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newsagency of the future

We installed a self checkout kiosk in our newsagency recently

We installed a self checkout kiosk from my POS software company in our newsagency on Glenferrie Road Malvern recently. My understanding this is a first in the local indie Aussie newsagency channel – while WH Smith have their self checkout terminals they are far removed here from a local Aussie newsagency. It’s going well. Customers are using it.

While we developed this POS software self checkout solution for other retail channels, I wanted us to test first in one of our shops, to allow us to see interaction first-hand and to tune the software and hardware as a result.

Here’s a short video about it:

Australia’s big two supermarkets have damaged the reputation of self-checkouts with cameras watching shoppers and less shop floor staff because of more self-checkout positions, they have given self-checkouts a bad name.

There are situations where self-checkouts can be useful for customers and for the business, and where then can be setup without the nasties the big two supermarket chains have used.

I know of retailers who like the idea of a self checkout located far from the counter, closer to where customers load their car or van. A small format self checkout kiosk can be the answer.

I also know of retailers who have shopper traffic peaks for brief periods and where a self checkout terminal could be a cost effective way of smoothing shopper flow.

Tower developed a self checkout solution for our POS software, found awesome small-footprint hardware and installed it at malvern as a trial.

What we have discovered so far is that people are familiar with self-checkout, there is no hesitancy. An unexpected use is by people preferring a discrete purchase.

There have been some questions, like whether there is a camera attached. People like that there is no camera.

One older (80s I am guessing) customer said to me they were surprised to see self checkout in a newsagency and then went on to say they love the innovation, shows you’re keeping with the times he said as he headed out the door.

While I don’t see self checkout becoming a big thing in newsagencies, nor in many smaller independent shops for that matter, there are situations where it is an ideal solution. This is why we invested money in the new software. The development project had to overcome some tech hurdles which resulted in knowledge that will help in other areas of the software.

Software innovation is important in all retail channels given the rapid changes we are seeing in how, when and where people shop as software innovations facilitates retail innovation. What could be sold from here could be quite different to what people pass across the counter to purchase.

This is, in part, what the trial install is about – learning what could be.

While I mention this is a first. If I’m wrong, please comment on this post so the record can be corrected.

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newsagency of the future

Inspiring newsagency transformation: Mount Lawley News, WA

Matt bought a traditional newsagency shop in late 2021. It was his first retail business. He knew he wanted to reinvent the business, to be relevant and appealing.

In less than 3 years Matt with his family and team have transformed the business into a thriving and loved local shop in Mount Lawley 10 minutes out of Perth.

While it’s called Mount Lawley News, this shop is not a newsagency, not what you think of as a newsagency. It’s a gift shop, a fun place to shop, somewhere you’re likely to find a gift for just about any occasion.

As Matt shares in this video, he embraces the opportunities of change, and he shows that even though the shop has been transformed, he’s not done. What he has created online through the website as well as on social media is fresh, engaging, and successful.

I are grateful to Matt for the opportunity to find out more. Be sure to check out their website: http://www.oliviaandgrace.com.au.

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Newsagency management

Inspiring retail: newsXpress Leven, Ulverstone, Tasmania

This business has been in the family for decades, across two generations. What was once a traditional newsagency is today a vibrant gift shop that has some newsagency lines as a service for customers.

This shop is an excellent example of doing it yourself and creating something genuinely local, warm, comforting and clearly loved.

This shop also shows that you can succeed by trading outside of what people expect for your type of business, that today in retail, your shingle does not have to define your business.

Ulverstone is a wonderful local community, a beautiful part of the world. What Sharene and Wayne have created at newsXpress Leven is a shop people love to visit and spend money in.

Often, local retailers can get caught in their head about what they could do in their business. Seven years ago, Shareen and Wayne set about embracing change, and they haven’t stopped since – creating a business of which they can be proud.

It was a thrill to see what they have created.

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newsagency of the future

Retail transformation: Wattle Bee Next Mount Morgan QLD

Retail transformations are challenging in an ever changing retail landscape. The challenges are compounded when you’re in a small population regional town and in a retail channel that itself is undergoing extraordinary and rapid change.

Rather than following others, Kerrilyn and Schae at newsXpress Mount Morgan evolved their newsagency into something unique, wonderful and loved. They made their business a destination and refused to be limited by assumptions about what their type of business should be.

This video shares some of their journey and reflects on a business the people of Mount Morgan love. It also plays against assumptions about the local newsagency: what it is and what it can be.

I am grateful to be a small part of this inspiring story.

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Newsagency management

Newsagents should be aware of the Viva Energy Australia takeover of SA’s On the Run

Viva Energy Australia has completed the purchase of the On The Run group, a network of 170 fuel and convenience businesses in South Australia that have a track record in the lottery space.

The merger amalgamates On The Run and well as Smoke Mart & Gift Box into Viva Energy’s convenience business, creating, as I understand it, a network of  1,000+ convenience retail outlets, including Coles Express, and Liberty.

This acquisition may have no impact on newsagents with lotteries or it may be a step to moves that do have an impact. On The Run outlets are good, consistent and broad in what they offer. Only time will tell what from the On There Run product mix makes it into the other outlets – like lotteries for example.

c-store.com.au offers good context:

Viva Energy’s CEO and Managing Director, Scott Wyatt, said today’s acquisition is transformational for Viva Energy and that OTR will become Viva Energy’s flagship convenience brand.

“The introduction of OTR’s superior convenience offering, including quick serve restaurants, will help revolutionise the diversity and attraction of our retail offering,” Wyatt said.

“As our stores increasingly become retail destinations, we expect convenience earnings will grow and reduce our dependency on traditional fuels.

“OTR outlets offer an attractive and welcoming store environment, supporting increased dwell time, which is likely to be a key factor in successfully introducing electric vehicle recharging facilities over time.”

What they are planning is what any retailer in channels impacted by change must plan: revolutionise the diversity and attraction of our retail offering.

My goal today is to ensure newsagents are aware of the acquisition, to be aware.

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Lotteries

The challenge with being part of a franchise or a national branded business

I was in a regional town New Zealand over the weekend for a wedding and went to a local Paper Plus store to buy a wedding card. I didn’t like any of the wedding card designs they had, the range felt tired, like the shop.

It was my first time in a Paper Plus for five years and as such it’s what I’ll think of as the standard for Paper Plus until I see something different.

The shop fixtures were old school – traditional gondolas, high with products stacked. There was no flair or enticement to the retail displays, nothing to draw me into the shop. The light was bright fluro, which is now out of date for interesting local retail. There was no sense of being local.

Franchise businesses and businesses that trade under a common shingle are as strong as their weakest store.

This is one of the reason newsXpress years ago ditched requiring businesses to trade under the newsXpress shingle. It is also why the group restructured its contract and its offer to not fall under the franchise code of conduct.

Local retailers need the freedom to flourish is ways appropriate to their local setting. In a franchise this is challenging to do since the franchise approach is about a cookie-cutter approach, based on what some call a ‘system’. I can’t think of any ‘system’ or franchise model that is appropriate in the newsagency channel today. That’s my opinion at least, others will have theirs.

Our channel is going through rapid change, much of which is outside the lines of what has been traditional for newsagency businesses. What drew people to our businesses even five years ago has changed in 2024. Change is good as it opens opportunities.

So much of the growth I am seeing in newsagency businesses that are growing is outside of traditional and this is where a ‘system’ or a franchise model created decades ago will struggle to be relevant. Retail in 2024 is not relevant to what we did in 2000, 1990 or 1980. How, when and where people shop has changed. What people will buy from what was once a traditional newsagency has changed.

Local newsagents need the freed to be what they can be. This is why I moved from a franchise model years ago.

Back in the day, Paper Plus was a terrific business a model for consistency and growth. If what I saw on Saturday is any indication, it has some distance to go to be relevant to 2024 – if not the group then certainly the shop I visited.

I love owning and running my newsagency businesses today, for traditional products but more so for the opportunity to play outside the lines of tradition.

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Newsagency management

Beyond the Need For a Pen: Selling Stationery to the Joy Seekers

If you stock stationery to serve a functional need, this post has been written for you.

I like pens and have more than 200 of them. Most are unused. When I am in a good stationery shop, I am likely to buy another pen. I go for colour, weight and how it feels across paper.

I also like notebooks and journals and have more than 100 of them. I go for small format, few pages, nice feeling paper and something that I can easily travel with.

I buy these things because I love them, not because I need them.

We all know people like this. Those who walk into a stationery store and emerge with items they did not need, but items they love.

I have a friend who buys stationery by colour, a specific colour. They gave boxes of it, and want more.

I met someone recently who buys sticky notes. They have a collection of more than 400. They want more.

While you can make good money selling stationery to whose who need it, the everyday stationery we all stock, there is this other, sometimes more lucrative market, some of us miss serving.

Here are a few tips on tapping into this opportunity:

  • Focus on the Experience. It’s not just a pen, it’s an extension of their personality. Highlight the smooth glide of a gel pen, the luxurious feel of heavyweight paper, the whimsical designs that spark inspiration.
  • Embrace the Unique. Cater to the collector’s heart. Offer limited edition lines, locally-made artisan products, or quirky finds you won’t see anywhere else.
  • Curate, Don’t Just Sell. Become a trusted source of inspiration. Feature themed collections, recommend perfect pairings (like a specific pen for that incredible notebook), and showcase how these products can elevate their creative process.
  • Speak Their Language. Use evocative descriptions that go beyond functionality. Talk about the “satisfying snap” of a good binder or the “velvety caress” of a high-quality pen.
  • Don’t Forget the Fun. Host workshops on calligraphy, sketching, note taking, letter writing, bullet journaling, or creative writing. Offer gift-wrapping services that turn a simple pen into a delightful present.

Remember, you’re not just selling stationery, you’re selling a feeling. You’re offering a chance to indulge in a little luxury, to spark creativity, and to express oneself through beautiful, well-crafted tools.

When considering buying inventory for this lover of stationery, approach it with a different mindset. Don’t look at it as functional stationery. Look at it as stock items that bring joy to others. Take care. Take your time. There is plenty of opportunity here.

This is a big opportunity for Aussie newsagents.

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newsagency of the future

Fujifilm and Scribbler unite to offer card kiosk in Australia

I have been watching the roll out of the Scribbler branded card vending kiosk from Fujifilm in the UK for over a year. I first used the kiosk myself a year ago and I spoke with Fujifilm people at the Spring Fair in Birmingham in 2023.

Now, Fujifilm Australia have confirmed this is coming to Australia.

In the UK, in addition to placement in the popular Scribbler stores, I am told they have these kiosks placed in some university and non retail commercial locations.

The card printed is on bigger paper that is not as thick as a usual card. The selling feature is the range of cards that you may not find in-store.

The hardware costs around $14,000 in Australia and the initial kit of consumables costs around $1,200.

I don’t have visibility of the licence fee or wholesale cost of each card. They are yet to release integrated payment options for Australia.

It will be interesting to see the take up in Australia. In the UK, where I am at the moment, the Scribbler retail network footprint has enabled a broad roll out to educate shoppers. The company does na excellent job promoting the kiosk cards on the front window of its stores.

While time will tell if this is a disruptor in the creating card space, I do think that this is out in the market is good for cards. I also think it especially works with the Scribbler brand because of their 100% humour focus.

There are a few misses in my view:

  • The paper stock is not ideal.
  • The kiosks I have tried have had some cards that are also in the shop and the kiosk version does not feel as good.
  • There is only one size currently from what I can tell.
  • The shop has to be open to make the purchase in the Scribbler versions I have seen.

The plusses are:

  • The kiosk may broaden card appeal.
  • It can make more products available in less space.
  • You can write on the card from a keyboard.

While I have no knowledge of specific plans in Australia and no connection whatsoever with this product, I expect we will start to hear more about it soon. I expect they’ll have a stand at one or more trade shows to launch.

The innovation by Scribbler and Fujifilm encourages those of us with greeting cards in our shops to innovate, to appeal to a broader range of people and to encourage people to buy more cards.

For more on the kiosk roll out, there was a story by Printweek and a launch announcement by Fujufilm.

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Greeting Cards

Why don’t all newsagents sell lotto?

It’s expected by many that all newsagents sell lotto, or lottery products. The thing is, not all of us do. Indeed, not all newsagents do what many expect all newsagents do do.

Each newsagency in Australia is locally owned and run.

Sometimes, these local retailers make choices outside of what you may expect for a newsagency. There at also situations where a supplier, like a lottery business, may decide a local newsagent is not the right fit for them because they already have another business near by, or for some other reason.

What Australians expect from their local newsagency has changed, and continues to change, to evolve, as the world evolved.

In terms of lotteries being in every local newsagency, while many newsagents do sell lottery products, there are many who do not. It would be wrong to judge them for this situation.

There is no shortage of lottery outlets in Australia. Plus, there is online, where, for example, it is easy to buy syndicate shares for syndicates put together and managed by local lottery retailers, including newsagents. Just because you can’t find a local shop right now does not mean you can’t support a local shop right now.

I’ve posed the question Why don’t all newsagents sell lotto? because I can see people asking this online. I suspect there has been a surge in the question because of the $150M Powerball jackpot.

The answer to Why don’t all newsagents sell lotto? is because either they choose not to or the lottery licence holder chooses to not allow them to.

I’ve chose to not sell lottery products in my own newsagencies for the last 11 years. I used to sell lottery products, from 1996 to 2013. It was good money. But there were many rules, restrictive rules, rules that got in the way offing the best retailer we could be, rules that got in the way of customer service.

Lotteries was not a good fit for me and I was not a good fit for them. But, there are many retailers who are a good fit and kudos to them.

My point is that each newsagency in Australia is different and should be considered that way. There is no common set of products and services we sell, no expectation you should have regarding any newsagency business in Australia, no expectation that products, prices and / or service would be the same in each. The difference between newsagency businesses is something to celebrate, just as every locally owned and run retail business is something to celebrate in the local community.

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Newsagency

Is a newsagency a good business to buy in Australia?

It’s January 2024 and a good time to consider this question: Is a newsagency a good business to buy in Australia?

The answer on whether a specific newsagency is good for you to buy will depend on the newsagency, it’s past performance, it’s specific situation, the prospects for the region, your resources and your own retail skills.

But considering the question Is a newsagency a good business to buy in Australia? broadly, I think the answer is yes.

While what newsagents have traditionally been known for has changed, there is plenty of upside for engaged retailers prepared to play outside those now blurred lines of tradition. There are also excellent opportunities within plenty of product categories, including:

Stopping looking like a newsagency. Aussie shoppers have an expectation that a shop that looks remotely like a newsagency will sell what they think a newsagency should sell and will therefor not visit or visit depending on their assumptions. I’ve seen newsagents grow their businesses by not looking like a newsagency.

Gifts. This is easy and the opportunities are considerable. Whereas in the past gifts in newsagencies tended to be lower priced and bland, newsagents I see having success play in higher value niche spaces, and they do well from this. It takes investment, passion and commitment.

Stationery. Plenty of newsagents are reporting growth in stationery sales both in traditional stationery and with impulse purchase must-have stationery such as fashion forward journals and cool pens. It is in this second area of stationery that there is opportunity for even more growth if you engage with trends and stop thinking about stationery as purely functional.

Cards. With millennials and gen z shoppers we are seeing good card sales. But to win them you need to engage with the category in ways that some of the older card companies in Australia struggle with. I see plenty of newsagents growing card sales by being innovating in terms off where they pitch product and the ranges they offer.

If your question is whether a traditional newsagent is a good business to by where traditional to yo0u means lotteries, newspapers, magazines traditional functional stationery and cards then, I’m likely to say no as that type of business with an overall gross profit percentage of between 28% and 32% is flat or declining. But, that type of business can offer good bones for innovation away from the tradition. Again, the key is to pay a fair price based on the actual profit and loss numbers for the business – beware add backs that don’t make sense.

Newsagencies are changing hands, the businesses are selling. There are sellers and plenty of willing buyers. I think 2024 is a good year to buy a newsagency.

Footnote: I’ve not mentioned newspapers and magazines because these poor margin categories are of less interest to me. Newsagents have little or no control over the range of products they stock, no control over the sale price and are burdened with product management requirements that are rooted in practices that were out of date thirty years ago. These poor practices dictated by suppliers add to the cost of business and suppliers are yet to demonstrate an appetite to modernise despite years of promises and the often repeated claim that newsagents are important to them.

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Newsagency management

Predictions: 2024 and the local Aussie newsagency

Hey, Happy New year.

I think 2024 will see change continue in our channel. It will impact our businesses and the businesses of our suppliers. The changes will be driven by a range of factors including but not limited to the continued rolling disruption of print media, growth in the use of social media, further decline in engagement with appointment TV and radio, AI, AI and AI, migration of more over the counter transactions to online, settling in of work from home for many and more suppliers going direct to consumers.

That’s my (incomplete) list of drivers of change. Now, to the changes I think we are likely to see in the channel.

  • A significant increase in online sales. More newsagents will have websites. More revenue will be put through websites run by businesses in our channel. I expect 2024 to be the year of biggest online revenue growth for our channel that we have see.
  • More newsagents selling products that have not been been traditionally associated with our channel. While this will be especially seen in businesses selling online, there will be some physical shops that pivot to niche specialty with the newsagency part of the business a smaller pert.
  • Continued decline in print newspaper and magazine purchases.
  • Somewhere between 100 and 200 newsagencies closed (for a variety of reasons).
  • Greater growth in online lottery product purchase than over the counter.
  • New suppliers entering our channel to replace revenue lost in other channels.
  • More direct from manufacturer opportunities as general wholesaler models are challenged.
  • More use of AI in content preparation, business performance assessment and customer contact assistance.
  • More collaboration events to drive traffic spikes.

This list is irrelevant as it’s speculation. What matters is what you are doing in your business to make the most out of 2024. Only you can figure that out. Or, you can choose to do nothing and let the year happen as it happens. This would be a mistake I think. Given the changes we can see, I think it is vital to embrace change, to ride the wave, rather than be dumped by it. This is why thinking about what might be in 2024 is useful. It lets you think about what might be so you can be ahead of the wave.

I was to finish by mentioning AI again. I think its impact on newsagencies, business generally and society more broadly will be far greater in 2024 than anything we can possibly imagine today. Some impacts will be good, while some not so good. Those less negatively impacted will be those who engaged with AI early to be aware of the rapidly evolving tools, to know what to watch out for.

Hey, Happy New year.

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newsagency of the future

$1,000,000 in sales in last week benefited newsXpress retailers

80 newsXpress retailers participated in the launch of the $2 coin Anniversary set release with the Royal Australian Mint. The $235.00 collection sold out in under a day.

Total sales = $1,010,500.

80 stores participated in the opportunity. While some took way more than others, the smallest did $10,000 in sales and achieved close to $3,500 in GP. There were newsXpress stores with shoppers queued out the front from 4am. The phones rang hot and emails poured in. While the traffic spike was challenging, the easy revenue was wonderful.

All of this for no risk, and the invoice for stock will not be due until February 2024.

The actual value of the release is greater given what else shoppers buying the coin set purchased and how many of those will return to the now discovered newsXpress businesses.

This is a terrific good news story, and example of a new revenue stream for newsagents brought to the channel by newsXpress.

This latest coin drop is one of many in 2023 from which participating newsXpress members have benefited in terms of revenue, new in-store shopper traffic generation and online sales for those with websites.

newsXpress is sourcing for its members not only coins from the Royal Australian Mint but also Perth Mint, NZ Mint and the UK Mint. Coin collectors, especially those in regional and rural Australia, are loving easier access to mint coin releases.

Coin collectors are wonderful customers to attract. They are loyal, and they purchase other items.

newsXpress is a marketing group that helps newsagents transform their businesses to be more relevant in-store and online serving shoppers today, to attract new shoppers and to run lean.

Nothing newsXpress pitches is mandatory. As you can see from the success with this latest coin release, it is easy for newsXpress members to profit well from opportunities newsXpress brings to the table. This is what a good newsagency marketing group offers.

While newsXpress works with traditional newsagency suppliers, the majority of its supplier relationships are outside what has been traditional for the channel and outside what other newsagency groups offer.

The 2024 calendar is already filling with con releases and other shopper-attracting opportunities for newsXpress members. The goal is simple: to help local newsXpress members run more enjoyable and valuable businesses.

Disclosure: I am a director of newsXpress.

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newsagency of the future

Newsagents are dying says a newsagent who just closed their business

It is frustrating reading about a newsagent who has closed their business having sold the building to a developer who bags the channel they are leaving.

Newsagents are dying.

This quote is from Des Higginbotham, the owner of the now closed Ferntree Gully Newsagency in an article the local paper, the Star Mail. Here are some other quotes from Des:

“Newsagencies have changed a lot over the years.

“Ever since they took the newspaper distribution away from us, it changed the whole dynamic.

“We lost a lot of traffic flow, and a lot of cash flow – we used to give tasty trucks 1200 suns a day, with serious money!”

“Newsagents are dying, if it hadn’t been for tax lotto wouldn’t have survived,” he said.

While this may be Des’ experience, there are plenty in the channel who would disagree.

I know of newsagents who felt relief at quitting the distribution side of their business and relishing being focussed 100% on being retailers.

There are newsagents enjoying double digit growth in 2023 over a good 2022.

Sure, there are those in struggling businesses. In many cases this has to do with lack of embrace of change, lack of reaching outside the local area for shoppers. Those challenged today tend to still have the mindset of being agents rather than retailers. Suppliers have a bit to answer for with this.

I wish Des and Linda all the best. Hopefully, they will not talk down our channel any more. Maybe in retirement they could visit newsagencies near where they had their shop and see thriving and relevant businesses in action.

Every newsagent is responsible for their business.

Being a victim is unhelpful.

It is never too late to embrace change.

The biggest growth opportunities for our channel are product that deliver 50% and more gross profit opportunities. Some of these are outside what is traditional for our types of businesses. They help us attract new shoppers.

This is a fun space in which to play. But if you cling to an agent mentality like Des appears to have, you’re unlikely to see these opportunities.

It is disappointing that media outlets give voice to views that reflect on our channel as it was 20+ years ago as if those views are relevant today. All of us in newsagency businesses today should call this old-school view out and talk about the reality of where we are at today, the new opportunities that are working for us.

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Newsagency challenges

More newsagents with websites

My newsagency software company, Tower Systems, has delivered more websites for newsagents. Here are some of the recent new websites:

In my own shops we have a number of websites doing terrific business:

All of these are connected to our newsagency software for syncing of inventory and sales between the physical and online shops.

It’s easy to  say no to a website if you don’t have one because you don’t know what you don’t know. It’s also easy if you had one in the past and it didn’t work.

Most websites don’t work. Smart people use a failure to do better next time.

At the core of success of a website is filling needs and wants. While needs and wants are quite different, they compel good online business.

Here are the top reasons why I think every retail business needs a website:

  • Capture sales when you are closed. Typically, more than 50% of online purchases are then the brick and mortar business is closed.
  • Engage browsers when you are closed. You can have chat turned on and answer questions from your phone, or you could really geek-out and have an AI chatbot do this for you.
  • Reach people not currently shopping with you. Typically, 75% of sales are from people located nowhere near your shop.
  • Have a second outlet for quitting stock.
  • Have a place where you can experiment.
  • Playing with a plan B in case your shop finds itself in choppy waters.
  • To learn. A website, especially your first website, teaches you so much, and this is especially. What does it teach you you ask? What people want. What they could pay. Haw awful some people are. How to earn income when you are asleep.
  • To get you out of a rut. If you;ve been in your shop for ages and are mailing it in each day, a website could put a spring in your step.
  • To make your shop more valuable. Having a website, even if it is not fully realised or successful, could make your shop more appealing when you decide to sell.
  • To leverage a secondary brand. This could be the first step in a shop rebrand.
  • To drive traffic to the shop. People will find products on your website and visit as a result, for sure.
  • To give you another source of revenue that is completely unrelated to anything you do in your shop.
  • To harvest email addresses you can market to. Email marketing from Shopify is a breeze.

Now, in case you think I am writing this to get you to use Tower to make your website, I am not. I don’t care who makes your website.

You should go with the web designer you want. Beware tho, web development has some shonky people offering services.

Having a website gives people a landing page from your Facebook, Instagram and TikTok posts. This is important.

A website is a hungry beast, demanding your time daily, weekly, long after launch. It’s not easy. But, if you get it right, it can be tremendously valuable.

The work after launch includes regular blog posts, social media posts and more.

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Management tip

The local Aussie newsagency is not dead, you just don’t recognise it now

If you think the local Aussie newsagency is dead, dying or has no future, I am writing this for you. Please take a moment to see that the reality may not match your assumptions.

Sure, some newsagencies have closed. The channel remains the biggest independent retail channel in Australia with 2,500+ retail outlets.

Today’s Aussie newsagency is more of a gift and homewares shop than ever before. It offers fun and on-trend gifts from impulse items to collector pieces worth thousands. Yes, there are newsagencies selling items worth thousands of dollars.

You’re still likely to see papers and magazines somewhere, but they are not the traffic drivers they once were. Also, the margin newsagents make from these is paltry as publishers have not kept up.

Some newsagents are big in coffee, and often it’s the best coffee in town. Some are big in pop culture, often being the local go-to shop for licensed product like Pokémon, Harry Potter, Disney and more.

Some are big in self-care, often bringing new brands to town and offering ethically sourced products from small makers.

Some are bookshops more so than newsagencies.

Some sell clothing.

Some are the best toy shop around offering fresh new toys and traditional family-loved staples.

One I know is an awesome baby shop in country Victoria.

Many have online shops that often are not selling the same products as you’ll find in the physical shop.

The local Aussie newsagency has changed, evolved. It’s most likely not what you think. But it is sure to have the best range of cards in town, in the entire region. And, many of these cared are designed and printed in Australia, with words from Australian writers. This matters because the local Aussie newsagency continues to help local Aussies express themselves, provide a hug well into the future as those cards given are usually kept.

If you think the local Aussie newsagency is dead, an old business or out of date, seek some out, see for yourself, and while you may find the odd one out of touch or challenged, most you visit will be vibrant, relevant, fun and appreciated. You’re likely to find businesses that challenge the expectations of the newsagency shingle. That’s okay. What’s in a name anyway?!

Please don’t let your memory of years ago cloud what the local Aussie newsagency is today.

I am biased of course. My software company serves 1,750+ local Aussie newsagencies. I also own 3 newsagencies, and I have websites selling products newsagents sell.

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newsagency of the future

Top reasons local retailers like newsagents benefit from a POS software connected website

It’s easy to say no to a website if you don’t have one because you don’t know what you don’t know. It’s also easy if you had one in the past and it didn’t work.

Too many POS software connected websites for local retailers don’t work. Smart people use a failure to do better next time.

At the core of success of a website is filling needs and wants. While needs and wants are quite different, they compel good online business.

Here are the top reasons why we think every retail business needs a website:

Capture sales when you are closed. Typically, more than 50% of online purchases are then the brick and mortar business is closed.

Engage browsers when you are closed. You can have chat turned on and answer questions from your phone, or you could really geek-out and have an AI chatbot do this for you.

Reach people not currently shopping with you. Typically, 75% of sales are from people located nowhere near your shop.

Have a second outlet for quitting stock.

Have a place where you can experiment.

Playing with a plan B in case your shop finds itself in choppy waters.
To learn. A website, especially your first website, teaches you so much, and this is especially. What does it teach you you ask? What people want. What they could pay. Haw awful some people are. How to earn income when you are asleep.

To get you out of a rut. If you’ve been in your shop for ages and are mailing it in each day, a website could put a spring in your step.

To make your shop more valuable. Having a website, even if it is not fully realised or successful, could make your shop more appealing when you decide to sell.

To leverage a secondary brand. This could be the first step in a shop rebrand.

To drive traffic to the shop. People will find products on your website and visit as a result, for sure.

To give you another source of revenue that is completely unrelated to anything you do in your shop.

To harvest email addresses you can market to. Email marketing from Shopify is a breeze.

Now, in case you think I am writing this to get you to use Tower to make your website, I am not. I don’t care who makes your website.

6 likes
Newsagency management

5 common attributes of growing newsagencies

Looking at newsagency businesses that are growing, I can see several common interesting attributes, including:

  • Minimal or no backroom office. Product pricing and related work is done on the shop floor.
  • Good use of tech with accurate, up to date and meaningful business data.
  • Regular introduction of products from new suppliers. Typically, between 5 and 10 each year.
  • The owners have a personal goal and a clear purpose for the business.
  • They are retailers, not agents.

Now, there are plenty of other common attributes, but these are the most interesting to me in that they reflect active engagement in the business. Each attribute reflects a conscious decision by the business owner(s), the last point especially.

I know of plenty of long-term newsagents who have pivoted form the agent approach that was required when they entered the business to be the retailers they need to be today. It’s a thrill to see this, and the success that so often flows.

All of us who own newsagencies make our own choices, we are responsible for our success or otherwise. No one can do this for you, force you, or make your bed for you each morning. It’s up to you.

There are many who support newsagents who can help. It begins with you reaching out.

6 likes
Newsagency management

When was the last time shoppers lined up outside the newsagency for a new product launch?

Thursday last week, September 7, at 8:30 in the morning, most newsXpress stores had a line of shoppers, people on the phone and people online.

The majority were new shoppers engaging with the business for the first time.

They were there because one of the newsXpress preferred suppliers promoted newsXpress stores to their massive (huge) email database.

Thursday last week was release day for several coins from the Royal Australian Mint, a partner of newsXpress.

While every shop sold out quickly, plenty of the first time shoppers bought other things, including coins released earlier in the year. A typical shop did an extra $4,000 that day.

Around 75% of the time, coin shoppers purchase other products. They are valuable shoppers to attract, more efficient per visit. Basket depth is prized by retailers as are basket value and margin dollars banked.

One of the items released last Thursday, a $375.00 set, Wass the best seller in part because only 1,000 were made and they had to be split between overseas outlets, the Mint shop, coin dealers, and other retailers, like newsXpress stores. This coin is currently fetching close to $900 on eBay. No wonder it was popular.

The $5 colour frosted World Heritage coin, priced at $30 and in the bottom right corner of the photo, is currently fetching around $300 on eBay.

The key thing that happened Thursday beyond the sales themselves was the new shopper traffic. New shopper traffic is essential for the health of any retail business. It is vital for newsagencies with some tent-pole product categories transitioning from physical retail.

There are ways to leverage vertical new shopper traffic – specific product category driven new shopper traffic. This is where retailers can maximise value from such opportunities – even when such new shopper visits are one-off visits.

I’ve heard some in our channel downplay coins as a valuable category. Such comments are typically made by people who don’t have access to them, or have not tried them.

Thursday last week demonstrated the value. Engagement Friday, Saturday and even Sunday has reinforced it with hundreds of dollars of coin gift products selling each day to shoppers who discovered us in this category because of the promotion of Thursday’s release.

Now, here’s the pitch. remember, I an a Director of newsXpress.

newsXpress works hard to help its members attract new shoppers. We pitch products and back this with in-store advice, social media assets, partner support help selling online.

If you want to attract new shoppers to your newsagency, consider newsXpress. It’s easy to make many times for the $225 a month membership fee. Click here for our latest information document or email our team for more information at: help@newsxpress.com.au.

13 likes
marketing

FREE advice for local retailers: Nine one-percenters that could add thousands to the value of your retail business.

One-percenters are small things, easy things you can do for a win.

They are often things others forget.

Today I share nine of what I think are the best one-percenters for any local indie retail business.

I’ve experienced the value of on-percenters like these.

This is free advice. You don’t have to buy anything to access it. I love seeing local indie retailers thrive.

  • Place 2 or 3 products at the counter for impulse purchase. Change weekly, unless they are selling well.
  • If you have a front window, change it weekly. The goal is to stop passers-by and have them notice you.
  • Never be out of stock of popular products. Use your software to predict sales and order so you don’t sell out.
  • Price new stock on the shop floor, located to disrupt shopper traffic, so they notice. People don’t buy from the back room.
  • Use social media to share knowledge and have fun rather than promoting products. Entertain.
  • Have a staff product of the week in a good position with a handwritten note from the staff member explaining the why.
  • Write the value of dead stock somewhere where all staff see it. Update it weekly for a whole of business focus on reducing this.
  • Offer genuine loyalty rewards that don’t cost you the farm and are easy for shoppers to understand and access.
  • Colour block in a prime position. This gives products rarely in prime position to be seen. It shows off your range diversity.

What you do with this is 100% top to you. The thing is, I know these tips work. Combine them and you compound the value you achieve. It’s simple – a small time investment for a terrific return.

I like engaging with small steps. They are manageable, safe, certain. It means you’re not relying on one or two big moves, often costly moves, for your success. By spreading the risk, the load, you strengthen the foundations of the business and position it for more certain results.

Here’s the colour block tip in action. It took half an hour to do, and shoppers noticed while it was being created, they added suggestions too. The result speaks not only to red, but also diversity and to fun we have in the shop by being different.

What you do about the 9 tips is up to you of course, but let me ask you this: are you happy with the performance of your business? If you say yes, great! If you say no, you know you have to make some changes because doing the same things will give you the same results.

The advice in this post originated from newsXpress advice to its newsagency marketing group members years ago. The one-percenters list has evolved considerably, as it should.

8 likes
Management tip

Did Are Media director of sales Andrew Cook just throw newsagents under the bus?

Quoted in the nationally distributed mediaweek email and online Monday, Andrew Cook is quoted speaking about our channel:

“A lot of people who are under 30 don’t often walk into a newsagent; they often don’t buy a tangible printed product”

I wrote to senior contacts at Are Media Monday within minutes of the email being circulated:

Maybe Andrew Cook should find out who actually shops in newsagencies.

Young people are buying cards, journals and social stationery in numbers not seen in decades. They are also consumers of pop culture, which newsagents dominate.

It is disappointing to see Are Media’s Director of Sales throw our channel under the bus.

I’ve not received a response.

I’d love to see the data on which Cook based his comments. Newsagents I have spoken with over the last couple of days disagree with his assessment.

Maybe it’s the magazines that Are Media publishers that inform Cook’s view because, for sure, folks under 30 are not likely to buy Who, New Idea, Woman’s Day, AWW, Take 5, That’s Life and others in their stable.

Some card companies started focussing more on younger card shoppers years ago. We see under 30s buying cards in our shops. Some stationery manufacturers have created products for this younger age once they realised that journaling is more popular than ever.

Then, there is pop culture. That space is huge and plenty of us do well in it. And, when I talk about pop culture, there is the usual licensed products you could think of, and then there are subsets, like Japanese stationery, which is huge in parts of Australia.

The newsagency shingle is meaningless today because of the extent of diversity of businesses in our channel.

Sure there are some newsagency businesses living in the past and relying on lottery products and an old looking shop for daily trade. There are many more, however, that have transitioned into vibrant fun retail experiences, shops having terrific success at attracting younger shoppers.

But let’s get back to Are Media director of sales Andrew Cook. What was he thinking? Why did he make a point of singling out the Aussie newsagency channel for the negative focus of what he said? Has he done this to create distance between the Are Media business and the newsagency channel?

I expect at some point some people from Are Media will tell newsagents how important they are, how much they appreciate them and to not dwell on Andrew Cook’s comments. Maybe they will say he was taken out of context. 48 hours later is a bit late to walk back what was so widely circulated.

Maybe Are Media does feel disconnected from the newsagency channel. I suspect they have less space in newsagencies with their magazines than they had a few years ago. Newsagents continue to reduce space allocated to magazines. It happens when you have a low margin product sent through an archaic magazine distribution system that rarely listens to retailers as to what could work in their businesses.

One of my shops does well over $400,000 a year in magazines. The category is important to us. Our magazine sales continue to increase. August 2023 was up 9% on August 2022. And, yes, we have user 30s buying some magazines, like skateboard titles, surfer titles, mountain biking titles and on-trend fashion titles.

Maybe I am making more of Cook’s comment than it deserves. To be honest though, I am tired of ignorant comments about our channel. We had a good Covid. Newsagencies are selling easily, because they are seen as good businesses. And, as I noted earlier, many of us have evolved to make our businesses appealing to demographics outside what was traditional for our channel years ago.

See for yourself Cook’s quote featured prominently in the email circulated to thousands of media professionals and on the mediaweek website.

Rant over, I’m going back to running my businesses. People in supplier big businesses come and go while many of us who own businesses are the ones doing the real long-term work in our channel.

22 likes
Newsagency challenges

How important is online to your retail business?

You can’t avoid the importance on online to any retail business today. The percentage of retail sales made online continues yes to grow, and at some cost to physical retail.

While there are plenty of online failures, they are no different to physical store failures. There are plenty of online successes.

The year on year growth of 49% for a website connected to one off my shops is terrific, as this graph from Shopify from yesterday shows.

This business transacts more sales outside usual trading hours for a shop. More than 90% of shoppers are not local – they are people not in easy reach of the shop.

We are not doing anything special here. Indeed, we are following the advice we give to other retailers setting up a website for their business.

I urge newsagents who do not have a website connected to their business to get one – but be clever about it, don’t be constrained by what you do today, treat the website as a start up opportunity.

I have 4 Shopify sites connected to 3 shops and about to setup a 4th. There are many opportunities out there that can add real value to a retail business – as the Shopify graph shows.

4 likes
Newsagency management
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