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

Book retailing

Book supplier Hinkler disrespects newsagents in Woolworths Naplan move

Newsagents who took on the Naplan educational book range from book distributor Hinkler have been surprised to see the same range at Woolworths check-outs at a 10% discount.

Had they been told Woolworths would stock the Naplan books, newsagents I have spoken with have told me that they would not have taken on the product.  It’s my view that Hinkler has disrespected newsagents by not disclosing the Woolworths move.

As Australia’s supermarket duopoly push more into our space – and they will – suppliers to newsagents who also supply the supermarkets need to be up front with us about their arrangements and plans with supermarkets. To sell to newsagents without disclosure will see their products dumped and, sometimes, alternative products sourced.

Our channel is different to supermarkets. We offer a value-based service whereas the supermarkets usually only compete on price. In pursuing their price strategy they disrespect brands. Suppliers who care about their brands will focus more on newsagents and less on supermarkets.

Yes, we attract different shoppers, but they are not ad different between newsagents and supermarkets as they are, for example, between newsagents and deep discount stores.

What Hinkler has done to newsagents with this Naplan range sucks.

17 likes
Book retailing

Challenges for the Nook device

There is plenty of coverage online about challenges for the Nook ebook reader sold in the US by Barnes and Noble. The challenges are not limited to the Nook as there is a battle between device manufacturers for ‘ownership’ of the reader channel.

As tablet computers become lighter and have a longer battery life, readers will, I suspect, prefer a device that delivers a range of services and not just access to books, newspapers and magazines.

The ebook reader space is brutal, as Barnes and Noble is discovering. It would be interesting to see how the Kobo is going for Collins Booksellers.

0 likes
Book retailing

More on bookshop challenges

Further to my post yesterday about bookshops, take a look at the report in the Courier Mail yesterday about bookshops in Brisbane and their use of an e-book kiosk.

Maybe I’m missing something here. I can’t understand people going to a shop to purchase what they can download from anywhere.

1 likes
Book retailing

Tough times continue for book stores

Reports were published in the US yesterday that book retailer Barnes & Noble plans to close a third of its stores over the next ten years.

I expect a look back in ten years time would wonder at such an under estimation. The Barnes & Noble model of mega book store is challenged in terms of retail space cost, labour cost, inventory cost as well as disruption caused by devices such as the iPad and Kindle.

Just as shopping centre newsagents have found in recent years that smaller format stores are a smarter move, mega bookstores will fade to just a few.

For a brighter future, bookshops will expand into other areas. Newsagents should expect some to turn their sights on products traditional to our channel.

2 likes
Book retailing

Barnes & Noble giving ebooks away

US book retailer is running an interesting promotion, giving away an ebook with each purchase of an ebook from a list of selected titles. It’s an in-store offer, potentially driving store traffic. paidContent has more on this story.

Book retailing is facing extraordinary challenges, even for those playing in the digital space as Barnes & Noble are finding.

1 likes
Book retailing

The Submissive – an opportunity for newsagents

1,200 newsagents are set to be sent a small quantity of stock of The Submissive, an erotic novel in the vein of Fifty Shades of Grey. It’s being allocated to Nexus newsagents and some other key newsagent accounts through Gotch.

This is an excellent commercial opportunity: 50% margin, sale or return and delayed billing. Cover price: $16.99. Newsagents will get stock at launch.

The Submissive is set to get excellent media attention at launch. It’s covered in New Idea this week. It has received some excellent reviews overseas.

I like that we have an opportunity to offer a product to Fifty Shades fans and to do this on terms equal to book retailers. I plan to pitch this as a Christmas gift.

5 likes
Book retailing

Are you selling Fifty Shades of Grey?

Fifty Shades of Grey is the bestselling book ever in Britain. Other books in the series, Fifty Shades Darker and Fifty Shades Freed are also bestsellers, selling millions of copies.

I’d be curious to know whether any newsagents have been selling the books or any products that leverage interest in the books.

Massive trends like this are ideal for newsagents. Look at our Harry Potter related products, Twilight products and other wonderful movie and book franchises. we are made for leveraging entertainment franchises – yes, even he raunchy subject matter of the Fifty Shades series.

7 likes
Book retailing

Slim increase in book sales in the US

BookStats has reported a half a percent increase in book sales in the US last year while e-books sales increased almost three fold in the same period. PaidContent has more on this.

Book sales in Australia are still resettling following the collapse of Red Group – Borders and Angus and Robertson.  In the newsagency space, the remainder book market is challenged as the latest benchmark study shows.

Newsagents who want to be in books need to do it through a significant point of difference.

0 likes
Book retailing

Promoting books with magazines

We have reconfigured the entrance to our magazine aisle and brought in a table of remainder books. This change is part of a series of changes we have made this week to accommodate Mother’s Day products and to generally change up the shopping experience in the newsagency.

The book table has a lower profile than the magazine unit it has temporarily replaced and this in itself provides quite a different feel to the space.

Our book sales are up year on year. this sales growth and the good margin makes books a valuable impulse add-on to a magazine purchase.

0 likes
Book retailing

The e-book opportunity for small nimble publishers

Check out the blog post by Source Books about their extraordinary growth in 2011. It is terrific that they are so public with their numbers ands that they explain the place of e-books in the world of book sales. Check out their other bog posts and you zoo get a feel for how they are making the most of the e-book opportunity without some of the anchors weighing down larger publishers pursuing this still relatively new channel.

0 likes
Book retailing

Casual leasing by shopping centre landlords hurts small businesses

I have been in five shopping centres so far this week and in each one, just metres from a bookshop or a newsagency with a terrific range of books was an outpost offering cheap books.  In two instances when the newsagents affected approached the landlords all manner of excuses were given.  The fact is that the landlords did deals focused only on their revenue goals and not the financial health of their long-standing tenants.

Newsagents are especially vulnerable to damage by casual leasing as our categories of books, calendars and toys are often brought into centres on a casual basis.

I have encountered this a couple of times in recent years and thankfully the landlord responded and moved the casual leasing operation quite some distance from my newsagency.  In one instance the casual leasing booking was cut short.

Casual leasing operators are vultures in my view.  They do not financially or operationally support the long-term health of the shopping centre.  The often act as a barrier to good traffic flow.

I’d encourage newsagents who encounter casual leasing situated close to their business and with products which compete with their business to complain to the landlord.  If there is no joy there, look at alternatives for resolution.

0 likes
Book retailing

Promoting Sesame Street products

We are promoting activity books from Five Mile Press at the front of the newsagency (ideal for school holidays) including Sesame Street titles.  Shoppers who pass this then pass a Sesame Street plush display – the brilliant and highly successful Sesame Street Lamppost from Jasnor.  Locating the two items close together like this helps drive sales of both.

Regulars here would know that I love well-known brands.  Branded products are easier for us to sell.  Sure cheap China product may have a better margin but it’s not as good today as a year ago and will only get worse.  I’d rather have the brand focused traffic than cheap-ass shoppers looking for cheap China product for the long term health of my newsagency.

Sesame Street is one of those brands – easy to sell and it supports a healthy margin.

0 likes
Book retailing

Father’s Day Book Sale Drives Traffic

fathers-books.JPGWe are continuing to enjoy excellent sales from our Father’s Day book sale.

While we use dad themed books to drive traffic,we have an excellent range catering for all sorts of situations – for dad and beyond.

Books make a perfect basket builder.  They are easily purchased on impulse.  A good range gets you known as a destination store for books as gifts.

With women being our biggest shopping group, we have found that appealing to them is key to any promotion – hence the selection of books we have connecting with Father’s Day.

0 likes
Book retailing

Father’s Day Book Sale off to a great start

booksale-aug11.JPGOur 2011 Father’s Day Book Sale has driven excellent sales in the first few days.  The table is at the front of the newsagency, facing into the shopping mall.  On the front of the display is a selection of books targeting the Father’s Day shopper.  However, the bulk of the display is books for other occasions.  The range covers books for children, men, women, food, hobbyists … its very broad.

The table is tidied a couple of times each day and the feature displays refreshed each week.

We have been doing Father’s Day book sales in my newsagencies for years now.  Next to Easter, it is the best book sale season for us.  Not so much because of Father’s Day but because people are starting to buy for Christmas.

0 likes
Book retailing

Borders closure benefits newsagencies

One of my newsagencies is in a centre which used to boast a Borders store. My research suggests that the closure of Borders has added between $150 and $200 a day to our sales. This is across several categories with magazines the core beneficiary.

We positioned ourselves to make the most of the opportunity by starting some months ago by enhancing the range of magazines we carry.  This project continues thanks in part to the arrival of IPS.

We have not made any major move into books because we do not have the space – this newsagency is just 135 square metres. So, we continue with our commitment to remainder books and seasonal book sales.  We enjoy good success from that.

While it’s not ideal to profit from someone else’s misery, I’m happy to have the opportunity to leverage good news from the closure of Borders.

I’d encourage other newsagents near a now closed Borders store to seek out similar opportunities.

0 likes
Book retailing

Book sales up and digital content sales up

bookcorner.JPGFurther to the recent discussion here about books, book sales are up by more than 20% year on year in my newsagencies.  I think that the market for remainder books will be strong for some years to come.  But it will not last forever.  As we have seen with music, the refinement of content accessibility devices will drive shoppers to digital content.  There is nothing we can or should try at the retail end to stop this.  Our best approach is to make the most of today’s opportunity and to plan to make the most of what will happen tomorrow.

In the meantime, I am thrilled with a 20% increase in book sales and with being able to tap into more revenue from digital platforms.

0 likes
Book retailing

Simple fixture drives sales

bookfeature.JPGThis book had not sold during our recent book sale.  We had six copies left.  We sold five of the six copies in just over a week when we put it on this acrylic stand, lifting it out of the books display and giving it a moment in the sunshine.

It is amazing what such a simple change in placement could do for sales of the title … a reminder of the need for use to dig for gold every day.

0 likes
Book retailing

Tapping into the Kung Fu Panda interest

kungfu-water.JPGWe have been enjoying good success with these Kung Fu panda books as part of our school holidays book sale.

Licenced product is especially successful at school holiday time.  It’s a safe purchase for parents.  Kids  shopping with their parents drag them to the display.

We configure our stores for school holidays to make the most of the opportunity of the extra and quite different traffic to what we see outside school holidays.  The results can be seen in the sales numbers.

0 likes
Book retailing

Holiday book sale just right for school holidays

holidaybooksale.JPGCheck out the children’s book sale put together by the team at one of my newsagencies for the school holidays. It looks terrific. The sale includes Kung Fu Panda 2 and Transformers activity packs, tying in with their recent release at the movies.  The display located at the front of the newsagency and facing into the mall is eye catching and generating plenty of traffic.

0 likes
Book retailing

PMP Closes Scribo Book Distribution Business

Scribo, the book distribution business purchased in late 2008 by Gordon and Gotch is to close at the end of this month. They sent an announcement to retailers late last week.

Scribo is big, representing more than 200 publishers to the Australian and New Zealand book trade.  They claimed to be Australia’s largest independent book distributor.  Here are the reasons they cited for the decision to close:

  • Soft market conditions
  • Increase in offshore online sales combined with the strength of the Australian dollar
  • Closure of key retail outlets
  • Increased competition from international wholesalers
  • Emergence of ebooks

PMP, the owners of Gordon and Gotch, had high hopes for Scribo.  Many newsagents were customers, appreciating access to thee range of Scribo titles for their book department.  David Hogan moved from running Gotch to heading Scribo.  The decision to close this division will further challenge the PMP share price which is at 60 cents.  It was $1.07 just over six months ago.

A low-lying cloud of gloom hangs above book retailing globally and here in Australia. The sentiment about our local situation has been driven by the collapse of Borders and the closure of many Angus and Robertson stores. the result is challenging conditions for book retailers. Some are doing well while others struggle.  The key to success appears to be focusing on local customer needs.  This is so true for newsagents too.

The closure of Scribo is a reminder that distribution is a tough business, operating with fractional margins.

0 likes
Book retailing

Book sale drives traffic

knoxbooksale.JPGWith Angus and Robertson and Borders both running closing down sales, we figured we would leverage the heightened attention on discount books and run our own sale.  We have the trestle table in the photo facing into the mall.

This very simple display is working a treat. We have the covers of titles in popular categories such as food facing out into the mall.  This is key to driving traffic.  We have tried a more attractive display and that does not work as well.  We have found the trestle table approach works best for books.

Our target is to sell down by the middle of this month so that we are ready for a massive Father’s Day Book Sale which starts next month.

0 likes
Book retailing

42 more Angus & Robertson stores to close

The administrator of Angus & Robertson last night announced the closure of another 42 Angus & Robertson stores.

These closures present more opportunities for newsagencies located near the closing stores, as many of us are finding with stores located near the closing or closed Borders stores.

There will be short term and opportunistic deals on fixtures and stock.  Then there is the longer term opportunity of playing in the book space.  As many newsagents are finding, books can be excellent for attracting new shoppers as well as building basket efficiency from existing traffic.

It is not often that we have an opportunity to spread into new areas.  The decline of the A&R network is an opportunity every newsagent should assess.

0 likes
Book retailing

Supanews expresses interest in Angus & Robertson

Newsagency franchise group Supanews has submitted a bid with the Administrator of REDgroup Retail (Borders, Angus & Robertson and Calendar Club) to purchase the Angus & Robertson franchise
network and related Angus & Robertson assets including corporate A&R stores, website and intellectual property.

Supanews has written to A&R franchisees to inform them of the move and note that they would not move on the offer unless at least 40 A&R franchisee stores agree to transfer to the new network.

My understanding is that the proposal is contingent on Supanews buying back the share of Supanews which is currently owned by REDgroup Retail.

While newsagents would benefit from the ultimate collapse of Angus & Robertson, I’d note that a takeover by Supanews makes sense for both A&R and Supanews.  They have been kind of corporate colleagues for some time.  They are also both full franchise operations.

The letter sent to A&R franchisees yesterday is inviting in the financial and other terms it indicates would be on offer should the proposal to the administrator be successful.

It will be interesting to see how this plays out.  Given the announcements last week from REDgroup Retail administrators, there is not much time to cut a deal.

0 likes
Book retailing