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

Author: Mark Fletcher

Blogging for David Hicks

I am ashamed that my country is prepared to sit on its hands as the justice we claim to crave and fight for is trampled and human rights are ignored.

I don’t know what David Hicks did, if anything. I do know that he has been held prisoner and denied justice for more than five years. I also know that our Federal Government has seemed disinterested in pursuing justice for one of its citizens. The government’s inaction and ignorance on David Hicks’ situation appalls me.

We know from the prosecution that Hicks never shot or threatened anyone yet we there cases in Australia where someone is convicted of far worse and released from jail after two or three years. Our politicians have become paralysed by American insecurities. We have been caught in the web of fear which has, of itself, made America weaker.

It is time for Australia to stand up for itself and for one of its own.

I hope that this blog entry in some small way adds to the voice online about the injustice meted out against David Hicks at Guantanamo Bay every day. It joins 680,000 Google references to David Hicks.

Bring him home.

Resources:
Wikipedia
Fair Go For David
The President Versus David Hicks
David Hicks campaign site
Latest coverage from The Age newspaper
Michelle Grattan commentary

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Uncategorized

Howard Government small business scandal

Four months ago I wrote to Senator Coonan, Minister for Communications (Minister responsible for Australia Post) presenting evidence which I claim shows Australia Post breaching the Act under which it operates. I’m still waiting for a reply. Well, I have received a reply but when you lay it next to my letter it does not address even remotely any of my concerns. It’s an off the shelf document right out of Yes Minister. The Minister’s office promised in a letter six weeks ago that I would receive a reply. So far, nothing. In the meantime Australia Post pursues newsagents and other small businesses relentlessly through its government owned stores.

Tired of waiting to hear from the Minister, I sent this letter yesterday. Here’s one paragraph from the letter which sums up my position:

In that past, correspondence from your office and others in the Federal Government shows you hiding behind the Act. If you are right and the Act permits Australia Post to sell non postal related items in greater numbers, the Act must be changed. A government established and owned enterprise with monopoly core products and services such as Australia Post ought not be permitted to use its monopoly supported brand to compete against small businesses, especially when the government has stripped those small businesses of any monopoly products and services they had.

The treatment of newsagents by the Howard Government is a scandal. That the government profits through its protected 863 retail stores competing with newsagents ought to shame it. Without media coverage, people won’t know the harm being done to small business.

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Australia Post

Kmart closes, customer traffic falls

kmart-closed.JPGKmart has been a key traffic generator for all the businesses on level 2 at Forest Hill Chase for 18 years. It’s closure on Jan. 31 has delivered an immediate drop in traffic past our door. It is too early to assess the sales impact. It will be at least 9 months before a new Target opens.

We knew the Kmart closure was coming but have felt somewhat paralysed as to what to do in advance. Only time will reveal the impact. In the meantime, it is driving us to work harder on the business, ensuring that our offering is the best it can be and that we’re driving good word of mouth.

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Newsagency challenges

Lottery petition draws early success

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Our petition has been out for less that a day and customers are registering their opposition to any move by the State Government which would see scratch ticket lottery products available in supermarkets such as Coles and Safeway / Woolworths. They are also writing comments which make it clear they think that the two major supermarket companies have too much power.

We’re not promoting the petition – it’s on a clipboard on the counter without any other material – making this early response most encouraging.

Here is the petition people are putting their name to:

We, the undersigned, are concerned citizens who urge the State Government of Victoria to ensure that lottery ticket and scratchie games are sold only in independent small businesses in Victoria to protect jobs.

The Bracks Labor Government and Intralot would do well to consult Victorians before they seal a deal to put scratch ticket lottery products in supermarkets.

Name and address details have been covered for privacy reasons.

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Lotteries

Managing history at Fairfax

Interesting to see the public gnashing of teeth by here and here Fairfax over Fred Hilmer’s book about his time as CEO of the publisher. While these attempts to control history may be important to the players, they weaken the public perception of Fairfax which ought only focus on today’s proposition and not yesterday’s opportunities.

Newsagents today are missing opportunities as Hilmer did in his time as CEO of Fairfax. While there is considerable activity impacting the core products on which newsagents rely, they (we) are not sufficiently engaged about their future. Opportunities abound for bright lateral thinkers to reinvent the newsagent offering. This is one reason I thing newsagent businesses will continue to sell – to those who will drive consolidation and evolution.

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Media disruption

Time makes a move

Time Inc. has announced That its Sports Illustrated Group has signed an agreement to buy sports enthusiast Web site FanNation.com. Read more at MediaPost. Watch for more moves by magazine publishers connecting their established print brands with high traffic online brands through acquisition. Such acquisitions have been very successful for newspaper companies in the last two years.

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Media disruption

Great Valentine’s Day display

This is the window display at my local chocolate shop. It’s inspirational – the photo does not do it justice.

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Newsagencies take on a new excitement over the next two weeks as love comes to town. Many do amazing displays like this chocolate shop in Brighton and sell plenty of cards, plush, chocolates and other gifts. Valentine’s Day is a great opportunity to relax and enjoy retailing.

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Uncategorized

Steve Irwin tribute title attracts strong interest

steveirwin.JPGThis display by Jane and the team at our shop is drawing good interest from people looking for a keepsake tribute to Steve Irwin.

We will use this opportunity to remind people of his Wildlife Warriors legacy and how people can support their work.

I’m often critical of one off titles but not this time. This tribute is timely and connects well with the community.

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magazines

And the winner is…

NDD is the worst magazine distributor from a newsagent cash flow perspective according to the 2006 magazine sell through rate data I have sitting on my desk. I’ve been trawling through this data from many newsagencies seeking a fair and accurate subset to share with the Australian Newsagents Federation for use in their representations to government and for another project within my software company. Across the board in 2006, NDD magazine sell through rates were lower than those for Network and Gotch. This means that NDD is tying up more newsagent cash as a percentage of its total newsagent billings than any other company.

In most newsagencies I have data for, the NDD sell through rate is below 50% for the whole year across all categories. This is unacceptable for a company with exceptional IT systems and a wealth of sales data from newsagents which can guide it to provide more equitable scale out to newsagents.

NDD clearly does not respect the newsagent channel otherwise it’s sell through rate average would be significantly better.

To the NDD folk reading this and angry at what you will again claim is my ‘bashing’ of NDD. Treat newsagents with commercial respect and you won’t be embarrassed by the harm you are doing to the small business newsagency channel.

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magazines

Petition to protect small business and stop Intralot

I have created a petition for Victorian newsagents wanting to collect expressions of support from their customers for submission to the Bracks Labor Government while it considers whether to award a lottery licence to the Greek Intralot company. Waiting until a decision is announced by the government is too late. Newsagents concerned that Coles and Safeway / Woolworths may get scratch ticket product need to act now.

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Lotteries

Brisbane getting a free daily newspaper

My understanding is that News Ltd is to launch a Brisbane edition of their popular MX free daily. MX is a good product as it’s better than expected success in Melbourne and Sydney attests. I understand the importance of free dailies to publishers. My only hope is that they do not leave their current focus on major city transit locations and start to locate product in retail channels. This would hurt newsagents.

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Newspaper marketing

Intralot Supermarket scratch ticket push a done deal?

Following my post yesterday about Intralot chasing a licence to sell scratch tickets lottery games in Victoria, I received an anonymous call from a silent number claiming the decision was made by the Victorian Government and that Coles and Safeway will have scratch tickets available at their checkout by Christmas.

While I don’t know if the rumor is true, research online confirms Intralot’s plans for placing scratch ticket products in supermarkets in Victoria.

Coles and Safeway are too big already. They do not need scratch tickets. Their products will tempt people to use change to chase luck. Some of this change will be money from the Government Baby bonus and social welfare payments. By keeing lottery products away from supermarkets at least separates essential purchases from non essentials such as lotteries.

It would be socially irresponsible for the Steve Bracks Labour Government in Victoria to break a system which is socially responsible and has been generous to them for so many years.

While Tattersalls may have issues, at least their profits stay here. Intralot is a Greek company. We should not be shipping profits offshore when a local company serves us well.

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Lotteries

Supanews takes over franchisee store

This may be late news for some: Supanews corporate (not sure whether it’s the old Gaskin controlled entity or the new Angus & Robertson / Gaskin / PEP Supanews Retail group) took over the Bayside Frankston store two weeks ago. I’m not sure how this has happened since Tattersalls has a stringent process for appointing Accredited Representatives. This takeover seems to have happened faster than regular purchases can be processed.

I doubt this is the end of the dispute between franchisee and franchisor.

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Newsagency challenges

Back to School success for newsagents

While we failed this year with a Back to School promotion in my shop, I’m hearing great stories from other newsagents like the rural NSW newsagent who increased sales 56% through great ranging and display in store, or the VIC newsagent who landed two major school deals after years bidding against massive competitors – he won on a service guarantee and a local community pitch; and the shopping centre newsagent competing with Big W et al and almost doubled sales on last year.

Back to School can be hugely successful for newsagents in an appropriate demographic. The keys from the stories I hear seem to be: be big and bold; connect with local requirements; provide expert advice and exceptional service; and, get in early. I am sure those who have actually been successful will have even better comments to make.

Stationery is one part of our businesses we control. Those of us who have failed at Back to School need to learn from the successes. Maybe the successful newsagents could create a school on Back to School.

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Stationery

Memo Steve Bracks: Say no to Coles and Safeway selling scratch tickets

The Victorian State Government is soon to decide on who has the licence to sell lottery product here. Greek lottery company, Intralot, is said to be well placed to win the right to run scratchie games. Their pitch, apparently, is that they will sell these through supermarkets. As if Coles and Safeway need to extend their range further into small business territory.

If Steve Bracks takes scratch tickets away from newsagencies and lottery small businesses he joins a growing line of politicians who care less about small businesses and those they employ.

Newsagents and other small businesses have had scratch tickets since their introduction. We service the market well and adhere to responsible gambling regulations. There is no reason to take this business from newsagents – certainly no reason to line the pockets of Coles and Safeway shareholders.

Driving traffic to newsagencies is a finely tuned balance of products and services. Continually chipping away at that runs the risk of bringing the house down. Giving scratch ticket product to Coles and Safeway could take as much as 10% of gambling gross profit and a chunk of traffic leading to other sales. Newsagents will need to respond by cutting staff. How does this work for the State Government?

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Lotteries

NDD, the company that keeps on giving

On October 22, 2006 we received 10 copies of Modern Hair and Beauty 2nd edition. We returned 4. Today we received 3 copies of the exact same issue of this title. Distributors call it a reissue. Newsagents call it a scam. This cash grab by NDD is another example of unconscionable conduct. The hair category is oversupplied with titles. While they will claim that the 6 sold is evidence there may be demand for the reissue, the reality is that new issues of other titles have come out and this now old product will only give off the wrong message for a business trying to look current.

Reissues are ought to be banned unless a panel of newsagents (the ones who fund the practice) say otherwise title by title

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magazines

The revolution will not be televised or printed.

Jeff Jarvis at BuzzMachine blogs and writes in The Guardian about how YouTube has lead frogged TV (and print):

The revolution will not be televised. It will be YouTubed. The open TV of the people is already turning into a powerful instrument of politics – of communication, message, and image – in the next US presidential election. Witness: Democrats Hillary Clinton, Barack Obama and John Edwards; Republican Sam Brownback; and more candidates just announced their runs for the White House not in network-news interviews, nor in big, public events, but instead in their own online videos.

There are so many fronts on which YouTube and similar can replace old channels – as blogging has done for those with opinions.

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Media disruption

Overcrowding in children’s magazine space

The children’s magazine space is crowded with titles and sales are flat at best, falling in around 33% of stores I see data for. While key branded product such as Wiggles, K-Zone and Saddle Club are okay, the category is filled with me too product. The range in the photo below, recently distributed by Network, is a good example of this- high retail price, long shelf life and not unique from what’s on offer in the category.

network-kids.JPG

While I understand the need to bring in new titles to build sales, the $300+ investment in these four titles in this category is unlikely to be cash-flow positive for newsagents.

We need to introduce a cost of entry for new titles which respects our real-estate and labour costs. This barrier will qualify new titles and ensure that publishers and distributors do not take advantage of us.

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magazines

Is Optus about to cut newsagent income?

Following Vodafone late last year and Virgin Mobile (an Optus company) list month, Optus is rumored to be set to cut commission paid to newsagents for selling recharge product. The rumor is a cut of 33%, taking commission to 5%. Newsagents need to make 8% for recharge to be a viable transaction. At 5%, Vodafone and Virgin Mobile recharge are loss making. We know that when Vodafone cut newsagents to 5% it was paying Coles 16%.

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Newsagency challenges

Government owned Australia Post makes drought worse for newsagents

The latest stationery catalogue released by Australia Post as part of their push deeper into newsagent territory is working. As posted here before, my question for Senator Coonan, the Minister responsible for the Government owned Australia Post, is what part of the Australian Postal Corporation Act 1989 permits Australia Post to sell shredders, dictionaries, maths and other software packs, calculators, USB sticks, safes, office labelers and the many other office products in the catalogue?

I wrote to Senator Coonan on September 26 and am yet to receive a credible response. This lack of accountability shames the Federal Government. That it allows and even encourages its own retail network of 863 100% Government owned stores aggressively pursue products well covered by small business newsagents makes a mockery of its small business credentials.

I should note that one of Senator Coonan’s assistants did respond but the letter did not address any of my letter. I wrote again on December 5 and have only received a brief letter indicating that the Minister will respond. One day maybe. In the meantime, the Government profits from sales taken from my newsagency.

A big disappointment in this catalogue is the introduction by Australia Post of the Smiggle stationery range. While they have every right to place their product wherever they can, I would have been happier seeing them support a small business network established in their space rather than supporting a government business trying to chase the small business network out of town.

As I have said in recent posts on this topic:

Government ownership and regulation makes Australia Post stores destination stores. My newsagency does not have this monopoly advantage. Australia Post is abusing this advantage to encroach more and more into space previously the domain of newsagencies, some supermarkets and stationery stores. 

I cannot land consumers to my store for the same low cost of Australia Post.

I cannot leverage a national brand like Australia Post to buy competitively.

I cannot control my opening and closing hours.

I cannot get the rent discount of an “essential service”.

I do not have a government protected postal service brand with which to leverage the sale of unrelated items.

When farmers talk of the impact of droughts the government steps in with assistance. When auto makers talk of the impact of cheap imports the government steps in and helps. When newsagents talk of the impact of Australia Post the government ignores us.

Australia Post is our drought. For many years now it has been draining newsagencies of revenue. Many are close to death.

How many newsagencies need to close as a result of Australia Post competition before we see action?

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Australia Post

Search by singing or humming

This has nothing to do with newsagencies but, then, it has everything…Midomi lets you search for a song or music by singing or humming. You can also register songs by singing or humming. It also connects people by what they register and search for. It’s this kind of borderless search and interaction which represents challenge for traditional retailers like newsagents to understand and cope with. People’s online lives and interactions will evolve and become more exciting while their offline life will feel more and more like a nostalgic journey.

I’d love someone to come into my shop hum a tune when they’re searching for something.

Midomi is onto something.

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Web 2.0

Fighting visual noise in retail

mags-mastheads.JPG

Newsagencies are visually noisy making it a challenge for publishers and other suppliers to gain consumer attention for their products. New Idea this week cuts through with their yellow on black masthead. It actually helps Woman’s Day when situated next to each other.

The latest issue of Real Living, out today, was a surprise in the other direction – at first glance the cover looks washed out – see the photo of our feature display below. However, once we put the stock into the shelves next to other titles it stands out very well. Indeed, better than the more colourful titles. It’s an example of how pulling back visually can work well.

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This issue of Real Living is one which works better without a feature display or, maybe, with backing colours which better support its soft tones.

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magazines
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