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Opportunistic retail

Timely warning from GNS on outposts

outpost-wpark.jpgTed Rogan, GNS Chairman, writing in a recent GNS newsletter warned newsagents in shopping centres about the need to outpost – to take casual leasing space outside their newsagency at key seasonal times.

Ted’s timely warning was specifically about Back to School.  He shared the news that GNS had been approached to supply outpost only businesses.  GNS refused to agree to this, maintaining its support for newsagents.

Outposting is vitally important to shopping centre newsagencies.  I have seen situations where two or three outposts through the course of a year can more than double the profit achieved by a business.  The keys for success with an outpost are:

  1. Location.  Take only a location which are are certain will deliver the traffic to justify the rent.
  2. Be bold.  Timid outposts deliver timid results.  Go big and bold.  Among the best outposts I have seen at the back to School outpost at Macarthur Square in Sydney and the seasonal outposts at Roselands.  They are big and offer a diverse range of product – far more than available in the newsagency for the seasons they cover.
  3. Cost structure.   Buy well (very well) and staff at the lowest cost possible.
  4. Leverage the main business. Use the outpost to promote the permanent business you have in the centre.  Do this with a promotion or some other activity which drives outpost customers to the main newsagency.

As Ted Rogan says, newsagents in shopping centres should contact their landlords ASAP to lock up space for Back to School.  Stop a group outside the newsagency channel from sneaking in and taking this business from you.

The photo is of the Mother’s Day outpost created by the team at newsXpress Wetherill Park.  The Wetherill Park team regularly outpost with tremendous success.

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Newsagency opportunities

Trading off Matthew Newton’s misery

newidea-aug272010.JPGScandal, joy and misery connected with famous people sell magazines. While I am happy for the sales, it is not an appealing part of being a newsagent.  We have put such thoughts aside today and placed the special edition of New Idea next to our main newspaper stand as well as at the counter and in the usual weekly magazines section.

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magazines

Promoting issue #2 of Master Chef magazine

fhn-master-chef-june2010.JPGWe are promoting the latest issue of Master Chef magazine with a terrific aisle end display as well as a tall display unit next to our main newspaper stand plus two locations in our regular magazine aisles – with weeklies as well as food titles. We have been able to get the stock we needed so supply is not a challenge. Our goal is to beat the sales for issue one.  We will leave most displays / location in place for at least a week.

Our product placement decisions for Master Chef and most titles we promote are all about driving impulse purchases. My view is that newsagents can significantly lift magazine sales with less time spent on pretty displays and more on strategic placement. The key is to watch traffic and customer interaction for interruption opportunities.

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magazines

Opportunistic promotion of Quarterly Essay

quarterly-essay.JPGWe are promoting the latest issue of Quarterly Essay at the counter thanks to the considerable coverage of the David Marr essay on Kevin Rudd in the Fairfax newspapers on the weekend and on radio and TV yesterday.

Within a few minutes of making the move, we sold a copy to a customer who came in for a lottery ticket. Not bad lifting the margin for the sale from 42 cents to $5.40.

Magazines give us many chances to be opportunistic retailers. We need to be aware of these opportunities and leverage them for all they are worth. A perfect example of this was the pre-selling of the 2010 Michael Jackson calendar last year. More than $1,000 in revenue before the stock arrived is a great result. While we will not see sales of that level with this issue of Quarterly Essay, selling two or three copies on impulse will be most satisfying.

Newsagencies have opportunities like this every day.  The key is to be aware, aware of what is being shown on TV, discussed on radio and written about in newspapers.  We have brilliant traffic which can be worth so much more to us.

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magazines

Pitching Weight Watcher’s Cook Fast

fhn-weight-watchers-fast.JPGWith nothing in the magazines which went on sale yesterday worthy, in my view, of our prime counter impulse position, I decided to give Weight Watchers Cook Fast a go.  It has three days.  If we get results then it can stay the week.  Last week, we sold more copies of Real Living magazine from this counter position than we usually sell in a whole month.  No every title works in this location.  Some are successful beyond expectations while others bomb.  The key is to keep changing this offer and keep good data of what wworks and what does not.  Adding a magazine to the shopping basket on impulse is good business for us and magazine publisher.

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magazines

Chasing Who sales

carl-williams-who.JPGWe have opportunistically placed Who next to newspapers because of the Carl Williams cover story. This story is BIG in Melbourne so I’d expect Who to pick up some extra sales – based on the cover alone.  In addition to stock in a pocket above the Herald Sun, we’re using posters to draw attention to the title. We also have Who in its usual place as well as at one of our counter points.

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magazines
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