Polarised retailing affects newsagents
The toughest part of retailing has been newsagents and book selling, where sales dived throughout 2006, with a 4.5 per cent drop since June. Mr Ganz said many of their sales had been cannibalised by supermarkets.
There are signs retailing is becoming increasingly polarised.
“Top-end and bottom-end retailers are doing well but those focused on the vague middle market are struggling,” said Andrew Cavanagh, of the Australian Centre of Retail Studies.
So reports David Uren in The Australian today. I know of newsagents who would agree with the report and others who would disagree. I’d like to see the data for city versus regional / rural and shopping centre versus high street and a comparison of socio-economic areas.
The newsagents doing well, and there are many, are those who make their businesses stand for something, where they control the business. We have to be bold, not necessarily big, but bold in making a statement about what our business stands for. The more valuable we are to our customers the more they will spend.
We must create our own businesses and turn our backs on the businesses our suppliers created for us more than 100 years ago.
Internet speed issues aside (due to the Dec. 26 earthquake) it’s good to see PCCW offering free WiFi access at Hong Kong airport.
How great would it have been to have this fella in our stores leading up to Christmas and the launch of the Happy Feet movie. He could have been the prize in a giveaway. His presence in store would have been a magnet for the kids and kids at heart. The little penguins can be landed in Australia for just over $1. I reckon they’d retail for $9.95. The big fella could be landed for around $200 – the expensive stuffing is the killer.
Virgin Mobile, an Optus company, yesterday advised newsagents that commission on the sale of Virgin mobile phone recharge product is to be cut again. What used to be profitable business for newsagents is now of questionable worth. Consider this, a recharge transaction takes between one and three minutes and newsagents make, on average, a dollar gross profit. Once you allow for card fees and overheads it is, as I say, questionable business.
Here’s an example of how newsagents are poorly served by some of their suppliers.
7 Eleven stores in Hong Kong have a great newspaper display out the front of the shop. Apart from a few street vendors, they dominate the retail of newspapers and magazines in the city. These newspaper displays are excellent. Since their shops are only 30 and 40 sq metres they’re not trying to draw people that far in off the street. The size of newsagencies in Australia makes drawing people in essential.
It stands to reason that when three greats of cricket fans will want to get a hold of the magazines featuring them. ACP’s Inside Cricket featuring Shane Warne on the cover has done exceptionally well as did Alpha last month for News Ltd. While McGrath and Langer are greats of the game, it is Warne who sells magazines. Oh, and newspapers for that matter.
Naming a business is often a challenge and the easy solution it to make up words as the owners of Bookazine have done here in Hong Kong.
Here’s another title which should be killed. Sales are none or one for each issue of Business & Investment Lifestyle Sales in my shop. It’s not paying its way and is wasting time and real-estate.
I have sent these titles back to NDD, the distributor. If they want me to carry the stock for more than 30 days they can compensate me for the use of real-estate and labour.