Gifts

Digging deeper into the benchmark study we undertook based on sales data from 89 newsagencies, it is clear that there is a correlation between gift sales and card sales.  In each store with strong gift sales, the card sales were considerably above average for the benchmark.  Based on this, why would a newsagent not have a crack at gifts – even if space is tight it makes sense to try and find a way to play in the category and therefore enjoy growth in cards.

In every sale or catalogue there is the sleeper product which comes out of nowhere and performs exceptionally well.

The card organisers in the photo are the sleeper products from our recent book sale. For a couple of weeks they sat on display and did not sell. Then, in no time at all, they took off. Not wanting people to miss out, we put them in an even better position and created a small sign and sure enough they sold out.

When you think about it, selling card organisers in a newsagency makes sense. We never tried it until they arrived with the book sale stock – stock we did not select by item. So, having stumbled across the opportunity we’re looking to find more card organisers.

We are trying some new products for Mother’s Day this year.  In addition to Darrel Lea (the Mum’s Bag is a good seller!) and social stationery we have a range of small gift packs, some mugs and other items.

We have also changed our approach to display – located it closer to our greeting card offer – all visible from our main window – as the photo of part of our range shows.

We have had the display out for two weeks and it’s drawing good results.

We refresh the display weekly, moving products around, changing the focus of the offer – this is important since newsagencies have so many regulars that they become store-blind.

It has been fascinating watching the different waves of Valentine’s Day card customers over the last month.  First it was the older customers, often in a long-term relationship, then it was the hopefuls and this week it’s been more of the oh, no, it’s Valentine’s Day and I don’t have anything.  We are supporting the season with gifts as well as chocolate.  The gifts include the collectible Momiji doll, a singing frog and this cow.  Surprisingly, the cow is a hit!  Not sure what message that passes on.

Happy Valentine’s Day.  Trade well!

To hear our first radio commercial for Sophie Randall, please click here. The commercial will air 89 times over the next six days on Melbourne radio stations GOLD104 and MIX101. We chose these two stations for their demographic reach. The commercial is as much about airing to suppliers and possible landlords as it is to promote the business to consumers.

This little bear with his leg in a cast and a crutch under one arm is a popular gift purchased with a get well card.   We have him and other card giving occasion bears located near our card display.

The message is simple, while flowers are nice, the don’t last that long.  Appropriately themed bears work for get well, graduation, bon voyage and even new home.  By ranging them near the card aisle, we’re getting gift related sales which would otherwise go to the local florist.

What is interesting to me is lack os resistance on price.  At Frankston, for example, this range of plush is selling well at traditional gift shop prices.

Prince kiss-a-lot is a hit for Valentine’s Day at two of our newsagencies where we have stocked him. So much so that we’ve organised extra stock. Squeeze his foot and he sings My Girl. He sways along to the song too.

We have extended our range of plush following success over Christmas. Beyond Valentine’s Day, we are focusing on other card giving occasions – thank you, get well, new baby etc. We’re finding good quality plush sells well with a card – that’s why we have it located near cards.

I appreciate it’s not new, newsagents stocking plush, it’s our card-giving focus which I think is new. Oh, and that we’re playing at the high end of plush.

We opened our third Sophie Randall cards and gifts business today, at Epping Plaza in Victoria. Our plan was to get three Sophie locations open by Christmas and we have achieved that. Now, we;re looking forward to the learnings from this new group. We are already benefiting through experience with a single database IT platform across all stores – facilitating moving stock and reducing in-store management time. We are also benefiting from better buying which is also driven from this single IT platform.

The photos below are from our Epping store today.

While each of the stores has the same layout and elements, there are differences driven by landlords and space challenges.

The range is consistent to around 70% of stock with 30% reflecting the local demographic.

Sophie blogs about the products at www.sophiesblog.com.au.

While I own these initial stores, the Sophie Randall concept is part of the newsXpress group and will be offered to others from early 2008. Some newsagents are already benefiting from Sophie learnings in the gift space. Others are keen to look at getting their own location.

At Forest Hill where we own the newsagency as well as the Sophie store we have first hand experience on the impact of a Sophie store on card sales in the newsagency – nil. Indeed, card sales in our newsagency are delivering double digit growth year-on-year while Sophie is pulling excellent card numbers. Each business offers a different shopper experience.