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

Author: Mark Fletcher

What people think

A Victorian newsagency is preparing to close and have put remaining stock on a deals website, including magazines at 25% off. One person posted some interesting comments:

Dedbny on 12/01/2020 – 09:22
Magazines? I think they are those things at the supermarket checkouts.

BewareOfThe Dog on 12/01/2020 – 09:37
Regrettably, one of the reasons newsagents are closing down.

Dedbny on 12/01/2020 – 09:57
The only time I read magazines is at check out or sneak a look in the magazine section at the supermarket or at the doctors waiting room. I don’t think I have bought a magazine for years. Also as a true OZber we have free library access to them online. Although having said that it’s still not as good a just flicking through the pages in a physical one. Yes I was thinking Newsagents are on the way out. They have to supplement their income – Tatts tickets, dry cleaning, & sell smokes. I don’t even know if its worth them doing the newspaper deliveries, but they still do.

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newsagency of the future

Advice for retailers on dealing with the bushfire economy

Beyond the lives lost and the buildings destroyed, the bushfires of recent weeks will most likely impact the economy and indie retailers for plenty of time ahead. We know from what followed on from the devastating Black Saturday bushfires of 2009 (179 dead and 2,029 homes destroyed) that the impact will be felt way beyond the local communities in which the fires occurred.

There are logistical challenges with several key trucking routes significantly impacted. This is being felt already with deliveries on the east coast impacted as well as between east and west.

There is the mindset impact where people outside of direct personal impact are concerned enough to delay or stall regular spending. I anticipate many retailers will see this. All the bushfire relief appeals will further reinforce this mindset. While the appeals are important and valuable, they play into the narrative of fear, which impacts spending.

There is also the knock-on economic impact. Some economists are talking of a bushfire led recession. The mere mention of that will be enough for some to pause or slow discretionary spending.

How do you cut through this? It is tough. I think the best approach is to be the best you can be at what you do on a regular basis. That is, to not promote a sale in response to the bushfires. Rather, trade as you would normally but with leveraging opportunities for fun and relaxation, where people get a break from tough news. People are in the mood for respite. You can give that to them.

People still have birthdays and anniversaries. Help people celebrate their loved-ones. People are going back to school and back to work. Help them with stationery.

At the core of much consumer behaviour is the desire to buy what you like. The key for us as retailers is to stock what shoppers like. There are many categories in transformed and transforming newsagencies that are working well and that lend themselves to promotion in this new economically challenging time in which we find ourselves in right now.

There will be people who need encouragement. Consider a display of products, cards and gifts, that help express encouragement – without making the display bushfire related.

What has happened and is happing with the bushfires is dreadful. The reach is extraordinary. I would caution you to moderate your engagement with a focus fixed on what works best for your business, because you can’t help anyone if your business is not successful.

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Social responsibility

ALNA launches fund to support bushfire affected newsagents

ALNA late yesterday announced details of a fund go support bushfire affected newsagents:

As many of our small businesses are feeling the effects of the devastating fires and the flow on impacts of the loss of properties, sales, cashflow, and tourism, and through stock and power interruptions, ALNA has announced today the creation of a News and Lottery Agents Fire Assistance Support Fund and we invite you to participate.

The fund will provide much needed financial assistance to those newsagents, lottery agents and newspaper distribution agents in our industry whose businesses have been directly impacted by the devastating bushfires.

Newsagents are a mainstay of thousands of communities that on an average day are visited frequently by one in three Australians. However, as fires rage and damage buildings, relocate customers, cut spending, interrupt stock, impact tourism, and most tragically bring a loss of life, our sectors small businesses are deeply affected.

Small businesses like our newsagents and lottery agents and their staff are particularly vulnerable to the impacts of this loss. And this comes at the peak trading time for many of our regional businesses, when they traditionally do most of their big trading days in busy tourist and holiday areas.

As a result of this, ALNA has set up this support fund and is receiving donations to help those members of our industry who normally support us through their busy businesses and who are currently in need.”

ALNA Chairman Stuart Kilborn said: “Retail is tough enough and our hearts go out to these business owners and their staff who have been affected. As an industry it’s an opportunity to come together and to support each other through this difficult time.”

ALNA is pleased to have also been offered the assistance of the Victorian Association for Newsagents (VANA) to help promote and support the fund. ALNA and VANA are asking all participants in our industry like yourselves to get behind the initiative and to support it, to help those members of our industry who normally support us through their businesses and who are currently in need.

VANA Chairman Chris Pecora said: “Our industry nationally is united in purpose, in this time of need.”

Details:

ALNA has collaborated with Rural Business Tasmania Inc (ABN 43 790 148 538) to establish the News & Lottery Agents Fire Assistance Support Fund. Rural Business Tasmania is a registered charity and is endorsed as a Deductible Gift Recipient (DGR), so all donations will be covered as a tax-deductible donation to the News & Lottery Agents Fire Assistance Support Fund.

Affected businesses will be able to apply for funds, and a process coordinated by ALNA will determine the distribution of funds to those businesses that have demonstrated impact by fires. The running of the fund and the administration of financial assistance to affected businesses will be coordinated by ALNA, and in addition to a donation by ALNA, suppliers and fellow newsagents and lottery agents are also being asked to support it with donations where you have the capacity.

ALNA has created a charitable GoFundMe payment gateway for online donations to the fund, (to avoid leaving a tip to GoFundMe, please change this to other and enter $0) .

We are developing the application form to be available on our website soon for applications for assistance.

Tax deductible donations can also be made direct to:

News & Lottery Agents Fire Assistance Support Fund.
ANZ Bank
BSB:  017 542
Account No: 474 134 297

For your donation to be tax-deductible, please include your name as reference.

Please email firesupport@alna.net.au to request a tax-deductible receipt for your donation.

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Social responsibility

Global fundraising campaign for Koala rescue and care spearheaded by Ty Inc

Katy Koala is being made by Ty Inc as a fundraising tool in a truly global campaign to raise money for koala rescue and recovery following the devastating bushfires in Australia.

Ty Inc and their their Australian distributor, Big Balloon, are donating 100% of profits. newsXpress corporate is Alsop donating 100% of profits as are the corporate newsXpress stores. I anticipate many locally owned newsXpress stores and other Beanie Boo retailers will do the same to maximise the fundraising.

Here is a more complete release announcing this unique global campaign:

“PLEASE SAVE THE KOALAS,” URGES TY WARNER, RELEASING NEW BEANIE BOO TO AID AUSTRALIA

All profits from Katy Koala donated to organization that saves Australian wildlife

OAK BROOK, Ill. – Ty Warner has created Katy Koala to help the endangered Australian wildlife. 100% of all profits from the original sale will be donated to WIRES.

“Hopefully, this special Beanie Boo will raise awareness around the world about these devastating fires raging through Australia and will provide help to all wildlife affected by the tragedy,” said Ty Warner, CEO and founder of Ty Inc. About Ty Inc. Ty Inc. is the largest manufacturer of plush in the world. Katy Koala will be available worldwide. For more information, visit Ty.com

About WIRES (NSW Wildlife Information, Rescue and Education Service Inc.) WIRES is Australia’s largest wildlife rescue organisation and has been rescuing and caring for native animals since 1985. It officially launched as a not-for-profit organisation in March 1986 with its mission to actively rehabilitate and preserve Australian wildlife and inspire others to do the same. WIRES has 28 branches and over 2500 volunteers who are involved in the rescue and  care of wildlife in NSW and they assist many thousands of sick, orphaned, injured and displaced animals every year. The WIRES Rescue Office operates 365 days a year so the community can report sightings of native animals in distress.

Wires are supporting the relief network Nationally.  While a focus is NSW as that is their home, they have done national work so for some time, and are the largest wildlife relief NGO in Australia.  They have over 2,500 volunteers working around the country.

Below is a link of the statement from their CEO. Wires is supporting wildlife nationally. Below is a link to a statement from their CEO recently: https://www.facebook.com/164290389749/posts/10158332029059750/?substory_index=0

Also, as some background why Big Balloon and Ty chose WIRES, we contacted the Koala Foundation and number of other wildlife non-profit organisations.  They all recommended WIRES purely because they have the greatest national reach and resource, which a lot of the other state bases right now can’t handle due to the enormity of the situation.

Important notes:

  1. Ty Inc globally will donate 100% of profits from the original sale of Katy Koala.
  2. Big Balloon will donate 100% of its profits from the sale of Katy.
  3. newsXpress corporately will donate 100% of its profits.
  4. We urge all newsXpress members to do this, thereby enabling a clear statement to consumers.

Katy will be in store in March.

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Social responsibility

If you are collecting donations for bushfire relief…

Stories have been doing the rounds in some towns of retailers collecting bushfire relief funds and not being transparent about what they do with the money. My advice is:

  1. Be clear about the charity for which you collect.
  2. If collections, deposit donations regularly.
  3. Get a receipt for each deposit you make and post the receipt in store and on your business social media pages.
  4. Choose a charity that is known and understood locally and one that is not engaged with any agenda that may concern some – like any church organisation.

We took this approach following the Black Saturday bushfires in Victoria and found our customers appreciated the transparency.

The other point about this is to maintain a business as usual approach as much and possible. I say this as the everyday needs you serve in a typical newsagency or newsagency like business are still there. Serving these needs and not having your attention diverted (as much as practical and possible based on your location) makes sense.

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Ethics

Tabcorp announces bushfire relief donation – connected to Saturday lottery draw

Here is the full announcement:

Tabcorp to donate more than $1.5 million to bushfire relief

Monday 13th January: Tabcorp has announced that it will donate more than $1.5 million to bushfire recovery on behalf of its brands TAB, Sky Racing, the Lott, MAX and Keno.

All of Tabcorp’s proceeds from the regular Saturday Lotto draw on 25 January will be donated to the bushfire relief effort, which is expected to be in excess of $1.5 million. The draw will be known as the Bushfire Benefit Draw.

“We offer our deepest sympathies to the many Australians that have lost loved ones, homes or their livelihood during this national crisis,” said Tabcorp CEO David Attenborough.

“The Australian spirit has been truly inspirational throughout this ordeal and the Tabcorp Group is pleased to play its part in supporting the recovery effort.”

Tabcorp has also provided financial relief to hotels and clubs that have been directly impacted by bushfires and relief operations.

This comes in addition to the $100,000 donation made by Tabcorp’s Keno brand to assist Team Rubicon in late 2019 in their efforts to clean and rebuild bushfire affected communities, particularly those who have lost property in Northern New South Wales.

Tabcorp is also dollar matching donations made to bushfire relief charities by its 5,000 employees, as well as amending its existing volunteering policy to provide open-ended paid leave for volunteer firefighters and reservists throughout this time.

“Many of our own people have been deeply impacted by these bushfires. We have partners in pubs, clubs, newsagents and retail outlets across New South Wales, Victoria, Queensland and South Australia that have been devastated and we’re committed to providing as much support as we can during this difficult time,” Mr Attenborough said.

Tickets in the Saturday Lotto Bushfire Benefit Draw, Saturday Lotto draw 4019 on Saturday 25 January 2020, are available at the Lott outlets across Australia (excluding Western Australia), online at thelott.com or via the Lott app.

ENDS

This is terrific news.

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Social responsibility

Please don’t buy back to school supplies from Officeworks, support locally owned businesses instead

Officeworks is spending a ton of money right now advertising that they offer the best back to school deals. They have clever wording to buy them coverage one direct price comparison. Like Bunnings, they are the master of making it look like they are cheaper. That’s to get you in and spending, knowing you’ll pay above the odds on other items.

Local retailers like newsagents and local stationery shops, family businesses, businesses integrated with the local community, will provide more genuine value if you support them.

While I don’t offer back to school supplies in the newsagencies I own, I surge all Australians with kids heading to school this year to shop local, shop with the shop you are likely to call on to support your community group or charity. They can’t help if you don’t support them.

Support the local business with no TV ad spend telling you how cheap they are because someone pays for the TV ads and that someone is the shopper. TV ads are expensive. The Officeworks ads are excellent at nurturing the impression that you will save if you shop with them.

Newsagencies are among the first businesses approached by local community groups, schools and others for support for raffles and other fundraisers. If every member of the local groups and clubs asking newsagents for help shopped with newsagents ahead of big business competitors, more help could be forthcoming.

For back to school needs for then 2020 school year I urge families to shop local and I urge newsagents to get this message out, to encourage people to think before they shop.

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Stationery

The Chaser offers free News Corp. masthead unsubscription service

Satirical site The Chaser offers to unsubscribe people from News Corp newspaper mastheads.

Are you sick of that crotchety old billionaire Rupert Murdoch siphoning off your hard earned cash each week? Are you tired of reading newspapers so biased, they make the Chaser seem like serious journalists by comparison? Want to just cancel your subscription to the Daily Telegraph that keeps clogging up your mailbox, but can’t be arsed waiting on the phone for three hours?

They are one of several engaged in a campaign to cut revenue to the right wing news business.

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Ethics

Interesting trends at Hong Kong Toy & Stationery Fair

I am grateful for the opportunity of a day and a half at the Hong Toy, Licensing and Stationery Fair earlier this week. It was good to see the trends from the perspective of manufacturing companies throughout Asia and Europe. This fair and several others between now and mid February help set the plans for many Australian wholesalers for the back half of this year and the first half of next year. My goal in being at some of these trade shows is to offer retail perspective to wholesaler decisions.

With toys playing such an important role in an evolving newsagency, 25% and more of retail turnover, being on trend matters.

Sort of related: on the bushfires, I got back from Hong Kong Wednesday night. At the Fair I met with manyChinese suppliers. In years at such trade shows people never ask about Australia. This trip, everyone asked and commented about the bushfires. Plenty commented about the Prime Minister and about Australia’s inaction on climate change.

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Trends

SMH: ‘Dangerous, misinformation’: News Corp employee’s fire coverage email

‘Dangerous, misinformation’: News Corp employee’s fire coverage email, by Zoe Samios and Andrew Hornery writing for the Sydney Morning Herald is fascinating look inside News Corp and how one employee views their reporting on climate change.

A News Corp employee has slammed the organisation for its “irresponsible”, “dangerous” and “damaging” coverage of the national bushfire crisis, urging executive chairman Michael Miller to think about the “big picture”.

In an email distributed to News Corp Australia staff and addressed to Mr Miller, commercial finance manager Emily Townsend said she had been filled with anxiety and disappointment over the coverage, which had impacted her ability to work.

“I find it unconscionable to continue working for this company, knowing I am contributing to the spread of climate change denial and lies. The reporting I have witnessed in The Australian, the Daily Telegraph and Herald Sun is not only irresponsible, but dangerous and damaging to our communities and beautiful planet that needs us more than ever to acknowledge the destruction we have caused and started doing something about it.”

I think the News Corp. reporting climate change has been appalling, ignoring science for baseless fantasy theories from the fringes. Add this to the extreme bias demonstrated buy News Corp on myriad political matters and non wonder people are cancelling their subscriptions and stopping purchasing newspapers.

News Corp. newspapers and online platforms seek to drive agendas rather than reporting news in my opinion. Shame on any of us how pay this American controlled company money to interfere in the future of our country in this way.

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Ethics

Facebook acts as a publisher, selectively censoring what suits it

Facebook permits the publishing of clearly false and misleading information shared by individuals, community groups and commercial entities on the Facebook platform. Over the last four weeks, during the bushfire crisis, we have seen Facebook permit extraordinary lies to remain published, and, indeed, be shared by many. Facebook have cared little for truth during this.

Facebook ignores or rejects complaints to them about untruthful posts. I suspect it ignores the complaints because plenty of the posts are boosted, paid for. To reject the posts would harm the Facebook business model.

A week ago we discovered a bunch of boxes had been dumped in the car park at our office. The recipients of the parcels had to removed their name and address details. We took photos and I posted about it on Facebook. One of the named people complained and the post was removed by Facebook in a few hours.

Facebook says it was a breach of privacy yet the boxes were dumped, illegally actually, with the information I included out in the public domain.

That Facebook acted so swiftly demonstrates its editorial capability. It is disappointing that it does not use this editorial capability on clearly false and misleading information. My disappointment at Facebook turns to anger during election time when the company permits untruths to be spread, impacting informed engagement in the democratic process.

While we do have news outlets in Australia that also publish untruths, this is especially true of News Corp. outlets, there is some semblance, insufficient in my view but a semblance nevertheless, of accountability. Facebook faces no such accountability.

Truth matters. You only have to look at the back burning nonsense published on social media during the bushfire crisis to see this. There were hundreds (thousands?) of posts claiming that the Greens had blocked back burning. The Greens have never controlled any state or federal parliamentary chamber. The only time a Greens politician had any say over back burning was in the ACT for a brief time and that Greens politician oversaw extensive back burning. Yet, social media platforms like Facebook permitted the nonsense to be published. Complaints went unanswered.

Back to my post about the boxes. One of the people named called me and said that they paid someone else to dump their trash so it was not their problem and that it was not their fault that their address details were not removed from the boxes. They offered to come and pick up their trash. However, once Facebook removed the post I’ve not heard from them again.

Click here to see a New York Times article from today on this topic.

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Ethics

Lottery retailers are frustrated that Tabcorp (TheLott) offers some games online that are not available over the counter

In another move that appears to indicate a push to migrate over the counter lottery customers online, Tabcorp’s TheLott has allows customers to setup online only games. That is, customers can setup games on their profile that retailers do not see when customers present their card. This can create frustration at the counter. There are instances of shoppers criticising retailers for what they, the customers, have setup online – since the retailers encouraged the customers to go online.

Games setup in-store are available online.

Games setup online are not available in-store.

A spokesperson at TheLott says it is due to a “system limitations”. I suspect it is due to inadequate management consideration of the fair treatment of retail partners when evolving their online capabilities.

This move by Tabcorp is on the back of extraordinary pressure on lottery retailers to encourage lottery shoppers to sign up for online purchase access.

While I have heard of some discussion on social media, in response to approach from retailers I mention it here for lottery retailers to comment in a more public place.

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Ethics

Jigsaws sell in January in the newsagency

For 4 years newsXpress has run a January is Jigsaw month promotion. It’s a simple promotion that shines a light on jigsaws. There is no price deal, no special offer, no commercial pitch to shoppers other than a front of store placement of jigsaws with purpose-specific collateral. Jigsaw sales spike with revenue up at least eight times the monthly average, often more. This sales spike coupled with bonus margin from deals delivers an excellent commercial result for zero additional investment.

The idea started out of a discussion about what businesses not into back to school could do to boost traffic and revenue inn January. Jigsaws have turned out to be a hit in the city and country, in mall based businesses as well as high street.

Better still, the promotion does not appear to harm jigsaw sales later in the year. If anything, the focus helps drive later inn the year sales as more shoppers realise the range of jigsaw titles a store has.

There is plenty that I have to covered here provided by newsXpress to make the promotion a success. It’s not quite as simple as I have made it out here. There are layers and activities that combine to drive the success.

My point is that there are low and no cost opportunities for driving non-seasonal success in newsagency and similar businesses. Jigsaws in January is one example of this.

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Management tip

The UK’s Card Factory in Australia

Here is a video I shot a few weeks ago about the launch of the successful UK Card Factory in Australia via a relationship with the doubled Reject Shop group. I shared the video with newsXpress members and retailers of greeting cards – gift shops, card shops and newsagents – using the Tower Systems POS software late last year.

I think the video is important as it outlines some of the possible impacts of the Card Factory / Reject Shop move that could impact newsagency card sales.

I would rather the Greeting Card Association be on the front foot on this.

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Greeting Cards

Australian Geographic promoting newsagents

The latest Australian Geographic magazine is out and newsagents are being pitched as the go to retailers for the title on social media. Right now is a good time to leverage this coverage for our channel.

In store, this is a good title to pitch with greeting cards that feature animals as well as plush animals – to tell a more complete visual story. You don’t need much space to take this initiative.

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magazines

13 POS software related 2020 New Year resolutions

I shared this with Tower Systems customers a few days ago. Some here may find the list useful.

THIRTEEN 2020 POS SOFTWARE RELATED SMALL BUSINESS RETAIL NEW YEAR RESOLUTIONS.

  1. Maintain better quality business data. because data matters, good data helps you make more money.
  2. Order based on actual sales data rather than gut feel. Stop buying stock that will not sell.
  3. Spend more time away from the shop by managing remotely. This is easy with tech.
  4. Eliminate manual processes. Do it.
  5. Take action on theft. The tools are at your fingertips.
  6. Declutter the shop based on the business data.
  7. Delegate more, use the software to help.
  8. Set KPI goals, measure, track and engage.
  9. Learn something new from the software every week.
  10. Establish new rules designed to protect data integrity.
  11. Deal more with suppliers that make doing business easier and less with suppliers that don’t.
  12. Engage in more free training from Tower Systems.
  13. Ask Tower to tell me what they see about my business in my business data.
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Newsagency management

The devastating bushfires

The devastation wreaked on families, property, businesses and infrastructure across Australia, especially regional Australia, over the last week, and even before, has been extraordinary.

Watching and listening to the excellent comprehensive coverage on ABC TV and Radio I heard towns and smaller communities mentioned where I knew of businesses.

Through my POS software company, I have reached out to all customers with an offer of help. I have put the same offer to the newsXpress community. From help with an insurance claim, help restoring a backup to fast-tracking replacing hardware to establishing urgent alternative comms to be connected when the phone lines are down. Our people will help as much as possible.

I’ll also use connections with suppliers to help with inventory issues reported where appropriate.

None of this, of course, helps with the deep personal pain of the devastation. It is something though.

Getting help starts with a call or email. I have let our team know to prioritise fire related calls for help.

CLIMATE CHANGE.
While bushfire season is an annual ‘event’ in our country, what we are seeing, and experiencing, is recent weeks is different.

I accept the science, that climate change is real, human caused and that the earth is facing an urgent existential crisis.

I am tired of those who say now, during the bushfires, is not the time to discuss and confront this. They are, in my mind, ignorant fools. The politicians in this camp are worse, they are criminal in their neglect, especially since 2013.

I am tired of the politicians passing legislation for their mates and ignoring the needs of everyday Australians.

I am tired of those who say Australia is too small to make a difference. Such statements are ignorant and selfish.

We urgent action to reduce carbon emissions.

The bushfires will impact an already slowing economy. The best response is stimulus. The best stimulus in my view is cash in the hands of those who will spend it. In economic terms, this should be an urgent focus of the government. My November 11 post lists valuable and economically stimulating investments the government should consider.

If you are going to comment here denying climate change, don’t bother as you are wrong.

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Social responsibility