We decided to give these candles a crack in the run up to Christmas. At more than $50 each, they were going to be a challenge. But they worked! We sold enough to encourage us to try more for other seasons. They are not something we would carry all year but for Mother’s Day and Christmas we expect to have them again.
They worked best when we took one out of the box and ‘lit’ it. There is nothing like a practical demonstration to sell a product.
Just before Christmas there was discussion in the media about work between Coles, Woolworths and the ACCC on the oversight and regulation of their purchases of independent retailers. At the time, the ACCC Chair said they needed to watch for market power of the two supermarket giants.
Huh?! By any measure overseas, Coles and Woolworths already have too much market power. Farmers, wholesalers, independent retailers, logistics companies – many complain about the bullying of these two on price. The only winners are the shareholders of the two and while that is good for them, the economic damage of their market share is considerable.
Politicians concerned about small businesses and having a strong and balanced economy should legislate to stop Coles and Woolworths. Politicians concerned for the Australian voice to be heard through high street retail ought to legislate to stop Coles and Woolworths.
But politicians won’t act. When it comes to these matters they are all words and no action.
Without legislation, the ACCC is powerless in this area as time has shown.
I’d be curious if other newsagents in major shopping centres found yesterday very slow. Based on what I have heard, many independent retailers had a very quiet day and probably did not cover wages.
New Years Day is like Australia Day. It’s a day for relaxing and forgetting shopping.
While there are plenty of positives for being in a major centre, a day like yesterday is a definite negative.
I was going through some of my 2012 photos and found this one which I thought newsagents would find interesting. It’s from a homewares and gift store in a mall in Denver in October this year.
The setting of the new products on what looks like a hay bale and a chequered table cloth makes for an eye catching and professional display. I also love the NEW ARRIVALS sign, it makes the point of the display very clear.
Click on the image for a bigger version.
We bought in stock of the Pumpinator to have for school holidays. It sold exceptionally well in January this year and while we did not expect the same interest we thought we’d have a second crack. It seems that we have a new generation of water bombers.
We had space so we put the stock out before Christmas. We sold out in two weeks. While we have ordered more stock for our expected January school-holidays interest, the sales success goes to show that getting stock out ahead of a planned season can be commercially valuable and educating.
We are getting known for fun and interactive products by shoppers who visit the shopping centre mainly at holiday times. We are buying products accordingly.
We have enjoyed good trading over the last three days seeing excellent sales for items we sourced to pitch as part of our port Christmas sales offer. Several other newsagents I have spoken with have said they are experiencing excellent sales as well.
As I mentioned a few days ago, to make the most of these opportunities we sourced product especially and offered valued discounts. Plus we promoted the sale outside the business.
It is at major sale times like this that being in a shopping centre helps.
They have a look of fear in their eyes and an ADHD approach to shopping. Yes, I’m talking about the last minute Christmas shopper, those who leave Christmas shopping to the very last minute.
While they first appear a few days before Christmas, these last minute Christmas shoppers shine the day before Christmas. They are fun to watch, a delight to serve (because they are thankful to have made a purchase) and valuable to our businesses.
I have seen these shoppers today, plenty of them – most spending up big. I chatted with one – he leaves it to the last minute for the thrill of it. The way he explained it, he gets a bigger buzz out of only having a couple of hours available to buy for ten people. He said he even likes it if shoppers give him some attitude. Seriously. That’s some fetish.
The last minute shopping we have seen today and indeed the last few days is a reminder of the value of having a broad offer, holding the line on margin and providing an efficient shopping experience.
This has been a terrific Christmas season.
We are thrilled with December trading so far. Gifts up more than 200% (off a good base). Magazines are up 8%. Stationery up 8% – this is after our consolidation. Boxed Christmas cards are up 22%. Most pleasing is a 9% increase in basket value.
Footnote: newspaper sales are down 20% – primarily because we are starved for stock by our newsagent supplier who continues to short supply.
I was fortunate to see Zoodle, a new retail concept from WH Smith, at the international terminal of Melbourne airport earlier this week.
From the bright yellow fixtures to the brand-name products mix to the name, this is a fresh new business that could fit nicely in a variety of retail situations. It’s very kid friendly, very fun.
In terms of brands, the store offers excellent representation of Lego, Moshi Monsters, Hello Kitty, Crayola and more. Inside the store, the brands are the hero. Zoodle appears above the entrance.
What WH Smith has done with this new format is to pursue change in a way similar to what we need to do in our channel. They have a well-known brand yet have gone with a new brand ahead of this to chase new customers. While it looks like they are still playing with the model, you can see that they are using the new name to drive a departure form a traditional Children’s focused book and other retail store.
Our Newsagency of the Future could benefit from a similar approach. Starting with a completely different name and under this building a new retail format that is relevant to today and the future. What many newsagents have today is more of a homage to a fading past.
One of the important tasks when tidying on the shop floor during busy seasons such as christmas is to ensure that all product tags and labels are set to fully inform shoppers. This makes browsing easier and, with an especially good tag, improves the chances of sales success. Take the tag for this bottle bag from Hallmark – if the tag was left inside the bag browsers not taking notice might miss what the product actually is. The shape of the tag and the text make browsing the item easier and enhance the prospects of purchase.
So, we ensure that our team members know to not only tidy products but also ensure that useful tags, like this one, are showing.
The latest cut in the cash rate by the RBA has come at a good time for retailers as it will further boost consumer confidence as they consider Christmas spending.
We are using the news by making sure all team members know about it and are ready to reinforce the confidence it brings.
While only small, we have seen a change this size boost shopper confidence – based on what people say and even how they act. Given the nature of our business, newsagents are likely to see a reaction sooner than some other retailers.
We have offered Christmas toilet paper in a past and it’s always sold out. We usually brought in 24 or so rolls, a couple of designs. When I saw this display a couple of days ago in Hong Kong I realised that our range was nothing, we were half-hearted. This display is so good that you almost feel compelled to purchase. It grabs your attention and wonder gee if they have this much plenty must be buying it. Someone once told me that smart retailers leverage psychology to drive shopper activity. I suspect that’s in play with this large display of Christmas-themed toilet paper.
Check out how one supermarket in Hong Kong is using cane baskets to make their impulse purchase pitch to shoppers lining up to pay. I like the passive nature of the baskets – they are more subtle than the traditional retail fixturing one sees next to the checkout line. In this supermarket they used the baskets to offer an unusual mix of items. I saw several shoppers purchase from them.
In one of my newsagencies, we have already experienced Christmas sales this year as we did last year more than two weeks from now. It feels as if Christmas is early and bigger than ever.
I was talking with a newsagent yesterday who expressed concern that for their business Christmas 2012 may be worse that Christmas 2011. On current numbers, they are down 11%
While I am sure the difference between both businesses is, in part, a factor of socio economic circumstance for the demographics our respective businesses serve, it reinforces the need for us to manage and market our businesses for broad appeal. We can’t rely for next year on this year’s shopper mix.
There used to be a time when opening the door of a reasonably stocked traditional newsagency was all that was needed for business success. That is not the case today. The only things exclusive to any newsagency today are management skill and customer service. We have to leverage these.
To broaden the appeal of your newsagency think about your regulars and then think about what you need to change about your business and how you would market your business to appeal to shoppers who are not your regulars. It’s hard work, sure, but it is necessary in retail today.
Opening the door is not marketing or management activity. In today’s retail market we have to chase new customers, offer new products and deliver a service experience that is better than expected. If we do this we will broaden our appeal and that is one factor in Christmas success.
In my newsagency enjoying early christmas sales growth, a key difference is the pitch of the business out into the mall. The products on offer this year are less traditional for a newsagency. This is helping attract shoppers from the mall who are not regulars.
I was in a newsagency this afternoon and what I saw four different marketing messages on posters hanging form the ceiling, five different brands being promoted with signage on the walls and more brands (mastheads) partially obscured by boxes.
Posters, branding and signage should only be there to drive sales. They should be current and relevant to our shoppers. The more you put up the less visual value achieve for each.
A single poster by itself will most likely be wasted visual noise and achieve nothing for you or the brand you are promoting.
I have seen situations in newsagencies where fewer posters and signs result in sales growth.
I urge newsagents to stand inside their door today and see what they are presenting to their customers. Remove unnecessary visual noise, take down signs, posters and the like that have been up more than a couple of months – except for the brand of the store itself. Old signs make your shop look and feel old.
The owner of the newsagency I was in did not realise the number of old messages facing shoppers.
Gerry Harvey was in the news again yesterday talking down retail in that shrill style that is so him.
Gerry Harvey believes his Harvey Norman chain will be “the last man standing” as other retailers go bust due to tough trading conditions.
The chairman of the electrical, bedding and furniture retailer has predicted a wave of retailers will close in the early months of 2013 as businesses go under.
Retailers offering a consumers a value proposition are doing well and will do well. I am tired of gerry getting media covering for his doom and gloom. He does not speak for me.
Our sales are up wonderfully year on year. We also are attracting new shoppers with new lines. We are not having to use price as a selling feature – unlike Harvey Norman stores. Indeed, our average margin is up inn2012 over 2011.
This is the front of one of my newsagencies from a couple of days ago, showing how it is now configured for Christmas shopping.
The mall-facing display was reconfigured to better connect with Christmas shopping opportunities.
We have some who visit this newsagency saying that it does not look like a newsagency from the front. Yes, it does not look like an old style newsagency.
Our view is that the world has changed. The changes in retail and print media are enough to cause us to change how we configure our businesses. I want people visiting my shops for reasons that are valuable in terms of margin and relevant to the future. This is what we have gifts and cards as our core pulling factors.
The traffic we attract is valuable for more traditional newsagency lines with magazines and stationery continuing to deliver good year on year growth.
Our strategy at this store is to be the go-to place for seasons and key brand-based opportunities. We engage with the strategy by going beyond what shoppers expect from a traditional newsagency. Our Christmas and One Direction commitments are the two recent examples of this.
Click Frenzy was never going to live up to expectations. The ignorant media shrill was that this was going to save retail – when retail is doing fine actually. The spin recycled by media outlets was that the deals were going to be exceptional.
The long game in retail is about value. Retailers don’t build a value proposition around price (ask Gerry Harvey), especially price managed through a site than cannot manage to keep its virtual doors open during the peak period.
The long game is about reflecting your point of difference through product range and customer service. One reason we are having a bumper (and early) Christmas season is exclusive (and good margin) products.
Retailers relying on a service like Click Frenzy for their future face uncertain times.
Shoppers who connect with your business because of a price proposition are harder to get back than shoppers who connect because of what and how you sell.
It is good to see several employer associations getting coverage for a concerted push on Sunday penalty rates. Years ago, when Sunday trading was the exception rather than the rule, it was a penalty to have to work.
Today, in the world of seven day trading,rates of $35 and hour and more for people who often can only work on a Sunday are untenable, especially in businesses where retailers are unable to charge a penalty to shoppers for using the service.
Regulators need to understand that deregulation has consequences. Deregulating Sunday trading could only ever lead to the elimination of penalty rates on this day. Anything less makes retail business owners financially responsible for poor social policy.
Click here to see the submissions received by Fair Work Australia on this.
I like the look of Small Business Saturday, a promotional campaign being run by American Express and supported by many corporations in support of small businesses in the US. Amex claims that last year one hundred million people shopped in their local communities in support of the event. Check out the website and see the support materials available.
This reads like a terrific event, one I’d like to see one of our banks in Australia get behind. Plenty of media outlets are supporting the event including local outlets like the Hampshire Review.
Almost as if following direction, shopper interest turned 90 degrees to Christmas this week. Without considerably changing product placement and disc plays, Christmas related purchases took off. Cards were the biggest beneficiary of the interest in Christmas for us. Our major Christmas offer goes out over early next week. We’ll get done what we can on the weekend given the strong showing ver the last couple of days.
I mentioned here months ago that same day delivery was the next big thing in online shopping. There was further evidence of this this week with reports that the US Postal service is to trial same day delivery for online retailers.
We have print media disruption and retail disruption challenging the traditional business model.
I was in Guangzhou at the start of this week and had an opportunity to check out some retail. Competition is as fierce as I have come to expect in China. They also redefine scale. take the shopping mall in the photo. I have captured but part of the mall. Shops are full on every level. And on the lower level – at the bottom of the photo – is a floor of discount items unlike any discount area I have seen in Australia. I’d rather play rugby that get in the way of these shoppers hunting for a bargain.
What surprised me was the number of western businesses, major US and European franchises that have come to China and are operated locally. Take Starbucks … while any milk based coffee sucked because of the milk used, the Starbucks service and retail experience was identical to the US experience. The same was true in 7-Eleven.
Too often in Australia I hear people complaining about Chinese newsagents and that they do not respect the newsagency shingle because it’s not how they are. In China this week and a few weeks ago I have seen excellent examples of Chinese small business people respecting the disciplines of retail brands behind which there are disciplines. This comes back to the point I was making on Tuesday in Why 7-Eleven will beat newsagents, our lack of discipline behind the shingle – Newsagent, Newsagency , N – is our weakness.
I got to see a major book store that had a magazine department the same size as a traditional newsagents. their fixturing was almost the same as what I have seen in larger WH Smith stores in the UK.
Another two take aways from looking at so much retail in China recently are that they are customer service focused and efficient retail business operators. They know that good customer service drives sales ad that business efficiency (including inventory efficiency) drives profits. It all comes back to being good business people. I’m grateful for the opportunity for these and other insights.
In the US and some Asian countries Halloween has evolved into a general retail sales season. I saw evidence of this yesterday when I an email from an overseas company with a ‘deal’ on headphones under the banner of a HALLOWEEN SALE – even though the items had nothing to do with Halloween. It noticed the email because of the headline
My first reaction was what?! – how are these headphone connected to Halloween. Then I realised that it didn’t matter. Sometimes a seasonal promotion does not have to directly connect with the season other than the time of the year. Indeed, some retailers embrace Halloween with sales like: Prices so low you’ll be scared!
So, while many Australian retailers roll their eyes at Halloween, the alternative is to embrace the opportunity … to do with it … and to explore how to use it to get attention for your shop and products. We are not doing this in my newsagencies this year but it is part of the plan for 2013.
The announcement by the RBA of a .25% reduction on the cash rate will boost shopper sentiment. It should help retail sales in the run up to Christmas. Feedback across the counter over the next few days will provide an indicator.