A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Plush

How to use plush and known brands to drive newsagency traffic

kxbrandsFollowing my recent post about Hubbed, newsagency software company POS Solutions responded on their blog in a welcome addition to the discussion. In their post they said they did not believe plush was a destination product.  As a retailer, I say their claim is not supported by the facts. Plush can be a destination product. I have one store achieving $80,000 in sales a year, much of this from people deliberately coming to our shop for their purchase.

Click on this recent photo of the front of my newsagency for a high res version and look right to left.  This is what you see – it’s how we attract shoppers to my newsagency and how we pitch our business as a destination business:

  1. Beanie Kids are often purchased by collectors. Many of our Beanie Kids shoppers come to our centre and to our shop to purchases these from us.
  2. Beanie Boos. More than half our sales are to collectors who come to us as their destination. Wh know from our own data.
  3. Disney Princess. An international brand attracting traffic and once in-store and with a first purchase made they come back and these subsequent visits are destination purchases.
  4. AFL (on the far left). Well, we’re in Melbourne and it’s AFL season. We are known for our Beanie Kids, Hallmark cards and other AFL products.

But there is one more important point to this discussion about plush and destination business: You have to work at making products destination purchases. You do this with an excellent range of known-brand product, well-located and regularly refreshed with new lines.

You also give your customers a reason to come back for a destination purchase. This is where our discount vouchers work wonderfully for us. Every time you bring a shopper back to purchase another item in their collection is a mother link in the chain connecting them with your business.

I accept plush isn’t for everyone. All I am recounting here are stories from my own newsagency business.

Oh, two other things I love about plush: people buying plush items are happy and the products themselves are great to hug!

8 likes
Management tip

Brands key to attracting shoppers and cracking the price misconception

jasnor-sesameAt the NZ Gift Fair in Auckland on the weekend I visited the Jasnor stand and saw this slat-wall plan-o-gram approach to displaying the Sesame Street range of plush. For newsagents who don’t have a floor display unit, this wall unit is an excellent alternative as it leverages the profile of the Sesame Street characters to drive shopper engagement.

Mega brands like Sesame Street can separate us apart, they can promote our businesses as relevant. They can also help us combat ignorance on price as it is rare you would see a retailer discount licenced product except in a short-life catalogue special.

Whereas cheap plush is cheap in discount and department stores, licenced plush is more likely to be the same or close to the same price everywhere. It’s a bonus if you can buy better than usual.

I’ve been selling the Sesame Street range from Jasnor for many years and expect to carry it for years to come.

6 likes
Plush

Are supermarkets carrying more plush?

colesplushIs it just me or are the major supermarkets ranging more plush in-store. I appreciate they carry more plush at seasonal times like Easter but it does feel like they have more everyday. Their prices are high for poor-quality product – nothing new there though. If only consumers would realise.

6 likes
Plush

Terrific lift in Beanie Kid sales in our newsagency

beaniekidsWith Christmas over and more space on the shop floor than we have had in months we took the opportunity to move our sizeable Beanie Kids display so that it faces shoppers as they enter the store with cards on the right and the counter on the left.

The result of the move is a terrific boost in sales.

With some kids coming back with discount vouchers from pre-Christmas purchases and others coming in with Christmas money to spend, the timing for moving the display to a higher traffic location is ideal.

This move is a reminder that we need to continually move departments and categories around in our businesses to combat store-blindness among our customers and those who work in the business. Our competitors do it and so should we.

3 likes
Management tip

It’s a plush Christmas

xmaplushWe’re seeing excellent year on year sales of plush this Christmas season. While some sales have been to customers visiting to purchase cards or gifts, others have been to customers who know us as a plush destination. This is thrilling.

Achieving $750 and more in a day in plush sales is wonderful. Achieving it day in day out in the run down to Christmas is excellent. We could have achieved more had we not sold out of some lines – but that’s a good problem to have this close to Christmas.

We have created the plush results for ourselves as part of our business plan from mid 2012. Not only the sales ahead of plan, the net new traffic generated by the category is ahead of plan. It’s terrific seeing the business plan deliver these results.

The success with plush is a reason I prefer to focus on being a retailer in my businesses as opposed to being an agent. People are coming to us because of decisions we have made and actions we have taken. They are coming to us for us and not for a product or service over which we have little or no control as to where they get it, how much we make from it and or how much someone else promotes it.

The more of my business over which I have control the better for the future of my business.

Footnote: the photo reflects another reason for success with this category – our team creates displays that attract shoppers from within the shop. This line of colourful bears toward the back of the shop draws people further into the business. We’re always thinking beyond front of store displays. Attention to visual merchandising and product placement mid way through and at the rear of the store are just as important as the front window.

9 likes
Newsagency management

Ty Beanie Boos the hit of Christmas so far

beanieboosxmasWe’re heading to 100 of these cute Christmas-themed Ty Beanie Boos sold. While some have been purchased as a result of catalogue marketing we have undertaken, more than half have been purchased on impulse. Around a third of purchases were with other plush items.

In this newsagency our plush sales in November were up 22% on November 2012. Plush accounts for 10% of all sales. This business does not have lotteries products – I mention this to give perspective to the % of sale stat.

Part of our success with this and other plush items is off-location displays. While we have the Christmas Beanie Boo on the stand, we also have placement with boxed Christmas cards. This off-location work really helps impulse purchases.

A side benefit of such strong plush sales is that plush products attract happy customers.

7 likes
Plush

Explaining the Peppa Pig phenomenon

peppahotHot Peppa screamed the above-the-masthead headline on The Saturday Age on Saturday. They’re right. Peppa Pig is hot. Our sales of Peppa Pig plush, magazines, activity packs and other items are excellent. It’s a brand we use to pull traffic from the mall outside our shop and it works! The article in The Saturday Age is essential reading for anyone selling Peppa Pig products.

plushwallnowallWe’ve been selling Peppa Pig products since their release and get excellent word-of-mouth traffic.

This photo shows how we place the Peppa Pig display unit on the lease line with two other plush display units. Each is sign-posted to connect with shoppers who know and love the brands.

These stands work best when full!

This is a brand through which newsagents can expand their offering and drive a better overall gross profit for the business. It all starts with understanding the opportunity.

10 likes
Gifts

Understanding Bronies, how newsagents can connect with adult males who like plush

The Sunday Age had an excellent article by John Elder yesterday about teen and adult males who like My Little Pony: Friendship is Magic – they’re called Bronies. Besides providing an excellent insight into a fascinating phenomenon, the article also opens an opportunity for newsagents to understand that plush products can be sold to more than what we consider to be the traditional customer.

An informal survey at herdcensus.com places the U.S. Brony population at somewhere between 7 and 12.4 million.  Using this as a base we can estimate the possible size of the community in Australia.

Whereas in the past we would have created a My Little Pony plush and toy display focussing on your girls, we now need to be open to a more inclusive display. We also need to consider that the factors which make My Little Pony popular with some males could also drive popularity of other plush lines.

I know from my own experience that plush items are purchased by a broad cross-section of people, certainly broader than what newsagents not selling plush tell me they would expect.  For example, I have a guy in his thirties who comes in regularly for new Ty branded plush. He’s collecting because he loves the brand.

The Brony phenomenon is something for us to understand and embrace as newsagents are well-placed to serve this community.

There is more reading available on the Brony phenomenon here, here and even here at The Wall Street Journal.

2 likes
Newsagency management

Newsagency sales growth thanks to plush success

We did $17,000 in plush sales for the three months to September 30, 2013, up 57% on the same period in 2012. We will easily pass $80,000 in sales this year, delivering more than $50,000 in gross profit.

The growth is a direct result of an ever changing mix of product, our commitment to known brands and excellent shop-floor engagement.

We have created this success for ourselves, growing revenue for the newsagency from a category the channel has been engaged with for years but one which we have neglected. From a small inventory investment and energetic shop-floor management we have made plush a destination product for us.

I mention this in the context of the promotion Hubbed by the ANF and the questions and comments I have published here. For the same amount of money Hubbed wants newsagents to commit to its new agency offering a newsagent can get into Plush and chase a far bigger reward.

It is analysis in to categories like plush the ANF should research consider as part of due diligence when recommending business development strategy to newsagents. Embraced nationally, plush could be more valuable in terms of new traffic, revenue and return on investment to the channel than Hubbed. There are enough newsagents embracing it to be able to harvest good data, current data.

Whereas Hubbed requires a technology platform, marketing to drive traffic, focus on a single supplier and does not fit with products we currently sell, a product category like plush requires no technology, can be sourced from many suppliers, offers the opportunity for local customisation and fits with existing products: cards and gifts.

In pointing these things out I am not seeking to be critical of Hubbed. rather, I am drawing attention to broader consideration newsagents and their representative bodies could take into account when considering any new traffic generator. Before you make any business commitment you should take your time and undertake thorough research.

In my newsagency, plush is proving to be a game changer. Our success with plush is encouraging us in other areas. The pay-off is considerably more than our plush sales.

7 likes
Hubbed

Getting the price right is vital in retail

We have been selling several specific plush lines at one of my newsagencies for just a few months. We priced the plush here differently to my other stores because of the store location, 10% lower. As we have seen sales grow now to close to $3,000 a month we felt it was worth pricing the product where it sells elsewhere.

The most popular branded range was increased from $8.95 to $9.95 – without any impact on sales. We’re thrilled since plush shoppers can become habit based shoppers. With rent increasing 5% year on year and labour increasing around the same, we need more traffic, shoppers buying more and GP to increase. This is why we look at what we sell items for – not to gouge but to achieve a price that works for us and the customer.

Every customer buying these items is offered an opportunity of cash off their next purchase with out discount vouchers program.

My experience is that we get more value by charging what I’d call full price and then offering a discount for a deeper basket than simply selling products at a lower price. Customer feedback is that the discount is seen as more of a reward.

6 likes
Gifts

Promoting Disney and Marvel plush

We’re promoting a range of Disney and Marvel themed plush is a good tie-in with other products we have in-store. This is another example where connection with well-known brands can help us connect products from several suppliers to tell a better retail story in-store.

I’d urge newsagents to look at this, at branded products they can source from multiple suppliers.

While the plush is Ty brand, it’s the consumer brands of Disney and Marvel that infrequent plush shoppers recognise. Our plush collectors, however, collect all things from Ty – we love them!

This type of stand is a good example of how newsagents can make a small investment in a new product range for an excellent return. For a few hundred dollars you can usually have earned back the cost of all stock before the invoice is payable. This is what I mean about being a retailer and not an agent.

1 likes
Newsagency management

Finding a sweet spot for snakes in our newsagency

These plush snakes did not work for us. We tried them in several locations and we could not sell one. The moment we cit the price they started moving. In fact we sold half our stock in a little over a week. We’d not sold one for ,ore than two months.

The lessons for us snakes are probably not right for our customers and a slimmer margin should be tried sooner on slow moving stock. Yes we’re disappointed but we are grateful for the experience. Oh, and NO, I di not wish they were sale or return. Sale or return is a blight on our businesses.

2 likes
Newsagency management

Another good reason to promote Peppa Pig products

Newsagents are about to receive a new Peppa Pig partwork – for which stock is very limited by the way. The partwork is arriving when promotion of the Peppa Pig Treasure Hunt stage show is in full swing.  As I have written here a few times recently, we’re ding well with Peppa Pig activity packs and plush – selling through three or four times in a few months. So far this year the brand is worth several thousand dollars in revenue to us.

The stage show and partwork will keep this brand working a treat through Christmas and beyond. Newsagents should check with suppliers for any Peppa Pig related product they have.

6 likes
Gifts

75% sell-through of plush at the newsagency counter

Ten days ago I wrote about a new display of plush, dogs, at the counter. We’ve sold more than 75% of the stock in ten days, achieving an excellent return on the space and inventory investments. We have more dogs coming in. Once they’re almost done we will change things p with a different offer – maybe plush, maybe not.

The other point about this is that $24.95 items work for us at the counter!

4 likes
Gifts

How plush works at the newsagency counter as an impulse line

Last week I saw first-hand how plush works as a sales counter impulse line. A customer came in and purchased one of our dogs, happily paying $24.95. She told me that she saw it earlier in the week when getting a magazine. I never thought of you for buying these she said handing the dog to me. She collects them and was going to another centre to buy them. I fell in love with this one when I bought That’s Life. Yes, that’s exactly what she said. As we chatted she revealed she’d buy one or two a month for herself and as gifts for friends and family.

I love this lady because she says a soft toy (as she calls them) is the best gift you can give someone. Her pitch was a perfect sales pitch and a reminder of the broad reach a good plush range can have.

When I handed her the receipt which included a discount voucher she beamed a smile and declared she will be back soon!

We won the sale solely because we have the range of dogs at the counter. She will be back because of the range and because of our front-end loyalty program. The one dog sale is worth a lot more confectionery than we used to sell in a dave from the same location.

10 likes
Newsagency opportunities

Plush sales surge

We’ve enjoyed a surge in plush sales in the last week of holidays with $400+ days since mid last week. I’d like to say it’s in response to some initiative we’ve run but I can’t. Sure we have had featured plush ranges at the front of the shop but we have done that before.

What I find most interesting about plush is that it sells off beautifully merchandised displays as well as it sells our of stuffed-to-the-hilt displays shelves. Something we have found that works for us is to relay plush regularly – every four weeks or so. regulars find new items and a fresh display attracts new shoppers to the business.

2 likes
Plush

Terrific school holiday sales

We have had a terrific couple of weeks with school holidays. We have seen plenty of new shoppers in the centre. Our good sales have been driven by a front of store pitch that is not common for a newsagency. This opens us broader range of browsers.

I have included a photo to illustrate my point. (click on it)  You can see our focus on younger shoppers and those shopping the centre with and or for younger people. There is a small representation (far right) of magazines. The rest is plush,Beanie Kids, AFL products interactive toys and gifts – with a backdrop of greeting cards.

We are not doing anything special here, it’s basic retail – configuring the store to suit the opportunities of the season.

This type of work, generating new traffic for good margin product, is far more important for an newsagency business than taking on products or services that leech off existing newsagency traffic. I mention this because of current offers being put to newsagents that do this – leech … rather than generate new traffic.

The newsagencies that will do best from here on will be those generating new traffic for good margin product.

15 likes
Gifts

Location of newspapers leads to plush sale

Following the discussion a few days ago about the location of newspapers in newsagencies, here’s a story passed on by a team member from one of my newsagencies from this past weekend:

Another interesting customer story – a lady picked up a couple of cards, then asked if we had the newspaper. I directed her to where they were, and she ended up buying teddy bear, turning a smaller sale into one totalling over $50. And she was also thrilled to get a discount voucher…

This is the type of story I love, one indicating planning working and delivering incremental business. not all shoppers are of a mind to look at what’s in front of them as they head to a destination. However, for those prepared to shop we try and make it worth their and our while.

7 likes
Newspapers

K-Mart copying popular plush line?

This line of bug-eyed plush items being promoted by mass merchant K-Mart look surprising like a line we have been selling with tremendous success for more than a year. Their price point is very low. It matches the quality of the product.

What separates us with plush is our more creative engagement with the products in-store than you see in K-Mart. We see every shopper as a plush prospect.

1 likes
Newsagency opportunities

Plush to newspaper customers

We have taken the opportunity for some exceptional buying of plush and have therefore needed to expand the space we allocate to plush in-store. As a result, shoppers heading to purchase a newspaper are confronted with a large range of plush down the aisle.  We have stacked the shelves with the additional stock we have been able to purchase and plan to feed this through our regular plush department, providing it time in the main display.  What’s interesting is that this plush is selling from this location too. We’re thrilled about that as it is helping drive efficiency of the newspaper shopper.

To create this space we have compressed the stationery that was in this aisle back into the main stationery department.

1 likes
Gifts

Appealing to cat lovers drives plush sales

We usually don’t see plush as plush. No, we see it as the recipient will see it – the expression of love, the message of congratulations, the warmth of a hug or something offering companionship. Yes, these plush cats are something customers purchase as gifts for friends and family in hospital or other places where they can’t have a cat. Appealing to cat lovers is proving to be good for business with these cats being picked up on impulse, adding to a deeper and more valuable basket.

Often, newsagents and other retailers have looked at plush through narrow eyes. By focusing on the occasion we see more opportunities than ever in plush products.

2 likes
Plush

Shock as NRL range sells in Victoria!

The NRL branded Beanie Kids are selling in Victoria and we’re shocked – when we should not be of course!

We have customers purchasing these as gifts for friends interstate and we have some purchasing them as they do follow NRL. Either way, we’re happy to have the range and to be in a position to use them as a traffic generator.

We have the AFL and NRL stands next to each other on the lease line facing into the shopping mall, next to our broader plush display.

The experience is a reminder: you /  not your / our customer … risks can pay off … having a unique product generates excellent word of mouth and additional traffic.

4 likes
Gifts

Easter Beanie Kid almost sells out for us

We have sold 22 of these Easter-themed Beanie Kid bunnies in less than a week. An extraordinary result further demonstrating the value of the Beanie Kid range for us. This excellent stock turn has strengthened our Easter return and further boosted our confidence into the next part of the season, a season that continues to grow for us.

While I understand Beanie Kids are not for everyone, we’re enjoying excellent results as these latest numbers show.

2 likes
Gifts

A better Easter display

Check out our better looking Easter display.  This is an excellent replacement for the display a couple of us put together to a week back.

This new display has action and a sense of a story to it. It’s been up for a couple of days and it is working a treat – drawing shoppers to the business.

We have bought product for growth and are displaying for growth. We;’re certain we will see this – well into double digits.

2 likes
Gifts

Starting Easter 2013

This is the start of our Easter 2013 display before we add any eggs or related product.  The display connects with our commitment to and success with plush – a commercially important department (yes, department) for us.

We have some other elements to add – what’s in the photo is a start.

The display was created by two guys in our newsagency business. I mention that to note that anyone can create a display.  Yesterday afternoon, as this was completed, shoppers were walking across the mall to see it – commenting how much they liked it.

The fake grass and picket fence make the display, providing context for the animals corralled.

Just out of the shot on the left is our range of Easter cards.

6 likes
Gifts
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011