Author: Mark Fletcher

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.

The judgement issued last week in the Industrial Court of NSW in the matter of Newsagents Association of NSW and ACT Ltd v John Fairfax Publications Pty Limited [2006] NSWIRComm 409 has been published. This judgment confirms what I blogged on Dec. 28 – that the parties (NANA, the newsagent and Fairfax) are to participate in mediation to find a solution.

This case is significant for newsagents as it places before a court matters relating to the deregulation of the distribution of newspapers in NSW in 1999/2000. While the judgment is heavy going in parts, I am sure newsagents will find it fascinating reading. Newsagents will also be please to see the NSW Association (NANA) fighting in court on behalf of newsagents.

What is really playing out in this case is how to handle (or not handle) the consolidation of the 150 year old newspaper distribution network of newsagents.

Unlike chemists, farmers and auto workers, newsagents have been cast adrift by the Government. It ignited the deregulation bushfire and left newsagents to defend their family assets alone. Newsagents have hundreds of millions of dollars invested in their businesses in the form of goodwill. Publishers have a need to reach more customers for a lower cost and with more control. When the needs are mutually exclusive, the publisher can take the business and walk and this is where a question of goodwill and compensation comes into play.

While skirmishes such as that currently before the Industrial Court of NSW will break out occasionally, it is not until those who created the current situation revisit and investigate the ramifications of what they started that newsagent families can hope for a fair and equitable resolution of the matter. This means the Government, the ACCC, publishers and newsagents talking through what six years of deregulation has meant for the country and newspaper stakeholders.

Here’s what often happens with the craft, patchwork, quilting, crochet, knitting and sewing triple packs publishers send to newsagents. Customers want to see what they are buying and rip open the packs and often leave the mess for newsagents to fix. While I understand the need for triple packs, there must be a more retailer and customer friendly way than these sealed packs. The pack photographed, distributed through Network, can only be fixed by newsagents who have a heat seal packaging unit available. If we notice a customer looking we offer to carefully open the pack – this does not happen enough unfortunately.