Newsagency management

Someone recently rang a shop and asked to purchase some gift cards. A the shop did not have them in stock, the caller suggested they buy them from a nearby supermarket that was running a sale. They pointed out that the shop could make more money by selling them at full price.

A staff member went to the supermarket, bought some cards and then, over the phone, sold two to the caller, before another person in the shop intervening because of suspicions of fraud.

It was theft, plain and simple.

The moment someone on the phone suggests you go to another shop to purchase something the call should be over.

While cyber crime is all in the news right now because of Medibank, Optus, Harcourts and more, there has been no decline in old-school fraud, like described above. This is the time of the year, when we are busy, and maybe with our guards down because of this.

It is worthwhile reminding team members to be on the lookout. Unless you know the person, be suspicious. And, for sure, never transact over the phone unless you are absolutely certain you know the person.

I sought clarity from Australia Post management as to how long the 40% freight surcharge to WA may be in place. They responded indicating they were hopeful it wold end by Christmas but could not guarantee it.

Here we have a massive government owned business increasing fees by 40% and getting little media coverage and airline crew considering strike action for a far lower percentage wage increase and it’s front page news.

For any business selling to people and businesses in WA, the surcharge is a considerably cost. Today, 24 hours after the surcharge began, my own businesses have not passed on the increase. Like others, we are waiting to see what happens. The thing is though, in reality, I have no idea what I am expecting to happen.

At a shop counter I heard a customer say (yell) it’s just not good enough. I want to buy it. I came here to buy it. I have money to buy it. And you’re out of stock. What am I supposed to do now.

The person at the counter had no answer. The customer stood their ground, repeating different versions of the same stuff.

Online, a customer placed an order and then rang the store 5 minutes later asking when they would receive it. The team member on the phone explained the process, that orders are picked in the order in which they are placed, the customer yelled I just paid you and now you say there is a delay. They hung, and called back a minute later. I want you to promise you will send it today, they demanded. When told the biggest delay to getting picking and packing done is calls like this, the customer demanded to speak to the supervisor. I am the supervisor was the response.

A newsagent emailed the owner of a supplier with words of venom and disrespect, demanding the attention of the owner for an issue completely outside their control. They refused to consider the evidence that they were wrong. They ignorantly told the business owner how to run their business.

Each of these stories is true and unrelated, in unrelated businesses. The connection is the season and the tension associated with it.

People are on edge. I suspect it is partially Covid related – it’s still there, impacting business, impacting everyday in terms of staffing, the supply chain and more.

What I don’t get is that there is too often right now no escalation visible, people are at full volume, full anger in a heartbeat and they are too ready to blame others while not listening.

As employers our role is to protect those who work for us, to ensure a safe, respectful and healthy workplace. If I hear of people being rude, abusive or offensive to anyone working for any of my businesses I will stand up to them and, if the situation warrants, invite them to take their business elsewhere.

Life is too short to put up with ignorant, rude and offensive customers.

Maybe it’s just me but sales of World Cup products are lower this series compared to previously.

As the staff member in a newsagency was saying that, behind their back, a customer picked up two of the items and purchased them.

It frustrates me when I hear about retail business owners, or retail staff, who block the opportunity of success in their business. Their negative talk discourages them from engaging positively, and, if heard by customers, it can discourage them, too.

I saw this firsthand recently in a shop. The staff member didn’t;t think they were doing anything wrong by saying that people shopping in the shop your not like a product. The thing is, they said this without understanding the product.

I opened the product and demonstrated it to them. They loved it. It’s not what they thought it was. Their ignorance had got in the way of them finding joy in something they sell.

I wonder how much business this ignorant approach of our customers don’t like it, they won’t buy it has blocked.

Sure, there are products on any shop floor that don’t sell. You can see that in the data evidence. data matters more than opinion. The staff ember I observed was sprouting off based only on opinion … about the product I mentioned and other products.

If it was up to me I’d invite them to leave the business because their negative commentary suggested they did not like working there.

I am not saying everyone working in retail has to love everything about the business and all the products. Rather, I am saying that product knowledge is the starting point – understand what you sell. If you don’t like it, keep that to yourself. Never speak for what the customers of the business may or may not do. And if you do plan to comment about whether a product works in the business or not, make the comment based on evidence and not opinion.

Retail is more competitive than ever, especially local small business retail. Having a negative staff member facing customers is not good for the business. Such a person needs to either change or leave the business. Doing nothing about this could harm the business.

Deliveroo, a platform with around 15,000 delivery riders in Australia, has announced that the company has been put into Voluntary Administration:

There has been a flurry of Christmas product pitches and offers from suppliers to newsagents and other retailers over the last two weeks.

I think there are several reasons for this.

• Supply chain challenges have seen stock arrive late with some suppliers. They were too wary to push what they did not have. Meaning they now and limited time to push.
• Some others suppliers have over ordered on the back of strong 2021 and 2020 and have not allowed for any post-Covid (even though we are not retail post-Covid) trading situation change.
• Some are engaged in the usual end of year warehouse clearance for Boxing Day sale opportunities.
• Some are approaching new channels because of bumpiness being experienced in their traditional channels.

These and probably other reasons have combined to provide us with more product pitches now than is usual for this busy Christmas time of the year. 

It is a lot of noise in an already challenged retail situation with strong trade, staff scarcity and patchy retail conditions.

I am okay with the changes and that suppliers want to pitch what they want / need to move. What I am not okay with is the nosiness, demands and pressure of some. What they think is a good offer may not be and some suppliers don’t realise that their view may not be the view of the retailer.

A couple of suppliers have recently asked me what they can do to boost Christmas sales. I’ve said it’s too late, there is nothing to do now as most retailers have their Christmas plans well and truly set. Any pitch now needs to be out of the box compelling at a level that demands attention. I’ve said unless it is that, don’t waste retailer time as they are too busy.

Oh, and by out of the box compelling, I mean a discount so good that the retailer can sell at half price and still make better than average margin. I appreciate that’s a tall ask. But, if you want attention from retailers in the next few weeks, that is what it will take.

While Christmas sales are excellent, and Boxing Day should be goon=d in states with it, most smart retailers planned for these opportunities early this year, making current pitches very late.

Such is the labour market situation right now that businesses are hiring without an interview.

Back in the day, you’d create a shortlist of candidates, bring them in for an interview followed, usually, by a trial shift for maybe two of them.

Retailers I have spoken with recently are hiring based on a quick phone call, starting the chosen candidates at the next available shift, and hoping they have got it right.

While this change to rapid and unchecked hiring does not sound ideal, it seems to be working. I know in my own case that is what has happened. Maybe I have been lucky. I am not 100% sure though. But maybe, the old approach was unnecessarily time-consuming.

It will be interesting to see how this plays out.

Sales data from the ABS indicate good results, and they offer a benchmark against which we can be compared in our retail businesses. This chart using ABS data and from the centre for Future Work is fascinating

Click here to get to the ABS website for more comprehensive data, including an analysis of the percentage of online versus in-store.

We advertised on seek Thursday for new casual retail team members and within 24 hours has received 40 applications with 12 of those being what I’d call excellent.

I’ve not seen those stats for over a year.

So, this experience feels to me like there may be an easing of the labour shortage.

Some factors may have helped, I made it clear the pay rate was above the award, that we would provide a travel allowance and that there was an opportunity to transition to full time.

On the 12 I mentioned above, all have current retail experience, which particularly interested me, and it makes me wonder if it’s the opportunity for above the aware that gets people looking. If so, it’s the free market at work. I do think we are at a moment in time where paying above the award is what we have to do if we want to attract above average people as the award is designed as a benchmark for average, some may even say below average since it’s the minimum one can pay in a designated role.

Now, I say the job market is not easing because people are behaving differently. Three times recently we have hired people at 10% above the award plus a travel reimbursement only to have them not turn up for their shift, and not return calls.

I have several businesses and what I describe above is only occurring in retail.

The 7 year lease of my Westfield Knox shop ended in June last year. I had provided the landlord written notice back in late 2019 that we did not want a new lease as our retail focus had shifted to the high street, with terrific success.

They asked us to stay on for just over a year, and we agreed. The new terms we negotiated were excellent.

That lease extension is up at the end of this year. This coincides with the timing of works relating to the long-planned redevelopment of our end of the centre.

They offered an attractive new lease in a new location, which I declined. As I have written here previously, life on the high street is terrific.

Thursday, we started the process of selling down stock at the Westfield Knox store, so we can have an empty shell by Christmas.

We have enjoyed our time at Knox. It’s been a good centre to be part of. Today, however, our focus has shifted and is elsewhere. We are grateful to be leaving in a planned, structured way, and to have the next couple of months to say goodbye to long term customers.

Given that this was a newsXpress corporate store, I didn’t want or seek to sell the business as there is too much IP embedded in it.

Westfield Knox is an opportunity for a newsagent. The Nextra store that was at Knox closed years ago and transformed to a lottery kiosk. I know the landlord is keen to find a good newsagency operator to serve in the centre.

Zip sent out a notice to retailers yesterday about a 10% increase in the cost of Zip as a payment option for retailers.

For what it’s worth, I think advising customers the cost of payment platforms like Zip and Afterpay is worthwhile in helping customers understand the costs of business.

I was in a shop a few months ago where a customer making a $300 purchase and using Afterpay to pay was yelling, yes, yelling, as the sales associate demanding a discount. Customers don’t see the cost of business sometimes. In this situation I saw, the customer may have been calmer had they understood their payment method off choice cost the business a decent chunk.

Here is a video of the Zoom meeting yesterday with newsagents about taking your business online. This is part of a free regular series my software company, Tower Systems, hosts.

Optus notifies customers of cyberattack compromising customer information

22 September 2022, 02:00 PM