Right now, right away, is the time for newsagents to promote the Australian Women’s Weekly Health Diary. This is an ideal title to pitch on social media as well as pitching in-store, in a prominent position where more eyeballs see it than in its usual location.
Toing hard now is vital if you want to win sales that may go to other retailers. Approach this as a speed to market competitive situation.
The folks at Tims garden Centre in Campbelltown use social media well to connect with the local area and to compete with big retailers. This post from them showing off the performance of their potting mix compared to that from a big retailer is a perfect use of social media. They market by showing. The evidence speaks for itself in terms of the superior products they sell and in terms of people who engage with their Facebook page.
Social media posts need to entertain, inspire and / or help people feel good. What they do at Tim’s Garden Centre is ideal.
Newsagency marketing group newsXpress last week launched Chalk-Apella t-shirts through its retail locations.
Sourced direct from the product creator at an international gift fair months ago, newsXpress is helping members launch the products in-store with stunning displays, a professional (A1 printed both sides) poster and a locally made marketing video.
newsXpress sourced the t-shirts direct from the supplier. It has managed the launch inn Australia: providing marketing posters, producing videos, creating best-practice displays and supporting the launch with a massive social media campaign and backing it all with a terrific website.
Here is an in-house produced video launching the product:
Here are a three of the in-store displays:
Here is newsXpress collateral provided in digital and A1 format for in-store use:
The reasons for sharing this are to show the launch of a product that is different to what you might expect to see in a business from the newsagency channel and to show how the new product is being launched in-store.
Discounting is lazy marketing, unless it is an end of line discount to move the last of stock you have or unless it is an event related discount.
Everyday discounting is what I am saying is lazy marketing, discounting being done so you can say you are cheaper than other retailers.
I say discounting is lazy as it is easy. It is easy to copy or beat, making it risky.
In my experience, a better approach is to change the conversation, to change how people view a product. You can do this by bundling the product with other items to create a hamper or package that is unique to your business. You can also do it by creating a multi-buy offer of a price for a single or a better price when, say, three are purchased. You could also create something unique in your business as a value-add for the product, something that the customer will appreciate, that they can only get from you.
There are other approaches you could consider too where a product is seen as being a better offer from you even though you are not discounting as such.
My point is, discounting is easy to do and easy to copy. Shoppers buying only on price are not loyal. Add value is some way and you are more likely to be remembered by a shopper.
The right Father’s Day cards placed at the counter will achieve incremental card business for you, easily. The key is the thoughtful selection of cards. The next important point here is location – placed so every shopper presenting at the counter sees the cards.
Doing this is helping is achieve good Father’s Day card results for us already.
The photo shows one of two pitches at counter positions in the business. This is in addition to lease lain placement of the main range, facing into the mall.
Note: the cards in the counter units change every few days, based on the anticipated shopper mix that day.
The April – June quarter was tough for core products sold through the newsagency channel. In addition to the continuing decline in print media sales, this quarter’s benchmark results reveal a troubling downturn in lottery revenue as well as card revenue.
Here are the headline numbers by key product category:
These are not good headline numbers. The bottom is falling out of the historic core of the newsagency channel. This will not be news to many as it continues a trend we have seen in this benchmark study for several years.
The above percentages reflect the overall performance of the 181 newsagency businesses in this benchmark study. It includes stores from a range of banner groups as well as independents. There are large businesses and small. Some are in shopping centres while others are on then high street. The cross-section is broad.
What is concerning is the pace of decline, especially with magazines as the decline had slowed recently. Looking more closely at the data, the decline is in the volume categories. Fringe categories such as special interest titles are doing well. Indeed, some segments show terrific growth.
Newsagents need to manage the overhead cost of newspapers and magazines. Labour, space and capital investment needs to be kept in line with the gross profit contribution of these categories. Busy work relating to newspapers and magazines should be eliminated.
The decline in greeting card revenue is a surprise. The reported percentage of decline, 4%, does not read well. However, like all the above data points, it is an average from the entire data pool. There are stores experiencing decline above 20% with others reporting growth above 20%. There is a clear correlation between stores with strong gift sales and card performance – in this case card revenue is stronger.
GOOD NEWS.
The good news is the performance of businesses playing outside the traditional space. For example, the newsagency with $25,000 in toy revenue in the quarter, reflecting growth of 18% or the newsagency with $45,000 in gift revenue and year on year growth of 22% of the newsagency with card revenue of $47,000 and year on year growth of 22%.
There are many good news stories in the latest study results. However, the good news will be overshadowed by the performance of the majority. It is challenging, some days, to know what to do or say to cut through with newsagents who are not engaged.
Too many newsagents think growth will come from categories close to what they have done historically. For example, too many get into cheap social stationery thinking that is competitive with Kikki.K or Typo.
My experience is the best growth comes from turning away from traditional lines and traditional suppliers and going with products and price points you would never have considered for a newsagency business. I see this approach working well in the benchmark results in businesses of different sizes and in different situations.
OVERALL PERFORMANCE DATA.
It is in the overall business gross profit numbers where the differences in businesses can be seen. 62% sit in the traditional newsagency GP performance band of 28% – 30%. 7% sit below 28%. 20% sit in the GP band of 30% and 35%. 7% sit between 35% and 40%. The rest, 4%, have a GP of more than 40%.
GP is a function of what you stock and the type of shoppers you attract to the business. Buying is where it starts.
WHAT IS DRIVING THE DECLINES?
Close to 80% of the businesses in the benchmark reported a decline in traffic with the average decline set at 5%. However, just over half reported a decline in revenue. This is because plenty are selling higher priced items, usually gifts. This softens the blow of the decline in legacy products.
I think the traffic decline is being driven by a decline in interest in legacy products on which traditional newsagency businesses have relied. I have said for years it is crucial newsagents have a strategy to drive net new traffic. Relying on legacy product to sell new products is not a plan. You need to source new products and to use these to attract people to your business who would otherwise not have shopped with you.
HOW TO RESPOND TO TRAFFIC DECLINES?
Any newsagency business can be successful, regardless of location and situation. This is truer today than at any time in the past thanks to what we can see being achieved online – not only in newsagency businesses but through other retail channels.
The key to success is to not run the business as a newsagency. That’s is, to not obsess about legacy products. Focus on new traffic products. Focus on price points you would usually say would never work in your business. Buy products you think will never work. Be radical and through discover what is possible in your business.
I urge you to ask yourself daily, what have I done today to reach a new shopper, someone who does not know we exist? This is what successful businesses in the benchmark study are doing and doing well.
DOES THE NEWSAGENCY CHANNEL HAVE A FUTURE?
I ask this every quarter. My answer remains – Yes! Absolutely. If you are prepared to shrug off what has been traditional for a newsagency business, stop hoarding, embrace change and embrace social media – you can have a bright future. The transformation from traditional to the new world must be urgent and dramatic.
AGENCY IS OVER.
My opinion remains – there is no upside in any agency parts of the business. People saying they are proud to be called a newsagent are entitled to their view. History will show that era is behind us.
OPTIMISTIC.
I am optimistic for my own newsagency businesses and for the businesses of many newsagents. Indeed, I have opened a new outlet the last few months. It does not look or feel like a newsagency. The numbers are terrific.
WHY I DO THIS STUDY
My interest in the study is as a newsagent and as a supplier to the channel through Tower Systems and through newsXpress. I want the channel to grow for selfish reasons and because it has been my life since 1981. I am invested.
BENCHMARK GOALS.
I am often asked for benchmark goals newsagents ought to aim for. Here are some benchmarks I have developed in my work with newsXpress and through Tower Systems:
Mark Fletcher.
Email: mark@towersystems.com.au Website: www.towersystems.com.au Blog: www.newsagencyblog.com.au
M | 0418 321 338
Footnote: I founded Tower Systems in 1981. That company now serves in excess of 1,750 newsagents as customers with its newsagency software. In 2005, I joined newsXpress. That newsagency marketing group now serves 243 retail businesses with a traffic and revenue growth strategy.
We hosted a shopper party of one of my suburban shops last weekend and achieved more than $2,000 in incremental, good margin, business compared to a usual good Saturday. The party was a terrific success. We are thrilled.
While plenty of customers were local, some travelled and far as two hours to participate in the party.
We spent little on the event and offered only modest discounts. The keys to success were the opportunity for the customers to network with those who share their passion and to see some unique products.
Our marketing was primarily on Facebook. Someone living in Perth called their sibling in Melbourne and told them to come to the party to purchase for them. They did, spending over $100. Based on our conversation, I am sure they will come back.
Simple parties are effective. They are an essential part of the mix to attracting shoppers to the business who otherwise not shop with you.
Dig into your cards for funny, unique and hard to find cards and use images of these on social media to subtly educate people about the card range you have.
Few card retailers pitch cards unsocial media. This is an excellent opportunity for small business retailers.
Funny cards work well as do cards with cute dogs and cats. Also, cards with heartwarming messages and beautiful images.
The keys are to choose carefully and it use the social media posts to show people you have a broader range of cards than they assume you have. Show them they are wrong.
If your business is in a regional or rural location here is a tip for getting people to stop in front of your shop. Given them something to play with. Try it and see how it goes – this Jenga like idea or something similar. Sure, pieces may be stolen – but I think it is worth it.
Oh, and I say regional and rural because in the city council chills would stop this.
I’d try it if I was in the right location – anything to get people stopping and having fun in front of the business is worthwhile.
Know your key traffic destinations and pitch at this destinations products those destination shoppers may not have otherwise considered. We do this in different ways at different times of the week. Here are two examples from yesterday in two different businesses:
Get the product pitch right for your specific situation and it works a treat.
Without a doubt, pitching optimism in-store and online works a treat. It is easy to do this through the products we stock. Customers love it, they love the optimistic product at the counter, the happy Facebook post the range of optimistic products in their own section among gifts.
There are plenty of gift and other niche product suppliers of wonderful optimistic and happy products that work in this situation.
Take the journal in the photo, placed at the counter it picked up, browsed and, often, purchased. It is a perfect product through which we can make a pitch about the business that is outside what customers expect of us.
Stocking products like this is a good example of how our inventory decisions can play perfectly into a marketing plan designed to recast the appeal of the business.
National retailers in the US are terrific at managing quitting inventory. Most have a structured approach to what they call clearance lines. This photo is from a Staples store I visited last week. I saw similar clearance locations in each of the six Staples stores I visited in two states.
Having space set aside, permanently, for clearance lines, ensuring it is visually separated from your usual displays, calling it out with a bold colour and placing product for a clearance look – i.e. not too pretty.
I can see this working in all sorts of businesses, from the traditional newsagency through to those with a focus on high-end premium retail. You would set aside the space appropriate two out space situation and your inventory quitting strategy. You would create the clearance offer appropriate to your type of business.
This is a better approach than putting SALE signs up here and there. A fixed clearance location provides customers with certainty. It shows you are serious and consistent in your approach. This encourages confidence.
Here is an example of a different approach, something more refined and professional:
This photo is from a US card and gift shop. I took the photo a few months ago while on a retail tour.
I like both approaches I have shared here. Each has their place. While I am more likely to use the second in my businesses, the first would be okay in the right nook of the business.
The key is to have a clearance location permanently set aside and to signpost th8is professionally.
The goal is to sell through clearance stock faster than you would if you did not take the structured approach I am writing about here.
When it comes to quitting stock, the sooner the better. hence the need for a clear and disciplined outcome-focussed approach.
I hope this is useful to retailers as they contemplate what to do with stock they are exiting from their businesses.
A great way to differentiate your business online is with your own content. Take out your phone and film that hot product that is easily demonstrated in a video. It works a treat and can show your business off with unique content. Show, don’t tell as they say.
Here is a short and simple video I used a few weeks ago with terrific success.
I love this story from newsXpress Mount Morgan and their sharing of a photo sent to them by a customer who created a beautiful piece from a pattern published in Better Homes and Gardens.
I love the story because the customer sent the photo to newsXpress Mount Morgan via Facebook and because newsXpress Mount Morgan shared it on Facebook with their customers. This is excellent use of social media.
This engagement is one example of excellent use of social media, showing a wonderful business / customer relationship, built around a stalwart brand in the business, Better Homes and Gardens. It demonstrates a close and appreciated customer relationship, on show for all to see.
Big businesses cannot manage such local and personal relationships.
How this story unfolded and was managed is an excellent example in the value of the free platform that is Facebook for small businesses. Kudos too the folks at newsXpress Mount Morgan for handling this without being sales in their approach.
I get that some n newsagents are not interested in Facebook, that they think they are too old or not tech capable enough to use it. The thing is, Facebook is like the fax or mobile phone when they first came out.
Facebook is a basic business tool. In my view, if you are in business you must be on Facebook.
These are not times to be timid about being public. If you are in retail your business needs customers. Facebook and similar are where those customers are, where they talk and, yes, where they buy.
Years ago I started placing Better Homes and Gardens magazine between the Herald Sun and The Age. I still do it today – because it achieves incremental sales of this broad appeal top selling magazine. I do it Thursday through Sunday. Try it. It is a no-cost marketing tip that is sure to achieve incremental sales.
Displays that can be seen from outside your business are the most important for they are the ones that set elections. It you have lotteries this will be a challenge because of their location demands.
If you don’t have lotteries, go for it I say, recast your business through your displays for it is the most important in-store marketing pitch you can make.
This photo is a recent display from one of my businesses.
Next time you the a product photo that you plan to use in marketing, make sure it is the best photo it can be.
My advice is to put more than one product in a photo.
Pose the items so they tell a story beyond the products themselves.
Have fun.
Don’t overthink the photo as any social media content is scrolled past in a second or two, unless you are lucky.
In the example here I have a unicorn gift items in front of frame. I felt the two worked well together, playing off each other.
I have written here before abut the value of local prizes for driving shopper traffic. This is especially true at seasonal times, such as Mother’s Day. The right local prize can generate net new traffic when it is actively promoted outside the business.
We are promoting this beautiful T2 gift pack knowing that one of our customers will win a pack, as each participating store has their own T2 prize pack to give away to one lucky shopper of Hallmark Mother’s Day cards.
While a more valuable national prize may have a headline appeal, I have found it is easier to sell this prize will be done by one of our customers. That pitch is made even easier when the prize pack is perfectly targeted for a season like this T2 prize pack.
The T2 pack also works as it fits well with our everyday female gift line. It compliments what we offer, making the message of the prize pack valuable beyond the season.
The newsXpress exclusive T2 Mother’s Day prize pack is part of the Hallmark / newsXpress relationship.
The total campaign has a value of in excess of $50,000. I suspect this is the most valuable Mother’s Day campaign in the newsagency channel inn 2017.
Find a wall in your shop and turn it into a mini gallery space for local artists. Make it available at no cost. Choose artists based on what you think works best.
You will help local artists and better connect you with the community.
The photo is from a shop I was in two weeks ago. On the wall they had a small showing of photos taken by a local young photographer. There was nothing commercial about it.
To me, this idea is a not brainer for any regional, rural or high street independent retail business. The more we support our local community the more likely the local community will support us.
The added benefit is the beauty you can bring to the shop.
Be a force for good: support local artists and give locals another reason to visit your business.
