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Newsagency marketing group

Smart Aldi campaign on loyalty points reinforces newsagency loyalty pitch

I like the Aldi campaign on TV at the moment about loyalty programs and, specifically, points. I like it because it reflects my view, that points programs are often confusing and the points themselves, worthless. Here is the ad in case you have not seen it.


It is typical Aldi: fun and direct, unambiguous.

Regulars here will know more preference for discount vouchers, immediate rewards, real rewards, over points based loyalty. I switched from a magazine club card in my newsagency – buy 11 magazines and get your 12th for free (up to the value of $10) – in February 2013. It has been a ripper of a success.

While POS software and newsagency software from the software company I own offers a terrific points based loyalty program as well as integration with FlyBys and other third-party loyalty offers, it is discount vouchers that many of the 3,500+ small businesses using the software rave about.

Discount vouchers are not like pointless points based programs depicted and mocked in the Aldi TVC. A discount voucher is a real cash amount off your next purchase, off the usual purchase price. Given that the price of many items in newsagency businesses are standardised nationally, the discount is real, it is trusted.

The Aldi ad makes the point that genuinely better prices are more useful and valuable than pointless points. The experience in my own shops is testament to that. People like the ease of the program, the real discount, that there is no cumbersome process, that they understand it and that it is authentic.

Through lever settings in the software, retailers control the value of discount accrued, what it can be redeemed on and the shelf-life of the discount. This helps us ensure that the discount voucher operates as a genuine revenue driver, delivering considerably more benefit than cost. There is excellent reporting on shopper behaviour, which feeds into adjustments of the levers to maximise the benefit for the business.

This brings me bask to the new Aldi TV commercial. Their pitch is differentiating. While their main competitors, Cokes and Woolworths, each pitch points-based programs that are complex and offer little in real value, Aldi says it is every day price that matters. I think that is a message that will resonate. I say that based on shopper feedback for the discount vouchers, we have shoppers who say they have switched because of the value they get. That started in 2013 and we continue to hear it today.

I put our above average performance in core categories like cards and magazines down to discount vouchers. Data reflect this as I can see where voucher value is accused and where it is spent. magazines, in particular, benefit.

The more we differentiate our businesses from competitors the better.

15 likes
Management tip

The first ever newsagent’s choir sets up discussion about teamwork and strategy

The newsXpress national conference on the Gold Coast this week opened with Pub Choir leading a 90 minute workshop that created a choir of newsagents and suppliers.

The 200 voices, who had never sung together before, singing Better Be Home Soon by Crowded House created a beautiful sound. The experience spoke to confronting challenges, breaking down barriers, working together and looking over the horizon at what could be.

The choir workshop was the surprise opening to the conference. newsXpress members had no idea ti was coming. The feedback since has been wonderful and inspiring for what it is leading to.

Over two days at the conference there was exploration of new traffic supplier opportunities, including suppliers who have not previously supplied newsagencies who spoke in depth about their traditional shoppers and how to find and serve them.

In one case, conference attendees learnt about a completely new product category that offers excellent margin and which has a strong following in Australia. Discovering how to engage with this with context of existing newsXpress product categories exposed another way to leverage opportunities for the business.

Everything presented and discussed at the conference was optional, as is the case with newsXpress.

On Tuesday, in a deliberately more intimate setting, seventy newsXpress members sat in an open circle and talked business in a personal way that was emotional and transformational. Many who participated have provided feedback about the profound impact of this three-hour session. Here is one message:

The introduction of #Pub Choir  set the scene for a conference that was going to be different…….and that it was.

Most enjoyable, entertaining and educational.

This morning’s round table discussion certainly was the most powerful and understanding I’ve been to. It was a ‘reality episode’ that really drove the point home that, as retailers, we cannot take our eye off ‘the ball’ for one second.

Here is a comment from another participant.

I have been a newsagent for close to thirty years and been to hundreds of meetings and sat on committees and been to many conferences. I have not in all that time experienced anything close to the inspiration, care, closeness and optimism as I have witnessed here. I mean this sincerely, the experience has changed my life.

I appreciate there are some here who will either through comments or privately mock this post or put it down. It’s okay. Think whatever you like. I have not written this to get your agreement. Those who were there know first-and what it was like and what it will mean for their businesses.

For me, it was a wonderful three days: inspiring, insightful and memorable. But overall, it was practical from a business next steps perspective.

In creating this newsXpress conference, I sought to put something together that was appropriate for our times, that focussed on next steps. I think too often planning conferences look too far ahead. In our channel today, the horizon is much closer.

On the choir experience, those who participated cheered loudly at the end of singing Better Be Home Soon as a performance. Then, at the end of the conference, we showed the video of the performance, and the cheered again. It’s a joyous memory.

24 likes
newsagency marketing

Newsagency management tip: What’s next?

Mother’s Day is a big day in the seasonal calendar for any newsagency business. There was a time you could get through this season and rest until mid year or even Father’s Day. Not any more.

It is vital you have a new traffic generating pitch up from tomorrow, Monday. It has to be something you promote inside and outside your store, to bring in new shoppers and have regulars returning sooner.

Valleys between seasons need to be smoothed with substantial change in the business, which is backed with extensive out of store activity.

If you are in a newsagency marketing group or a franchise group they should have already pitched ideas to you for post-Mother’s day activity. My suggestion is you follow their advice – hopefully, you have done that and are ready for tomorrow.

Resting between seasons is not an option in newsagency retail today. 

8 likes
Management tip

Shopping centre businesses need to go big or go home

Newsagency businesses in shopping centres need to be big, bold and constantly evolving. They cannot be the traditional newsagency business or anything even close to it, not now, not in the future.

Events are one way to differentiate and to compete with big businesses. They are important to attract shoppers from outside and from within the centre, especially in the big centres with 250+ stores.

I have two businesses in this major shopping centre situation, where everyday we fight to bring people in from the traffic in the mall.

Last Saturday, as part of the first ever National Beanie Boo Party, which was organised and run by newsXpress, as an optional marketing event for members, we hosted a party at the Knox store. This short video provides context for what we did in that business on the day to be setup – to achieve a revenue boost of in excess of $1,500 in three hours.

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Now, anticipating questions, read this:

  1. While I say this is a newsagency, it is a newsXpress business, focussed on plush, cards, gifts, collectibles first.
  2. This plush wall commitment is driving in excess of $100,000 in direct product revenue and not far of that in complimentary basket purchases.
  3. The party is an infrequent activity and deal based event designed to attract existing collectors from other retailers and to introduce non-collectors into collecting.
    net new traffic comes from not only the centre but from our significant out of store marketing on social media.
  4. Given the way this party was run at this location, there was no additional labour on the day.
  5. The video was deliberately shot at a time and in a way to not show those engaging.
  6. I’ve had this business for more than five years in this location.
  7. This feature wall works well. However, nothing is permanent in retail today, nor should it be.

I’d be happy to answer any other questions here. I can also be best reached on 0418 321 338.

Footnote: I am a shareholder in and director or newsXpress. In my newsagency life at different stages I have been a nextra retailer and shareholder and a newspower member. I have been with newsXpress since 2005.

14 likes
Management tip

Woolworths pitching for local business business

I received this A5 double-sided flyer from Woolworths at my software company Monday this week. It is another piece of business to business marketing from them, the second I have received this year already.

Promoting to local businesses is important. As Woolworths shows in their offer, the actual offer does not need to be substantial. The most important part of the business to business offer is ease of transacting.

Make it easier for local businesses to get supplies from you and you are more likely to get the business.

I like the idea of a professional flyer as it is a low cost way to reach businesses in an area. If you decide to go this route, the flyer had to be professional, contain an engagement offer and easy to read and understand.

I know of newsagents who visit local businesses, pitching for their business. While I think a personal touch like this is important, it is not as efficient as a flyer pitch where you can reach many businesses for a lower cost. Does this mean you should stop visiting? No! Add a flyer to the marketing mis and maybe this will lift the success rate of your business visits.

If I was doing a flyer like this in my business, my flyer would pitch:

  • Local.
  • Ease of doing business.
  • Deals.
  • Community support and engagement.
  • Products know locals will love.

The flyer would be different to the slick corporate flyer from Woolworths. I’d try and tap into the local small business emotion without being ham-fisted about it.

I think this type of flyer is vital for retail businesses in the high street, not in a busy shopping mall. These high street businesses often have a traffic challenge already. The flyer is a vital way of reaching outside the business to find those valuable new shoppers. A business is a very valuable new shopper.

The Woolworths flyer was, to me, a reminder that all businesses need to promote their businesses outside their business, to reach out and attract new shoppers, some of whom will never actually personally shop in the business.

Warning because here comes a newsXpress pitch: The newsXpress newsagency marketing group provides a flyer template for its members, so they can create a personal, professional, flyer in a couple of minutes for their business without any graphic design skills. This is what marketing groups do to help newsagents find new shoppers.

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marketing

Free workshop: Ideas for transforming your newsagency in 2018

Ideas for transforming your newsagency in 2018.

A free management workshop for newsagents.

newsXpress invites newsagents from across Australia to free management workshops. We also offer to fund air travel for newsagents to ensure easy access to this important event.

Hear how newsagents are transforming their businesses, finding new customers, enjoying a new lease on life. We will share case studies from city and country newsagencies.

  1. See new, exclusive, product that is attracting new shoppers, product you have never seen at a gift fair or trade show before.
  2. See greeting cards not available in any other newsagency, greeting cards that appeal to shoppers beyond the usual caption range in Australia.
  3. See the evidence of success of the newsXpress multi-site web strategy that is driving online as well as in-store sales. We will share the latest sales data.
  4. See the newsXpress P&L – demonstrating transparency.

Here are the only dates in this series. Please tick your selection.

  • ADELAIDE: 5th Feb, 10am @ Rydges South Park, 1 South Terrace SA 5000
  • SYDNEY: 6th Feb, 10am @ Hilton Sydney, 448 George St Sydney NSW 2000
  • BRISBANE: 7th Feb, 10am @ Brisbane Riverview Hotel, Kingsford Smith Dr,
  • PERTH: 8th Feb, 10am @ Parmelia Hilton Perth, 14 Miller St Perth WA 6000
  • MELBOURNE: 9th Feb, 10am @ Grace Park Hawthorn Club, 6 Hilda Crescent

I am posting this here as I am a director of newsXpress and will be hosting each workshop.

Book by emailing help@newsxpress.com.au or by using the booking form.

If you have any questions, call me – 0418 321 338.

15 likes
Newsagency management

newsXpress TVC is driving in-store traffic

It has been hard for Foxtel’s 2.2 million subscribers to miss the newsXpress TV commercial running over the last week. Funded by newsXpress and supported with a strong social media campaign as well as in-store marketing, the TV campaign has been successful at driving net new traffic.

Basket data indicate valuable engagement beyond the basic buy 2 get 1 free pitch. Plenty are buying more of the promoted Beanie Boo product. Plenty are buying other products while in-store.

Landing new shoppers in-store is tough work. newsXpress is doing this at a national level for its 243 retail locations and doing it through a product that historically was a toy shop and national retailer product. The campaign is part of a long-term and integrated strategy that has recast the focus of newsXpress to new traffic areas while not disrespecting traditional newsagency shopper traffic.

To those who say the buy 2 get 1 free deal is nothing special – you’re entitled to your view. This is the second year running this promotion for a reason.

To those who may want to mock Beanie Boos, a country town newsagency with a population of 5,000 selling $23,000 in Boos in a year and achieving the best return on floorspace of all products in-store from Beanie Boos is one example of many success stories. In the city and country, Beanie Boo and associated exclusive products are an excellent new new traffic driver product.

To those who want to criticise newsXpress for any reason, that is your right. However, criticise with facts. The facts here are, this campaign is a terrific commercial and new traffic success.

To those who may say not all newsXpress members participated, yes, that is true. I think those who chose to not participate are dills.

To the other marketing groups who say I should not write about newsXpress here, remember, there is an open invitation for you to share your success stories here.

Note: I am a Director of newsXpress.

28 likes
marketing

newsXpress seeks out new shoppers with unique t-shirt product

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.

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Management tip

newsXpress invents a season and drives traffic for its members

Two years ago newsXpress launched unicorn promotion. It was a success.  Last year, it expanded the promotion, launching Unicorn Season. Thanks to the support of a group of different suppliers, terrific in-store displays and collateral and online marketing, it was a hit.

This year, on July 1, newsXpress launched Magical / Unicorn season – a broader season build around the fun, magic and mystery of unicorns.

This now established season has broad demographic appeal. It is also easy to engage with in-store as well as online. Plus, it is a leave-behind opportunity, with unicorn and related products a key segment offer inn the gift department.

Attracting shoppers through a campaign that is fresh and banner group specific is a good move because there is less competition in this same space. I think that is a factor in the success for this season.

While the usual seasons remain important, it is these new seasons that can be more valuable at driving incremental traffic and purchases.

Here are a few photos of in-store execution from different newsXpress businesses.

There are plenty more stores engaged than these four. The traffic and revenue success tells us this type of blue ocean promotion is well worthwhile.

The supplier offer is broad with ten different suppliers offering products for this season.

The season is worthwhile because not recasts how people see each business and what they expect they cn purchase there.

While I see other retailers, including some newsagents, with unicorn products, none has embraced it as a season with in-store support through collateral, events and more.

As our channel continues to evolve through falling traffic for newspapers, magazines, stationery and lottery products thanks to online and other factors, we must create other opportunities for shoppers to visit our shops. This is where unicorn season, and similar fresh and unique seasons, play well for us. The new shoppers they attract can become shoppers beyond the season. Existing shoppers, too, as I have noted, spend up thanks to a great display.

This season is one example of how we can grow our businesses in the face to the doom and gloom of some. It is not too late.

Footnotes:

  1. To any who may make fun of this when talking to colleagues in the channel, and not here, unicorn season is one small tactic of a comprehensive year-round online and offline newsXpress strategy pursuing new traffic and revenue. Any criticism would be ignorant without store performance data.
  2. I am a director of newsXpress Pty Ltd.
18 likes
Newsagency management

Click and collect helps engaged retailers find new shoppers

newsXpress has been offering click and collect for its various member store-connected online websites for months. It is a ripper of a success, both in terms of sales and attracting new shopper traffic.

Click and collect is where people shop online and visit a physical store to pick up the goods purchased. It is a major focus of big business retailers like David Jones, Myer, Officeworks, Coles and others. Offering it shows online shoppers how current you are in your online approach. It builds trust.

Customers like that they can shop online at any time, pay online, and be certain that what they purchased is set aside for them to collect at any time.

It is shop online at any time that matters in that the majority of transactions are done outside usual shopping hours. This gives click and collect businesses an advantage – they can win the sale and bank the revenue while their nearby competitors are closed.

Another benefit of click and collect is that it introduces new shoppers to a business. Two thirds of click and collect shoppers surveyed visit the shop from where they collected the goods for the first time. Half purchased other items while in the store. Close to half came back for more purchases, having discovered what the store sells.

Around a quarter of click and collect shoppers use interest-free online LayBy … meaning they buy now, pay later and get the goods right away. The retailer is paid right away less a tiny processing fee that is not much more than the usual credit card fee.

Click and collect is not a massive game changer. Rather, it is a small step in a series of steps that make up a successful comprehensive online strategy.

A comprehensive online strategy is key to competing with other online businesses as well as with other high street businesses.

The way newsXpress leverages click and collect is through offering access to absolutely current stock on hand data for sought after brands. Having this, updated every 5 minutes 24/7 is what shoppers want when shopping online. It is hard to achieve – this is a reason many small and independent retailers and retail groups have not done it.

Online is big and growing. You only have to look at data from any of the online giants to understand this.

15 likes
Newsagency management

Are you ready for after Mother’s Day?

The next big season for newsagents after Mother’s Day tomorrow is Father’s Day – if you are not doing a mid year sale or something similar.

My question today is what are you doing after Mother’s Day?

My advice is do something!

You should be in  position to come out today with something strong, with a focus, designed to drive traffic. Something you are proud to promote outside your business.

If you look at your key competitors they go from season to season. The whole year is planned, integrated. They will come out of Mother’s Day with something big and bold, something they promote outside their businesses.

If you are in  a marketing group they could already have something for you. If they don’t you have to put something together yourself.

In my own situation I am coming out of Mother’s Day with one season, which folds into another season, which then folds into Father’s Day.

The ideal season you create is one with supplier support for driving margin and providing traffic leveraging opportunities, something for which you have strong branded collateral so it looks like you are part of something big.

These months between Mother’s Day and Father’s Day are the worst for retailers who do not have a plan.

Gone are the days when you coasted on the back of certain lottery, stationery and magazine traffic.

You have to create your own success. You do this by attracting new shoppers.

You attract new shoppers by promoting outside your business.

You promote outside your business with opportunities people who do not currently shop with you value.

Value is something you can create based in a brand shoppers love and for which your business is already known in the area.

It starts with you creating product-based opportunities that fit with your business and that local shoppers will love.

It is not too late. I urge every newsagent reading this to make this week and the next few weeks count. It’s up to you, not your suppliers.

But back to my question – Are you ready for after Mother’s Day? I hope so. It starts today.

9 likes
Newsagency management

Branding separate from the traditional newsagency shingle

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.

24 likes
Newsagency management

Sunday newsagency marketing tip: how to pitch magazines on Facebook

Too often newsagents include a photo of a cover of a magazine say say something like out now or the new issue of xxx is out now. This is the type of post many retailers do.

To me, the best posts about magazines either focus on an image on a cover or some other aspect of an issue of a magazine that lets you personally endorse it.

Take the current issue of Yours. We do love Denise Drysdale – who does’t?

Screen Shot 2016-10-30 at 7.28.04 AM

This posts is a perfect opportunity to give something of ourselves and pitch a magazine without being too loud from a sales perspective.

Here is an example of a food related post, a close up of the cover of Better Homes and Gardens.

Screen Shot 2016-10-30 at 7.30.18 AM

What is interesting is the shares and where they took the post. Looking at comments with shares, most were about how delicious the Christmas pay looked.

These are two examples of Facebook posts newsagents can do with magazines that work and look different to what others do with magazines. I am sharing insights with newsagents on how to use social media at a social media masterclass workshop series over the next few weeks. This is a newsXpress run workshop and is based on newsXpress training.  Access is free and any newsagent can attend.

  • ADELAIDE. November 9 @ 10am. Rydges South Terrace. Book now.
  • GOLD COAST. November 10 @ 12 noon. Sofitel. Book now.
  • MELBOURNE. November 15 @ 10am. Hawthorn Arts Centre. Book now.
  • SYDNEY. November 16 @ 10am. The Lakes Golf Club. Book now.
  • BRISBANE. Nov. 17 @ 10am. The River View Hotel Kingsford Smith Drive. Book now.

I will add Perth as well. The sessions will be interactive with plenty of time for questions. Spaces are limited as we want to ensure everyone can engage.

9 likes
marketing

Are Newspower stores among the highest performing in the country?

Screen Shot 2016-09-01 at 1.38.38 PMThe folks at Newspower may want to check the marketing sent today as they claim: Newspower Newsagents are some of the highest performing in the country.

I am not aware of any evidence to support this claim.

For Newspower to make this claim they would need access to the business performance data of all newsagencies. They do not have access to this.

My long-established newsagency sales benchmark studies, which I publish here, that started when my newsagency was a Newspower store, represent the most comprehensive comparative analysis in the channel  yet even that does not cover all stores. It does, however, cover data from businesses in all groups except for the WA lucky charm franchise.

I am not aware of any evidence supporting the Newspower claim.

18 likes
Newsagency marketing group

Newspower announces another rebranding

Newspower has rebranded for the fourth or fifth time with an announcement earlier this week. It has also announced a new level, Newspower Go. This is like Newspower level from some years ago – more discipline, better deals.

While I think Newspower does need to change, parts of the announcement are problematic in my opinion:

Newspower has undertaken significant research across not only the Newsagency industry, but the broader retail sector and as a result Newspower has developed key strategies to deliver Newspower a stronger future.

Newspower ought discslose to its members the detail of the research and the detail of the resulting strategies as the organisations track record is not great – to give confidence that they have a good plan and that the plan is based on sound research.

NewspowerGo stores will be in targeted locations, designed to attract and engage with younger shoppers; Generation X and Millennials – those that will become your customers into the future.

Gen X and Millenials are newsagent customers today. Strategies to attract them were needed years ago. There are newsagents enjoying terrific success with these generations.

Stay tuned – the first NewspowerGo stores are scheduled to be opened later in the year.

This makes the an announcement that there will be a further announcement. Newspower is coming at this transformation very late. They should have stores running now so the announcement earlier this week was here – come see it live.

We are entering a new era of growth and development and as part of the launch of NewspowerGo we have also refreshed the branding for Newspower. Newspower was established over 20 years ago and is the Largest Newsagency Marketing Group in Australia and our brand is strong.

Newspower has, from what I understand, user 600 stores. This is down from something like 1,200 stores a few years ago. considerable decline in numbers does not represent strength. If I was leading Newspower I’d pull back from talking about size and focus on stabilising member numbers and then achieve growth before talking about growth.

I am a director of newsXpress, a competitor of Newspower. The weakness of Newspower in recent years has hurt more than Newspower and member businesses, it has hurt the channel. This is why Newspower has to get it right, why they have to fix their situation to drive the viability of member businesses. The rest of the channel is depending on it.

Newspower should start by developing its own ideas. I had to ask a Newspower staffer leave a confidential invitation-only session I was speaking at recently. I only realised they were there soaking up commercially sensitive ideas when someone else pointed it out. I wrote to Helen Dowling about this on June 17 and am yet to receive a response.

Our channel will benefit from strong competition between all of the marketing groups. The key word is competition. Competition has its roots in being difference, not copying. It benefits from being first with initiatives, not years late.

Historically, Newspower’s biggest challenges have been a weak uninspiring board, GNS controlling key marketing seasons and control at the state level on what is done under its name. For the future to be bright these three things need to be addressed.

29 likes
Leadership

April – June 2016 vs. 2015 newsagency sales benchmark results

This study is based on data from 161 newsagencies in city and country, high street and shopping centre situations, newsagencies in different groups and trading alone.

Overall, Q2 2016 delivered better results than Q1. There is good news in these benchmark results, especially for newsagents who are working their business as retailers.

  • Customer traffic. 57% of newsagents report average decline of 1.4%.
  • Overall sales. 59% reported an average revenue decline of 2.2%.
  • Basket depth. 64% report a 1.9% decrease in basket size.
  • Basket dollar value. 61% report a decrease in basket value of 1.1%.
  • Discounting. 35% of respondents use a structured loyalty offer such as points or some other discount.

Benchmark results by key departments:

  1. Magazines.  78% of report an average decline in unit sales of 7%. The average decline in weeklies was 8.4%. 20% report an increase in unit sales.
  2. Newspapers.  77% report average decline in over the counter unit sales of 6.1%.
  3. Greeting cards.  56% of report average revenue increase of 2.9%.
  4. Lotteries. 68% of those with lotteries report average decline of 5.5% in transactions.
  5. Stationery.  77% of newsagents report a decline, with an average of 1.7%.
  6. Ink.  23% of stores report ink separately. Of these, 51% reported increase of 2%.
  7. Gifts. Of the 78% with gifts, 61% report average growth of 5.1%. Note: for the purposes of this analysis I roll gift related departments such as plush, collectibles, homewares and gifts into one.
  8. Tobacco. Of the 45% with tobacco, 73% report an average decline of 17%.
  9. Confectionery. 66% of stores reported an average decline of 3%.
  10. Toys. Of the 25% with toys, 70% report growth of 4.5%.

Here are some insights from analysis of the data:

  • High street and regional newsagencies were among the best performers.
  • The traditional newsagencies: papers / magazines / lotteries / cards / stationery and little or no gifts fared the worst.
  • Newsagencies with a strong gift department performed better with cards.
  • Newsagencies selling higher value gifts did better than those at the low (under $20) end.
  • Newsagencies in a group usually, but not always, perform better than those not.
  • In the successful group, the ratio of gift to card revenue continues to grow.
  • The most significant growth year on year is in the businesses where significant shop floor change has been undertaken. i.e. increasing gifts, shifting to higher price point products, introducing homewares and / or introducing toys – but not the usual low end toys we see in newsagencies.

I say the results this quarter are better than last because there is evidence of the value of embracing change. While there is no doubt that print media continues to challenge as does tobacco and lotteries, newsagents acting as retailers can achieve gains as the results show.

HOW TO USE THESE RESULTS
Look at your own situation. Compare your year on year results with those detailed here. If you are doing worse, act. If you are doing better, celebrate briefly and then get back to it.

There is no time to lose. We are in a period of extraordinary change and challenge on many fronts and the best way to confront change and challenge is to lean in and bring it on.

The business owners of any newsagency are the single most important influence on their results.

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 newsagency marketing group 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:

  1. Gross profit: this is the goal gross profit for all product sales not taking into account any revenue or costs related to any agency business. The traditional newsagency average sits at 28% to 32%. For a newsagency focused on the future, the goal has to be at least 45%.
  2. Ratio of Gift revenue to Card revenue: 50% minimum. The goal ought to be 100% or more. If you do $100K a year in cards, target to do $100K in gifts, or more.
  3. Revenue per employee – $250 an hour minimum not including agency revenue.
  4. Revenue PSQM $4,500 – $8,500 depending on country vs. city / high street to shopping centre and depending of product mix. Higher GP lower revenue required.
  5. Overall revenue mix percentage targets: Cards: 25%; Gifts/toys/plush: 25%; Stat: 10%; magazines/newspapers: 20%; other: 15%.
  6. Floorspace allocation: Cards: 25%; Gifts/toys/plush: 25%; Stat: 8%; magazines/newspapers: 15%; other products: 15%; office/back room / counter: 12%. It’s rare you make money from an office or store room.
  7. Mark-up goals: Stationery: 125%; Gifts 110%; plush: 110%.
  8. Occupancy cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Location and situation are a big factor in this benchmark. For example, a large shopping centre business will have a higher cost than a high street situation.
  9. Labour cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Labour cost should include fair market costs for all who work in the business. (See above).

If you want help transforming your newsagency business reach out for help to people you trust. The earlier you reach out the better.

Here are my contact details: Mobile – 0418 321 338; email – mark@towersystems.com.au. I will help as much as I am able.

Tower Systems serves in excess of 1,750+ newsagents with newsagency software. newsXpress has 220 newsagency businesses as members.

10 likes
Newsagency benchmark

Using video on Facebook to promote the newsagency

Video is an effective tool for promoting the newsagency in-store, in the window, on Facebook and other social media platforms as it allows you to bring to life the business in a way that challenges traditional views about that the business and what it stands form.

Here is one of four new marketing videos produced by newsagency marketing group newsXpress in the last month to launch new products. This video is one of two launching the Teeny Tys range where newsXpress stores represent 25% of all outlets nationally.

This and other videos are provided in two forms: a YouTube link and an MP4 file. The MP4 file can be loaded to Facebook for autoplay while the YouTube link is good for websites and other places where you prefer integration.

The videos are professionally produced, exclusively by the newsXpress marketing team for the group. This gives the group control over the intellectual property and enables it to speak with its own voice rather than relying on supplier created content.

Here is another video produced to launch new Britto Disney product.

The videos are deliberately short to fit with social media user expectations. They are also non newsagency like – this is vital.

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marketing

Marketing newsXpress businesses in New Idea

IMG_0758 (2)Check out the full page ad promoting newsXpress newsagency marketing group businesses in the latest issue of New Idea magazine.

This print campaign coincides with a national social media campaign, in-store campaign and an e-commerce campaign – all combining to drive ne traffic in-store.

The campaign leverages a highly sought-after brand with a demo appeal ideal for newsagents wanting to grow traffic.

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marketing

Sunday newsagency marketing tip: check how your marketing group is promoting your business

Screen Shot 2016-06-19 at 8.07.31 AMStaying on top of advertising and marketing an be a challenge for any small business retailer in this media diverse world. It takes time and money. More important, it takes skill – to promote the right products in the right way to attract shoppers for the business in-store and online. Experts say between 70% and 80% of purchases have an online component.

Marketing is what newsagents usually expect from a marketing group, especially marketing that leverages movie franchises and major brands on behalf of member stores.

Through my work with newsXpress I know a bit about how markets on behalf of its members nationally and regionally on a range of social media platforms and in mainstream media.

A good example of leveraging a movie franchise has been on show this weekend with its promotion of Finding Dory products for the movie that was released a few days ago in the cinemas. In the first 17 hours of the Facebook post by newsXpress more than 1,246 people had entered the competition and more than 232 had shared the post. More important than these two stats is the 1,543 clicks on the post with many of these using the find a store facility through the newsXpress website to find their local newsXpress.

Engaged newsagency marketing groups can do the heavy lifting for local newsagency businesses. Newsagents in a group ought to expect the marketing activity of the group they are in to raise awareness and drive traffic.

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marketing

A walk around newsXpress Southland

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.

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Newsagency management

newsXpress marketing to newsagents

Here is the content of an email sent to newsagents last week promoting newsXpress:

Innovation for newsagents.

If you want new traffic, a higher than average gross profit, a fresh in-store look and excitement about the future of your business, consider newsXpress. here is just some of what we have delivered this year:

  1. National e-commerce strategy. newsXpress members are offering products for sale through a variety of websites connected to newsXpress member businesses. Members are thrilled to get news of sales overnight, while their shop is closed, sales with 100% of GP being retained by the members.
  2. Magazine incident reporting: an exclusive time-saving approach to handling magazine under supply, over supply and more.
  3. National Unicorn season. This innovative season, right after easter, increased traffic and drove excellent sales. With no competition.
  4. An interactive online calendar – never forget any deal, opportunity or season again. Delegate more easily. be more in control.
  5. Exclusive good margin dollar traffic generating product lines.
  6. The launch of an exclusive range of niche cards to be sold outside the card department to new shoppers.
  7. National catalogue strategy – 10 years old and still making good money.
  8. Full page advertisements in national magazines.
  9. Launch of a new local supplier in-store strategy.
  10. Regional member meetings – networking and business growth opportunities.
  11. Newsagency shop floor restructure for your Newsagency of the Future.
  12. Free access to labour rates and other HR assistance.

These are just the highlights. We have also engaged on behalf of our members with the ACCC on Tatts related matters and with senior management at Bauer and Gotch on the transition.

We would love to welcome you to our newsXpress community. Click here to read what newsXpress offers. Contact us:

  • National Sales Manager: Peter Francis. 0423 298 020.
  • WA Sales Manager: Lynn Martin-Brown. 0412 665 822.
  • Managing Director: Mark Fletcher. 0418 321 338.
  • Director: Graham Randall. 0419 711 153.

Four videos were also included in the email:

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newsagency marketing

What have you done about the price rise of postage stamps?

A newsagent expressed concern to me yesterday about the impact of the price increase for postage stamps on their greeting card sales. I asked whether they had taken steps to mitigate the situation, to soften the impact. They said no. I asked if their marketing group had offered advice, they said no. This surprised me.

Back in January newsagency marketing group newsXpress published advice to its members on steps available to mitigate against the impact of the stamp price rise. I wrote the advice. I saw it as common sense. I expected other newsagency marketing groups would od similar as providing such advice is a key benefit marketing groups should deliver.

To assist all newsagents, here is the newsXpress advice:

SOFTENING THE IMPACT OF THE STAMP PRICE RISE.
NEWSXPRESS BUSINESS MANAGEMENT AND MARKETING ADVICE
– JANUARY 25, 2016 –

The 42% increase in the cost of posting a standard letter (or card) could hit greeting card sales – unless to act now to mitigate the situation. Yes, there are things you can do, opportunities you can embrace to make soften the impact.

To our knowledge, no industry association, no card company, no marketing group and no greeting card association has offered any advice or support for newsagents in the wake of the extraordinary price rise.

Not everyone has to pay the new price of $1.00 per item. For example, people with a MyPost Concession Account can post letters and cards for 60 cents.

The following Australian Federal Government concession cards are accepted as proof of eligibility for a MyPost Concession Account:

  • Pensioner Concession Card
  • Health Care Card (all types)
  • Commonwealth Seniors Health Card
  • Department of Veterans’ Affairs Card
  • Veterans’ Repatriation Health Card

If you have customers with any one of these cards, they can apply for the postal concession. Applying is free. Here is a link to the concession account form online from Australia Post:

http://auspost.com.au/media/documents/MyPost-Concession-Account-application-form.pdf

Print the form out and hand it to customers. This demonstrates you offering an appreciated customer service. If you have a retirement village or nursing home in your area, give them plenty of copies of the form – show you care about helping them save money.

Offer to help complete the form for customers.

Australia Post does not actively promote the MyPost Concession account. You should and in doing so you are likely to be appreciated by the customers that benefit. Australia Post reports that 5.7 million Australians are eligible for this concession but that considerably less than half have applied.

The MyPost Concession Account allows them 50 concession stamps a year.

Here are other ways you can make greeting cards more appealing in the wake of higher postage costs:

  1. Have a loyalty offer.
    1. One approach is Discount Vouchers as they provide a cash amount the customer saves off their next purchase. The amount printed on the receipt is perceived as being of immediate value to the shopper.
    2. Another offer could be Buy X get Y – like the Hot Press range from Hallmark. Three cards for $10 would be seen as a saving by customers.
    3. Another offer could be like the Hallmark buy 8 cards and get your 9th card for free. The key in our view with this is you need to date limit the offer.
  2. Run a free stamp day promotion. This is a challenging promotion in that it could be expensive. Therefore, our suggestion is you set the bar and target committed card shoppers. People spending more than $25.00 in cards get a $1.00 stamp for each $10.00 they spend. An alternative could be – people buying 8 or more cards in one purchase get 8 cards. The goal with either approach is to get people purchasing more cards than is usual in a single purchase.
  3. Improve your card offer. The postage price hike will get some people thinking twice before purchasing a card. It is vital you confront this with a more compelling card offer, a better card department and placement of cards in better impulse purchase locations in-store. Placing cards with gifts, for example, can see more cards purchased with gifts – to be handed to recipients with the gifts.

The alternative is to do nothing. If you do nothing you may or may not be impacted by the postage price hike. The newsXpress view: it is better to lean into a challenge, to be on the front foot.

Footnote: I have shared this advice today so you can access the advice itself and so you can see one example of the type of resources available to newsagents who want options beyond being average. Whether through newsXpress or elsewhere, there are people who will help you grow your business.

16 likes
Greeting Cards

How unicorn season is attracting new shoppers to the newsagency

Six months newsXpress conceived the idea of a unicorn season, to commence right after Easter this year. A terrific mix of suppliers got on board to ensure a good mix of unicorn product catering to a broad age range. This was important as the research in Australia and overseas indicated a broad demographic being interested in all things unicorns.

The unicorn season was considered to be a good fit for newsXpress businesses as it touches on gifts, emotion, creativity and fun … all important elements in newsXpress businesses.

In addition to supplier offers, newsXpress provided all stores with a stock of A1 double sided posters plus digital material to use online.

Here is how unicorn season launched at my Knox store.

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And here is how the amazingly creative team at newsxpress Bairnsdale have launched it.

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newsXpress has launched an in-store colouring competition.

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And it has launched a national unicorn horn making competition.

UnicornCompPoster

So, what does all this mean? While the promotion is only ten days old I know it is attracting ne shoppers into businesses, driving impulse purchases of unicorn product, generating terrific social media engagement and improving the bottom line of engaged businesses.

But most important of all, unicorn season is giving the engaged businesses something different to promote, something you are not seeing in any competition, something to remember the business by, something through which the business can identify away from the traditional.

This is fun too. I know much more about unicorns than I did six months ago, including where to buy unicorn snot.

If you think this post is an ad for newsXpress you would be mistaken. It is a post encouraging you to think outside the walls of your newsagency, to chase change, to have fun and to not be bound by what is usual for your business.

You can do anything. And you should because now more than ever tradition is not a good thing in a newsagency business.

It starts with this question: what am I doing in my business to day to attract new shoppers, people I do not usually see in my business, into my business? That is the most important mission of every retailer today.

15 likes
Newsagency management

Great networking event for small business newsagents

newsXpress held the first of two national conferences for 2016 on Tuesday in Melbourne, at the MCG. 135 newsXpress members attended as well as plenty of suppliers. The conference itself followed a full day at the Toy Fair being briefed by suppliers and leveraging group buying.

While I am a Director of newsXpress and sure to speak positively about the experience, I want to take a moment to speak about newsXpress members. Their optimism is wonderful. Their engagement is pursuing new traffic and above-average gross profit is exemplary.

Retailers from businesses large and small, in the city and country, on the high street and in shopping centres, they all mixed and engaged in a series of business sessions focused back on their businesses. I want to note again the optimism at the heart of every session, every discussion.

Magazines were part of the discussion too thanks to a terrific Pacific Magazines presentation that included terrific marketing initiatives.

The mood of the room reminded me of the Barack Obama slogan from 2008 of Yes We Can. Hearing newsagents explain to newsagents about how to embrace change, the fun they will have, the success they can have, is always a thrill.

I talked with several people who have recently joined and their common comment was they had no idea what the group really did. They mentioned that it was completely different to what was expected. Having been with Newspower for years and a shareholder in Nextra prior to being involved with newsXpress, I wanted to be part of something that was different.

There is no one group for the newsagency channel nor should there be. Competition is important and healthy. To me, the most important factor is that newsagents in a group and those running a group work hard and 100% together on common goals for shared mutual benefit.

Here are some photos from the conference itself and the dinner at Bamboo House Tuesday night. The whole event was free to newsXpress members thanks to supplier funding. All interstate travellers received financial assistance for flights and hotels.

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19 likes
marketing
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