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

Author: Mark Fletcher

Reader’s Digest not socially responsible

rd_sep07.JPGReader’s Digest is not socially responsible in my view. We continue to be supplied way more copies than we sell. Sure, supplies are reduced but they soon spring back., This month we received one more than last month – despite sales data not supporting such a move. While in the past I have blamed NDD – and still consider they have a role to play in this – I place the majority of the blame for oversupply of Reader’s Digest on the publisher. They set the print run and it is the print run which presents the challenge to the distributor. A print run which more accurately reflects net sales would suit the retail channel and, I suspect, NDD.

So, the question has to be, is Reader’s Digest a good corporate citizen, one who cares for the environment? Based on current supply to newsagencies I suspect not.

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magazines

bopo makes cover of Australian Women’s Weekly

aww_bopo.jpgGreat to see bopo being promoted on the cover of Australian Women’s Weekly. With newsagents a key retail partner for bopo this marketing on the cover is relevant to us and most welcome.

bopo is interesting. While we don’t do much recharge business for this prepaid debit card yet, I know of some newsagencies where it generates considerable traffic. Being on the cover of AWW will make it more mainstream as will their connection with MTV announced a couple of weeks ago.

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magazines

Magazines for Father’s Day

father_mags.jpgWe are excited about this stand we have created to promote magazines as an ideal gift for Father’s Day.

We have put spare point of sale material for Father’s Day to good use to frame a the magazine offer and thereby visually connect it with our greeting card offer. We have placed this display on the dance floor between the counter, greeting cards and our main newspaper stand.

On the stand, we pitch magazines which we feel are appropriate as a gift for Dad. By covering fishing, sports and cars we’re hitting the categories of most interest. If we have more space we could have added health, cooking and some more sports titles.

Choosing the title mix was difficult. We will adjust the titles on display as new issues arrive. We are also tracking what sells off the stand and sales results will guide finessing the mix.

We created the stand because we felt it is important for newsagents to demonstrate that a traditional category such as magazines works with a season like Father’s Day. How many dad’s so you know who lust after, for example, Top Gear magazine but don’t buy it – what an ideal Father’s Day gift!

The stand also helps our team make gift giving suggestions to customers.

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magazines

Greeting card challenges ahead

The New York Times published an interesting article August 20 by Elizabeth Olsen about how traditional greeting card companies are competing with online competition such as e-cards. Olsen says that e-card use has grown between 15 to 20 percent this year. Some of this has to hurt over the counter card sales.

Of interest in the article is news, to me, that American Greetings (John Sands here in Australia) has launched Kiwee, a site through which you can send free postcards and expressions that can be posted to MySpace and MSN accounts.

Australian newsagents often leave the greeting card part of their business up to their card suppliers. In this changing marketplace it will be important for newsagents to more actively engage in activity surrounding the card department.

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Greeting Cards

How to choose the right newsagent software

Not all computer systems used by newsagents are the same. Not all being sold today compliant with industry standards. Not all have newsagents using electronic returns. As the maxim says, caveat emptor.

To help newsagents navigate the choice, I have prepared a simple guide for choosing a point of sale system for a newsagency. While I own Tower Systems, the advice stands any test. It is will help you make the best choice for your business. The free guide can be downloaded here.

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newsagent software

Ink and toner the new cigarettes

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For decades cigarette sales have provided regular customer traffic to many newsagencies. Now, thanks to tougher regulation, tight margins and risk of theft, more newsagents are quitting selling cigarettes. We stopped over ten years ago in my newsagency and have never looked back. Many newsagents who are quitting the category today are moving into ink and toner. While not driving the same level of traffic, there is considerable loyalty among ink and toner customers. Once you prove you have good product at a fair price customers come back and back.

Ink and toner sales in my newsagency account for 35.75% of all stationery sales – this does not include sales through Inkfast, my online ink and toner business.

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Stationery

The Art of Knitting, part 2

knitting_2.JPGUsually by part 2 of a partwork publication interest wanes. Not so from what we are seeing for part 2 of The Art of Knitting. I’d say this could well be the partwork of the year – although there is a movie musicals partwork coming in October which could do better. From what I have seen, The Art of Knitting is appealing to a broad demographic. I know that the success of part 1 has caught the importers by surprise – hence the delays in getting extra stock to newsagents.

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partworks

Little Ears magazine, helping children read

little_ears.jpgI have been fortunate to see a copy of Little Ears magazine which launches September 3 through newsagencies. This is a unique title which deserves promotion in a high traffic area where mums are likely to shop. While sales volume will not be high, promoting Little Ears demonstrates our social responsibility – it positions us as helping children learn to read. I can see excellect display opportunities around this community focused pitch.

While Little Ears will work in the children’s section, it could also get lost in the colour and noise. This is why a promotion next to women’s weeklies or some other high-traffic area will help the title gain traction. Another option would be to create a promotional story around the title supported by other activity products such as books and craft packages – the timing could be good with school holidays soon.

I doubt we will see this title in any retail outlet other than newsagencies – this is another reason to get behind the launch. Here is some background information kindly provided by the publisher:

Little Ears is a first-of-its-kind Australian storytelling magazine that showcases Australian writers of children’s stories, poetry and plays. Its aim is to help busy parents and childcare workers stimulate the imaginations of children aged three years and over and inspire in them a life-long love of reading.

The magazine will offer a wonderfully diverse range of stories from Australian writers in an easy-to-read format every two months. These stories are suitable to be read aloud to young children in bed, on the sofa, in a tree house or on a faraway treasure island?!

Each issue Little Ears will offer twelve or more beautifully illustrated stories providing a readily accessible, constant source of quality stories at a much cheaper price than a storybook. In addition, the magazine contains about eight pages of information-based articles, book reviews and family activities. Articles on parenting feature information will also be included with a focus though on literacy education as one of our magazines objectives is to help raise the poor literacy levels in our country.

Some newsagents will be concerned at the push for direct subscriptions. They are a matter of life with any magazine. For my part, we will pitch Little Ears with a put away offer as this is the kind of title which customers will want kept aside for them each issue.

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magazines

Newsagency sales counter

impulse_aug20.JPGFollowing my theme last week of posting what we do at the front of our newsagency to promote magazines, here is the front comer of our counter yesterday. While not the ideal clean model, it works for us. Starting at the left is the busiest of our two lottery counters, next is the ACP Basket Builder stand – this is topped up daily, then we have the Herald Sun stand – the Herald Sun is also at our main newspaper stand, behind this are two titles which we rotate through the week, then is the Darrell Lea stand of impulse items and finally is a stack of VTAC Guides – this changes every week with another impulse opportunity in this place.

Once the redevelopment of the centre is complete and we know what our new lease line will be we plan to replace the front portion of our shop. This includes re-capping this part of the counter with a single professional unit which offers a more complete mix. For example, we will promote all weeklies and not just ACP product. The goal of the new unit will be to enable us to re-jig our message to people passing by our newsagency to reflect fresh product.

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magazines

Bark! magazine closed

Sad to hear that Bark! magazine has closed. As I blogged two years ago it was an excellent title but lack of marketing resources meant it struggled to gain attention. Writing at OzPets, Melissa attributed the following quote to David Smith, MD of Bark! publisher:

Unfortunately, due to lack of advertising support, I have taken the decision to close bark!

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magazines

Free with your magazine this month

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Gourmet Traveller, Home Beautiful, In Style, New Woman, Madison … these are just some to the magazines this month with free gifts. The gifts range from bags to make up to restaurant guides. The challenge is to display the gifts in a way which drives sales – traditional magazine fixturing makes this difficult.

Over the weekend we promoted the Home Beautiful gift in a way which showed off the free Ultimate Shopping Guide gift and it worked well, achieving better than average sales.

On option we are considering, given the current crop of women’s titles with a gift, is to build a display around this.

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magazines

Newspapers, magazines strong in supermarkets

aztec.JPGThis graph shows national growth of newspapers, magazines, cigarettes and film as measured across 1,500 supermarkets in the year to March 2007 as measured by the respected Aztec organisation.

The newspaper growth of 5.2% will be of most interest to newsagents.

Given the overall growth by newspapers for the same period, the 5.2% growth in supermarkets has come, in significant part, at a cost to other outlets – most likely newsagencies.

At the end of March 2007, average weekly sales of newspapers in supermarkets was in excess of $1,300 per location.

Newsagents need to mount an offensive to turn the situation around. We need to reinforce why a newsagency is the go to place for your newspaper. If we, nationally, do not do this then we risk further falls and with each fall is an erosion of our relevance in the news and information retail proposition.

We rely on newspaper traffic to sell the majority of other products in our business. Once the habit is broken for the newspaper purchase, the habit for stationery, cards and other items is at risk.

While some reading this will complain that the supermarket sales data shows why publishers have done wrong by newsagents by putting newspapers in supermarkets, I’d see that as wasted energy. The competition is real, as the data show. Now it is up to us to engage as business people and pursue growth in newspaper sales for ourselves.

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Newsagency challenges

Melbourne Observer a top newspaper for newsagents

mo_aug07.JPGThe Melbourne Observer actively supports newsagents. They provide a link at their website listing the 400 newsagencies where the title is available. They also promote newsagencies through ads in their newspaper – including a pitch to readers suggesting they arrange a putaway. By embracing the Melbourne Observer newsagents support a newspaper supporting them.

In my own newsagency sales of the Melbourne Observer are strong. While the demographic is older, they are loyal and it is this repeat business which is good for business. I know of newsagents who have embraced the title and been thrilled with the results.

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Newspapers

New lads mag for Australia?

nuts_cover.JPGI heard Friday that Nuts, the UK lads mag which outsells Zoo in the UK, is to launch here. My initial reaction was – do we really need another weekly lads mag – one which features reality TV contestants in naked and near naked shots?

Zoo is doing okay in Australia but I suspect it sells better outside newsagencies. But then, maybe another good title will being more focus on the category and help us drive traffic in that part of the shop and thereby help sales of other titles.

A report in The Independent in the UK Friday says lads mags suggests the bottom has fallen out of the lads mag market. Stroppybird has an interesting view on this here. Given the comments of some customers in newsagencies I’d say she is not alone – these magazines do nothing for equality. I would not buy them.

This is a new market for Australia compared to the UK. I was talking to a couple of newsagents yesterday at the GNS Market Fair in Sydney about this – they told me that Zoo is one of their best titles and growing. So, as you’d expect, in some demographics lads mags are strong and growing. The challenge for businesses like mine where interest is soft is to work harder at finding a market. One thing we need to do is to draw a distinction between FHM, Ralph and Zoo. The weekly is a different beast and needs to be promoted as such. And through all this, one has to navigate their feelings about the product itself. Ah, ethical dilemmas.

Photo from Nuts UK website.

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magazines

The trouble with comics

comics.jpg

Comic sales are falling in newsagencies. All but the high profile comic brand franchises are in trouble from what I can see. Our range (see photo) is a third of what it used to be. The range was cut over time because sales did not justify the stock investment. We are planning to feature comics at the counter to reinforce that we are in the space but, I am not confident about this. We are also considering moving the category in search of sales.

My sense is that the demographic most interested in comics is getting satisfaction from comic like material elsewhere: online, pay TV – both mediums have grown in coverage in Australia in the years over which comics have declined.

I have checked out a couple of specialty comic stores recently and they seem to be traveling okay so the hard core consumer seems to still be active – it is at the discretionary end where sales appear soft.

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Sydney newsagents smiling

It was good to catch up with some newsagents in Sydney at the GNS Market Fair today.

For me, the fair was a lesson in customer service, personal customer service. At the Tower Systems stand, newsagent after newsagent stepped in to say hello to the NSW based Tower team member who installed the system at their shop or last visited to provide some training. They were full of smiles and appreciation. Their reaction says something about how personal our NSW team has made their commitment to exceptional customer service.

With over 550 newsagents in NSW using Tower it would be easy for us to lose touch. That we have not and have so many happy newsagent customers is a testament to the work of Peter, Luke, Nathan, Tim, Gavin and others who have made it their business to provide exceptional personal customer service.

The Fair itself was comprehensive. It felt bigger than the Melbourne Fair a week ago – that may be the layout. It is good having the whole event in one room with nice wide aisles.

Today we saw more business than the two days in Melbourne.

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Customer Service

James Bond Car Collection

james_bond.jpgThe James Bond Car Collection partwork series is not as popular as other recent releases. We are displaying it as prominently at the front of the shop in a high traffic area but it has not attracted the same sales.

Maybe it’s a bloke thing – males 35 an over appear to be the most interested. Maybe it’s the James Bond franchise itself.

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partworks

New look for Woman’s Day

ni_wd.jpgThe launch of the new look Woman’s Day has gone well with sales up in the stores from which I have seen data. New Idea has had a good week too. The in-store promotional material for Woman’s Day, while good, did not tap into the new look enough to enable u to create compelling story around the change.

Also of interest this week is Woman’s Day and New Idea having a make up offer on the cover – it looked a bit me too. The offer was promoted on a small flyer attached to the cover – see the photo. The problem with these is that when placed back into the display unit after browsing – in any retail outlet – the flyer gets crunched and the next browser shows the apparently damaged magazine back and takes another which they crunch when they put it back in – you can see where I am going with this. Also, the offer, being on the lower left corner, is lost in traditional magazine racking.

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magazines

Friday magazines

This photo shows how we adjusted the display at the front of our newsagency today. We will leave it set this way until Monday when the cycle starts again. This week we broke with tradition decided on a broad offer rather than our usual single theme.

friday_mags.JPG

Of course, different demographics demand different approaches. In our centre we move to a more family focus over the weekend.

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magazines

Publishers discuss OH&S

Publishers discussed occupational health and safety issues at the PANPA conference in Melbourne last week – especially during a presentation by Bruce Treharne of Rural press. This is timely given the newsagent funded study into the OH&S issues of overweight newspapers, a study which, as I understand it, publishers are yet to respond to.

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Newspapers

The newspaper of the future

Click here for a copy of the presentation by students of the Charles Sturt University to the PANPA (Pacific Area Newspaper Publishers Association) conference in Melbourne last week on The Newspaper of the Future. My core takeaway – free is the game in town if you want to reach Gen Y.

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Media disruption

The Age Newspaper of the Year

Publishers voted The Age Australian Newspaper of the Year last week in Melbourne. For businesses which value their mastheads highly in their accounts it surprises me that they have awarded a newspaper which regularly allows post it type ads to be stuck across the masthead.

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Newspapers

Partworks in New Zealand

ACP’s Netlink division seems to control partworks here in New Zealand. Check out the list of titles they handle here. Retail is very different since newsagencies as we know them in Australia don’t exist – hence the strong direct subscription pitch from ACP on their website.

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partworks