Newsagency management video

newsXpress has gently launched #NOTANEWSAGENT, the next step in building focus for the newsXpress as distinct from the newsagency channel.

A brand is only seen as a brand if you promoting it as such. Promotion starts with explaining what the brand stands for. That is what the first communication piece, an in-house produced video, is all about. Here is the video launched yesterday:

Branding away from the term newsagent or newsagency is important for several reasons:

1. Major brands no longer lend against the value of a newsagency business.
2. Major landlords no longer permit newsagency businesses, instead preferring branded more current businesses.
3. The ATO benchmark for a retail newsagency business is out of date and not relevant to a transforming business.
4. Some suppliers will not supply newsagency businesses.
5. Some traditional newsagency suppliers no longer recognise the newsagency channel as a distinct channel.

The #NOTANEWSAGENT move is not intended to disrespect newsagents or newsagency suppliers. Rather, in addition to serving the needs of newsXpress members, it seeks to open consideration by others as to the role of the old-school shingle. It is part of a considered and researched strategic plan.

Magazines, stationery, newspapers and other core categories remain important. However, new traffic is coming from other categories and that is vital to the health of the business in the future.

The recent newsXpress branded Tv commercial delivered excellent new traffic to newsXpress businesses. They sought out that brand and not the generic shingle. This is important in a competitive retail environment.

We see change all around us in our ‘newsagency’ businesses. While we can react to change, we are better off leaning in, better off chasing change, so we are ahead of the curve.

There is no end-game here. Change is the new normal in retail, in newsagency retail especially.

There will be some who criticise the #NOTANEWSAGENT positioning. They are entitled to their view. I am reminded of those who criticise me in 2010 for my prediction then of where magazine and newspaper sales would be today. Unfortunately, I was right. Those who acted in 2010 are better off today than those who did not.

Regardless of what the channel is (or channels are) called, I hope for a strong future for all businesses that identify themselves as newsagencies today. The strength of the future depends on your commitment to change today.

My personal hope is that #NOTANEWSAGENT gets newsagents thinking about the positioning of their businesses in the context of print media disruption, retail disruption and changes in economic conditions. Thinking alone is a start.

Here is a video I shot Saturday at my newsXpress Southland business. Sorry it is a bit sketchy in parts – I was trying to avoid customers as I walked through the store. The goal of the video is to provide a sense of layout, commitment to branding, guidance of traffic flow and that this is not a traditional newsagency.

newsXpress Southland from mark fletcher on Vimeo.

This is not your average newsagency. Performance wise, it is tracking at 12% year on year growth and most of that growth is coming from products with a gross profit of 50% or more, often items you would not find in a newsagency.

This is a new traffic business, chasing non traditional newsagency shoppers across several demographics. The business has been open two years. It is the only newsagency in the large Westfield centre. The previous newsagency, a nextra branded business, went broke.

I don’t get to this business often. It is run under management, excellent management. What I saw Saturday was an optimistic business embracing opportunities outside what are usual for our channel. It made me very happy.