Author: Mark Fletcher

Further my post earlier today – I’ve been contacted by enough newsagents to know that the slow down by Network (PBL) in handling magazine returns will cost the small business channel around $2 million in cash-flow. That is, a $2,000,000 cash liability to Network seems to have been shifted out by 30 days.

Nice work if you can get it.

The magazine returns process and cycle is well established. The change by Network, while permitted under their trading terms, is unexpected and unfair. It is hitting this small business channel at a time when many will not be in a position to carry the cost to their bank balance.

Check out this blog post from “Hugh” about being told off by a newsagent for browsing magazines. Of all the newsagencies Hugh had to walk into he chose one where the newsagent yelled at him for doing what many newsagents want customers to do. We welcome browsers at my newsagency.

Internet speed issues aside (due to the Dec. 26 earthquake) it’s good to see PCCW offering free WiFi access at Hong Kong airport.

As I noted here a few weeks ago, I’d like to see the Government roll out free WiFi access across Australia,. Newsagents would make ideal hotspot points. I’m sure you’d find the 4,600 business owners keen to support such a national project.

A smart country needs a smart infrastructure and free WiFi wound provide an excellent backbone.

While I don’t hold much hope of any politician understanding the importance of a national free WiFi network, I remain amazed that free WiFi is NOT available in our major airports. Instead, the owners prefer to use WiFi as another revenue opportunity. Most major international airports offer free WiFi. Not ours.

I really like the look of this Relay shop at Hong Kong airport. It’s efficient in its use of space and easy to shop. Being shallow there is none of the dead space at the back of the store we often see in shopping centre newsagencies.

Given the average shopping centre rents for newsagencies of between $900 and $2,000 a square metre and given our lower than average retailer margin (28% – 32%) it is time we thought more about our footprint. Sure this Relay store is not as impressive as a 250 sq metre store but I bet the return on floor space is better.

I know in my shop that only 20% of our total store traffic gets to the back 50% of our space. We have tried all manner of displays and promotions. Next time I think I’ll be looking for a shallow but wide shop.

Here’s an example of how newsagents are poorly served by some of their suppliers.

Today, in Hong Kong, I met representatives of company which manufacturers Wiggles products under licence. The range is ideal for newsagencies especially since we sell the Wiggles magazine. The range lends itself to the plan-a-gram approach where all stores have a consistent range and retail message. Unfortunately, our main wholesaler for this type of product does not take the range. Rather, they choose two or three items and this is all newsagents see as being available and, more often than not, pass on the products. It becomes self defeating.

This is a missed opportunity. The success of our retail channel depends on smart buying. From what I have seen today, those buying for us are not as smart as they could me. We ought to have this Wiggles range, and other ranges from the same company, and ‘own’ the space.

Our range of magazines and greeting cards opens newsagencies to demographics which we can leverage for other sales. This is where those who buy for us ought to focus their attention – on products which complement the unique newsagent demographic.