just last week the ATO made it clear that in relation to JobKeeper the criteria is not black and white. The ATO has the right to look at a specific business situation with flexibility. There are examples of them doing that, especially where a business may not be at the 30% in revenue decline.

8 likes
Social responsibility

Hey Australia: please do not buy your Mother’s Day cards at Coles or Woolworths this year

Please do NOT buy a Mother’s Day card at Coles or Woolworths. Instead, I urge Australians to shop small business, to buy your Mother’s Day card at your local card retailer. While I hope it is a newsagency, I’m encouraging your support of any local small business card retailer.

Coles and Woolworths have made billions in additional revenue from COVID-19. Let’s not give them extra money by buying a Mother’s Day card from either.

Local card retailers offer better, more personal service. They are more likely to support YOUR community. Thank you! #SmallBusiness #ShopLocal #MothersDay #SocialResponsibility

13 likes
Social responsibility

Newsagency sales benchmark: April 2020 vs. April 2019, the COVID-19 impact

Winners and losers as COVID-19 impacts newsagency sales across Australia.

While some retail newsagencies report 40% and more growth in revenue in April 2020 compared to April 2019, others report 60% and more decline. Such is the gap in the experience of Australian newsagency businesses in this COVID-19 impacted world.

Looking at comprehensive sales data from 139 newsagencies the results are stunning in that never before in 20 years of benchmark analysis have I seen such a gap in business performance.

The gap in performance has a fresh subtlety too. Whereas in previous studies, geography was the key factor, now, in this COVID-19 world, situation is the key. High street retailers, retailers outside of shopping centres, are faring much better.

In addition to extraordinary overall growth / decline performance, there are surprises in some product categories. Let’s get into it…

THE DATASET
This newsagency sales benchmark study represents a comparison of sales data from 139 newsagency businesses comparing sales from April 2020 with April 2019. It’s a same store year on year comparison from a broad cross-section of businesses: city, country, high street, mall, banner groups, independent. The only thing connecting the businesses is that they use the Tower newsagency software. 

OVERALL PERFORMANCE METRICS.

  • Transaction count. City high street: -4.5%; City mall: -45%; Regional high street: -6%; Regional mall: -35%.
  • Sales revenue. City high street: +6%; City mall: -38%; Regional high street: +12%; Regional mall: -24%.
  • Basket depth. City high street: +11%; City mall: +3%; Regional high street: +13%; Regional mall: +4%.
  • Basket dollar value. City high street: +31%; City mall: +13%; Regional high street: +21%; Regional mall: +17%.

CORE PRODUCTS.

  • Newspapers. Over the counter unit sales. City high street: +6%; City mall: -55%; Regional high street: +11%; Regional mall: -31%. NOTE: the gap in the city high street cohort is considerable, making the average somewhat meaningless. For example, one city high street business reports a decline of 17% while another in the same state reports an increase of 15%.
  • Magazines. City high street: +21%; City mall: -32%; Regional high street: +23%; Regional mall: -7%. NOTE: Within magazines, crosswords, calming titles and escape type titles have done well. Even the dubious content filled weeklies have performed well.
  • Greeting cards. Revenue. City high street: -7%; City mall: -32%; Regional high street: -12%; Regional mall: -31%. NOTE: cards were hit hard early in March because of the tactile nature of browsing cards. There was an indication of improvement in April but it was slow.
  • Stationery. Revenue. City high street: +9%; City mall: -42%; Regional high street: +13%; Regional mall: -16%. A challenge with stationery has been supply.
  • Lotteries – instant scratchies. City high street: +24%; City mall: -5%; Regional high street: +37%; Regional mall: -4%.
  • Lotteries. Revenue. City high street: +3%; City mall: -8%; Regional high street: +5%; Regional mall: -6%.
  • Tobacco. Revenue. City high street: +11%; City mall: N/A; Regional high street: +27%; Regional mall: N/A.

KEY SPECIALTY PRODUCTS.

  • Gifts. Revenue. City high street: +9%; City mall: -31%; Regional high street: +18%; Regional mall: -26%.
  • Toys. Revenue. City high street: +125%; City mall: -38%; Regional high street: +145%; Regional mall: -22%. Less than half the stores in the study have toys.

Toys includes puzzles. In one city high street business jigsaw sales in April went from $870.00 in 2019 to $4,300 in 2020. They were not alone. I mention this to indicate that the average above, 125%, does not do justice to the businesses that positioned themselves well to leverage the jigsaw opportunity.

Gift results are actually all over the place too given that there is a lack of consistency in our channel for what is regarded as a gift.

GP SHIFT.

Exposed in deeper analysis of the sales data is a shift downward in overall GP performance in businesses stock in lotteries, papers and magazines. This result makes for a complex discussion with landlords who may only look at revenue, and not the underlying gross profit performance.

The scratchie surge is considered to be due to people having cash in their pockets from the early boost to Newstart and the closure of poker machine venues.

ONLINE.

Online has proven to be key through all this. Businesses with an established online platform have done well through deliveries=, click and collect and variations of these.

HEALTH OF THE NEWSAGENCY CHANNEL.

I’d say that overall, the channel is okay. Yes, just okay. While there are some stand out successes, there are more at the other end of the scale. The future depends on what happens next and what retailers do next.

There is no doubt that business has fundamentally changes. As local service-oriented retailers, the newsagency business has to change too.  This is why I say what we see next in terms of success or otherwise will depend on smart tactical engagement as well as an ability to successfully predict future trends.

While predicting the future has always been a challenge for business owners, it is even more so now because of how CCOVID-19 has impacted the whole of the economy.

WHAT’S NEXT?

While I have thoughts on that, I’ll same them for another time. I would note, however, that every business that shared data with me has opportunities revealed in their data. I urge people to start there. Look at the trends your data reveal.

Finally, I am grateful to all newsagents who shared their data for inclusion in this study.

Mark Fletcher.
Email: mark@towersystems.com.au  Website: www.towersystems.com.au  Blog: www.newsagencyblog.com.au
M | 0418 321 338

14 likes
Newsagency benchmark

Full face Mother’s Day cards work well

This full-face display of Mother’s Day cards on the lease line is working a treat.

The display catches attention of people walking past. They can browse the range without having to touch anything. That the display is not crowded / overloaded is key I think.

The full card is on show – meaning the full creative investment can be leveraged rather than the usual top third that we so often see in card fixtures in Australia.

The display has worked so well that we have had to shift stock around to fill gaps, which is a good problem to have.

The jury is out on Mother’s Day, especially in Victoria with stage 3 restrictions still in place. It’s hard to figure out how it will play out.

Shopping malls in the city and suburbs are not back yet, not even at 33% of traffic. I expect high street stores to have a better season than shopping mall based stores. That said, I expect most mums will not get a visit Sunday, meaning that card purchases will need to have been considerably earlier this year as posting anything now is too late. Online has benefited too, which is good for those with that opportunity.

3 likes
Greeting Cards

Terrific pitch from The Simple Things

I love this tweet from the folks at The Simple Things in the UK. They call out newsagents as a usual outlet for the title while showing how people could connect with the title while many retailers in the UK were closed.  I like that the provided context for their subscription pitch.

3 likes
magazines